not for profit

Can you give me 5 minutes of your time?

Thank you! I know time is precious.

Today, instead of writing a newsletter I put it in a video for you.

Please watch the video below - and feel free to share it with your friends.

Thank you so much watching - your support means the world to us!

WOW! That's all I can say!

You have been incredible.

It is not even December yet, and we have already surpassed our initial goal of $5,000.

We are deeply grateful.

That said, this doesn't mean an additional donation isn't going to help us. If we can raise another $5,000 then we have all the medical supplies, fuel and maintenance for the motorbikes for 1 year funded as well.

Do you think we can make it before Christmas?

I believe in you.

Fuel, medical supplies and maintenance of the two motorbikes costs AUD $5,000 each year.

This will enable us to deliver quality healthcare to children, people with disabilities and the elderly within our communities. People, who otherwise wouldn’t receive any healthcare.

You can read more about how our outreach project is changing lives here:

Thank you

Nina

P.S.

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Hold a bake-sale, charity dinner, or raise money at your office or school.

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Best Innovation in Corporate Social Responsibility

Australia for Cedar Tanzania received a Highly Commended award for our mushroom project in Tanzania.

This award is part of Australia-Africa Minerals and Energy Group’s (AAMEG) yearly Africa Awards presented as part of the Africa Downunder (ADU) conference.

ADU is the largest mining conference with a focus on Africa held outside Africa, and AAMEG is the peak body representing Australian companies engaged in the development of Africa’s resource industry. 

What is Kilimu Bora | Smart Farming?

Kilimu Bora means Smart Farming in Swahili. All projects under this banner revolve around food security, entrepreneurship, gender equality, climate change, nutritional health, and the environment.

Our first Smart Farming project has been the establishment of mushroom farming. This includes mushroom growth, drying methods, business skills and export agreements.

Mushroom farming as a business is new in Tanzania, and we are one of the leading pioneers in the area.

Through this project we are addressing a range of social, economic, and environmental challenges. We provide skilled training for vulnerable groups such as young women and people with disabilities and their household members.

Participants are offered hands-on of training, in which they are taught both the agricultural and business aspects of operating and managing a mushroom farm. The training includes how to grow and harvest mushrooms, preparing substrate, drying and packaging, how to meet international sterilisation and hygiene standards, quality control, bookkeeping, environmental best practises and compliance, market navigation, and customer service. The participants also learn how to source organic substrate materials locally and how to store this for optimal produce production.

Our high-quality mushrooms can be sold both locally and internationally thanks to our innovative custom-built driers, not using electricity but only the heat from the sun and a clever use of the airflow.

During the selection of participants priority was given to young women and to people with disabilities or their household members.

Gender inequality is prevalent in Tanzania and starts for girls already at a very young age when they often are deprived of the chance of an education in favour of their brothers. Without a good education, many girls and young women will remain both financially and emotionally dependent on parents, partners, or husbands. People with disabilities bear the double burden of poverty and exclusion due to financial, social, and environmental barriers coupled with a high degree of stigma present across Tanzania.

 

Why Mushrooms? 

90% of the Tanzanian population of 60 million people are living on less than $5.00 PPP. 49% is surviving on less $1.90 PPP per day – the international definition of severe poverty. Of these, the vast majority, 80%, are living in rural areas such as the Nyamatongo Ward.

Choosing mushrooms as the vehicle for agri-business is beneficial for several reasons:

No Land Required

Mushrooms are grown in buckets and indoors, and hence easier allow women and disabled people to become equal participants in their family’s and community’s economic life.

Research shows that fewer women and people with disabilities own land, and that they do not have equal access to manual labour.

 

Year-Round Crop, Independent of Rainfall

Through careful selection of species and growing conditions, mushrooms can be grown year-round regardless of change in rain patterns.

Climate change has shown irregularities to rainfall in the region with current draught and famine in the Horn of Africa. More specifically, the Mwanza region has experienced persistent irregular rainfall over the last number of years, which can have extensively harmful effects on local agriculture.

 

Minimal Initial Investment

This allows for economic opportunity even for women and people with disabilitiess with minimal control of their family finances.

Our project encourages collaborative farming and includes financial support and training during the initial set-up period.

 

Fast Return on Investment

The mushroom growth cycle can be as short as 8-10 weeks, allowing farmers to see profit extremely quickly.

This is important for the ability to establish income and re-investment in next growth cycle.

 

Not Labour Intensive

Mushrooms can easily be grown by any member of the household without the need to hire additional help. One of the main barriers seen to extensive farming is access to labour and machinery.

 

No Educational Background Required

After a relatively short training period, participants are ready to begin cultivating mushrooms.

We embrace a hands-on learning process which allows participants to gain the necessary skills no matter previous level of schooling and their academic capabilities.

 

High Nutritional Value

Mushrooms are rich in protein, vitamins, and minerals and provide an excellent nutritional boost in areas that suffer from malnutrition such as the communities in which we are working.

 

Community Benefits

We encourage all our participants to establish collaborative farms servicing the local community. Collaborative farming minimises investment costs for the participants including cost to transport bio waste, initial purchases of buckets and tools, and a cost-effective solution to house the farm.

A collaborative farm has other advantages too: the strength of the shared knowledge and the ability to support each other in farming duties. This increases the success rate of the farm as well as enhances the quality of the produce.

By giving a preference to women and people with disabilities and their household members we are ensuring the initiative is supporting the most vulnerable groups within the community. Through research, it has been proven that when women are being supported in taking up income generating activities, the financial outcome is then reinvested for the benefit of the entire household i.e., invested in children’s education and health or in long-term and sustainable investments in collective living standards.

Having an increased production of fresh mushrooms will benefit the entire community of more than 35,000 people through access to an additional and affordable crop with high nutritional value.

Stunted growth and development are caused by a combination of malnutrition, prolonged and repeated infections, and untreated worms and parasites. This is common sight as it affects 38% of children under 5 years old in rural Tanzania. Supplementing their diets with oyster mushrooms will assist in combatting stunted growth in children.

 Sustainability

Responsible Cyclic Agriculture and Prevents the Burning of Agricultural Waste

Our mushrooms are grown on agricultural waste, saving expenses, and preventing the common practice of burning waste.

Avoiding burning of agricultural waste ties in with climate change best practises.

 

No Pesticides or Fertiliser Required

This both saves on expenses while also ensuring no chemical runoff or harmful agricultural practices. Spent substrates can be reused or sold as fertilizer after the mushroom growth is complete.

With the current hike in fertiliser price and scarce availability this makes mushroom farming a very appealing and cost-effective crop. In addition, in rural areas women are often at a significant disadvantage in regard to purchasing quality fertiliser, since access to such products are often prioritized towards male farmers.

 

Long-Term Financial Growth Potential

There are several ways a farm could expand: Entrepreneurs can expand into more exotic, high-value mushroom strands as their financial stability increases. Alternatively, there is a growing market for medicinal mushrooms.

Further several niche products are being produced such as mushroom leather, mushroom bricks, or to dispose of oil spills and non-degradable waste products.

Part of our long-term project plan is to provide a safety-net option to purchase any surplus production which will be dried and exported as wholesale to the international market.

 

High Demand on the International Market

Dried mushrooms have a one-year shelf life and can be sold internationally to a wide range of customers. This includes both B2B and B2C customers, wholesaling, distribution, and to businesses for further processing.

We currently have buyers in Singapore and in East Africa for distribution in Europe and in the USA.

 

Financial Sustainability after Seed-Funding

After initial central set-up and establishment of first round of collaborative farms the project is financially sustainable with income generated from export of central production as well as surplus production from the collaborative farms.

As a not-for-profit, any financial surplus will be re-invested into further strengthening and expansion of the mushroom project or into our healthcare services.

Furthermore, interest has already been shown from international impact investing companies for further scaling and expansion.

 

Scalability to other areas

Long-term plans include scaling this project to other areas outside of Nyamatongo Ward. Interest for our project has been shown by organisations working in the refugee camps in the Kigoma area housing approximately 250,000 residents.

Additionally, a potential collaboration with companies working with other dried fruit and vegetables could be imagined. Also in this area, interest has been shown from potential partner companies.

 

What now?

Currently we are actively seeking seed funding for a year-long upscaling after which the project is financially sustainable.

Our goals include creating a permanent production and ongoing teaching centre at our Community Centre. In the first year we are aiming to have successfully trained 200 residents in mushroom farming. We will deliver ongoing support to new farms and provide teaching in business skills and banking.

Wellbeing and nutritional health will improve throughout the area for all its residents. There will be a steady supply of highly nutritious locally sourced produce and indirectly an increase in household income. It will also strengthen women and people with disabilities position in their communities. 

Through an upscaled project we will also be able to safety-net newly established mushroom farms against loss from over-production by setting up procedures to approve and test each farm is in alignment with international requirements allowing their produce to be used for export.

You can of course help us get a head start towards our ambitious AUD $150,000 goal by clicking on the big green button to donate. Even $20 gets us towards this goal.

If you want to know more about the project you can contact Nina here.

 Thank you!

6 myths most people believe

Myth #1

Not-for-profits are not supposed to make a profit.

Certainly, not-for-profits should be a profitable entity. The difference lies in how the profit it makes is used.

Just like other businesses, a not-for-profit should be both sustainable and viable. A not-for-profit has to spend its profit according to its mission and vision. It cannot go to the owners as a profit.

I often like to say a not-for-profit is a for-purpose business.

 

Myth #2

You can see if a Not-for-profit is good by looking at the overheads.

This myth implies that an effective and good not-for-profit only spends a small amount of its expenses on overheads.

The nature of many not-for-profits are that their projects and programmes are delivered by people. People, who often must be paid for their knowledge and expertise. Often this is by far the most costly expense for a not-for-profit. And it is the hardest expense to get funding for.

Having professional leadership, diligent planning and sound measurement of impact is the most cost-effective way to run a not-for-profit.

Myth #3

Not-for-profit vs charity vs NGO – it’s all the same.

These words are often used interchangeably although they are not entirely equal. Here’s some definitions:

Not-for-profit: These are organisation that provide services to a community and does not exist to make a profit for its members, owners, or shareholders. Non-profit is typically the American word and means exactly the same.

Charity: In Australia, a charity is an organisation that is registered the Australian Charities and Not-for-profits Commission (ACNC). All charities are not-for-profits but not all not-for-profits are charities!

NGO: Non-Governmental Organisation. Sometimes NGOs are called Civil Organisations. These are organisations that operate independently of any government. Of course, they adhere to laws and regulations, but they are not led by, or created to fulfill a government policy or programme. They are typically not-for-profits – but not all not-for-profits are NGOs!

Australia for Cedar Tanzania are all three. We are a not-for-profit, a charity and an NGO.

 

Myth #4

Not-for-profits are not businesses.

Just like not-for-profits should make a profit, not-for profits are also often registered businesses.

A not-for-profit follows the same rules and regulations as normal business and has an ABN and is registered with ASIC.

As a business, they need to report to ATO and have their finances audited. They need to have opening hours and be publicly accessible.

In my opinion, successful not-for-profits are run like any other successful business.

There are a few exceptions such as associations, cooperatives, corporations, and trusts.

 

Myth #5

People working for a not-for-profit are all volunteers and they are less professional than in other businesses.

Although many not-for-profits are lucky to have dedicated and brilliant volunteers it is often necessary to employ people especially in key positions.

When a not-for-profit grows larger and is able to take on more work, it is often also time to start hiring professional staff as the workload no longer can be expected to be performed by volunteers alone.

Just like other businesses, hiring professional and skilled employees is connected to how successful your business or not-for-profit is going to be.

Of course, many not-for-profits are grateful for the time and efforts given by volunteers and couldn’t function without them.

 

Myth #6

Not-for-profits are not important for society and the economy.

Many not-for-profits provide important and fundamental services to communities both in Australia and abroad. If these services disappeared overnight, it would cost billions of dollars to the Australian economy – late interventions lead to more costly recoveries for example.

The not-for-profit sector contributed $143 billion to Australia’s GDP in 2018 (source) and employs 11% of the population (1.38 million people). That’s around the same number of people that works in retail (10.0% of people employed) more people than in construction (9.2%), professional, scientific, and technical services (8.6%) and manufacturing (7.2%) industries. Charities employ five times as many people as the mining (2%) industry. (source)