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 2014.
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.
WO RDS F RO M O U R PAR TN ERS
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.”
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.
-Kiran Khagdi, Kumbeshwar Technical School, Nepal (pictured with wife and granddaughter)
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
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.
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
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
C RE AT IN G CO NNECTIONS 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.
Our Core Values Improved Quality of Life Partnership & Collaboration
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.
Communication, Transparency, & Trust Sustainable Development Culture, Craft, & Tradition Product & Service Quality Education
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.
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 ($)
COUNTRY
PURCHASES ($)
COUNTRY
PURCHASES ($)
Bangladesh
223,169
Indonesia
193,548
Sri Lanka
6,708
Cambodia
33,949
Kenya
78,140
Swaziland
40,148
Cameroon
38,146
Madagascar
2,310
Uganda
26,497
Canada
20,413
Mali
5,235
USA
188,289
Vietnam
124,820
West Bank
123,151
China
3,308
Mexico
52,808
Ecuador
34,999
Nepal
201,836
El Salvador
10,044
Nicaragua
33,863
Ghana
76,816
Pakistan
19,520
Ghana & Germany
Guatemala
570,428 2,901
Haiti
66,492
India
817,297
Peru
148,787
Philippines
128,058
Rwanda South Africa
Serrv International • A nonprofit organization
GRAND TOTAL
$3,306,648
6,433 28,537
2014 Annual Report • page 4
I NC O ME STATE M E NT F OR 2014
BAL AN C E S HEET AS O F 12/ 31/ 14
REVENUE
ASSETS Sales of fairly traded handcrafts and food
10,262,039
Partial reimbursement of shipping costs Contributions Other non-operating income GROSS REVENUE Credit card, bank fees, and other cost of sales
Cash and cash equivalents
1,704,905
621,708
Accounts receivable
746,269
183,633
Allowance for doubtful accounts
(7,681)
7,975
Inventories
1,505,725
11,075,355
Reserve for obsolete inventory
(75,000)
Advances to producers and partners
254,473
(213,734)
Prepaid supplies and miscellaneous accounts
309,713
Contract services
(916,741)
Payments to producers for goods sold
(3,676,263)
NET REVENUE
Equipment and leasehold improvements
TOTAL ASSETS
111,612
$4,550,016
$6,268,617
LIABILITIES EXPENSES
Inventory financing payable
1,962,002
Accounts payable
177,476
Program salaries and benefits
1,961,331
Postage and outbound shipping costs
1,346,230
Accounts payable inventory
0
Payment of international shipping for producers
523,122
Payable to partner organizations
61,563
Promotion
595,721
FASB 106 obligation
13,985
Occupancy including warehouse rent
428,985
Notes payable
1,193,675
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
NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
For a complete copy of our audited financial statements, please contact us at 410.635.8755.
CHANGES IN NET ASSETS
($72,452)
ol,
N
Ad
e lla
, CCAP, Philipp
Serrv International • A nonprofit organization
s ine
ya
d,
ep
hwar Technical
o Sch
vi
vi k
Da
De
al
$6,341,069
bes
$4,550,016
768,200
TOTAL EXPENSES
Ku m
$970,622
5,572,869
Administrative and fundraising
a,
170,693 $3,579,394
Ny
en
PROGRAM EXPENSES SUBTOTAL
Miscellaneous liabilities TOTAL LIABILIIES
ab
ig e n
a Soapston
rv e Ca
e rs
,K
2014 Annual Report • page 5
Many thanks We would like to express our sincere gratitude to those who have helped make 2014 a successful year. O U R A R T ISA N & FARMER PAR TNERS 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. O U R CUSTOM E RS 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. I N VE STOR S 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. D O NOR S 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. C AT HO LIC R E LIEF SER VICES AND TH E U N ITED M ET HOD IST 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. V O L UNT E E R S 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. FA I R TR A D E A LLIES We are grateful to be part of national and global fair trade movements strengthened by the Fair Trade Federation and World Fair Trade Organization. B O A RD OF D IR ECTORS & 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!
S ERR V IN TERN ATI O N A L 2015 BO ARD O F DIR E C T O R S
Cathy Dowdell Chair of the Board Tom Greenwood Vice-Chair Candi Horton Treasurer Matt Greget Secretary William Gordon Frank Millero Jacqui MacDonald Lora LaDew Milan Bhattarai Tim McElwee Bob Chase, CEO/President Nonvoting member O PERATIO N S C E N T E R
500 Main Street PO Box 365 New Windsor, MD 21776 410.635.8750 ADM IN IS TRATIVE O F F I C E
122 State Street, Ste 600 Madison, WI 53703 608.251.3766
serrv.org 1.800.423.0071 FOUNDING
MEMBER
Serrv International • A nonprofit organization
2014 Annual Report • page 6