IF - www.indigofoundation.org

The financial year ended June 2008 was a period of growth for IF, finishing in a healthy financial position.

§ 68% increase in donations compared to last year; project costs covered comfortably

§ 25% increase in project expenditure

§ Macquarie Bank matches $10,050 in donations to Afghanistan

§ Paid IF coordinator employed

.The hard work of volunteers and generosity of donors resulted in income of $108,535. With this we were able to meet the demands of our projects and generate a net surplus for the year of $28,441. This is excellent news. We pay tribute to our donors, for without your support IF’s projects would not be possible.

Total expenditure for the 2007-2008 financial year was $80,094, an increase of almost $26,000 on 2006-07, illustrating the expansion IF has experienced. Of this, $63,035 went into support for projects.

Administrative Costs - Just over $11,000 was paid as salary for our coordinator. Administration costs, excluding the coordinator’s salary represent 7.5% of expenses. In total, administration costs are 21%. The industry benchmark for the cost of administration and marketing in quality programming is 20-25%. Whilst the employment of a coordinator has significantly increased our administration costs, as outlined in last years Annual Report, the sustainability of IF and the need to manage growth requires a dedicated paid position. We expect over time that this cost as a percentage of overall expenses will decrease as our growth strategy is implemented.

Projected Expenditure - We plan a sustained focus on fundraising in 2008-09 to ensure IF meets its commitments to continuing projects as well as new projects in Thailand, Uganda and elsewhere. Projected expenditure for 2008-09 is approximately $115,000, almost double our spending this year. Our aim for next year is to reduce net surplus, currently 24% of income to 20%. This will mean that donors’ money is reaching the projects in good time, whilst we retain sufficient resources to meet our commitments for the following quarter.

Following on from last year’s net surplus, this year’s operating result has contributed to a net asset position for IF of $108,067 – around $26,000 more than last year. This amount is made up of current assets, cash and amounts receivable. IF had no outstanding liabilities at 30 June 2008 in a formal accounting sense, but is committed to full funding of our Commitment Agreements with the communities with whom we are in partnership.

The financial statements, presented on the following pages, are prepared on a cash basis and comprise:

The statements are special purpose financial statements and have not been audited.

Financial Report