Freeman Chari, an accomplished activist, recently voiced concerns over the financial practices of National Blood Service Zimbabwe (NBSZ), questioning their high profit margins despite labelling themselves a non-for-profit entity.
Chari’s analysis of NBSZ’s financial report for 2023 provides alarming details regarding their profit margins.
“While looking through NBSZbloodbank Financial Reports for 2023,” Chari wrote on social media, she noticed an astounding 80% gross margin (meaning without considering administrative costs, on every pint they sell, they make approximately 200$ gross profit–making blood processing cost just $50 but charging patients $250! Truly shocking!”
Chari reported that NBSZ’s financial surplus in 2023 stood at an astounding $3 Million – representing 32% of their gross revenues and representing an unprecedented financial surplus for any non-for-profit.
“What this shows us is that NBSZ could potentially cut blood prices by 30% while still turning over an excess profit, leading one analyst to speculate: they call themselves non-profit organization but profiteer from poor people!” he concluded.
Chari also cast doubt upon NBSZ’s claim of financial growth, noting its bold statement in their report of 272% revenue growth adjusted for inflation from 2016-17, or 14700% historically, over only five years!
He observed: “NBSZ doesn’t exist to help people; instead they exist solely to extract as much blood money out of people as they possibly can and line their coffers while doling it back out again as profit. “
Chari also brought up wages paid to NBSZ employees, noting that in 2023 they employed on average 238 staffers earning on average US$8875 a month – by Zimbabwean standards they are well paid;
“but what struck my attention was lab costs accounting for one-third of employee bills. Regarding operating costs; collection, processing and storage are relatively cheap while employee costs make the bill considerably higher”.
Chari suggested that as part of their response to NBSZ’s discrepancies between its profits and mission statements, and its apparent disparate levels of profits; perhaps its management should consider cutting their salaries accordingly.
“Maybe all management need to reduce their salary,” concluded Chari.
Comments made by an activist have generated wide discussion surrounding the ethics of non-profit organizations that generate significant profits while serving vulnerable populations.
