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Table of Contents
1 Introduction...................................................................................................................................3
Current Situation at the Orphanage..............................................................................................3
Problems.......................................................................................................................................3
Solutions.......................................................................................................................................4
Effects of Orphanage on the community.....................................................................................4
2 SMART Objectives:......................................................................................................................4
2.1 Objective 1:............................................................................................................................4
2.2 Objective 2:............................................................................................................................4
3 Character Traits of Our Service....................................................................................................5
4 Market Research...........................................................................................................................5
5 Pricing and Promotions.................................................................................................................6
6 Operations Plan.............................................................................................................................7
6.1 Organization Chart................................................................................................................8
7 Financial Concerns.......................................................................................................................8
Government of UAE and the Orphanage.....................................................................................9
Financial Income Working Capital..............................................................................................9
Master Budget............................................................................................................................10
8 References...................................................................................................................................18

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1 Introduction
The UAE is an economic hub for individuals seeking employment and business opportunities
from all countries of the world. Despite the boom in economic activity and the riches from
abundant oil reserves, 19.5% people in the UAE live under the poverty line1. The rulers and
sultans of these states are beyond wealthy, but middle class and poor residents of the UAE have
to face a number of social issues. Because of the availability of potentially wealthy donors, we
thought it fit to start an orphanage for young children funded by the wealthy class of the country,
aimed at improving living standards for orphans who do not have homes to live in. The social
impact of this non-profit orphanage is bound to be massive, and will bring hope to the lives of
many. We call our organization Hope Village.

Current Situation at the Orphanage


The UAE government is in the phase of constructing orphanage for abandoned babies, victims of
family abuse and others who have nowhere to go, and the orphanages in UAE are scarce at the
moment (Nereim, 2012). The situation at the Hope Village is very critical at present and Hope
Village requires support from the government and other donors to jump start its operations.

Problems
The problems regarding orphanage in UAE are:
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Shortage of orphanage
Increased gap between the rich and poor members of the society
Abandoned babies
Victims of Family abuse
People without a home
Financial support for the orphanage

Solutions
UAE is an oil rich economy with influential citizens who are more than rich, therefore a lot of
support could be received from donors and the government to support the orphanage.
1 The CIA World Factbook United Arab Emirates, Retrieved from https://www.cia.gov/library/publications/theworld-factbook/geos/ae.html

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The increased gap between the rich and poor could be reduced by the support from the rich for
orphans, by adopting these orphans the rick could help to provide home for abandoned babies,
victims of family abuse and people without a home.

Effects of Orphanage on the community


The orphanage will have positive effects on the community by reducing the number of people
present in the society. Also the social class differences will be reduced by supporting people
without a home and providing future for orphans. The orphanage will also help to reduce the
social issues in the community, without orphanage these homeless people are at the mercy of the
world and may get involved in stealing or other crimes due to lack of resources, education,
housing and food.

2 SMART Objectives:
2.1 Objective 1:
To provide a shelter, free education and food to street orphans and underprivileged children of
the UAE, by taking them in and empowering them with skills for a better future at a childfriendly center that focuses on making the lives of these orphans blissful.

2.2 Objective 2:
To raise an amount of Dh 100,000 by the end of one year and doubling the amount by the end of
the second through charity social events that invite potential donors from all professions of life.
Since our business is a non-profit business primarily, the success factor of the business can be
measured by looking at the enrollment and welfare of children that register themselves at the
center. Therefore, once we house 500 children in our premises, itd be safe to say that our nonprofit has done well.

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3 Character Traits of Our Service

This project will serve underprivileged children and street orphans of different ages, by
providing them a shelter, food and education; and a surrogate family too ideally in the state of
Abu Dhabi. The mechanism of the plan will work on a system of adoption. Affluent families that
can afford to pay for the living and educational expenses of a child can adopt an orphan from our
center and pay for the expenses. They can then act as the childs surrogate family, visiting them
at our premises often and also taking them to their homes on particular weekends. This will form
a family like bond with their surrogate families, where young orphans will be able to live in
actual families and experience actual relationships. The center will be built like a child friendly
space, with recreation and sport activities available for the children. They will be placed in
dormitory-like rooms and will be provided with meals in proper dining areas. In addition to
regular activities, funds raised through charity events and donations will be used to provide these
children with necessary computer skills and trainings in order for them to secure a bright future.
Special scholarships will also be provided for bright students so that they can attend college and
university at the expense of the center.

4 Market Research
To determine the importance of this orphanage, it is important that we conduct a market analysis
and a proper marketing plan that would ensure the success of this social venture. The existing
scenario of non-profits in the UAE is dominated by the agenda of different foundations that
promote different causes. Some organizations are purely humanitarian, others are communityspecific; some promote animal rights and others promote the stoppage of drug use. There are a
few nonprofits in the UAE that work solely for the cause of protecting child rights and providing
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shelters for orphanages. A few organizations that work for the rights of children include Start
UAE, Dubai Autism Center, Dubai Cares, Manzil Center for Challenged Individuals and Sharjah
City for Humanitarian Services. Our idea of shelter provision and adoption presents a very childcentric cause and is thus bound to attract appreciation and funding from affluent families and
potential donors from developed countries as well. There are a number of skills that can be
taught to these children, and a number of professions to choose from given the economic activity
of the UAE in general. From the funding point of view, we know that the per capita income of an
average resident in the UAE is an overwhelming $49,000 per year2. This implies that the people
on average have the capacity to spend a portion of their money in donations and charity. The
princes and rulers of these states are very affluent and powerful people and have contributed to
the works of charity in the past as well. There is also a scope of raising funds through charity
events such as a charity fashion show, because of the abundance on events that happen all year
around, with participants from all over the world.

5 Pricing and Promotions


The adoption scheme of every child will work on a mechanism that will include the cost of food,
shelter, clothing and education. The subsidized price per child will be set at around Dh 1000 per
month. This will include his/her whole welfare package. Whatever his/her surrogate parents
wish to give above the amount is according to their own will. The center will be promoted
through the use of social media marketing, and internet marketing primarily. The centers
website will have a donate option on its home page, on which people can click and donate
amounts accordingly. Other promotions will be done through extensive networking with
potential donors at charity and other events.
2 Ibid.
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6 Operations Plan
The center will be like a home for underprivileged children, and everyone there will be kept in
close proximity to each other. This will enable these children to feel like they are part of one big
family while they stay at these homes. This is why school going children will be enrolled in a
local school, and every morning, the administration will arrange for a van/bus that will take the
children to school. Those children who are older and aspire to acquire skills will be given a
choice to attend skills workshops at the center that will equip them will the necessary skills to
build their future. The project coordinator, under the supervision of the board and the executive
director will determine which skills workshops to offer at the center. Major management
decisions will be taken by the board, while the director will execute these decisions. There will
also be one social worker that will constantly overlook all social and charity-prone activities of
the center including the fundraisers. He will be in charge of the childrens health, psychological
development and educational needs overall. There are a few equipments that our operations will
require, including office equipment like printers, fax machine, a few computers, internet, and
office fixtures. With that, the center will need a few swings, indoor games and sports equipment
on the side for the orphan children.

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6.1 Organization Chart

7 Financial Concerns
The startup costs and infrastructural development at the premises will be met with an endowment
fund, supported by the board and one potentially affluent donor. We expect an endowment fund
of Dh 500,000 through proper networking and startup donations. Most of the fund will go into
establishing proper premises where children can feel safe and can be accommodated easily.
Running costs and operation expenses will be managed with side investments using the
endowment fund and other funds rose through fundraisers. The adoption money will also be
utilized to pay revenue expenses of the non-profit and other major costs like salaries and wages
of the employees.

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Government of UAE and the Orphanage


The government of UAE is very supportive for orphanage as the government is already
constructing an orphanage to be completed in 2016. The government is providing performance
based support for the orphanage to make sure that the budget gets spent on orphans. UAE has so
many donors who also support social causes these donors could also be pushed by the
government to support The Hope Village.

Financial Income Working Capital


Working capital is a complex issue for a not for profit organization like The Hope Village,
therefore the orphanage is targeting the corporate world to provide advertisement opportunities
and charge a fee in return. The orphanage will also run an awareness campaign seeking funds
from donors to manage the working capital needs of The Hope Village. At the moment the Hope
Village solely relies on the funds received by the government and other donors.

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Master Budget

"The Hope Village" Master Budget for 20X3 & 20X4

The Hope Village

The Hope V

Opening Balance Sheet

Balance S

01-Jan-13

01-Jan-

Assets
Cash

788400

Accounts receivable

764

Inventory

825
15000

Equipment

80000

Less accumulated depreciation

Total assets

8000
80000

800

883400

854

Liabilities and Equity


Liabilities
Accounts payable

20000

Note payable to bank (12% per year)

2400

Long-term notes payable 6% interest per


year

0
22400

500000

Total liabilities

200

522400

240

Shareholders' equity
Ordinary shares

361000

Retained earnings

Total liabilities and equity

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418500
361000
883400

235925

654

854

Sales Budget
1st Qtr
Prior quarters Funds
Received

Funds Received from UAE


Govt.

2nd
Qtr

3rd
Qtr

4th Qtr

2nd
Qtr

3rd
Qtr

100000

10000
0

10000
0

100000

400000

2013 1st
Qtr
0
0
0
30
0

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1st
Qtr

10000
0

10000
0

10000
0

Purchases Budget
1st Qtr
0
25%

2nd
Qtr
0
25%

3rd
Qtr
0
25%

4th Qtr
0
25%

1st
Qtr
0
25%

2nd
Qtr
0
25%

3rd
Qtr
0
25%

12

12

12

12

12

12

12

Budgeted cost of
goods sold
1st Qtr
This quarter's unit sales

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2nd
Qtr
0

3rd
Qtr
0

4th Qtr
0

1st
Qtr
0

2nd
Qtr
0

3rd
Qtr
0

Budgeted $ cost per unit


(multiply)
Projected cost of goods
sold

12

12

12

12

12

12

12

Cost of goods sold for


the year

Budgeted inventory
for December 31st
Units
Cost per unit - $
(multiply)
Total

12

12

Working Capital
Budget

Budgeted Cost of
operations

Upper Management and


staf

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1st Qtr

2nd
Qtr

3rd
Qtr

4th Qtr

1st
Qtr

2nd
Qtr

3rd
Qtr

100000

10000
0

10000
0

100000

10000
0

10000
0

10000
0

70000

70000

70000

70000

70000

70000

70000

General and
Administrative
Expenses Budget
2nd
Qtr

3rd
Qtr

1st
Qtr

2nd
Qtr

3rd
Qtr

30000

30000

30000

30000

30000

30000

30000

Depreciation

8000

8000

8000

8000

8000

8000

8000

Interest on long-term
notes - 0.5% monthly

3000

3000

3000

3000

3000

3000

3000

Interest on short-term
notes - 1% monthly

75

41075

41000

41000

41000

41000

41000

41000

1st
Qtr

2nd
Qtr

3rd
Qtr

1st Qtr
Administrative Salaries

Totals

4th Qtr

General and admin


expenses yearly total

164075

Expected Funds

Funds Received

Ending accounts
receivable - 75%
(multiply)
Cash receipts

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1st Qtr

2nd
Qtr

3rd
Qtr

100000

10000
0

10000
0

100000

10000
0

10000
0

10000
0

75%

75%

75%

75%

75%

75%

75%

75000

75000

75000

75000

75000

75000

75000

4th Qtr

75
%

Cash Budget

Beginning cash balance


Cash receipts

1st Qtr

2nd
Qtr

3rd
Qtr

1st
Qtr

2nd
Qtr

3rd
Qtr

788400

66292
5

55992
5

456925

35392
5

25092
5

14792
5

788400

66292
5

55992
5

456925

35392
5

25092
5

14792
5

20000

70000

70000

70000

70000

70000

70000

70000

30000

30000

30000

30000

30000

30000

30000

3000

3000

3000

3000

3000

3000

3000

75

123075

10300
0

10300
0

103000

10300
0

10300
0

10300
0

665325

55992
5

45692
5

353925

25092
5

14792
5

44925

625325

51992
5

41692
5

313925

21092
5

10792
5

4925

2400

4th Qtr

Equipment sales
Shares issue
Total cash available
Cash payments
Payments for
merchandise
Sales delivery expense
Salaries
Funds
Administrative
Interest on long-term
notes
Dividends
Interest on short-term
notes
Total cash payments
Preliminary balance
(Total cash available Total cash payments)
Additional loan (min cash
balance 40,000) (add)
Amount Available for
loan repayment if any
Loan repayment (minus)

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3
%

Ending cash balance (4th


quarter balance appears
in balance sheet)

662925

55992
5

45692
5

353925

25092
5

14792
5

Budgeted Income
Statement

Funds Received
Cost of goods sold
(minus)
Gross profit

40000
0

40000
0

40000
0

40000
0

Operating expenses
Sales expenses
General and
administration

164075

16400
0

Total operating expenses

16407
5

16400
0

Net income (Loss)

23592
5

23600
0

Budgeted Statement
of Retained Earnings
Beginning retained
earnings (given)

23592
5

Net income

235925

23600
0

Funds available for


distribution

235925

47192
5

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44925

Less cash dividends


Ending retained earnings

235925

47192
5

Budgeted Balance
Sheet

AACo

AACo

Budgeted Balance
Sheet

Budgeted Balance Sheet

31 Dec 20X3

31 Dec 20X4

Assets
Cash

76472
5

Accounts receivable

82500

Inventory
Equipment
Less accumulated
depreciation
(depreciation in opening
balance sheet plus
depreciation expense for
the year)
Total assets
Liabilities and Equity
Liabilities

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58912
5
82500

0
45000
0

8000

800 7200
85442
5

- 41880
31200 0
10904
25

Accounts payable

Note payable to bank

0
0

Long-term notes payable

20000
0

Total liabilities

20000
0

0
20000
0
20000
0

Shareholders' equity
Ordinary shares

418500

Retained earnings

235925

Total liabilities and equity

41850
0
65442
5

47192
5

85442
5

89042
5
10904
25

8 References

Araboo, UAE Social Organizations, 2013. Web. Retrieved 24th March 2013.
The Central Intelligence Agency , World Factbook, United Arab Emirates, 2013. Web Retrieved
24th March 2013
Immostreet, All property listings for al-Marakaziyah, 2013. Web. Retrieved 24th March 2013.
Nereim, V. (2012, December 25). Orphanage for UAE's abandoned babies to open in 2016.
Retrieved April 18, 2013, from The National: http://www.thenational.ae/news/uaenews/orphanage-for-uaes-abandoned-babies-to-open-in-2016

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