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New CLM graduate
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Katleen Felix Moves to Kanpe
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Client Benefits from Kore W
Fonkoze named one of world’s top 10 microfinance organizations
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VOLUME 16 ISSUE 3
PHOTO BY DARCY KIEFEL
FALL 2012
Finding Balance While Restructuring For The Future
F
inding Balance: Two simple words that in their realization mean so much to the people of Haiti, to the institutions that make up the Fonkoze Family, and to the clients and members served by these institutions.
What do we mean by “Finding Balance?” For Fonkoze, we are talking about being a double bottom-line institution, in that we hold ourselves to high and measureable standards for both institutional financial performance and positive social impact on our clients. We continually balance financial
health with making a real difference in the lives of our clients. In our recent Annual/Social Performance Report (available at fonkoze.org), we address this delicate balance. Fonkoze’s social bottom line clearly shows that clients remaining with Fonkoze CONTINued on page 4
Fonkoze Branch Offices Creole / French
Mibalè / Mirebalais
Aken/Aquin
Milo / Milot
Ansapit / Anse-à-Pitre
Miragwàn / Miragôane
Beladè / Belladère
Montòganize / Mont Organisé
Bizoton / Bizoton
Okap / Cap-Haïtien
Bomon / Beaumont
Okay / Les Cayes
Boukànkare / Boucan Carré
Okoto / Les Coteaux
onkoze is evolving. In order to assure long-term continuation of the proven and measurable results our clients achieve year after year, we are changing. Sometimes change is not easy, but as always, we bravely face the future because of the strength your support provides. As we say in Haiti, “an empty sack cannot stand.” Well, Fonkoze’s “sack” has never been empty and is not just a single “sack”…far from it! But we needed to take a look at the contents and make sure what we maintain is strong, sustainable, and placed in the best “sack.” To be sure, we have spent much-needed time this year examining our structures and operations. This can be wearisome work, and at times I found myself seemingly neck-deep in numbers and evaluation of scarce resources. This is the financial bottom line we talk about in this edition of Nouvel Fonkoze, and in our recently published Annual/Social Performance Report. As I worked with many talented and dedicated individuals and organizations to review our institutions, we sometimes faced harsh realities. At the end of a hard day, I return to the on-going work taking place in rural Haiti despite these challenges, to our dedicated staff who make it happen no matter what, and to the brave women who depend on Fonkoze’s services. I end my day knowing that paying attention to our financial bottom line is essential to these women and their families. These are the stories that give me hope, and that you will read in this newsletter:
Ench / Hinche
Piyon / Pignon
Fòlibète / Fort Liberté
Pòdpè / Port-de-Paix
Fondeblan / Fond-des-Blancs
Pòmago / Port Margot
Fondwa / Fond-Oies
Ponsonde / Pont Sondé
Fonvèret / Fond Verrettes
Pòtoprens / Port-au-Prince
Gantye / Ganthier
San Rafayèl/Saint-Raphaël
Gonayiv / Gonaïves
Sen Michèl / St. Michel de Lattalaye
The power of progress as displayed by CLM graduate Lociane Mondesir in the remote village of Zaboka;
Carine Roenen, Director Fondasyon Kole Zepòl #12 Rue Miot Cite Wilson 1ere, Pacot Port-au-Prince, Haiti +509.3990.1003 croenen@fonkoze.org
Father Joseph’s Letter Dear Friends of Fonkoze:
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The power of resiliency as displayed by Hurricane Isaac survivor Janette Chery, who received assistance from Fonkoze’s natural disaster insurance program, Kore W; The power of community as displayed by Fonkoze supporters in Bucks County, PA, who raised over $100,000 in this year’s Barn Party. As 2012 draws to a close, and as Fonkoze and many other Haitian institutions find creative and innovative ways to rebuild their own country, please remember us. Remember us in your prayers, through your solidarity, and with your year-end giving. Even though you no longer hear about Haiti as often in the news, know we are making progress and moving ahead with single-mindedness to eliminate extreme poverty in Haiti and to provide both the financial and social programs to individuals and organizations to make that happen. In solidarity,
Gwomòn / Gros Morne Jakmèl / Jacmel Janrabèl / Jean Rabel Jeremi / Jeremié
Sodo / Saut d’Eau Tirivyè d’Artibonit / Petite Rivière de l’Artibonite
Kabarè / Cabaret
Tirivyè d’Nip / Petite Rivière de Nippes
Lagonav / La Gônave
Tomonn / Thomonde
Latwazon / La Toison
Twen / Trouin
Lavale / La Vallée
Twoudinò / Trou-du-Nord
Lenbe / Limbé
Tyòt / Thiotte
Leyogàn / Léogane
Wanament / Ouanaminthe
Marigo / Marigot Fonkoze Family Contact Information
Anne H. Hastings, CEO Sèvis Finansye Fonkoze #12 Rue Miot Cite Wilson 1ere, Pacot Port-au-Prince, Haiti +509.3701.3910 ahastings@fonkoze.org Leigh Carter, Executive Director Fonkoze USA 1700 Kalorama Road NW Suite 102 Washington, DC 20009 202.628.9033 lcarter@fonkoze.org fonkoze.org
Joseph B. Philippe, CSSp
youtube.com/FonkozeHaiti twitter.com/Fonkoze facebook.com/Fonkoze
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Nouvel Fonkoze | Fall 2012
Locianie Bondesir Escapes Extreme Poverty By M ac k e n z i e K e l l e r | C o m m u nic ation s I nt e r n , F on k o z e USA
Photo by Mackenzie Keller
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efore 32-year-old Locianie Bondesir joined Chemen Lavi Miyò (CLM), she and her husband had a garden together. “We were two little birds who put our heads together,” she says, “able to fight for life to see if we would live.” Locianie hails from Zaboka, a remote region of the Central Plateau that case managers can access only after a threehour trek through rocky terrain and steep mountains. While life in the region is challenging, Locianie and her husband experienced more hardship than most. Despite their efforts to provide for their seven children, sickness derailed any success they found. Her husband’s illness forced Locianie to sell all their assets, including her wedding ring, to pay for treatment from a local doctor. “I didn’t have anything anymore,” Locianie says. “There were people who didn’t see beyond your appearance.” When CLM first came to Locianie’s house, she was scared. But she found reassurance: “My neighbor said that those people aren’t bad; if they come and they see that you seem like you can enter [their] program, you can go far.” Locianie decided to join CLM, and now, 18 months later, she is transformed. Before beginning the program, only one of her seven children went to school. Now, all seven attend regularly. They are, Locianie explains, the reason that she works so hard. “I do commerce,” she says, “so that the kids can eat comfortably and go to school.” For her commerce, she sells rice in a nearby market. She also works with the livestock that CLM gave her as part of the asset-building component of the program; she has turned the one pig and two goats she started with into ten pigs and four goats. “We eat three times a day,” she says of her family. “We weren’t able to before; if
CLM graduate Locianie Bondesir proudly displays her diploma.
I gave them food in the morning or the afternoon, they didn’t eat supper. Now, I can give them meat.” A smile spreads across her face. She explains that her oldest son was suffering from malnutrition, but now, he is healthy. Locianie measures her success by her children, citing her ability to provide for them as evidence of her achievement. “Now I can find money,” Locianie says. “I can pay for school for my children; I can buy books each time that they ask me. I have succeeded.” It’s not surprising that her future plans remain focused on her family. When
asked about her hopes for the future, she says simply, “I want my children to continue school and to eat well.” One of her sons has come to the graduation to witness the celebration of his mother’s success. As the two hold hands, Locianie proudly holding her new diploma, her canary-yellow dress seems a fitting symbol of their future. She is no longer a woman overlooked by others; she stands tall before the crowd of her fellow graduates and their families, sharing her story. She closes with a song, a reminder that while the hard work may not be over, she is ready—and filled with hope. 8 Nouvel Fonkoze | Fall 2012
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CONTINued from page 1
are improving their lives. The longer clients remain with Fonkoze, the more their assets grow and standard of living advances. For example, our research shows a remarkable change in food security and children’s enrollment in school in a client’s first years with Fonkoze. To continue to be able to provide important services to our clients and members, we must keep a watchful eye on financial health and sustainability. As the dust literally settled after the earthquake, the Fonkoze Family decided to undertake an extensive strategic review of all the institutions that make up the Fonkoze Family—Fonkoze (the original foundation in Haiti), Sèvis Finansye Fonkoze (SFF), the Haitian non-bank financial institution, and Fonkoze USA. Early in 2012, the Fonkoze Family Coordinating Committee (FFCC) was formed. Made up of select board members of each respective board in the Fonkoze Family, the FFCC is digging deep and taking a holistic view of the financial health of each institution. They are making recommendations for achieving
As we move closer to the 20th anniversary of Fonkoze, we are making the essential decisions needed to secure our future and to fortify ourselves for the long-term. higher levels of efficiency and impact and estimating the resources needed to do so. What are some of the changes you will see in the Fonkoze Family? k To achieve improved resource allocation and to position our institution for possible Haitian government regulation, we will move all financial services (credit, savings, remittance and currency exchange) into SFF and all non-financial services (like education, health, ultra-poor programs, and social performance monitoring) into Fonkoze, the Foundation. k Both SFF and the Foundation will be strengthening their core programs, raising capital to shore up their financial statements, and focusing on long-term sustainability. k Both institutions—SFF and the Foundation—will continue to work
shoulder-to-shoulder as always, providing both the financial and non-financial services critical to client success. Fonkoze USA will continue its supportive role for both institutions. Some of this will not be easy, but we know we are not alone. As we move closer to the 20th anniversary of Fonkoze, we are making the essential decisions needed to secure our future and to fortify ourselves for the long term. Strong Haitian institutions taking control of the recovery and development of their own country! Strong Haitian institutions “Finding Balance” in order to move forward into Haiti’s brighter future. 8
In 2011 Fonkoze’s Social Impact team re-interviewed 136 clients from 8 branches who have been active borrowers with Fonkoze for three to four years (approximately 7 loan cycles). This client group continued along the trajectory of making steady progress with regard to food security and children’s enrollment in school. We saw marked improvements in poverty levels, small asset ownership, and household living conditions and infrastructure. 5% of this client group moved above both the $1/day and $2/day poverty lines. This means that 11% of those who were living below $1/day and 8% of those who were living below $2/day moved above their respective poverty lines by their 7th loan from Fonkoze.
Improvements in Poverty Levels over 7 loan cycles
Improvements in Other Key Areas over 7 loan cycles 93%
+26% 64% 49%
44%
Percent living below $1/day 4
-5%
67%
59%
82%
+20%
82%
+12%
73%
70%
63%
79%
+11%
72%
62%
-5%
Percent living below $2/day
Nouvel Fonkoze | Fall 2012
Send all children to school
Small assets like a radio or TV
Sanitary toilet /latrine
Piped or well water
Cement floor
+7%
Katleen Felix Moves to Kanpe
Fonkoze 2011 Annual Report
Katleen Felix, M.Sc, recently began a new positon at Kanpe Foundation, a Haitian-Canadian development organization that works closely with Fonkoze. The Board of Directors and staff of the entire Fonkoze Family join together with friends and supporters to congratulate Ms. Felix for the extraordinary body of work she provided the Fonkoze Family. Ms. Felix served various roles at both Fonkoze and Fonkoze USA over the past five years, but she is best known for her impactful presence within the Haitian diaspora. Not only did Ms. Felix create and maintain the Haitian Hometown Association Database and contribute much to the research on remittances and development of new remittance products or initiatives, she rolled out financial literacy programs for new immigrants and training for Haitian Hometown Associations (HHTAs). She was a founding force behind Fonkoze’s program, Zafèn. She is, and will remain, a strong voice for diaspora engagement not only with Fonkoze, but organizations throughout Haiti.
We are proud to announce that the Fonkoze 2011 Annual Report is now available online. The publication covers Fonkoze broadly, with updates on all our lending programs, in addition to health, education, microinsurance and social performance management. Splendid photography and world-class design complement in-depth analysis and informative graphs. Not to be missed. See it at fonkoze.org.
In 2011 Fonkoze conducted home-based interviews with 497 clients in 10 branches who had taken out their 3rd loan with Fonkoze (which takes about one year) and 151 clients from 10 branches who had advanced to their 5th loan cycle with Fonkoze (which takes 2-3 years). While changes in poverty levels, living conditions, asset ownership and literacy were relatively small for these two client groups, we did see remarkable changes in food security and children’s enrollment in school in their first years with Fonkoze. Improvements in food security over 7 loan cycles
Clients Who Received Their 3rd Loan with Fonkoze
89%
Clients Who Received Their 5th Loan with Fonkoze
+12%
+25%
77%
As Clients Received Their 3rd Loan
62%
61% 54%
+36%
43% 36%
35% 25%
+13% 24%
23%
Food Secure
As Clients Received Their 1st Loan
87%
Send all children to school
Food Secure
Send all children to school
Food Secure
+19%
As Clients Received Their 5th Loan As Clients Received Their 7th Loan
Nouvel Fonkoze | Fall 2012
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Client Profile
A Storm Brings Solidarity By C a ss i dy Rush | E x t e r n a l C o m m u nic ation s S p e ci a l i s t, F on k o z e USA
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urricane Isaac made headlines in the U.S. for disrupting the Republican convention. It made fewer headlines for the damage it did to those who have lived in tents in Haiti since
the earthquake, and even fewer for the destruction wrought upon those Haitians with actual houses. Take, for example, the plight of 62-year-old Janette Chery of Fondparizyèn, a dry and dusty rural community outside Gantyè, near the Dominican border. A Fonkoze client since 2010 and mother of seven, she sells coconuts for a living with help from her children. Less than a month before the storm, her husband had died.
On the night of August 24, Isaac hit hard. The ceaseless rain made nearby Lake Azuei spill over; on the other side of Janette’s house, what was once an empty ravine became a raging river. All around, the chapped and treeless soil failed to absorb the downpour. While the area flooded, gusting winds of up to 60 MPH challenged the integrity of roofs throughout the community. A large chunk of Janette’s tin roof could not resist the pressure, coming unhinged and flying about 25 feet from
Photos by Cassidy Rush
Left: Fonkoze client Janette Chery surveys her severed roof. Strong gusts during Isaac ripped it from the house and dropped it about 25 feet from her house. Below: Janette (right) with Elucia Joseph Mie, her center chief.
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Nouvel Fonkoze | Fall 2012
Donor Profile
To Haiti from the Heart of Pennsylvania By C a ss i dy Rush | E x t e r n a l C o m m u nic ation s S p e ci a l i s t, F on k o z e USA CONTINued from page 6
the house. She and her children were forced to flee. On their way to where other family members lived, they ran into Elucia Joseph Mie, Janette’s center chief. Elucia was not fleeing her house, which survived the storm with no serious damage; she had gone out to check on the other members of her center. “I did that because they are my children, they are my family,” she says. “I feel bad when one of them has a problem.” Janette found support not just from Elucia. She has also found it from Kore W, Fonkoze’s microinsurance program. When natural disasters ruin clients’ livelihoods or homes, Kore W provides them with US$125 cash and erases their loan balance; they can take out a new loan when they’re ready. All clients are covered, with each paying 3% of their loan value upon disbursement for the service. Less than a week after the storm had passed, Kore W evaluators along with Elucia had decided Janette was eligible for a payout. “Kore W is good for me,” says Janette. “The payout isn’t in my hands just yet, but it will be good for me.” Since the evaluation process is ongoing, it’s impossible to give exact numbers, but safe to say that Kore W will be good for thousands of other clients who sustained damage in the storm as well. “With Kore W, Fonkoze is becoming more than just family,” says Elucia. “At first, people didn’t understand what Kore W was. Now, everyone wants it more than ever.” 8
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onkoze prides itself on being an energetic organization, hard-working to the core. But, we know how to have fun too, and so do our supporters. Case in point: the 2nd annual Bucks County Barn Party. Fonkoze support has been growing among residents of Bucks County, PA, since the 2010 earthquake. Hosted by Jill and Steve McDonnell, and organized by a dedicated committee, the party dazzled with colorful art, exquisite food and downright groovy music. More than 125 Fonkoze boosters were in attendance. Some had visited Haiti in April to see the institution’s work firsthand as part of the Bucks County Delegation. Fonkoze staff were represented as well, including Fonkoze founder Father Joseph Philippe, Fonkoze
USA Executive Director Leigh Carter and CLM/Ti Kredi (Fonkoze’s programs for the poorest) Director Gauthier Dieudonne. The latter received a moving tribute from Margaret Balitsaris, who had accompanied him on a hike to visit CLM clients in the Central Plateau. She praised him and his team for having “the tenderness to carefully pry open a life of chronic poverty in order to offer help, [to] intrude without being intrusive.” 8
Top to bottom: Gauthier (left), Leigh and Father Joseph get festive; Vaneese Thomas and her band light up the stage; a Fonkoze branch stands tall on canvas.
Nouvel Fonkoze | Fall 2012
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NON-PROFIT U.S.POSTAGE PAID TWIN CITIES PERMIT NO. 27370
1700 Kalorama Rd NW, Suite 102 Washington DC 20009
We’ve known it all along, but now it’s official: Fonkoze is one of the world’s best microfinance organizations! According to Philanthropedia, a website dedicated to promoting expert-recommended, high-impact nonprofits, Fonkoze is “great at risk-taking” and “blessed with very capable and inspired leadership.” Experts on the website also noted we have a “proven track record of innovation and resiliency, serving as an irreplaceable vehicle in the recovery effort in Haiti after the devastating 2010 earthquake.” “We are honored to be considered among the world’s best microfinance organizations,” said Anne Hastings, CEO of Sèvis Finansye Fonkoze. This expert recognition demonstrates the success we’ve had in helping these microentrepreneurs climb out of poverty.” Fonkoze is also proud to be a Charity Navigator 4-star Charity, a GuideStar Valued Partner, and a Better Business Bureau Accredited Charity.
Fonkoze USA Participating in Combined Federal Campaign Until December 15, federal employees can now donate to Fonkoze USA through the Combined Federal Campaign (CFC). It’s one more opportunity to support economic democracy in Haiti. Designate your contribution to the Fonkoze USA, CFC ID # 31204.
How you can help Fonkoze this holiday season “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.” From The Lorax, by Dr. Seuss Keep Fonkoze in your thoughts and prayers. Your prayers and positive thoughts are a source of strength and inspiration for Fonkoze staff and clients. We love to hear from you! Make a tax-deductible contribution. Your year-end gift is more important than ever this year! Visit our website to make a secure online contribution (www.fonkoze.org), or send a check payable to “Fonkoze USA” to 1700 Kalorama Road NW, Suite 102, Washington DC 20009. Give through your employer matching gift program. Submit your company’s matching gift form with your donation, and Fonkoze USA will process and return it to your employer. Or, send us your donation first, then present your acknowledgement letter to your employer for processing a match. Become a monthly donor. Monthly donations via credit card provide a reliable source of support for our work in Haiti. Visit our website to download the Pledge Partner participation form. Remember a loved one. Give a gift in honor or in memory of a loved one, and support the women of Haiti. Provide the details via our online giving form at www.fonkoze.org, and Fonkoze will notify your honoree on your behalf with a beautiful card. Thank you for your support!
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Nouvel Fonkoze | Fall 2012
PHOTO BY DARCY KIEFEL
Fonkoze named one of world’s top 10 microfinance organizations
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