Thanks to an annual Institutional Strengthening Grant from Heifer International U.S. to support our administrative and fund raising expenses, all donations from Hong Kong, without any deduction, get allocated to Heifer projects in China to help families get out of poverty. We are also most grateful for HK donors and supporters who provide us with pro bono services and our current office space at a heavily discounted rent.

Donors are given the opportunity to designate gifts for specific animals. Gifts are deposited into various animal accounts, such as " cows", "pigs", etc. We have different accounts for each type of animal Heifer International - Hong Kong buys. When any animal fund becomes depleted and there is still a need for that particular type of animal, monies from any other animal fund can be used where needed most. Meeting the needs of hungry families always come first, but we do our best to accommodate our donors' wishes too.

Besides, at Heifer, there are rigorous monitoring and evaluation procedures to ensure effective use of funds. Every project Heifer International - HK supports will go through the following cycle:

Needs analysis and assessment, project plan development, appraisal together with the U.S., signing of "Letter of Agreement" with China, implementation, monitoring and evaluation.

In China, program self-review, and in some cases evaluation by reputable external consultants and financial audit are conducted. The accounts of Heifer International - Hong Kong are audited by PriceWaterhouseCoopers.

Many people ask us just how their donation is spent. They want to know how much of their donation goes for animals, how much for training and project administration. As we have visited Heifer programs in China, we have come to realize that although the animals are the centerpiece of what we do, so much more is happening in the communities. Recipients are always proud to show us their animals and share openly about their successes and the challenges they face. But as we sit with them we become aware of multiple benefits. The obvious are:

• Improved family nutrition
• Cash income

But there are things that at first may not be so noticeable. As we visit with families, we realize that the animals have led the way to better relationships within the community and the development of community leaders. They have enabled families to work together, more children in the community are in school and with each group we observe a sense of personal pride and accomplishment.

Under normal circumstances, Heifer China distributes the funds as follows:

50-60% for livestock purchase and transportation. The additional monies are divided between training recipients to care for the animals, technical services (e.g. vaccination, breeding), program evaluation, agricultural supplies and equipment, project related travel and vehicle operations.

It is important to note that these "other costs" are what truly insures that each animal distributed will achieve a maximum return on investment. When you decide to give an animal, remember these other benefits are equally as important as the direct results.

Many donors want to know where their gift animals were sent. Heifer International - Hong Kong provides information of all the current project areas to which various animals are being provided by us on our website (www.heiferhk.org). In order to keep our administrative cost to the minimum so that we can help the greatest number of needy people and to respect the dignity of our project participants, we usually do not keep records on each donor's specific animal and to which family it was given.

However, in the event of a single donation large enough for an entire project, we will be able to track the animals distributed.

If an animal dies before it is given to the project for which it was intended, the animal is replaced as soon as additional livestock becomes available.

If an animal dies after it has been given to a project family, Heifer will, together with the recipients and project partners, look into the matter to determine why the animal died. If the animal was not cared for properly, it will not be replaced. Since recipients sign a contract saying they will "pass-on" off-spring, they will be responsible for paying for the animal. If the animal dies because of unavoidable circumstances, the family will be placed back on the list to receive a future offspring of another original gift animal.

We appreciate your concern about the well-being of animals within Heifer International. We share that concern and by teaching and example make every effort to see that our project partners around the world share it as well.

Feed, water, shelter, reproductive efficiency, and health care are the essential ingredients in successful livestock management. These must be available so that the livestock provided by Heifer can be kept healthy and productive. The animals should be a vital part of the farm activities without causing an extra burden on family members or the farm resources in general. The species and breed chosen must be appropriate for the area.

Our expectation is that our project partners will provide care for the animal in an environment that minimizes stress and satisfies its basic behavioral and social needs. This is a significant component of all training beforehand and the follow-up evaluation.