Finances

Business Model

Hope for a Child is a Charitable Company Limited by Guarantee. We operate a lot like a normal business except our profits do not benefit shareholders. All income after costs is used to further our aims for children living in poverty.

Our governance structure helps to ensure funds are well managed, spent as intended and conflicts of interest are managed.

100% of all donations go straight to Malawi

A beautiful thing about our model is that it enables us to apply 100% of all donations directly to projects in Malawi.

How is that possible?

We generate the majority of our income by selling goods and services — like a chance to win a lottery prize or a product from Hope Store. As well as generating significant profit for our work in Malawi, these activities cover our core costs, like rent and salaries. They are the engine that keeps us charging forward.

We rarely ask for donations. When we do it is normally to help with an emergency situation like Storm Freddy, which caused devastation in Malawi in 2023. In these circumstances 100% of the funds received go straight to Malawi.

From time to time we receive grant funding from bodies like the Guernsey Overseas Aid & Development Commission, to which the same applies.

Participants in our lotteries and shoppers at Hope Store should understand that by purchasing, they are not making a donation. A portion of their payment will contribute towards running the initiative and covering core costs of the organisation.

For example, we distribute over £230,000 in prizes each year, pay salaries and rent premises. After these costs there are significant amounts remaining to further our aims for children in Malawi. We are able to achieve an enormous amount because of the involvement of the public in these initiatives.

This model is different to charities who rely on donations. We have built this approach intentionally, believing it to be more sustainable, impactful and enjoyable for us and our supporters.

If anyone wishes to make a donation they should visit the giving page HERE. As stated, 100% of this will be used directly on our work in Malawi.

Salaries

We believe that dedicated and qualified staff are essential if we are to achieve anything of lasting quality. We pay staff properly, creating opportunities for them to make a career of changing lives and to give their full attention to producing world-changing results. We pay salaries to a part-time team in Guernsey (6 people in 2024), who oversee our projects in Malawi, run our business initiatives in Guernsey and administer the company.

2022

In 2022 we generated the majority of our income through The Big Summer Lottery, The £5 Lottery Club and Hope Store.

After paying costs of generating funds like prizes (we handed out over £230,000 in winnings), transaction fees and salaries, our net income in 2023 totalled £625,658.

Over the year our charitable spending totalled £494,392. Here is a breakdown of that spending:

  • Malawi projects: £262,726 (53.1%)

  • Hope Store purchases from Malawi, Ethiopia, Tunisia and elsewhere: £57,238 (11.6%)

  • Donations to Guernsey charities: £48,969 (9.9%)

  • Premises (Hope Store & Office): £43,736 (8.9%)

  • Salaries (direct charitable): £43,315 (8.8%)

  • Support costs (Accounting, transaction fees, ICT etc.): £38,408 (7.8%)

2007 – 2022

Between 2007 when Hope for a Child was born, and the end of 2022 we have spent £2,352,703 on charitable activities, supporting families overseas as well as charities working with children in Guernsey.

The following are 12 Guernsey charities benefitting local children that we have had the privilege of supporting, past and present:

  • Action for Children

  • Autism Guernsey

  • Every Child Our Future

  • Friends of Frossard Children’s Ward

  • Guernsey Arts Commission

  • Guernsey Sports Commission

  • Home Start

  • Priaulx Premature Baby Foundation

  • The Hub

  • The Saumarez Park Playground Appeal

  • Trauma Recovery Centre


Do you have any questions?

Please feel free to contact us. Email: tom@hope.gg.