Press Release

JCR-VIS assigns NPO Governance Rating to The Citizens Foundation (TCF)

Karachi, February 24, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned Non-Profit Organization Governance Rating of ‘GR-9’ to The Citizens Foundation (TCF). On a scale from 1 to 10, rating of GR 9 and above reflects a ‘Very High Level of Governance’.

The assigned rating by JCR-VIS to TCF incorporates focus on quality education in line with its mission and efficiency in fund utilization. Rating also reflects on the governance infrastructure in place at the organization with effectively functioning board and board committees, strong focus on transparency and adequate internal control framework.

JCR-VIS has noted that the Foundation’s school network has grown at a healthy pace and has nearly doubled to over 1,060 units over the last seven years. Moreover, the number of students accommodated by these school units has also increased to 165,000 by end-FY15. Around 71% of these units are primary schools. Given the need for more secondary school units, management intends to enhance focus on addition of secondary school units. Strong focus on quality education is evident from emphasis laid down on qualification & training of teachers, academic result achieved by students and initiatives such as Curriculum Development and Learning Management System.

Financial sustainability is supported by low level of administrative expenses, growing donations and majority of donations being generated through repeat donors. Overheads have remained within internal benchmark of 10% of operating expenses over the last five years indicating that donor funds received have mainly been utilized for their stated purpose. Funds generated through donations have grown in line with increasing expenses and expansion in operation. Support of board members for raising donations and commitment of senior management team to TCF has been noted positively.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Javed Callea (Ext: 501) at (+92-21) 35311861-70 (10 lines) or fax to (+92-21) 35311872-73.

Mohammed Khalid Ali

Applicable Rating Criteria: Governance of Non-Profit Organizations (December 2003)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2016 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited