Income of the foundation comes from clinical service, donation, fund raising activities, seminars & courses and other activities. The foundation aims to retain every single donated, raised and earned dollar as surplus after deducting the necessary operating costs. Scholarship expenditure is deducted from the surplus if a right candidate is identified to receive the scholarship. The remaining surplus is saved as reserved fund to fulfill the mission of setting up the first future chiropractic college in Hong Kong.
It is the fourth year of the foundation, which continued to make good progress in raising income, increasing sponsorship and accumulating surplus.
Total income amounted to HK$7,022 thousands, an increase of 38% over last year. Major income of clinical service amounted to HK$4,733 thousands, an increase of 54% as compared to last year. This is the result of additional consultation income generated from a new chiropractor joining the clinical service. Another crucial fast growing income of fund raising activity amounted to HK$1,263 thousands which was more than double over last year. Only one single fund raising event of World Spine Day 2015 was held as the foundation allocated substantial resources to plan and organize this sizable event. Donation amounted to HK$568 thousands which was 52% below 2014. The reduction in donation was due to a one-off significant donation of HK$1million in 2014. Income from seminars & courses and other activities amounted to HK$458 thousands, a slight increase of 2% above last year.
Total expenses amounted to HK$4,797 thousands, an increase of 48% over last year. Increased costs were due to a variety of reasons, including expanded clinical service, larger scope of fund raising event and increased scholarship to more student chiropractors. Clinical service cost amounted to HK$3,557 thousands, an increase of 39% from last year. The foundation managed the clinic effectively that clinic income growth rate of 54% is higher than the respective cost increment rate of 39%. Fund raising cost amounted to HK$574 thousands, an increase of more than double over last year. Fund raising event margin in fact increased from 52% last year to 54% this year despite higher cost incurred this year. Scholarship expenditure amounted to HK$291 thousands, an increase of 90% over last year. The foundation granted another scholarship to the second candidate to start chiropractic study this year. Seminars & courses and other activities cost amounted to HK$240 thousands, an increase of 25% over last year. While higher total costs incurred, the foundation managed administration costs of HK$135 thousands effectively at 3% of total expenditure as compared to 5% last year.
Surplus in 2015 was HK$2,225 thousands which was 20% above last year.
Year to date cumulative reserved fund has reached HK$6,236 thousands since the foundation was setup. As establishing a chiropractic college would need capital of hundreds of millions of dollars, current reserved fund pool is far from sufficient to complete this mission. Thus, the foundation continues to focus on income generating activities.
The foundation is accountable to the people who kindly provide trust and support. Management of the foundation ensures donations are effectively allocated and surplus is safely guarded to fulfill the mission of establishing a local chiropractic college in the future.
Details of income, costs and surplus are listed below to provide transparency of fund allocation. Details of the annual audit report can be found in the website.