DKT is committed to growing financially sustainable programs while keeping high quality products affordable to poor families in developing countries. Several DKT programs are now 100% financially sustainable and have provided seed money to start up other programs. DKT achieves sustainable programming through the following mechanisms:
Low Overhead Cost:
In 2015, DKT spent less than 2% of total operating expenses on headquarters costs, while only 0.2% goes towards fundraising expenses. DKT takes pride in the fact that donor resources are being used where they have the greatest impact; each year, DKT delivers millions of couple years of protection at a cost of approximately $2.00/CYP.
Cost-Recovery: Depending on the per capita income levels of a given country, DKT is able to charge prices that recover the cost of products or even generate a small profit. This revenue helps create sustainable programs, and can also be reinvested into programs in poorer countries For more details, see our white paper on Innovative Financing.
Cross-subsidization: One of the ways DKT enhances its revenue is by offering variants of the same product type at different price points. In this way, all income levels are served, and the higher-priced brands help subsidize the lower-priced brands.
Entrepreneurial Spirit: DKT’s strategy is inherently entrepreneurial, as we use tools of the commercial sector to increase contraceptive use. This entrepreneurial tendency generally results in less bureaucracy and greater focus on bottom-line health impact.
Rigorous Evaluation: DKT evaluates the yearly health impact of each of its programs using metrics such as couple years of protection, contraceptive prevalence, and reduction in maternal and child mortality.
For more information on how DKT achieves financial sustainability, check out this white paper on our innovative financing model.
