Working from our warehouse in Bredasdorp in the Western Cape you have helped us serve 3000 mothers and babies with the Hug a Baby bag. Your support has enabled us to not just impact the 3000 mums and 3000 babies but to encourage 100 nursing staff; 400 people in the supply chain and another 6000+ members of families who have seen the bag. That is more than 12000 people who have seen the love gift you have helped us give and that is every year! Well done, be encouraged.
Let’s stay with figures. We went to the local supermarket that stocks baby outfits and did some pricing. We priced every item we put into the Hug a Baby bag. Were we to buy at the lowest price regardless of quality, the contents would cost R220=£17.30 minimum. With donations of knitting and other items our direct material costs are R33-£2 per bag for generally much better quality items, yes R33- £2. We need to add to this figure the overheads of warehouse, transport, office and administration, there are no salaries. With that the gross cost is R66-£4 per bag. Our costs are 23% of the local retail. If we could register for VAT, we could reduce that even more.
Can you see how your contribution of money or goods makes such a positive impact, not just on the cost, but more importantly on the life of the mother and baby, well done, be encouraged.
We are privileged to have a very helpful primary donor overseas to whom we are most grateful. However it is very important for charities to try to reduce their dependency on donors who are not permanent. Becoming self-sufficient avoids vulnerability and releases donor’s money to other causes. Hug a Baby is a registered Public Benefit Organization that permits it to trade up to R2,000,000 a year tax free. In 2017 and 2018 we shall respond to opportunities to actively trade through our textile workshop in Bredasdorp. It may mean that we can recover some of the R35000+ vat we pay each year. It may also mean we positively help some of those women we have already trained. They live in Bredasdorp where there is no work. This rural town is outside of the normal textile trading activities of cities. That does not mean it is not possible and we owe it to our sponsors and mothers and babies to try.
We look forward to your continued encouragement and support, which we really do need, you are so much appreciated.
Much love Fran