Here are some highlights from our work in Learn more > Visit bewhatspossible.com

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2 Gap Foundation had an exciting year and we continue to build our expertise in the areas we invest in: Youth, Women and Volunteering. We also continue to learn how we can improve our programming and practices. Here are some highlights from our work in Learn more > Visit bewhatspossible.com

3 In 2011, Gap Foundation and Gap Inc. supported more than 70,000 youth in five countries through a range of programming and nonprofit partners. With over 60 youth nonprofit partners, we are helping underserved young people better prepare for adulthood through career exploration and job readiness training.

4 Youth Employment Toolkit for the White House Council for Community Solutions Gap Inc. led the creation of Connecting Youth & Business: A Toolkit for Employers, which was released at the Summer Jobs+ event co-sponsored by the White House and the Department of Labor. We partnered with McKinsey & Company, Corporate Voices for Working Families, and the Taproot Foundation to develop the employer toolkit. The toolkit guides employers to one of three lanes of engagement for supporting disconnected youth and provides step-by-step guidance on how to build an effective program. In addition to the White House launch of the toolkit, Gail Gershon, Senior Director of Employee Engagement & Service Leadership, shared the toolkit and the thinking behind it at the United Nations World Youth Report Summit at the United Nations in NYC. See Connecting Youth & Business: A Toolkit for Employers at This way ahead Our signature program, This Way Ahead, provides career exploration and job readiness training for underserved young people in New York City and San Francisco. With our nonprofit partners, Gap Inc. employees co-lead classes and bring their knowledge of working in stores into the classroom. Youth participants also apply for paid internships at Gap and Old Navy stores. In 2011, This Way Ahead completed its fifth year in operation. In 2011, 168 youth were trained and 62 were hired as interns. In NYC, 93% of youth completed the internships and 77% were offered permanent part-time jobs. In SF, 100% of youth completed the internships and 75% were offered permanent part-time jobs. Since the launch of This Way Ahead in 2007, more than 1,000 youth have been trained, 230 have received paid internships, and 160 have been hired for seasonal or part-time jobs. Gap Inc. Leadership Initiative This program provides leadership training and development for our youth nonprofit leaders from our North American grantees. Volunteers from Gap Inc. s HR community take the lead in delivering the programming to our nonprofit partners. The first two years of the program came to a close, with more than 50 nonprofit leaders participating in the program. Evaluation results show that participation in the program is making a difference for nonprofit leaders and employees that are involved: Nonprofit leaders showed improvement in nearly all areas of leadership capability evaluated 100% of employee volunteers report that their involvement in the program makes them extremely proud to be a Gap Inc. employee More than 60% of Gap Inc. employees involved in the program said that they are learning new insights that they can apply to their jobs Be what s possible Year in Review 4

5 Plan ahead This program is an 18-week college and career awareness curriculum for all 9th graders in the San Francisco Unified School District. The goal is to help youth better prepare for life after high school and to aid them in building a high school plan that aligns with their future goals. More than 3,900 students took Plan Ahead in the school year. After a full year of evaluation, there is strong evidence that the Plan Ahead program is making significant changes in students knowledge, skills, attitudes, and motivations around college and career planning. camp old navy This past year brought us the 10th Anniversary of Camp Old Navy, a program in partnership with the Boys & Girls Clubs of America, that offers a job shadowing experience for thousands of youth. In 2011, 786 Old Navy stores in the US and Canada participated. Over 4,000 employees volunteered, serving more than 12,000 youth. Since the program s inception in 2001, approximately 60,000 young people have experienced the world of work through Camp Old Navy. Be what s possible Year in Review 5

6 NONPROFIT HIGHLIGHTS: First Graduate (San Francisco) First Graduate is a highly engaged organization that partners with Gap Inc. on many fronts. Examples include: Developing a relationship with the Gap Inc. Legal Team, which is now serving as pro bono in house counsel for First Graduate. Partnering with the Gap Inc. College Recruiting team to serve as part of the diversity pipeline for both summer interns and Gap Inc. s Retail Management Program. Tess Roering, Vice President of Marketing at Athleta, joined the First Graduate Board of Directors. Bobbi Silten, President of Gap Foundation, was honored at the 2011 Cap & Gown Gala. Teen Living Programs (Chicago) We have partnered with Teen Living Program since Our partnership has grown over the years, particularly through the support of the Old Navy team. Highlights include: Keith Herbert, Vice President of Operations at Old Navy, joined the Teen Living Programs Board of Directors in Participation in Camp Old Navy for the last two years, led by Lee Coleman, an Old Navy General Manager in Chicago. In 2011, Teen Living Programs honored Gap Inc. as their Partner of the Year at their Dream a Bigger Dream gala. Tracy Sartin, Senior Regional Director at Old Navy, accepted the award on behalf of the company. Boys & Girls Clubs of Canada We have significantly expanded our partnership with Boys & Girls Clubs of Canada our primary national partner in Canada to bring CareerLaunch, a career exploration curriculum supported by Gap Foundation, to more sites throughout the country and we have updated the curriculum for the Canadian context. We re also now investing in a volunteer manager position to help facilitate connections between the local clubs and our stores across the country. Be what s possible Year in Review 6

7 Women play a critical role in the apparel industry and a vital role in the future of societies. When we help a woman in a developing country better her life, she s able to make positive changes in the lives of her family and in her community. In 2007, we launched the Gap Inc. P.A.C.E. (Personal Advancement & Career Enhancement) program, aimed at training female garment workers in technical and social skills so they can advance in work and life.

8 GAP INC. P.A.C.E. Personal Advancement & Career Enhancement P.A.C.E. completed its fifth year in operation and continues to expand, positively impacting the lives of women in the developing world. More than 7,500 women have participated in the P.A.C.E. program since its launch in First vendor partner (India) expanded program to 8 facilities (all trainings conducted by vendor s internal staff). Year 3 program launched in Cambodia and a transition plan for vendor ownership has been developed. Program expansion continued with the launch of the comprehensive program at: Vina Korea, May 2011 (Vietnam) K. Mohan, July 2011 (India) Standard Group, October 2011 (Bangladesh) P.A.C.E. has been recognized by the Clinton Global Initiative as a model program for women s economic growth and by the International Center for Research on Women, which awarded P.A.C.E. with their Innovation Award. Focus on faster scale up across multiple sites: P.A.C.E. Training Toolkit completed New train-the-trainer implementation model developed to allow for faster scale up P.A.C.E. Case Study: Putting new skills into practice Sokhoeun, 24 years old, was born in Kampong Cham Province of Cambodia and has two brothers and four sisters. Her father is 62 and her mother is 61 years old. They live in Srey Santhor District, Kampong Cham Province. Her brothers are truck drivers and two of her sisters are silversmiths. Sokhoeun did not pass her high school exam so she decided to apply for a job as a garment factory worker. Sakhoeun has been working for the Bright Sky factory for more than two years and now she is in Quality Control. When asked about the Gap Inc. P.A.C.E. Training Program, she said, I saw leaflets about the training program and I was really interested in it and wanted to learn. Sokhoeun said that she has learned a lot from the program; for example, time management, task prioritization, tolerance, work planning, problem analysis and solution finding, and speaking politely and reasonably. She continued that she is most interested in time management because she wants to manage her time effectively and efficiently at home and in the workplace. In real practice, she said, I set my alarm clock regularly and now I get more time to finish my work, not like before when everything was a rush. And she further said, I have the confidence to ask my supervisor when I face problems or when I do not understand some terms. I have learned a lot of terms in the factory now. Be what s possible Year in Review 8

9 Of all our company assets, none is more valuable than our 132,000 employees, who bring a vast array of skills and passions to volunteering. Our work in the community would not be possible without them.

10 Our Employees Are Committed to the Community Our goal this year was to deliver $12.5M of community value driven by our employees through a combination of volunteer hours and donations. Total volunteer hours = 433,204 with over 59,000 employees volunteering approximately 7 hours each on average. Total cash contributions = $2,869,507. Total value of employee-driven community investment: $14,594,659. This includes employees financial donations, the monetary value of their volunteer time, and the Gap Inc. financial match of both forms of donation. Field Team Grant Program This program operates in our stores in North America and provides grants based on volunteer hours by our store employees. Team grants awarded = 3,201 (+20% vs. LY) Employees participated = 18,800 (+55% vs. LY) Total value to the community of team grants awarded and employee time = $2,681,280 Reimagining Service Gap Inc. continues to lead this national, multi-sector coalition that was established in 2009, following the passage of the Serve America Act, to deepen the impact of volunteerism. The focus of our work is on creating more service enterprises organizations that fundamentally leverage volunteers to increase capacity and effectiveness. Gap Foundation is working with our community partners to apply the learnings from Reimagining Service and to help more of them become service enterprises. Learn more at Distribution Center Partners We initiated local partnerships in two of the new distribution center communities: Phoenix GID DC (Western Fulfillment Center) is now partnering with Tumbleweed Center for Youth Development. Stafford United Kingdom GID DC is now partnering with Business & Education Together. Be what s possible Year in Review 10

11 like us on facebook Connect with us and share stories about getting involved in your local community. Be a part of the conversation and in-the-know on the latest events and programs that unleash the potential of the thousands of volunteers across our company. Visit facebook.com/bewhatspossible and join our community. visit bewhatspossible.com Looking for ways to get involved? Want to get your donation matched by the company or apply for a Field Team Grant? Interested in ordering volunteer tees for your team? Check out the tools, resources, and programs created for our volunteers and available to you on the newly revamped bewhatspossible.com. be a community leader Community Leaders connect employees, customers, and community organizations to create positive change in their local communities. They lead their teams in volunteer activities and fuel the Be what s possible movement. Step up and inspire your team by signing up to be a Community Leader on bewhatspossible.com starting in April Be what s possible Year in Review 11

12 Learn more > Visit bewhatspossible.com Be what s possible Year in Review 12