People in western nations who are wishing to fund projects want to be sure that their funds are being used effectively, and that there is accountability. For this reason a Trust was established by New Zealand supporters to provide an accountable channel for donations to Savong's School.
The Cambodian Rural Schools Trust is a legal entity with its own bank account, and was established with the generous legal advice of lawyer David Spencer and of Barrister Anthony Molloy QC.
Assurance. The main purpose for the Cambodian Rural Schools Trust is to forward a regular monthly money transfer to a bank account in Siem Reap established expressly for Savong's School. This bank account has two signatories (Svay Savong and Duncan Stuart) and from this bank account each month the teacher salaries are paid by automatic payment and the school Director, Savong, is able to withdraw $US300 for the running costs. Larger withdrawals require two signatures. This system provides donors with a high level of assurance that their gifting is being used expressly for the school - and associated orphanage - and the provision of education to rural students.
Tax effectiveness. New Zealand's laws that govern Charitable Organisations have been recently and significantly reviewed, and under the new regulations we are currently putting in submissions to register the Cambodian Rural Schools Trust as a charity so that donations can be made tax-effectively. At present there is no tax credit for donations to the Trust.