SERRV is a 501(c)3 nonprofit organization. Annual Report. eradicate poverty wherever it resides

Transcription

1 SERRV is a 501(c)3 nonprofit organization Annual Report eradicate poverty wherever it resides

2 Dear friends, I will never forget the sinking feeling I experienced as I sat in my office on Tuesday January 12th and a news alert flashed on my computer screen: catastrophic 7.0 magnitude earthquake strikes Haiti, death toll unknown... My first instinct was to look up at the photo on my wall of Gisele Fleurant, director of our partner in Haiti, Comité Artisanal Haitïen, and a friend for 20 years. In the following days we struggled to reach Gisele, finally finding her safe, sleeping in her car, and spending every waking moment trying to assist the families of the artisans she has served for 30 years. As you will read in this annual report, with your support, SERRV was able to provide short-term emergency assistance and long term developmental support to the artisans of Haiti, to people we have known and worked with personally for more than 30 years. What makes SERRV so unique is the personal relationships it has developed over decades with the artisan and farmers it serves, and with its customers, donors, and supporters. Whether it is dealing with a monstrous earthquake in Haiti or working to eradicate poverty around the globe, it is these personal relationships which enable SERRV to accomplish so many of the activities you will read about in this annual report. Through your support, we are having a positive impact on the lives of people who struggle to build a better life. Thank you, Bob Chase CEO/President, SERRV International Highlights from the Year SERRV staff pack relief aid for Haiti Artisans receive donated funds to rebuild Artisans receive tool boxes 2 Haiti Relief and Support Throughout the Year January: Following the devastating earthquake on January 12, SERRV immediately began to take donations and to gather relief aid for our partner Comité Artisanal Haitïen (CAH). We sent 20 boxes of items artisans needed most, including tents, crank flashlights/radios, bed linens, towels, soap, and canned food. Thanks to our supporters we also sent $20,000 and more than 60 families received $300 to use however they needed it most to rebuild homes, or to buy tools, food or other supplies. February: Cheryl Musch, SERRV s Director of International Development, and photographer Phil Grout traveled to Haiti and accompanied Gisele Fleurant (Director of CAH) to assess and document the losses artisans experienced. They gathered stories and photographs of artisans, and worked with Gisele to plan how to best use the donations SERRV received on their behalf. March: SERRV placed a special order of Haitian products so artisans had more work and income. We also bought a shipping container (which they need for storage) and sent tents, tarps, ropes, building tools and nails, blankets, and clothing, as well as some health kits and buckets with water filters. June: SERRV staff returned to Haiti to collaborate on the creation of a new Haitian Design Center, hosting staff from Lutheran World Relief to explore how to develop this Design Center to generate future work for more Haitian artisans. September: Metal artisan Jhonson Augustin and Gisele Fleurant traveled with SERRV staff to visit customers at churches and stores in New York, Maryland and Pennsylvania for the Craft Haiti s Future artisan tour. Jhonson demonstrated his work at each stop, where he transformed recycled oil drums into beautiful works of art. During the tour, our customers specially promoted Haitian crafts to generate sales for CAH. October: CAH plays a vital role in linking artisans with local, regional, and international markets. With interest in Haitian products high since the earthquake, we were excited to launch an educational web site for CAH this month. See the site at Thanks to the CRS Fair Trade Fund for supporting this project.

3 SERRV Hosts its inaugural Design Camp In early November, designers from SERRV partner organizations in Indonesia, Vietnam, and Bangladesh came to the U.S. for an intensive design experience at SERRV Design Camp Komang Adiartha (Mitra Bali), Dinh Thu Huong (Craft Link), and Khagendra Tripura (CORR The Jute Works), visited SERRV s Madison, Wisconsin, office and met with top-notch designers in Chicago, Illinois. By expanding their understanding of the U.S. marketplace, the designers will be able to refine their designs, which will lead to more orders for the artisans in their organizations. The visitors learned about the customers who buy SERRV products how they live and what products they want for their lifestyles. School of the Art Institute of Chicago instructor Felicia Ferrone and Felicia Zusman from SC Johnson volunteered their time with the designers, by walking and talking them through stores like Luminaire, a Chicago store known for cutting edge product design; giving presentations on the fundamentals of good product design; and discussing consumer trends in the U.S. The group also had the chance to tour larger retail stores as well as specialized fair trade and boutique stores with SERRV staff. At the end of Design Camp, Khagendra said, It is very important for me to be here and to see the American culture. We get ideas from Asian culture and this doesn t always reflect the desires of the actual customer, because it is completely DESIGN CAMP2010 different from what Asians like and expect. Now I have a clear understanding of the American customer and I m very excited to discuss these ideas with CORR - The Jute Works. Participating designers all work with groups that provide community support such as schools, and social and health programs. What they learned at Design Camp 2010 has a direct connection to these programs, since increased sales provide funds for and directly benefit hundreds of artisans. We re looking forward to working with a new group of designers at Design Camp 2011! East Africa Partner Training in Managing a Successful Fair Trade Business SERRV Africa Project Manager Mike Muchilwa and SERRV staff Cheryl Musch conducted a training in Nairobi, Kenya on managing a successful fair trade business, a topic that our partners selected as high priority for them. The training covered business management and planning; product design and development; and strengthening production systems. Sixteen participants attended from Kenya, Uganda, and Tanzania. Joseph Muchina from Trinity Jewellery noted the high level of engagement of participants, Everyone was very attentive and was asking questions. Every topic was very relevant to the dayto-day running of our businesses. More 2010 Development Activities Jewelry Design Workshop in Mali with international design professionals and our partner Delta Survie to produce fresh, new designs with the goal of increasing Delta Survie s sales, to raise the incomes of the women artisans recovering from obstetric fistula surgery. Extensive On-site Product Development with our partners in Asia to work together on new products, which included staff visits to Bangladesh, Cambodia, India, Indonesia, and Vietnam. Full support of a Marketing Assistant for our partner Comparte in Chile to manage the daily demands of building new customer relationships; maintaining communication with past and current clients; researching the market for fair trade products from Chile; and helping develop national and international presentations and projects. Tagua Nut Dyeing Workshop in Ecuador for artisans to learn more about techniques for dyeing tagua in primary and secondary colors, and polishing the finished products as tagua nut jewelry sales are increasing in the international market. Ongoing Support of Artisans through Resources and Learning forums offered on ArtisanWork.org, our interactive and learning web site for small-scale artisans around the world, launched in On the site, we also offer seasonal product trend reports for our artisan partners to help them learn about the US marketplace. 3

4 Where We Work SERRV began working in 1949 to generate income for refugees in Europe after World War II. For over 60 years, SERRV has supported more than 150 unique artisans and farmer groups, representing more than 100,000 individuals. Today we work with 75 community-based organizations in 35 countries. USA MEXICO GUATEMALA NICARAGUA EL SALVADOR ECUADOR PERU CHILE HAITI HONDURAS COSTA RICA ARGENTINA MALI GHANA CAMEROON BOSNIA-HERZEGOVINA ISRAEL/WEST BANK AFGHANISTAN PAKISTAN NEPAL CHINA BANGLADESH INDIA THAILAND SRI LANKA CAMBODIA UGANDA KENYA VIETNAM RWANDA PHILIPPINES INDONESIA SWAZILAND SOUTH AFRICA MADAGASCAR Income Statement for 2010 Revenue Sales of fairly traded handcrafts & foods $8,416,842 Partial Reimbursment of Shipping Income 654,429 Contributions 275,317 Other Non Operating Income 22,993 Gross Revenue $9,369,581 Costs related to sales 139,845 Payments to producers for goods sold 3,346,939 Net Revenue $5,882,797 Expenses Program salaries & benefits $1,891,454 Postage & domestic shipping costs 1,129,584 Payment of international shipping for producers 438,715 Promotion 421,418 Occupancy including warehouse rent 395,528 Program supplies 294,257 Consultants to assist producers/other services 112,756 Interest on advances to producers & inventory 193,040 Donations to partner organizations 127,879 Misc program expense 92,765 Volunteer expense/contract labor 81,862 Telephone 33,938 Travel 56,994 Grants to producers/producer development/ 85,498 special projects Balance Sheet as of 12/31/10 Assets Cash and Cash Equivalents $1,568,717 Accounts Receivable 817,062 Allowance for Doubtful Accounts (13,055) Inventories 1,135,854 Reserve for Obsolete Inventory (100,000) Advances to Producer/Partners 245,899 Prepaid Supplies & Misc Accounts 209,879 Equipment & Leasehold Improvements 37,449 Total Assets $3,901,805 Liabilities Inventory Financing Payable $1,619,019 Accounts Payable 140,722 Accounts Payable Inventory 12,591 Payable to Partner Organizaitons 112,612 FASB 106 Obligation 30,000 Notes Payable 1,152,000 Misc Liabilitites 57,147 Total Liabilities $3,124,091 Fund Balance $777,714 Total Liabilities and Net Assets $3,901,805 Subtotal Program Expense $5,355,688 Administrative & Fundraising $604,722 Total Program & Adminstrative Expense $5,960,410 Change in net assets ($77,613) For a complete copy of our audited financial statements, please contact us at or controller@serrv.org. 4

5 Total 2010 Purchases Listed by Country AFRICA Ghana & Germany $696,481 Kenya $57,579 Swaziland $22,923 Uganda $20,750 Ghana $17,599 Cameroon $8,381 Mali $8,132 Rwanda $7,425 Madagascar $2,475 MIDDLE EAST/EASTERN EUROPE West Bank $136,849 Israel $12,704 Bosnia $4,482 Afghanistan $3,260 ASIA India $388,837 Vietnam $272,365 Nepal $153,343 Indonesia $132,942 Bangladesh $119,792 Philippines $72,677 Pakistan $30,612 Cambodia $22,915 Sri Lanka $17,179 China $13,326 Thailand $11,910 north america USA $154,164 LATIN america Peru $89,773 Haiti $65,821 Chile $59,676 Mexico $56,714 Ecuador $54,877 Guatemala $24,832 Costa Rica $24,750 El Salvador $16,030 Honduras $10,125 Argentina $3,260 Nicaragua $1,600 Note: The amounts above are the sums of spring and fall purchase orders and are not calendar-year based. Thank you! We offer our gratitude to the following individuals and organizations who helped make 2010 a successful year. Artisans and Farmer Partners We appreciate your resilience, creativity, and enthusiasm for fair trade. Customers Thank you for your continued support of our organization and our partners, and for incorporating fair trade into your purchases, your business, and your mission. Donors and Investors Thank you for helping us extend our reach to artisans and farmers worldwide. Catholic Relief Services and Lutheran World Relief Thank you for advocating for fair trade and for the growth in demand of handcrafts and foods from artisans and farmers Board of Directors Marsha Hoover - Chair Ann Engelman - Vice Chair Brad J Hamrlik - Treasurer Pushpika Freitas - Secretary Lucas Caldeira Colin Crawford Julie Danis William Gordon Kimberly Grimes Sally Keller Tim McElwee Robert Chase (non-voting member) Volunteers Thank you for giving your time and dedication in our New Windsor and Madison facilities, at stores, and in communities across the country. More than 2200 volunteers helped SERRV in New Windsor. Board of Directors and Staff Thank you for contributing your energy and skills to fulfill our mission. Generous Contributors We appreciate the generous support of all of our donors and are particularly appreciative of the loans or grants received from CRS Fair Trade Fund, SERRV Loan Fund Investors, and our Staff and Board of Directors. 5

6 Many ways to SERRV Buy enrichment for all with every SERRV purchase SELL products in your retail store or host a SERRV sale Donate * your money to train and assist Volunteer your time and skills wherever you are OPERATIONS CENTER PO Box 365, 500 Main St New Windsor, MD ADMINISTRATIVE OFFICE 122 State St, Suite 600 Madison, WI OUR MISSION to eradicate poverty wherever it resides by providing opportunity and support to artisans and farmers worldwide *SERRV is a 501(c)3 nonprofit organization. Contributions are tax-deductible to the extent allowed by law. FOUNDING M E M B E R