Through our global connections, we create countless stories of change.

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1 2014 Annual Report Through our global connections, we create countless stories of change. Serrv builds long-term relationships between supporters in the U.S. and artisans and farmers all over the world. From small villages in Swaziland to urban neighborhoods in Bangladesh, we actively create meaningful and life-changing connections. These relationships result in countless stories of change stories of an empowered woman who can now send her children to school, of a community transformed through fair trade work, and of preserving a cultural craft tradition. This Annual Report summarizes the impact of Serrv s mission in C O NNE CTIO NS THAT EMPOWER WOM EN Ninety percent of the population lives below the poverty line in the Upper East region of Ghana, the most impoverished area of the country. Generations of women from 17 different villages in this region benefit from weaving baskets with Serrv partner Trade Aid Integrated, a nonprofit organization supporting them with access to raw materials, weaving trainings, and global markets for their baskets. Through fair trade practices, they earn a fair price for their baskets and receive funds to invest in their communities. When the women gather together they do so much more than weave they build solidarity and unity. Stronger families and communities result. Photo: Alsy Acevedo, CRS Atubikama Atanga (pictured right) was one of the first weavers to join the organization 13 years ago. She is the sole caretaker of five people, which is possible because of the income from her basket waving. She was even able to send her son to university which he completed last year.

2 WORDS FROM OUR PARTNERS While serving as a development worker in the perennially drought stricken Northeast of Brazil, I had the privilege of briefly meeting the then Archbishop of Recife, Dom Helder Camara, a staunch and lifelong advocate for the poor. Dom Helder was in the habit of waking early and writing in his journal. One of his entries says When we are dreaming alone it is only a dream. When we are dreaming with others, it is the beginning of reality. The dream our founders had, more than 65 years ago, of a world in which skilled, hardworking artisans and farmers could build a prosperous and sustainable future for their families has grown into the world wide fair trade movement. Serrv continues to play a crucial leadership role in this movement with staff members serving on the boards of the Fair Trade Federation and the World Fair Trade Organization. You will read in this 2014 Annual Report about some of the ways Serrv provided the vital connection between you, our supporters, and tens of thousands of artisans and farmers around the world. Though much remains to be done, together we can continue to offer dignified employment and hope for struggling families throughout the developing world. We have been working with Serrv for 24 years and we feel we have grown hand in hand. We can see the impact: higher quality products, a growth in the economy that has enabled the artisans to build better homes and workshops, and more education to their children, many of whom who are now professionals. Thank you Serrv for being a friend and a good client for all of us. -Yannina Meza, Manos Amigas, Peru We are thankful for Serrv s support in capacity building, product design, developing our knowledge of international markets, and quality improvement, as well as financial support for solar power and infrastructure development of our facilities. Serrv has played the role of a support organization, not simply a buying organization, and for that we would like to express our sincere gratitude. -Kiran Khagdi, Kumbeshwar Technical School, Nepal (pictured with wife and granddaughter) Serrv supports us in two major ways: large orders, and help improving fair trade practices, including the peer visit and the Internal Monitoring System establishment. Serrv is a major partner who has touched many artisans lives, benefiting them in the midst of this political unrest. We are truly honored to be working with Serrv. -Suzan Sahori, Bethlehem Fair Trade Artisans, West Bank Bob Chase President/CEO Serrv International A nonprofit organization 2014 Annual Report page 2

3 Highlights from the year In addition to ongoing product design collaboration, 2014 was a year of supporting our partners in numerous development programs, new relationships with promising organizations around the world, and providing funds for disaster relief. N E W PA R TN E R SHIPS DEVEL O PM EN T AN D S O C IAL PRO G RAM S SU P P O R T Providing funds to renovate partner artisan workshops in the West Bank, where recent political strife has made it challenging for artisans to fund workshop improvements and maintain safe working conditions Supporting Get Paper Industry and Kumbeshwar Technical School in Nepal with new solar electric panels, providing an environmentallyfriendly and sustainable solution to frequent power outages Giving scholarships for school fees and supplies for children whose parents cannot afford them in Kisii, Kenya, where our partner Nyabigena Soapstone Carvers Cooperative has founded a school Providing a grant for skills training to VillageWorks in Cambodia, as well as a low-interest loan for renovations of the production center to better equip wheelchairs and to enlarge the space for training 20 additional handicapped artisans in sewing and detailing accessories Bethlehem Fair Trade Artisans, West Bank Creative Handicrafts, India Turqle Trading, South Africa F I N A NCIA L A SSISTANCE FOR D I S AST E R R E LIEF Asha Handicrafts artisans in Kashmir who were affected by severe flooding and needed funds to rebuild and purchase new tools La Fem women s cooperative in Nicaragua who are desperately searching for new income opportunities as their coffee crops have been decimated by leaf rust disease Serrv International A nonprofit organization 2014 Annual Report page 3

4 CREATING CONNECTIONS As we uphold Serrv s mission to eradicate poverty wherever it resides, we continuously challenge ourselves to improve the way we market products on behalf of our artisan and farmer partners. In order to reach a broader audience and communicate clearly who we are and what we do, we ve taken the step of rebranding the look and feel of our communications. The most exciting element of the new Serrv logo is what we call the connections mark. The eight connected links represent the eight core values of Serrv s global community, but also symbolizes the connections Serrv creates. We offer not only a high-quality handmade product, but a connection to the artisan or farmer behind that product. Our customers and partners create endless stories of impact through these connections. The new mark showcases what Serrv has created over the last 65 years, and more clearly demonstrates how our connected global community works together to achieve our mission. Learn more at serrv.org/aboutus. Our Core Values Improved Quality of Life Partnership & Collaboration Communication, Transparency, & Trust Sustainable Development Culture, Craft, & Tradition Product & Service Quality Education Volunteerism Where we worked Though we provide a wide variety of assistance to our artisan and farmer partners, our greatest impact is through the purchases we make from them every year. We ordered fair trade food and handcrafts from 63 fair trade partner organizations in 30 countries. The amounts shown below are the sums of spring and fall purchase orders and are not calendar year-based. COUNTRY PURCHASES ($) Bangladesh 223,169 Cambodia 33,949 Cameroon 38,146 Canada 20,413 China 3,308 Ecuador 34,999 El Salvador 10,044 Ghana 76,816 Ghana & Germany 570,428 Guatemala 2,901 Haiti 66,492 India 817,297 COUNTRY PURCHASES ($) Indonesia 193,548 Kenya 78,140 Madagascar 2,310 Mali 5,235 Mexico 52,808 Nepal 201,836 Nicaragua 33,863 Pakistan 19,520 Peru 148,787 Philippines 128,058 Rwanda 6,433 South Africa 28,537 COUNTRY PURCHASES ($) Sri Lanka 6,708 Swaziland 40,148 Uganda 26,497 USA 188,289 Vietnam 124,820 West Bank 123,151 GRAND TOTAL $3,306,648 Serrv International A nonprofit organization 2014 Annual Report page 4

5 INCOME STATEMENT FOR 2014 REVENUE Sales of fairly traded handcrafts and food 10,262,039 Partial reimbursement of shipping costs 621,708 Contributions 183,633 Other non-operating income 7,975 GROSS REVENUE 11,075,355 Credit card, bank fees, and other cost of sales (213,734) Contract services (916,741) Payments to producers for goods sold (3,676,263) NET REVENUE $6,268,617 EXPENSES Program salaries and benefits 1,961,331 Postage and outbound shipping costs 1,346,230 Payment of international shipping for producers 523,122 Promotion 595,721 Occupancy including warehouse rent 428,985 Program supplies 298,259 Consultants to assist producers, other services 27,707 Interest on advances to producers and inventory 110,039 Donations to partner organizations 41,041 Miscellaneous program expenses 71,408 Volunteer expenses 64,395 Telephone 35,063 Travel 38,449 Grants to producers, producer development, and special projects 31,119 PROGRAM EXPENSES SUBTOTAL 5,572,869 BALANCE SHEET AS OF 12/31/14 ASSETS Cash and cash equivalents 1,704,905 Accounts receivable 746,269 Allowance for doubtful accounts (7,681) Inventories 1,505,725 Reserve for obsolete inventory (75,000) Advances to producers and partners 254,473 Prepaid supplies and miscellaneous accounts 309,713 Equipment and leasehold improvements 111,612 TOTAL ASSETS $4,550,016 LIABILITIES Inventory financing payable 1,962,002 Accounts payable 177,476 Accounts payable inventory 0 Payable to partner organizations 61,563 FASB 106 obligation 13,985 Notes payable 1,193,675 Miscellaneous liabilities 170,693 TOTAL LIABILIIES $3,579,394 NET ASSETS $970,622 TOTAL LIABILITIES AND NET ASSETS $4,550,016 For a complete copy of our audited financial statements, please contact us at Administrative and fundraising 768,200 TOTAL EXPENSES $6,341,069 CHANGES IN NET ASSETS ($72,452) Devika, Kumbeshwar Technical School, Nepal David, Nyabigena Soapstone Carvers, Kenya Adella, CCAP, Philippines Serrv International A nonprofit organization 2014 Annual Report page 5

6 Many thanks We would like to express our sincere gratitude to those who have helped make 2014 a successful year. OUR ARTISAN & FARMER PARTNERS Your creativity, product quality, enthusiasm, and resilience in the face of adversity is inspirational. We are honored to be in partnership with you and to bring your artistry to the US. OUR CUSTOMERS The continued support of our individual, faith-based, and store customers is what makes everything we do possible. Thank you for incorporating fair trade into your daily lives. INVESTORS Thank you to the Shared Interest Society of the UK and all of our SERRV Loan Fund investors for your investments which support our fair trade work. DONORS We appreciate your willingness to give. Your support allows us to provide needed services to low income and marginalized people in areas where it is often difficult to do business. CATHOLIC RELIEF SERVICES AND THE UNITED METHODIST COMMITTEE ON RELIEF Many thanks for your advocacy, your work to support economic empowerment, and your efforts to grow the demand for fairly traded handcrafts and food. VOLUNTEERS Thanks to thousands of you for giving your time and dedication in our New Windsor and Madison facilities, and at stores and in churches across the country. SERRV INTERNATIONAL 2015 BOARD OF DIRECTORS Cathy Dowdell Chair of the Board Tom Greenwood Vice-Chair Candi Horton Treasurer Matt Greget Secretary Frank Millero Jacqui MacDonald Lora LaDew Milan Bhattarai Tim McElwee Bob Chase, CEO/President Nonvoting member OPERATIONS CENTER 500 Main Street PO Box 365 New Windsor, MD ADMINISTRATIVE OFFICE 122 State Street, Ste 600 Madison, WI FAIR TRADE ALLIES We are grateful to be part of national and global fair trade movements strengthened by the Fair Trade Federation and World Fair Trade Organization. BOARD OF DIRECTORS & STAFF Thank you for the time and skill you put towards fulfilling our mission. Your energy and enthusiasm set the course for a better future! FOUNDING serrv.org M E M B E R Serrv International A nonprofit organization 2014 Annual Report page 6