Annual Report 2011 by Holt International Children's Services

ANNUAL REPORT 2011

Changing Children's Lives Forever

For I assisted the poor in their need, and the orphans who required help.” – Job 29:12 *Dagim — Ethiopia lived with his father and two siblings in a dilapidated hut in Ethiopia. His mother recently died from AIDS and his father, Anamo, was left to care for Dagim on his own. He considered releasing Dagim into Holt’s care. Instead, Holt offered this helpless father assistance, providing him with chickens and start-up business supplies. Giving livestock to impoverished families can make a world of difference. Chickens create a wonderful resource for nutrients and a substantial means of income. Through Holt support, Dagim and his siblings were able to stay with their father, and in 2011, Anamo graduated from Holt’s family preservation program — stronger, self-sufficient and able to care for his children.

*Watsana — Thailand lives with her loving foster mother, Mrs. Patchara, in Thailand. In October 2011, flood damage reached a critical stage in the two rural provinces where most of Holt’s foster families in Thailand reside. After transporting many of the families—including Watsana and her foster mother—from flooded homes to temporary shelters or to stay with relatives, Holt’s staff provided weekly distributions of food, water and supplies and worked to ensure all urgent needs were met. “I always feel supported by Holt during difficulties," says Mrs. Patchara. “During the flood, the staff called every day and responded immediately to my needs.” Today, homes are being rebuilt for Holt foster families in Thailand and, with the help of generous donors, they have started to rebuild their lives.

*Donald — China needs a family. He’s a smart, outgoing little boy with a ready smile. Donald has spina bifida and will need extra help finding the right loving family. The

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majority of children available for international adoption today have some form of special need, are older or in a sibling group. This year, Holt placed more children who have special needs with loving families than any year before. We will continue to find families for children through domestic or international adoption.

Opening Doors, Changing Lives God continues to bless Holt International in abundance. Our work for children always has been and always will be a reflection of Christ’s love. And I know I speak for everyone at Holt when I say we are excited to embark on new opportunities in the countries and among the people we serve, and determined now more than ever to continue this work – the work that Harry and Bertha Holt started over 55 years ago – for the world’s most vulnerable children. Love, it seems, can be felt in all facets of Holt’s work. It was love, and a passion for the message of James 1:27 (…to look after orphans), that led 18,000 individuals to say ‘Yes!’ to becoming a Holt child sponsor in 2011. Their monthly contributions have brought warm clothes to children in Mongolia, food and medicines to North Korean orphanages, school supplies and books to girls in India, and income-generating livestock to struggling families in Ethiopia. Like many adoption agencies, we too met with obstacles in 2011. But when God closes the door on one country or project, He always provides Holt another opportunity to care for children. In 2011, 561 children were placed through Holt with forever families in the United States. More than ever, families welcomed children with special needs into their homes and their hearts. The face of international adoption has changed, and prospective adoptive families are whole-heartedly embracing it. Harry and Bertha would be happy to know that children with special needs are now first in line to join loving adoptive families overseas. In April, Holt celebrated its 55th year with a conference in our nation’s capital. We reconnected with some of Holt’s first adoptees and learned how to better assist younger generations. Through our successful adoptee camps and heritage tours, Holt will continue to reach out to adoptees and their families. In 2011, Holt helped thousands of children through adoption and other efforts. As you look over our annual report summary, please realize that this would not have been possible without our devoted foster mothers, caregivers and other compassionate people like you. You have taken hold of Holt’s mission and the children, and for this, I am truly

Blessings,

Phillip Littleton | President and CEO 3

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grateful.

Our Work | Highlights from 2011 Family Preservation In countries around the world, Holt works to keep families together by providing the fundamental support parents need to give their children a safe, stable home. We supplement nutrition, provide medical care and send children to school. We provide microloans for small businesses and train parents in income-generating trades. Through these efforts and allied with our partners overseas, we help families work toward a place of self-reliance and lasting stability. Last year, Holt significantly expanded the number of families and broadened services in almost all of our family preservation programs. Throughout the year, many families also successfully exited the program. In Ethiopia last February, 120 families participated in a graduation ceremony celebrating their extraordinary achievement. By year’s end, every one of the original 360 families had graduated. While in Thailand, China, Haiti, the Philippines and Uganda, Holt helped thousands more children to stay in the loving care of their birth families.

Family Reunification Before pursuing domestic or international adoption, our partners overseas first strive to determine whether children

H olt I nt e r n at i on a l / A n nu a l R e p or t 2011

can return to their birth families. Many homeless children have living parents or relatives whose lack of resources, not lack of love, compelled them to relinquish their child. With a little assistance, however, many birth families can continue caring for their children. In Guatemala last year, Holt, the Guatemalan government and local NGOs successfully completed reforms to the country’s system of child welfare, enabling over 1,000 children to reunite with their birth families. These families continue to receive support through government-sponsored programs in Guatemala.

Foster Care Rather than institutional care, Holt strives to place children in a more attentive, family-like environment while they wait to join permanent families. In many countries, Holt has introduced model foster care programs designed to nurture children’s growth and development. In the loving embrace of a foster family, children are able to reach critical developmental milestones, and develop healthy emotional attachments. In countries such as China and South Korea, many children stay in foster care while Holt works to find them adoptive families. Holt also supports and advocates for foster care in countries where international adoption is not currently active, such as in Vietnam – home to one of our longest-standing foster care programs.

Nutrition Many children enter into care weak and malnourished. With proper nutrition, their health and development dramatically improves – often giving them the strength to rejoin their families or join an adoptive family. Several of Holt’s partner programs provide regular meals and nutrition training to help struggling families. Last year, Holt partnered with the government of Vietnam to strengthen day care programs for children in several low-income communities. While children participate in learning activities, their parents receive education in child nutrition, hygiene, health and development. In countries such as Vietnam, Cambodia and Ethiopia, Holt also provides livestock for families in our family preservation programs – providing both constant nutrition and the basis for a small family business.

Medical Care Critical to the health and wellbeing of families and children, basic medical care is an integral part of our services. All children in the care of our partners overseas receive vaccinations and other routine medical care. More and more, children we support and seek homes for also have medical conditions that require surgery or other involved care. Last September, Holt assumed management of the Ping An Medical Foster Home – or “Peace House” – providing before-and-after care for orphaned and abandoned children in China who come to Beijing for medical treatment. As their health improves, many of these children will go on to join adoptive families in China or the U.S.

Education A significant component of family preservation, educational support includes vocational training for parents, sponsorship for children to attend school, and also parenting classes to help families raise strong, healthy children. Last year, most shunned and most impoverished families in Nepal. Through this program, single mothers will begin earning vital income to support their families. In India, educational sponsorship helped cover the cost of books, fees, uniforms and supplies needed for 370 children to attend school – most of them girls. While in Haiti, Holt began a school and student-based sponsorship program – keeping 300 at-risk children in school, and working with educators to monitor their health and wellbeing.

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Holt initiated a pilot vocational training project for woman-headed families belonging to the “Dalit” caste – comprising the

Russia, 91–94, 98–02

Ukraine, 2004–10 Romania, 1989–

Kazakhstan, 2006–08

N. Korea, 1998– S. Korea, 1956– China, 1993–

Bulgaria, 2002-04, 08-11 Nepal, 2008–

Hong Kong, 1986–2001

India, 1979–

Taiwan, 1979–82

Bangladesh, 1972–73 Thailand, 1976–

Ethiopia, 2007– Uganda, 2002–

Mongolia, 2000–

Philippines, 1972– Vietnam, 73–75, 89–

Cambodia, 91–93, 05–

Domestic Adoption Circumstances sometimes make it impossible to reunite children with their birth families. For these children, we first try to place them with loving families in their birth country. Giving children the opportunity to grow up in their birth country and culture is central to an ethical system of adoption, and we have long promoted it in the countries where we work. Because of recurring social stigmas, however, domestic – or in-country – adoption has been slow to develop. But as cultures grow and change, many more children have in recent years found the loving families they deserve through domestic adoption.

International Adoption Not every child is able to rejoin their birth family or join an adoptive family in their birth country. For these children, we seek homes in the U.S. Since our founding in 1956, Holt has placed more than 40,000 children with families through international adoption. In recent years, however, the profile of children needing homes – and coming home to families – has changed. In many of the countries where Holt works, growing economies are giving birth families the resources to care for

H olt I nt e r n at i on a l / A n nu a l R e p or t 2011

their children. As domestic adoption also becomes more socially accepted, orphaned and abandoned children are increasingly finding adoptive families in their birth countries. Most of the children adopted domestically are healthy, infant girls. As a result, children who once waited longer than others to find families – children with special healthcare needs, older children, and boys – are now first in line for international adoption

U.S.A., 1956– Honduras, 1983–86

Mexico, 2001–02 Guatemala, 1986– El Salvador, 1984–86 Costa Rica, 1986–94 Ecuador, 1987–2005

Haiti, 2003– Nicaragua, 1976–82 Colombia, 1984–88

Brazil, 1984–95

Peru, 1984–85 Bolivia, 1985–88 Chile, 1984–85

Programs for Children with Special Needs Children who are older, have special needs or are part of sibling groups often wait longer for families. Holt has for many years made extra effort to find loving homes for these children, and supported in-country programs that help them develop to their fullest potential. Last year, Holt initiated a special program to promote adoption of older children in the Philippines. A team of 6 ambassadors traveled to the Philippines to meet 11 older children. Upon return home, they began advocating for their adoption. By the end of 2011, 5 of the 11 children had families. Among in-country programs to serve children with special needs, our first – the Ilsan Center in South Korea – celebrated its 50th anniversary in December. In 1961, Harry and Bertha Holt founded this long-term care facility for children who weren’t likely to be adopted, often children with profound medical and developmental conditions. Today, the Ilsan Center continues to provide short and longterm rehabilitation, vocational skills training and many other services for children and adults with disabilities.

Post Adoption Services Holt offers a range of services to address the continuing needs of adoptees, adoptive parents and birth parents – from counseling for families and assistance with birth searches to heritage tours and adoptee camps. Holt Adoptee Camps provide a particularly unique experience for adoptees, as they are the only camps of their kind designed specifically to foster healthy adoptee identities. In 2011, Holt Adoptee Camp expanded from four to six locations – adding camps in Wisconsin and Georgia – and served 559 children. The Post Adoption Services Department at Holt helps adoptees regardless of agency affiliation and last year, provided services for over 3,900 adoptees and families – many of them not previously associated with Holt. In an effort to strengthen post-adoption education and support, Holt also initiated a partnership with the non-profit organization Adoption Mosaic. Together, Holt and Adoption Mosaic presented two free, informational webinars

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addressing various post-adoption issues.

Statement of financial position

A Partnership for the Children

December 31, 2011 (with Comparative Totals for December 31, 2010)

The partnership between Holt and its supporters changes children’s lives.

We at

ASSETS Cash & Cash Equivalents

$1,830,565

$2,156,303

1,295,266

1,013,927

Holt recognize that we serve as the hands and feet of very caring and generous people. We

Prepaid Expenses & Supplies

541,633

372,820

strive to use our financial resources effectively

Prepaid Support - Holt Children's Services, Korea

1,778,416

1,467,466

Investments

6,059,136

6,377,860

529,582

543,941

1,449,404

1,500,801

$13,484,002

$13,433,118

$746,028

$699,510

transparent relationship with our donors.

Holt

undergoes an annual audit performed by an independent accounting firm.

The following

charts are based upon the report of Moss Adams. A complete audit report is available and gladly provided upon request. The downloadable version is also available on our website at holtinternational.org

Promise to give, net of discount Land, Building, & Equipment, Net of Accumulated Depreciation Total Assets

LIABILITIES Accounts Payable & Accrued Expenses International Program Support Payable

711,039

682,414

4,553,974

3,989,804

Deferred Transportation Fees

79,260

76,070

Deferred Revenue - Other

30,250

13,325

Deferred Adoption Fee Revenue

Our Vision A world where every child has a loving and secure home.

Deferred Compensation

102,157

94,395

Annuity Obligation

255,133

194,042

6,477,841

5,749,560

Undesignated Net Assets

1,439,690

1,792,772

Board Designated Endowment

1,646,302

1,892,973

Total Liabilities

Our Mission

NET ASSETS

Holt International is a Christian organization committed to expressing God’s compassion for children. While always upholding the highest ethical standards, we: • Find

and

support

Unrestricted Net Assets:

Temporarily Restricted Net Assets Permanently Restricted Net Assets

permanent,

loving

families for children who are orphaned, abandoned or at serious risk of separation H olt I nt e r n at i on a l / A n nu a l R e p or t 2011

2010

Receivables

and efficiently, and maintain an open and

from their family • Provide services to ensure that children will grow and develop to their fullest potential

Total Net Assets

Total Liabilities & Net Assets

953,709

1,245,533

2,966,460

2,752,280

7,006,161

7,683,558

$13,484,002

$13,433,118

2011 expenses 9.8%

• Lead the global community in advocating

17.7%

on behalf of the world’s most vulnerable children

72.5%

Program Services Fundraising Management & General

2011

Hague Accredited

COUNCIL ON ACCREDITATION FOUNDED 1977

Statement of activities

For the year ended December 31, 2011 (with Comparative Totals for the year ended December 31, 2010) 2011

2010

Unrestricted

Temporarily Restricted

Permanently Restricted

Total

Sponsorship Contributions

$ 439,492

$9,300,102

$9,739,594

$7,461,605

Other Contributions

1,208,810

2,121,308

105,587

3,435,705

3,473,651

60,056

108,593

168,649

629,941

USAID Grant, Ukraine

230,524

Other

89,863

372,729

9,767,829

10,579,353

123,020

225,570

71,953

30,188

102,141

120,486

REVENUES & OTHER SUPPORT Public Support:

Promise to give Grants Received:

Revenues: Adoption Fees Transportation Fees Investment, Principally Interest, Net of Investment Fees Tour Charges

315,957

297,491

Adoptee Services

172,355

167,225

3,561

3,556

62,815

11,304

100

(185,840)

Publication Sales, Net of Expenses of $37,687 in 2011 and $26,492 in 2010 Other Revenue Gains: Gain (Loss) on Sale of Assets Net Unrealized/Realized Gains/ (Loss) on Investments

(268,389)

(119,012)

(387,401)

698,121

11,774,329

(11,774,329)

23,671,832

(291,824)

214,180

23,594,188

24,085,746

U.S. Program

6,837,255

6,664,654

International Program

2,164,691

2,012,303

2,922,770

2,422,448

5,664,996

6,751,801

17,589,712

17,851,206

Net Assets Released from Restrictions Total Revenues & Other Support

EXPENSES Program Services:

International Program Support: Holt Children's Services - Korea Other Total Program Services Supporting Services: 2,369,636

2,369,636

2,241,976

4,312,237

3,847,777

6,681,873

6,089,753

24,271,585

23,940,959

CHANGE IN NET ASSETS

(599,753)

(291,824)

214,180

Net Assets, Beginning of Year

3,685,745

1,245,533

2,752,280

7,683,558

7,538,771

$3,085,992

$ 963,709

$2,966,460

$7,006,161

$7,683,558

Total Supporting Services Total Expenses

Net Assets, End of Year

( 677,397 )

144,787

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Management & General Fundraising

For the Children Harry and Bertha Holt's Legacy of Love In the mid-1950s, Harry and Bertha Holt saw a film about Amerasian children in Korean orphanages who were desperately in need of help. Harry and Bertha sent money and clothes, but that didn’t feel like enough. Then they came to an inspired realization – those children needed families. Harry and Bertha decided to adopt eight Korean children, but soon learned it would be impossible…unless they could get both Houses of Congress to pass a special law. “Then that’s what we’ll do,” Bertha said, and she moved ahead on faith. The Holts’ adoption was revolutionary. Their example showed that a family’s love can transcend the barriers of race and nationality. At a time when adoption was regarded as something to be kept secret, they adopted children who were obviously not their birth children. Through their deep Christian faith and fierce determination, they showed the world that adoption is a banner of love, not a badge of shame. Word spread and inspired people across the nation. Many inquired as to how they, too, could adopt. Only five months after he brought their eight children home, Harry headed back to Korea to help other children have families. Holt was officially incorporated in 1956, financed almost entirely by Harry and Bertha’s personal funds.

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When Harry passed away in 1964, many thought the Holt agency would simply fold up. But Bertha said, "This work was always God’s work. If He wants it to continue, it will." Her strength and faith persevered, and Holt continued to grow and meet the needs of an increasing number of homeless children. Bertha worked tirelessly on behalf of children in need until her death at age 96. She was affectionately known as "Grandma Holt" to adoptive families and to the thousands of children around the world whose lives she changed. Today, Holt International is proud to continue finding families for children. Holt is the largest international adoption agency, having united more than 40,000 children with adoptive families in the United States. We offer our families unrivaled stability, an extensive knowledge bank, a highly successful track record, and proven skills in international relations. Most of all, Holt always has and always will be driven by what is best for the children. By upholding Harry and Bertha’s ethics, up-front and honest practices, and ongoing support to adoptive families and children, we look forward to finding many more homes for children who need them. In Bertha’s words, “All children are beautiful when they’re loved.”

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P.O. Box 2880 | Eugene, OR 97402 | www.holtinternational.org