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African Enterprise Ltd: mini-charity review

Care:  At least some of the information about this charity is no longer current.  Use the ‘Search charity names’ box to see if there is a later review.  If the latest review has a message like this, you are welcome to make your case for an updated review via email to ted@businessbythebook.com.au.

Mini charity review of African Enterprise Ltd (AEA) as an organisation that seeks donations online. (Including the answers to the questions that the Australian charity regulator, the ACNC, suggests that you ask.)

(To see the situation last year, read this review.)

Is it responsive to feedback?

  • When sent a draft of this review, the Executive Director responded the same day. As a result, some information has been included under ‘What impact are they having?’

Is AEA registered?

  • As a charity, yes.
  • Other registrations:
    • AEA is a public company, a company limited by guarantee.
    • It operates in all states except the Northern Territory, and has a fundraising licence in all states that have a licensing regime.
    • It does not have the necessary provisions in its constitution for it to omit ‘Ltd/Limited’ when using its name.
      • It uses the name African Enterprise Australia on Facebook, and African Enterprise on the website.

What do they do?

  • Contrary to what it says on the website, AEA is not directly involved in Africa:
    • ‘As a support region our core purpose is to raise the requisite resources to finance and equip the work of all our brothers and sisters in Africa who are involved in evangelising the cities of Africa in word and deed in partnership with the church. We seek to inform, inspire and engage new generations of supporters to partner with African Enterprise to pray and financially give to the Ministry’ .
  • They operate in Hong Kong and New Zealand, but there is no mention of this connection on the website.

Do they share the Gospel?

  • No. (They raise money for those that do.)

What impact are they having?

  • For AEA, ‘impact’ means those who were the subject of development efforts or who heard the Gospel preached.
  • The results that were achieved from the money sent by AEA and other countries included:
    • 51,987 People committed their lives to Christ through Mission Outreach’
    • ‘9,220 People committed their lives to Christ through Community Development Projects

What do they spend outside the costs directly incurred in delivering the above impact, that is, on administration?

  • If we assume that the impact is represented by the amount declared in the AIS 2015 as ‘Grants and donations…for use outside Australia’, then it cost AEA $705K to send $1.39 m.
    • You might ask them why it wouldn’t be more efficient for you to send your donation direct to Africa.

Can you get a tax deduction?

  • Not to AEA itself, but to the fund it operates, African Enterprise Aid and Development Fund.

Is their online giving secure?

  • Security is not mentioned.

What choices do you have in how your donation is used?

  • ‘Missions’
    • ‘PTC Designated (M)’
      • ‘PTC’ is not explained
    • ‘Web – Missions (M)’
    • ‘Other’
  • ‘Aid and Development’

Is their reporting up-to-date?

  • Yes. (Six months after year end, three days before the deadline.)

Does their reporting comply with the regulator’s requirements?

  • AIS 2016: No
    • The financial information should be for AEA, not the group.
    • The activities are not those of AEA, and there are no outcomes.
  • Financial Report 2016: No
    • There is no audit report.
    • The Responsible Entities’ Declaration is unsigned (no doubt the consequence of submitting the Report as an Excel spreadsheet).
    • There is no related parties disclosure.

What financial situation was shown in that Report?

  • There is no disclosure of where the money that was raised, after expenses, was sent.
    • Or of what controls there were to ensure that the money was spent for the purposes for which it was given.
  • After a surplus of 9% of revenue last year, a deficit of 6% was recorded this year.
  • ‘Fundraising costs’ were 16% of expenses.
  • Working capital (current assets less current liabilities) is strongly positive.
  • ‘Unsecured interest-free loans’ are incorrectly classified as ‘Trade and other payables’.
  • There are minimal long-term liabilities.

What did the auditor say about the last financial statements?

  • We don’t know – no audit report was included in the Financial Report.

If a charity, is their page on the ACNC Register complete?

  • Yes

Who are the people controlling the organisation?

To whom is AEA accountable?

  • Although not mentioned on the website, AE is an Associate member of Missions Interlink. Missions Interlink has an accountability regime[1]
  • They are also accountable to the ACNC.
  • Although they operate an overseas aid fund, they are not a member of the Australian Council for International Development (ACFID).

 

 

 

  1. For one opinion on the strength of that accountability, see the section Activities in this review.
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