Medical Abortion (MA) Customer Journeys’ in Ghana and Nigeria

Dear Friend of DKT,

We are proud to share DKT’s 2023 audited financials as well as a number of finance graphs derived from our recently completed audit. Overall, they tell a compelling and positive story about where we are as an organization.

Our key financials reflect continued growth. DKT generated sales revenues hit $235 million against $283 million in expenses. Donor receipts (averaged out over 3 years on an accrual basis) dropped as expected to $50.6 million. Notably, sales revenue has doubled from $120 million in 2016.

Our global 2023 Sustain-O-Meter came in at 83%, up slightly from the prior year. DKT has set a goal of 90% financial sustainability by 2030 with the aim of leveraging self-generated revenues in some geographies and combining these with donor resources for maximum impact and effectiveness. As a result, we continue to believe that DKT offers a terrific return on investment for donor support.

DKT’s global expenses came in at $283 million, of which $122 million was procurement of commodities and $153 million were operational expenses. We continue to be one of the largest procurers of reproductive health products and technology in the world; our procurement spend has doubled from $66 million in 2016. Again, by DKT using its own resources on commodities, donor dollars are freed up to focus on hard-to-reach populations and last-mile distribution.

Our headquarters costs remain low at under 2% of our total expenses, with fundraising costs at a fraction of this. DKT’s low overheads reflect our commitment to efficiency; we hope that this provides confidence to our donors that your funds are going to where they are needed the most: impact in our field offices.

In summary, DKT is on solid financial footing and reflects healthy, steady growth. We look forward to answering questions if you have them and remain open to partnerships if interested.

Cheers,

Chris Purdy, President

PS – We’re proud to be transparent about DKT finances and endeavor to share this with our partners and donors.

Audited financials tell a story of the DKT journey towards sustainability

Over the last twenty years, DKT has worked hard to be a social enterprise that produces impact at scale while ensuring a cost-effective approach. This can be seen in the historical graph below. The red line represents our total expenses while the blue line tracks the revenues generated from the sales of products and services. These two numbers mirror each other closely, mostly because the cost of commodities has risen proportionally in both figures. The green line tracks a 3-year running average of external donor funds.

To view DKT’s Key Financials from 2021 until now, please visit our website.

An overview of Sales Results from 2014-2023 is also available on the website.

DKT’s “Sustain-O-Meter” reflects progress and trends on the road to 2030

The sustainability journey begins when a DKT program can cover the cost of commodities with sales revenues, freeing up donor support for use towards other activities, such as demand creation. Because commodity costs are the largest expense in a given operation, reaching this goal is an important first step for our country teams to begin tracking their long-term success.

When a DKT operation can buy its own commodities and cross-subsidize multiple product lines, it may be in a position where profits are able to cover the vast majority of costs. This means that a given operation can sustain itself with little to no donor subsidy and integrate itself as a long-term market actor.

A handful of DKT offices have achieved financial stability and become profit-generating concerns, spinning off revenues that can be deployed elsewhere. We use these discretionary funds to open new markets, support operations in lower-income countries, and invest in innovation, risk-taking, and opportunities for which there are limited donor funds.

DKT’s use of innovative financing has allowed the organization to transition from a highly-subsidized model to an increasingly sustainable and entrepreneurial social enterprise. Our approach establishes markets that continue to thrive beyond the tenure of donor support. We don’t offer temporary solutions. We build self-reliant, empowered enterprises.

To learn more about DKT’s sustainability journey, view our sustainability-related case studies and White Papers on our website:

Janani: The Rocky Road from Charity to Social Enterprise

By Amitava Chattopadhyay and David J. Olson. From INSEAD Publishing, October 2022

Making Sustainable Markets Work for Low-Income People: DKT’s unique approach to sustainability prioritizes equity and lessens reliance on donors.

How One Social Marketing Organization Is Transitioning From Charity to Social Enterprise

By Christopher Purdy. From Social Marketing Quarterly, April 13, 2020.

In 2023, the cost of goods and services (COGS) over time remained steady

Our supply chain operations reflect our commitment to robust and methodical procurement. We secure high-quality supplies and achieve our goals through a combination of planning, supplier assessment, and efficient purchasing. We price contraceptives affordably such that a year’s supply generally costs no more than .25% of average annual income (adjusted for purchasing power). This focus ensures that a majority of people can afford to take control of their reproductive lives with their own financial resources.

DKT continues to be one of the largest procurers of reproductive health products and technology in the world; commodity procurement has doubled from $66 million in 2016. By using our own resources on commodities, donor dollars are freed up to focus on hard-to-reach populations and last-mile distribution.

How Social Marketing Contributed to Expanding Size of Overall Condom Markets in Ethiopia, Brazil, and Indonesia

By David Olson, Christopher Purdy, et al. From Social Marketing Quarterly, March 28, 2022.

Private Sector’s Potential to Deliver Sexual and Reproductive Health: Increasing Access to Contraception and Safe Abortion

By Elizabeth Smith, Christopher Purdy, et al. From the International Journal of Arts, Humanities and Social Justice, February 14, 2022.

Low overhead in DC and a nimble, corporate culture provides value for each donor dollar

Very few international organizations of our size can state that they are able to keep their overhead at under 2% of total expenses, with fundraising costs at a fraction of this percentage. DKT’s low overheads should provide further confidence to our donors that vital funds will go where they are needed the most: to the field.