Save the Children Canada

About Save the Children Canada:

Founded in 1921, Save the Children Canada works toward a world where every child is safe, healthy, and has economic opportunities. The charity serves immediate needs by providing food, water, and healthcare, and improves lives in the long term through education and promotion of gender equality.

Save the Children Canada is a branch of Save the Children International, an organization that collected US$1.3 billion from its 28 members in F2017. The largest contributing member is Save the Children US with $500 million in F2017, followed by groups in the UK, Sweden, Norway, and Italy. In F2017, Save the Children Canada granted US$27.1 million to the international organization, representing 2% of Save the Children International’s total revenues.

In April 2018, Sir Alan Parker resigned as the international organization’s chairman after allegations that the charity failed to investigate the alleged sexual abuse and inappropriate behaviour of former executives, Justin Forsyth and Brendan Cox. 

In F2017, Save the Children Canada allocated $45.4 million to international programs, including US$27.1 million (approximately CAD$35.1 million) received by Save the Children International. For international programming, 50% was allocated to programs in East Africa, 20% to the Middle East, 16% to West Africa, 11% to South America, and 3% to India/Asia.

In F2017, Save the Children International ran programs in 120 countries, working with 49.1 million children. There were 33.3 million children involved with health and nutrition programs, 9.7 million in educational programs, and 4.4 million in extreme poverty were provided basic needs. The charity distributes emergency supplies in disaster areas, recently providing 7 mobile health teams in Yemen and using an Italian ship to retrieve 2,705 refugees from Syria. It supports eight universities which offer masters programs in children’s rights.

An estimated 600 million children live in extreme poverty and 168 million work in harmful conditions instead of going to school. The charity’s Children Lead the Way program worked in Bolivia, Burkina Faso, Kenya, Nicaragua, and Peru, encouraging children to remain in school and avoid dangerous work. Youth in Action is a similar program with an additional mentoring aspect and focus on entrepreneurship. MasterCard Foundation funded the program for six years, providing Save the Children with $39.8 million.

In F2017, Save the Children Canada allocated 2% of program spending to Canadian programming. The charity provides books, supplies, and social support to children and mothers in First Nations, Metis, and Inuit communities. In F2017, the charity connected 200 women with midwives who provided support during childbirth. Emergency preparedness training was provided to 5,000 youth and adults in Ontario and Manitoba.

Results and Impact: Save the Children’s Youth in Action program increased the financial literacy rate of participants in Malawi from 22% to 64%. In Uganda, participants’ daily income nearly doubled after the program and 85% of female, Egyptian program graduates had a job compared with 13% before the program.

The Lead the Way program operated in a Nicaraguan community where the primary school completion rate increased from 40% to 73% at the end of the program. Graduation from vocational training was improved from 4% to 40%. The program allowed for 177 children to return to school. In Peru, Lead the Way has seen a 95% graduation rate for primary school and 86% graduation rate from secondary school. Of the Peruvian children in the program, 90% report understanding their rights to education, protection, participation, and play.

Financial Review:

Save the Children Canada is a Major 100 charity with donations of $22.1m in F2017. The charity received $25.2m in government funding, representing 51% of total revenues. In April 2018, the UK government’s Charity Commission opened an investigation into Save the Children’s handling of the allegations of sexual misconduct and harassment. Since this time, the UK government has provided no funding to the charity, but the Canadian government has continued its funding. Donations from Global Affairs Canada since the Save the Children scandal total $7.5m. 

Administrative costs are 6% of revenues and fundraising costs are 21% of donations. For every $1 donated, 73 cents go to the cause, falling within Ci’s reasonable range for overhead spending. Save the Children Canada has $18.1m in funding reserves which could cover program costs for almost five months.

This charity report is an update that has been sent to Save the Children Canada for review. Changes and edits may be forthcoming.

Updated on August 2, 2018 by Madison Kerr. Financial analysis completed by Kate Bahen.