Charity report

Reasons for recommendation

Blue Dragon is a young entrepreneurial charity working closely with the most marginalized children in Vietnam. Blue Dragon is the only charity that works with street children in Hanoi. Blue Dragon employs child rights lawyers and offers a safe haven drop-in centre for gang members and other victims. Intelligently using the unique and cross-cultural power of sports, Blue Dragon organises regular football games to uphold the bond with the children it helps and to recruit new children away from the streets. In addition, Blue Dragon fights domestic trafficking a problem overlooked by trafficking NGOs which typically have a remit to focus only on international trafficking. Blue Dragon has sent almost 1,000 children from the streets back to school and in 2009 helped 1,109 children at an average cost of $112 per indirect beneficiary.

Background
There is an estimated 26,027 children working in hazardous conditions in Vietnam, of which 17,927 are so-called street children. These numbers probably underestimate the extent of the problem in a country which has seen a large rural to urban migration as a result of economic development. The street children do not have full knowledge of their rights and are often unaware of the dangers they face. Some are professional beggars and others commit crimes individually or in gangs. There is little government statistics or interest in a problem which exists and which is overlooked by the mainstream development work in the country. There are 1.2 million children with disabilities in Vietnam and it is estimated that 1.4 million children live below the poverty line. There are over 400 formally identified victims of domestic trafficking in Vietnam annually a number that merely reflects reported cases. Blue Dragon tackles a problem which no other international NGOs in Vietnam dare to tackle.

Activities
Blue Dragon started when Michael Brosowski, an Australian teacher, and Pham Sy Chung, a Vietnamese local, began meeting, playing football and helping Vietnamese street kids in early 2002. In early 2004, Blue Dragon was registered in Australia. Later that year, Blue Dragon was registered as an NGO in Vietnam.
Development Ratings is a service that recommends charities to potential donors. This report has been prepared in co-operation with FineIntel Vietnam, a research house. The information in this report is believed to be accurate at the date of issue, but neither Development Ratings nor FineIntel make representation as to the accuracy and completeness of such information. Development Ratings encourages unrestricted funding, long-term support and partnerships. Development Ratings does not receive compensation from the charities it recommends. More information can be found on www.developmentratings.com. This report was last updated in December 2009.

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Blue Dragon now works with Vietnamese children who are categorized into groups as follows: children with disabilities, street children, victims of trafficking, and the rural poor. Many of them have no immediate family to care for them. Many live in boats, tents, and slums; others have no home at all. Some have family members in prison, and most have a family member with a serious illness, drug addiction, or disability. Blue Dragon has four main projects: 1. Step Ahead: This flagship programme in Hanoi focuses on street kids and children with disabilities. The programme enables street kids and children with disabilities to return to school by providing a full range of support services, including legal advocacy, psychological and counseling services, school fee relief, and accommodation. All the services are offered in a fully dedicated safe haven centre in Hanoi located near the Red River banks, an area where a number of street children seek refuge. The centre provides the children with a range of educational, sports and job training activities helping them prepare to join normal life. 2. Safe and Sound: this programme focuses on rescuing and preventing victims of domestic child trafficking in Hue and Ho Chi Minh City. The programme help children escape from traffickers and return to their families, and prevent trafficking from taking place in the first place by spreading awareness in villages and communities. 3. Hoi An Childrens Home: This programme is focused on children living in poverty in the Quang Nam province finish their schooling, and go on to university, by providing a residential home with a full range of support services. 4. Stay in School: This programme in the Bac Ninh province provides support to children from the poorest rural families so that they can stay in school, by providing for all school-related costs including uniforms, tuition fees, stationery, and text books. Blue Dragon is unique in that each child has an individual plan created through a process of negotiation between social workers, the child, and the childs family (if any). Another defining feature of Blue Dragon is the diverse range of services they provide for disadvantaged children including: legal advocacy, emergency medical help, nutritional support, psychology groups and counseling, accommodation, tuition and homework assistance, and special classes in art, drama, music, English and swimming. Blue Dragon is well-known on the streets of Hanoi, and it is quite common for children who already know the organization to bring new children met on the streets. In addition, Blue Dragon operates outreach programs and takes referrals from government bodies, including schools, who know children in need of help. Basically, the organization helps children as young as 5 and as old as 18. Besides, they also help kids who have been in
Development Ratings is a service that recommends charities to potential donors. This report has been prepared in co-operation with FineIntel Vietnam, a research house. The information in this report is believed to be accurate at the date of issue, but neither Development Ratings nor FineIntel make representation as to the accuracy and completeness of such information. Development Ratings encourages unrestricted funding, long-term support and partnerships. Development Ratings does not receive compensation from the charities it recommends. More information can be found on www.developmentratings.com. This report was last updated in December 2009.

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their programme and are in the transitional phase of growing into young adults, from 18 to 23. Blue Dragon has also set up a motorcycle rental and repair shop which is operated as a social enterprise. A number of the street kids have been trained at the shop.

Input
Blue Dragon employs a team of passionate social workers, psychologists, child rights advocates, educators and support staff. Particularly, they have a small team (6) of fulltime foreign volunteers who support their communication, social work, education and maintenance departments. In addition, they have a number of local and foreign volunteers who work on a part-time basis in their education department. These volunteers teach elective classes and provide tuition before and after school. The current structure of Blue Dragon is quite flat coordinators report to Michael Brosowski, the Director. Accordingly, staff have substantial input into decision-making. There is currently no formal Board of Trustees, although one is being established at the moment.

In 2009, Blue Dragon reported total income of $474 million, a 28% increase year-onyear. Restricted income was $320 million, accounting for 67% of total income, and recording a 31% increase year-on-year. 84% went directly to support the children with 71% deployed on the Step Ahead project in Hanoi, 6% on Stay in School Bac Ninh, 15% on Hoi An Childrens Home, and 9% on Safe and Sound Hue. A lean 8% was spent on the management and organization. Staff costs are low at approximately $4,000 annually and Blue Dragon benefits from a large pool of expat and local volunteers.
Development Ratings is a service that recommends charities to potential donors. This report has been prepared in co-operation with FineIntel Vietnam, a research house. The information in this report is believed to be accurate at the date of issue, but neither Development Ratings nor FineIntel make representation as to the accuracy and completeness of such information. Development Ratings encourages unrestricted funding, long-term support and partnerships. Development Ratings does not receive compensation from the charities it recommends. More information can be found on www.developmentratings.com. This report was last updated in December 2009.

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Output
Since its establishment in 2004, Blue Dragon has achieved the following results: Sent 928 kids back to school and training Provided accommodation to 74 girls and boys Built or repaired 16 homes for families Reunited 47 runaway children with their families Put 5 teens through drug rehab Obtained legal registration papers for 119 children Rescued 42 trafficked children Placed 37 teens in jobs Played 557 games of soccer 2009 Expenses 264 21 Direct beneficiaries 234 511 Indirect Cost per direct beneficiary $1,128 $41

PROJECT

Step Ahead (Hanoi) 702 Stay in School (Bac Ninh) 2044 Hoi An Children's Home 55 300 900 $183 (Hoi An - Quanh Nam) Safe and Sound (Hue) 33 64 256 $516 Total 373 1,109 3,902 $336 Anecdotal evidence of results includes the story of a former gang leader who Blue Dragon managed to convince to join its programme after a long period of gaining his
Development Ratings is a service that recommends charities to potential donors. This report has been prepared in co-operation with FineIntel Vietnam, a research house. The information in this report is believed to be accurate at the date of issue, but neither Development Ratings nor FineIntel make representation as to the accuracy and completeness of such information. Development Ratings encourages unrestricted funding, long-term support and partnerships. Development Ratings does not receive compensation from the charities it recommends. More information can be found on www.developmentratings.com. This report was last updated in December 2009.

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trust. He recently graduated from Blue Dragon and obtained a job at one of Hanois fanciest restaurants.

Impact
Providing opportunities for street children to learn, earn and have a childhood: Each child given care and a new opportunity has the potential to increase future earnings. This financially impacts the individual and the local economy. On top of this, each child has the chance of a proper childhood and can learn and develop through play and more positive relationships. This is something otherwise completely lost in having to address the urgent needs and problems of daily life on the street. Improving educational enrolment ratios: Blue Dragon helps children enroll in school and provide the support for them to stay there. Domestic policy change with respect to treatment of children: In Hue, where Blue Dragon operates the Safe and Sound program, and in Bac Ninh, with the Stay in School programme, Blue Dragons involvement has lead to a much greater level of concern and interest in the beneficiary group by the local government. Creating behavioural change in law enforcement: Blue Dragons close work with the local police is helping improve the treatment of street children by police officers. Creating ambition and role models inspiring behavioural change in children: By raising the expectations of the disadvantaged children and creating success stories of Blue Dragon graduates, the organization is inspiring the disadvantaged to excel and reach higher goals than merely living normal lives. Creation of role models from the cohort of the children Blue Dragon helps will have an exponentially positive effect on Vietnamese society. Reducing unemployment and economic loss from crime: Through the job training provided by Blue Dragon, children are able to engage in income generating opportunities. The economic value add of this should be seen in the context of the economic loss due to the destructive activities that some of the children were involved in prior to their recruitment by Blue Dragon. Providing a secure home: The street kids helped by Blue Dragon do not have a home or are often unable to return home due to violence and other issues. Blue Dragon provides the missing family role. As a result of Blue Dragons shelter, children are more likely to grow up with healthier minds and bodies, reducing future support costs from the state and the community.

Development Ratings is a service that recommends charities to potential donors. This report has been prepared in co-operation with FineIntel Vietnam, a research house. The information in this report is believed to be accurate at the date of issue, but neither Development Ratings nor FineIntel make representation as to the accuracy and completeness of such information. Development Ratings encourages unrestricted funding, long-term support and partnerships. Development Ratings does not receive compensation from the charities it recommends. More information can be found on www.developmentratings.com. This report was last updated in December 2009.

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Spreading awareness of the rights of children: Communication about the rights of children increases understanding about child development and the responsibilities and duties of adults towards them.

Risks
Intervention from Vietnamese authorities The nature of a pioneering work means that the organization has to stay in close contact with the authorities to ensure they understand and approve of what the organization is doing. Loss of property A core part of Blue Dragons work is the security of its safe haven building in Hanoi. This is currently a rented property and the willingness of the landlord to extent the lease at current price levels is an uncertainty. Currently this risk is mitigated through a 12 months rent prepayment. Corporate governance Corporate governance is in its infancy with no Board of Trustees. A Board is currently being established. Access A key advantage of Blue Dragon has been its ability to work closely with gangs of street kids. However, as Blue Dragon has helped former gang members out of their criminal lives it has become a victim of it own success losing touch with the gangs. This risks alienating Blue Dragon from the milieu that it seeks to help and infiltrate. Management capacity A disproportionate amount of time is spent by Michael Brosowski on fundraising which is hampering his ability to manage. A new manager is currently being recruited to mitigate this risk.

Outlook
Michael Brosowski, the Director is actively engaged in fundraising and travels semiannually to Singapore and Australia to raise funds. The organization has limited fundraising capacity and most donors are from outside the country requiring the extensive international travel by the Director. More than two thirds of funding comes from institutions with the largest donor currently being World Vision Singapore. Individual donations make up almost 30% of the funding. The changing trend in fundraising approach towards individual donations might lead to higher fundraising costs in the short-term than the current 8%. A key wish list for the organization is to be able to secure the infrastructure of its safe haven centre which is currently leased for $12,000 on an annual basis with considerable long term uncertainty.

Development Ratings is a service that recommends charities to potential donors. This report has been prepared in co-operation with FineIntel Vietnam, a research house. The information in this report is believed to be accurate at the date of issue, but neither Development Ratings nor FineIntel make representation as to the accuracy and completeness of such information. Development Ratings encourages unrestricted funding, long-term support and partnerships. Development Ratings does not receive compensation from the charities it recommends. More information can be found on www.developmentratings.com. This report was last updated in December 2009.

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