How We are Financed

Bikes for the World is a self-financing sponsored project of the Washington Area Bicyclist Association.

BfW began in January 2005.  BfW covers its expenses principally from three sources:

• Individual donations accompanying the donation of bicycles.  During 2005 an average of almost $9 came in with each donated bicycle.
• Payments from overseas partners covering all or part of the direct shipping costs of bicycles.   During 2005 all partners paid all or part of each shipment’s direct costs, reflecting the quality and desirability of the items donated.  An initial, conservative estimate of the total value of bicycle shipments came to $218,080.
• Program grants and individual and corporate (mainly church to date) donations unrelated to the donation of bicycles.  A once-a-year appeal is mailed or e-mailed to supporters.

A fourth and minor source of income is the sale of antique and other bikes and donations deemed unsuitable for overseas use. A technical committee will be created to establish criteria, monitor donations, and handle sales with “transparency” to protect BfW and the public’s interests.

BfW expenses include international shipping of donated goods, office and administration, website and communications, truck rental and fuel purchases associated with the collection of bicycles, and (beginning April 2005) a modest salary for the project director. Through the end of 2005, storage costs have been minimal (provided in-kind by corporate supporters).  Five percent of BfW income during 2005 will compensate the sponsoring agency—the Washington Area Bicyclist Association (WABA) for board oversight, financial administration, audit, and use of WABA’s non-profit status.

Bikes for the World has been managed conservatively during its initial year, ending 2005 with a surplus.  Income is projected to be a little over $100,000 and expenses roughly about $80,000.  Within the next few months a full audited income and expense statement will be posted.   

The cost per bicycle delivered during 2005 is in the range of $16.