FCC Orphanage Assistance

To: FCC Board

From: Aileen Koger, Orphanage Assistance Programs

Re: Distribution of Funds to Amity

Date: September 21, 2005

You may recall at our March Board meeting that we approved distribution of funds to Amity to renew the ongoing programs FCC sponsors in conjunction with Amity in orphanages in China.

However, at that time, we did not have sufficient funds on hand to fund fully all the continuing programs.

While our Annual Appeal was relatively successful and we we were able to provide the full annual costs of the Grandmas and Nursing Team projects, we did not have enough funds on hand to pay full annual costs of foster care and the education projects as well. We agreed to pay in full the costs of the Grandmas and Nursing Teams and to pay what we could toward the foster care and education projects. With further donations in response to our Annual Appeal and additional fundraising efforts, we were confident that by the end of summer we would be in a position to fund the remainder of what was needed for the foster care and education projects. I’m pleased to be able to report that we are indeed in that position at this time. We currently have on hand approximately $65,000.

To review for you, in March we distributed to Amity US$171,480 as follows:

The full annual cost of the Grandmas and Nursing Teams, three-fourths (nine months) of the annual cost of the foster care, and the first semester, or one-half, of the school fees as follows:

- Grandmas: US$49,800 (Full annual cost for 97 Grandmas)

- Nursing Teams: US$18,730 (full annual cost of six nursing teams)

- Foster Care: US$73,795 (for 9 months January through September for 271 children)

- Education: US$17,935 (for the Spring semester 2005 for 387 children)

- Amity's 7% administration fee for all of the above: US$11,220

The balance to be paid in September 2005 was expected to be $45,260, for three months of foster care fees, October through December, and the fall semester school fees.

I have reviewed and updated these programs in exchanges of written reports, emails, and phone conversations with Wu An An, our Amity representative. These reports included Amity project site visits to several orphanages accompanied by FCC representatives.

In confirming the costs for the continuing foster care placements and school fees, I discussed with Wu An An some additions to the initial funding request based on some additions to the projects and on the site visits as follows:

Grandmas Program – four additional Grandmas for the Zhenjiang orphanage, retroactive to January – four Grandmas at 350RMB per month plus Amity’s admin fee requires US$2,200.

Foster Care – Additions to the continuing foster care projects as follows:

- Suzhou - 10 additional children at a cost of 321RMB per month from July to Dec.

requires additional funds of US$2,350.

- Nantong - 2 additional children at a cost of 321RMB per month from Jan. to Dec. requires additional funds of US$940.

Wuhan – We have been sponsoring a Nursing Team project in Wuhan for the past two years at a cost of 350RMB for each of the four nurses each month. However, this is normally the fee for the Grandmas who typically are older women who are retired from other jobs and also receive a government pension. The nurses we sponsor in other locations are paid a salary of 500RMB per month. Amity has requested an increase in the Wuhan nurses salary to 500RMB retroactive to July. Therefore, a total of US$470 is requested at this time.

Changsha #1 – An An conducted a site visit to Changsha last fall. She reported that the orphanage directors were interested in starting a foster care program that would serve twenty special needs children. In addition, Changsha’s new orphanage building would benefit from a playground on site particularly for use by special needs children.

Wu An An has asked for funds to supplement what the orphanage can direct to the foster care program. The amount requested is 100RMB a month per child (our other foster care programs normally require 200 to 300yuan a month per child depending on location). The total cost of the foster care program for this year retroactive to July is US$1,565. For the playground equipment and installation, Wu An An requested FCC contribute US$1,000 toward the cost (the actual cost is appox. $3,000).

Through the Changsha Kids website, these needs were made known to Changsha families by Amy Klatzkin (FCC International Newsletter editor, and former president of FCC Northern California). We have received close to $2,000 in donations designated for these projects.

Recommended Distribution

Balance of Foster Care and Education Fees $45,260

Additions to Foster Care project in Suzhou 2,350

Additions to Foster Care project in Nantong 940

Additions to Grandmas project in Zhenjiang 2,200

Wuhan Nursing Team salary increase 470

New Changsha #1 Foster Care Program 1,565

New Changsha #1 Playground 1,000

The above figures include Amity’s 7% administration fee.

Total Distribution $53,785

This distribution would bring our total 2005 funding of Amity projects to $225,265. It would leave us in excess of $10,000 on hand going in to the new fiscal year.