FIELD TEAM Winnie Auma • Linnet Ayuma • Macrine Bakesiima • Heartwell Bigirwenkya • Nicholas Businge • Collines Buyinza Peter Dema • Maurice Eriaku • Charles Erongot • Francis Khamaluli • Fabian Khamati • Khatuchi Khasandi Nathaniel Maiyo • David Mango • Ellen Metzger • Maureen Mudeyu • Martin Mutebi • Leah Newman • Frankline Ochae • Isaac Otim Selina Otima • Kwatoya Mike Peru • Wilson Peru Nancy Shikuri • Melvin Shisanya • Solomon Tumusiime • Konstantin Zvereff MENTORS - UGANDA Margaret Aluka • Catherine Ameso • Esther Apolot • Paul Etiang • Doreen Icumar • Stella Ikiring • Nancy Kabajawa Doreen Kabajulizi • Geoffrey Kajuma • Annet Kyahurwenda • Doreen Kemigisa • Evelyn Kusiima • Gerald Kyalisiima Patrick Mulinde • David Okanya • Anthony Omongin • Samuel Onaba • Ben Opolot • Bernard Otim • Mildred Wengonzi MENTORS - KENYA Fred Akala • Michael Amulabu • Calistus Imbayi • Nelson Kemboi • Lawrence Kimutai • Eunice Chebet Kiombe • Rodgers Minyato Nancy Muaka • Patrick Muganzi • Marion Ombeva • Emmanuel Rugut • Felix Tiony • Gloria Veela • Magdalene Wanja ENUMERATORS Paul Adungo • Agnes Ariokot • Beatrice Busiboz • Moureen Kahwa • Dennis Kwaligia • Godwin Okiria Alfred Masheti • Adolphus Okumu • Wycliffe Sayia US TEAM Philip Arscott • Ryah Belford • Caroline Bernadi • Kyson Bunthuwong • Dianne Calvi • Anne Olson FELLOWS Sisay Ashenafi • Douglas Bove • Heather Clingman • Kim Davis • AJ Doty • Paola Elice • Ibrahim Ndaou • Daniel Duarte
751 Laurel Street, PMB 222, San Carlos, CA 94070 • (650) 802-8891 • (800) 785-1775 info@villageenterprise.org • villageenterprise.org • facebook.com/villageenterprise.org
Annual Report 2013
BUSINESS ACHIEVEMENTS
FINANCIALS
Naomi Chepkamei, Moi’s Bridge, Kenya Maize and Beans Served With Love
REVENUES Individuals Foundations Other Event Income (net of costs) TOTAL
2013 $559,878 $1,050,393 $73,959 $224,591 $1,908,821
2012 $632,274 $291,180 $112,624 $44,470 $1,080,548
EXPENSES Program Services Fund Development and Marketing Management and General TOTAL
$1,002,835 $179,899 $71,085 $1,253,819
$873,116 $181,732 $79,235 $1,134,083
$655,002
$(53,535)
Naomi Chepkamei and her team named their business Ukitafuta Utapata, Swahili for “As you seek, so will you find.” And they have found what they looking for: employment, a steady income and a better life for their families. Before Village Enterprise, the word “savings” had little meaning to Naomi, and she could not imagine running a business. She worked as a casual laborer, but jobs were scarce. Naomi could not even afford soap to bathe her children, and regularly had to pull them from school because she could not pay fees. She relied on them to work in the fields to generate additional income. Now, Naomi is the proud co-owner of the most successful restaurant in the area. Their bright, cheery restaurant is open for both lunch and dinner every day. Her customers appreciate the reliable hours, and they love the delicious githeri (maize and beans) she serves! Naomi and her fellow business owners are using profits from the restaurant to diversify into rearing chickens. Naomi is elated with what she has accomplished in just one year. “I no longer struggle to provide for meals, medical care, and clothing for my children. They now regularly attend school, and each week I still have money to deposit savings into the Business Savings Group.” A future that once seemed bleak is now full of promise for Naomi and her partners.
Odwarat Business Savings Group, Kumi District, Uganda Keeping Incomes Safe and Growing One year ago the members of the Odwarat Business Savings Group (BSG) received their grants from Village Enterprise. Today there are ten thriving businesses, with 30 households firmly on the road out of poverty. The BSG offers its members loans to expand or diversify their businesses and a place to keep their incomes safe and growing. Like other BSG’s, they begin each bi-weekly saving session collecting dues for an Emergency Fund, monies designated for deaths, sickness, or other immediate non-business situations. Now business owners do not have to sacrifice profits from their business to meet these personal needs. Florence Atai quickly made good use of the access to capital, finding a way to put into practice the business and financial literacy training she received. While waiting for the 24 piglets in her business to mature for sale—a four to six month process—Florence took out a small loan to start a business selling dried fish. Her profits enabled her to feed and clothe her six children, pay fees to send them to school, while repaying all her loan to the group.
STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2013 ASSETS Cash and Cash Equivalents Contributions Receivable Property and Equipment Prepaid Expenses TOTAL ASSETS
2013 $781,667 $105,733 $23,482 $910,684
2012 $106,282 $145,294 $16,703 $1,536 $269,815
LIABILITIES & NET ASSETS Current Liabilities Accounts Payable Grants Payable TOTAL CURRENT LIABILITIES
$55,473 $77,954 $133,427
$33,279 $114,083 $147,362
$787,271 $(9,816)
$159,594 $(37,141)
$910,882
$269,815
Net Assets, Restricted Net Assets, Unrestricted TOTAL LIABILITIES & NET ASSETS
Fiscal Year 2013 was very exciting for Village Enterprise. We saw significant growth in revenue (up $828,273, +76%) and Program Expenses (up $119,736, +14%) while reducing US overhead by $9,938. The significant increase in revenue came from the Foundations Category, where we received $750,000* to fund a three-year randomized control trial (RCT) to evaluate our program. In March, Village Enterprise hosted its 25th Anniversary Gala, which helped bring Net Event revenue to $224,591 (up from $44,470 in FY12) and contributed to the slight decrease in contributions from Individuals as many donors contributed at the Gala. (We held no Gala in FY12.)
General & Administrative: 6% Fundraising: 14% Program Expenses: 80%
Consistent with the program growth from FY12, Village Enterprise Program expenses now account for nearly 80% of total expenses in FY 2013. Expenditures on Field Personnel, Field Operations and the SMART program had the largest increasing 22%, 18% and 64% respectively, compared to FY12. The US office increased efficiency as well, reducing Supporting Services by nearly 4%. Over the last three fiscal years, the percentage of program expenses has grown from 75% to 80%, due to expected economies of scale. Due to the significant increase in Revenue, Net Assets rose from $122,453 to $777,455 year over year. Liabilities reduced by $13,935, driven by a 32% reduction in Grants Payable. Unrestricted Net Assets reduced by $27,325 while Temporarily Restricted Net Assets increased significantly due to the funding for the RCT. These funds (totaling $787,271) will be expensed during the next three years.
Florence continues to sell dried fish, and her business group is now gradually selling their piglets, generating a steady income stream. Their original three sows are pregnant again, giving promise of another income-generating cycle. The BSG loan provided an additional way for Florence to realize her hope: “to be far away from poverty”. Page 2
NET INCOME/LOSS
Creating sustainable businesses. Transforming lives.
Safa Rashtchy Finance Committee Chair
www.villageenterprise.org
*$750,00 of a $1,083,000 grant to fund the RCT Page 7
MAJOR 2013 FUNDING PARTNERS INSTITUTIONS 3rd Creek Foundation Aid for Africa America’s Cup Headquarters Anonymous Arthur B. Schultz Foundation Boeing Corporation Church on the Cape Conrad N. Hilton Foundation Dining for Women First Presbyterian Church of Burlingame First Presbyterian Church of Concord Google Inc. Gravity Payments Green Gem Foundation Heaven’s Helping Hand Foundation Jerome A. & Estelle R. Newman Assistance Fund John F. and Mary A. Geisse Foundation La Posada de Santa Fe Maverick Business Adventures Menlo Park Presbyterian Church Paris Perfect Parncutt Family Foundation Piedmont Community Church Playa Viva PMB Helin Donovan Sidney E. Frank Foundation Stanford PACS Class Trinity Presbyterian Church of San Carlos West Foundation Weyerhaeuser Family Foundation
IMPACT: RELIABLE INCOME STREAMS INDIVIDUALS ($5,000 and up) Jim Anderson Marty & David Arscott Beth & Jonathan Bishop Cheryl & Ken Branson Debra & Patrick Brown Stacey & Rob Chess Kirsten & Lew Cirne Pamela Cogan & Jed Riddle Rebecca and Cy Colburn Diane & Michael Dittmar Bill Elmore Mary Jane Elmore Joyce & Jay Friedrichs Jennifer & Dale Fuller Debbie & Russ Hall Kathryn & Kirk Hanson Julie & Bill Hooper
“With the profits and seeds from our first harvest, we replanted potatoes and bought 17 chickens. We use planting and fertilizing best practices that we learned from our business mentor, Magdalene, and are giving our chickens specialized feed. By making smart business decisions now, we hope to be able to buy goats and a cow.
“Before Village Enterprise, I was only able to feed my family tea for lunch and a small meal in the evening.
I was not able to finish primary school; I’m working hard to ensure that my three children complete secondary school and have a better life.” – Patrick Mutaka
My whole family benefits from my success. The children now each three meals a day, and we can even afford meat! Our daughter Sheila is a top student; she hopes one day to be a pilot. I am saving each week in my Business Savings Group and plan to take out a loan to expand my business to an even busier part of my village.” – Prisca Chebet
an advised fund of the Silicon Valley Community Foundation
Beth & Guy Kawasaki Dottie & Bob King Lampert/Byrd Family Fund Sue & Larry Langdon DeeDee & Burt McMurtry Mandy & Charles Munger Jennifer Nixon Susan Packard Orr & Lyn Orr Frank Quattrone and Denise Fodoraro Tracea Roman Saraliev & Daniel Saraliev Linda & Ted Schlein Cynthia & Bruce Sewell Kristin & Paul Vais Bill Younger & Family Tracy & Keith Zaky
WAYS TO SUPPORT
Page 6
Mluk Tany “Keeps Giving” Soroti, Uganda - Retail & Agriculture
Hurlbut-Johnson Charitable Trusts
“Village Enterprise is a fantastic organization that aligns completely with our grantmaking group’s values. Our International Development Team focused on programs and projects that empower women, demonstrate innovation, have strong M&E metrics, and have strong client interaction. We were impressed by Village Enterprise’s work in very remote villages, enabling the organization to reach the ultra-poor. We also value their great record of sustainability and significant impact. The idea of our course was to learn the ethical and practical complexities of philanthropy. Working with Village Enterprise was an excellent introduction to the process of finding and engaging with a grantee that is strong and reliable in its leadership, budgeting, and long-term impact.” - International Development Student Group from the Stanford Center on Philanthropy and Civil Society course on “Theories of Civil Society, Philanthropy and the Nonprofit Sector”
Donate Online Now Visit www.villageenterprise.org and make your secure gift.
Tumani “Hope” Hoima, Uganda - Agriculture (Irish Potatoes)
Donate by Mail Send us your tax-deductible check payable to Village Enterprise to: Village Enterprise 751 Laurel Street PMB #222 San Carlos, CA 94070 www.villageenterprise.org
UGANDA
KENYA
Kuwanza “To Start” Eldoret, Kenya - Agriculture & Animal Husbandry
Nyota “Star” Kakamega, Kenya - Service (Seamstress)
“Knowledge makes you equal. My older brothers were able to finish school, but by the time I reached secondary school, my parents had no money left for school fees. Now I am equal because my business education through Village Enterprise will ensure a very different future for my children.
“When Village Enterprise came, they trained us and taught us how to run a business. Now we have knowledge so that we can use our skills, and we are very happy. I can stand for myself. I do not need to borrow money from my husband.
Before, I didn’t know that farming could be a businesss but now our record books speak for themselves! With profit from selling our kales, we bought three chickens and a sheep, all of which have since given birth.” – Steven Kuweche
Creating sustainable businesses. Transforming lives.
Since I started my business, I have seen big changes in my life. When my children need a book or a pen, I can provide it. All three of my children are now in school and eating well. We believe that this is just the beginning.”
– Eunice Shikuku
Page 3
FROM OUR LEADERSHIP
OUR PROGRAM
Dear Friends and Partners, Your investment in East African microenterprises transforms lives. In 2013, Village Enterprise started 2,200 small businesses and positively impacted the lives of over 44,000 East Africans. And, over the past year, Village Enterprise made significant investments in monitoring and evaluation (M&E) to measure that impact and in innovation to increase our impact.
OPEN A VILLAGE
MONTH ONE
Qualify Program Participants Collect Baseline Data Business Training: Forming Business Groups Financial Literacy Training: Basic Savings Concepts Forming Savings Groups & Electing Officers Writing a Savings Group Constitution Form Business Groups Form Business Savings Groups (Monthly Meetings) Write Savings Group Constitutions & Elect Officers
Our most recent internal report completed at the end of the year yielded impressive results. Before entering the program, our participants lived below the extreme poverty line of $1.25. At the end of the 12-month program, our business owners’ average income increased 75% with the majority graduating out of extreme poverty. Over the course of the program year, food consumption increased by 67%, consumption of semi-durable goods increased by 127%, and consumption of durable goods increased by 73%. To provide further evidence of our impact, Village Enterprise is launching an independent, three-year Randomized Control Trial (RCT) to formally evaluate the components of our program, thanks to a $1 million, multi-year grant from a large philanthropic advisory firm. The RCT began in October 2013, and will be implemented by BRAC’s Research and Evaluation Unit. The results of this study will not only guide future changes to our program, but also contribute to the ongoing policy debate on the creation of sustainable mechanisms for poverty alleviation among the rural ultra-poor. The word about our success in alleviating extreme poverty is spreading. In the past year, we received a Rockefeller Foundation Next Century Innovators Award for our Smarter Market Analysis Risk Tool (SMART). Employing mobile data collection technology, SMART captures seasonal pricing, risk, demand, and price vulnerability of the different microenterprises available to small-scale farmers. The results are a risk/reward matrix that our farmers use to make better business decisions.
t
MONTH TWO
Business Training: Business Basics SMART Business Planning (2 Modules) Managing a Business Business Recordkeeping Financial Literacy Training: Savings Group Recordkeeping Savings Group Lending & Loans Prepare & Approve Business Plans Distribute Initial Seed Capital Grants
To implement our mobile M&E efforts and the roll-out of our SMART, we received a Motorola Mobility Foundation donation that provided smartphones for all of our business mentors in the field. Mobile technology and solutions will continue to be a focus of our organization going forward. Our ability to innovate and expand our efforts has been enhanced by funding made available from our “Campaign to Scale Impact and Transform Lives”. Privately launched last year, “The Campaign to Scale Impact & Transform Lives” is a $5 million, three-year effort to increase our reach and scale our impact. This past year we reached the $3 million mark in total gifts received and committed. This year we hope to complete the campaign. In addition to campaign funding, Village Enterprise benefited from record funding from our gala. Thanks to our loyal supporters, the Village Enterprise 25th anniversary gala, It Takes a Village, raised over $300,000.
t
MONTH SIX
Collect Group Progress Reports Business Training: Marketing & Value Addition Conservation in Business Practices Livestock/Agricultural Business Best Practices
In the past 25 years, Village Enterprise started over 27,000 businesses and transformed the lives of over a half million East Africans. Looking forward, we hope to do the same in the next five years. As we close our 25th anniversary year, we thank you for your continued support. With appreciation,
t
MONTH NINE Debbie Hall Board Chair
Dianne Calvi President and CEO
Distribute Second Seed Capital Grants Continue Monthly Savings Group Meetings Continue Mentoring Sessions
t
MONTH TWELVE
Collect Group Savings/Exit Data
GRADUATION!
N TRAI ING GRANT
S AV I N G S ME Page 4
Creating sustainable businesses. Transforming lives.
N TO R
ING
www.villageenterprise.org
Delivered by a network of local African business mentors, our cost-effective, sustainable approach involves: =
Business & financial literacy TRAINING
=
Small GRANT start-up capital ($150)
=
One-on-one MENTORING
=
Business SAVINGS Group formation
Page 5
FROM OUR LEADERSHIP
OUR PROGRAM
Dear Friends and Partners, Your investment in East African microenterprises transforms lives. In 2013, Village Enterprise started 2,200 small businesses and positively impacted the lives of over 44,000 East Africans. And, over the past year, Village Enterprise made significant investments in monitoring and evaluation (M&E) to measure that impact and in innovation to increase our impact.
OPEN A VILLAGE
MONTH ONE
Qualify Program Participants Collect Baseline Data Business Training: Forming Business Groups Financial Literacy Training: Basic Savings Concepts Forming Savings Groups & Electing Officers Writing a Savings Group Constitution Form Business Groups Form Business Savings Groups (Monthly Meetings) Write Savings Group Constitutions & Elect Officers
Our most recent internal report completed at the end of the year yielded impressive results. Before entering the program, our participants lived below the extreme poverty line of $1.25. At the end of the 12-month program, our business owners’ average income increased 75% with the majority graduating out of extreme poverty. Over the course of the program year, food consumption increased by 67%, consumption of semi-durable goods increased by 127%, and consumption of durable goods increased by 73%. To provide further evidence of our impact, Village Enterprise is launching an independent, three-year Randomized Control Trial (RCT) to formally evaluate the components of our program, thanks to a $1 million, multi-year grant from a large philanthropic advisory firm. The RCT began in October 2013, and will be implemented by BRAC’s Research and Evaluation Unit. The results of this study will not only guide future changes to our program, but also contribute to the ongoing policy debate on the creation of sustainable mechanisms for poverty alleviation among the rural ultra-poor. The word about our success in alleviating extreme poverty is spreading. In the past year, we received a Rockefeller Foundation Next Century Innovators Award for our Smarter Market Analysis Risk Tool (SMART). Employing mobile data collection technology, SMART captures seasonal pricing, risk, demand, and price vulnerability of the different microenterprises available to small-scale farmers. The results are a risk/reward matrix that our farmers use to make better business decisions.
t
MONTH TWO
Business Training: Business Basics SMART Business Planning (2 Modules) Managing a Business Business Recordkeeping Financial Literacy Training: Savings Group Recordkeeping Savings Group Lending & Loans Prepare & Approve Business Plans Distribute Initial Seed Capital Grants
To implement our mobile M&E efforts and the roll-out of our SMART, we received a Motorola Mobility Foundation donation that provided smartphones for all of our business mentors in the field. Mobile technology and solutions will continue to be a focus of our organization going forward. Our ability to innovate and expand our efforts has been enhanced by funding made available from our “Campaign to Scale Impact and Transform Lives”. Privately launched last year, “The Campaign to Scale Impact & Transform Lives” is a $5 million, three-year effort to increase our reach and scale our impact. This past year we reached the $3 million mark in total gifts received and committed. This year we hope to complete the campaign. In addition to campaign funding, Village Enterprise benefited from record funding from our gala. Thanks to our loyal supporters, the Village Enterprise 25th anniversary gala, It Takes a Village, raised over $300,000.
t
MONTH SIX
Collect Group Progress Reports Business Training: Marketing & Value Addition Conservation in Business Practices Livestock/Agricultural Business Best Practices
In the past 25 years, Village Enterprise started over 27,000 businesses and transformed the lives of over a half million East Africans. Looking forward, we hope to do the same in the next five years. As we close our 25th anniversary year, we thank you for your continued support. With appreciation,
t
MONTH NINE Debbie Hall Board Chair
Dianne Calvi President and CEO
Distribute Second Seed Capital Grants Continue Monthly Savings Group Meetings Continue Mentoring Sessions
t
MONTH TWELVE
Collect Group Savings/Exit Data
GRADUATION!
N TRAI ING GRANT
S AV I N G S ME Page 4
Creating sustainable businesses. Transforming lives.
N TO R
ING
www.villageenterprise.org
Delivered by a network of local African business mentors, our cost-effective, sustainable approach involves: =
Business & financial literacy TRAINING
=
Small GRANT start-up capital ($150)
=
One-on-one MENTORING
=
Business SAVINGS Group formation
Page 5
MAJOR 2013 FUNDING PARTNERS INSTITUTIONS 3rd Creek Foundation Aid for Africa America’s Cup Headquarters Anonymous Arthur B. Schultz Foundation Boeing Corporation Church on the Cape Conrad N. Hilton Foundation Dining for Women First Presbyterian Church of Burlingame First Presbyterian Church of Concord Google Inc. Gravity Payments Green Gem Foundation Heaven’s Helping Hand Foundation Jerome A. & Estelle R. Newman Assistance Fund John F. and Mary A. Geisse Foundation La Posada de Santa Fe Maverick Business Adventures Menlo Park Presbyterian Church Paris Perfect Parncutt Family Foundation Piedmont Community Church Playa Viva PMB Helin Donovan Sidney E. Frank Foundation Stanford PACS Class Trinity Presbyterian Church of San Carlos West Foundation Weyerhaeuser Family Foundation
IMPACT: RELIABLE INCOME STREAMS INDIVIDUALS ($5,000 and up) Jim Anderson Marty & David Arscott Beth & Jonathan Bishop Cheryl & Ken Branson Debra & Patrick Brown Stacey & Rob Chess Kirsten & Lew Cirne Pamela Cogan & Jed Riddle Rebecca and Cy Colburn Diane & Michael Dittmar Bill Elmore Mary Jane Elmore Joyce & Jay Friedrichs Jennifer & Dale Fuller Debbie & Russ Hall Kathryn & Kirk Hanson Julie & Bill Hooper
“With the profits and seeds from our first harvest, we replanted potatoes and bought 17 chickens. We use planting and fertilizing best practices that we learned from our business mentor, Magdalene, and are giving our chickens specialized feed. By making smart business decisions now, we hope to be able to buy goats and a cow.
“Before Village Enterprise, I was only able to feed my family tea for lunch and a small meal in the evening.
I was not able to finish primary school; I’m working hard to ensure that my three children complete secondary school and have a better life.” – Patrick Mutaka
My whole family benefits from my success. The children now each three meals a day, and we can even afford meat! Our daughter Sheila is a top student; she hopes one day to be a pilot. I am saving each week in my Business Savings Group and plan to take out a loan to expand my business to an even busier part of my village.” – Prisca Chebet
an advised fund of the Silicon Valley Community Foundation
Beth & Guy Kawasaki Dottie & Bob King Lampert/Byrd Family Fund Sue & Larry Langdon DeeDee & Burt McMurtry Mandy & Charles Munger Jennifer Nixon Susan Packard Orr & Lyn Orr Frank Quattrone and Denise Fodoraro Tracea Roman Saraliev & Daniel Saraliev Linda & Ted Schlein Cynthia & Bruce Sewell Kristin & Paul Vais Bill Younger & Family Tracy & Keith Zaky
WAYS TO SUPPORT
Page 6
Mluk Tany “Keeps Giving” Soroti, Uganda - Retail & Agriculture
Hurlbut-Johnson Charitable Trusts
“Village Enterprise is a fantastic organization that aligns completely with our grantmaking group’s values. Our International Development Team focused on programs and projects that empower women, demonstrate innovation, have strong M&E metrics, and have strong client interaction. We were impressed by Village Enterprise’s work in very remote villages, enabling the organization to reach the ultra-poor. We also value their great record of sustainability and significant impact. The idea of our course was to learn the ethical and practical complexities of philanthropy. Working with Village Enterprise was an excellent introduction to the process of finding and engaging with a grantee that is strong and reliable in its leadership, budgeting, and long-term impact.” - International Development Student Group from the Stanford Center on Philanthropy and Civil Society course on “Theories of Civil Society, Philanthropy and the Nonprofit Sector”
Donate Online Now Visit www.villageenterprise.org and make your secure gift.
Tumani “Hope” Hoima, Uganda - Agriculture (Irish Potatoes)
Donate by Mail Send us your tax-deductible check payable to Village Enterprise to: Village Enterprise 751 Laurel Street PMB #222 San Carlos, CA 94070 www.villageenterprise.org
UGANDA
KENYA
Kuwanza “To Start” Eldoret, Kenya - Agriculture & Animal Husbandry
Nyota “Star” Kakamega, Kenya - Service (Seamstress)
“Knowledge makes you equal. My older brothers were able to finish school, but by the time I reached secondary school, my parents had no money left for school fees. Now I am equal because my business education through Village Enterprise will ensure a very different future for my children.
“When Village Enterprise came, they trained us and taught us how to run a business. Now we have knowledge so that we can use our skills, and we are very happy. I can stand for myself. I do not need to borrow money from my husband.
Before, I didn’t know that farming could be a businesss but now our record books speak for themselves! With profit from selling our kales, we bought three chickens and a sheep, all of which have since given birth.” – Steven Kuweche
Creating sustainable businesses. Transforming lives.
Since I started my business, I have seen big changes in my life. When my children need a book or a pen, I can provide it. All three of my children are now in school and eating well. We believe that this is just the beginning.”
– Eunice Shikuku
Page 3
BUSINESS ACHIEVEMENTS
FINANCIALS
Naomi Chepkamei, Moi’s Bridge, Kenya Maize and Beans Served With Love
REVENUES Individuals Foundations Other Event Income (net of costs) TOTAL
2013 $559,878 $1,050,393 $73,959 $224,591 $1,908,821
2012 $632,274 $291,180 $112,624 $44,470 $1,080,548
EXPENSES Program Services Fund Development and Marketing Management and General TOTAL
$1,002,835 $179,899 $71,085 $1,253,819
$873,116 $181,732 $79,235 $1,134,083
$655,002
$(53,535)
Naomi Chepkamei and her team named their business Ukitafuta Utapata, Swahili for “As you seek, so will you find.” And they have found what they looking for: employment, a steady income and a better life for their families. Before Village Enterprise, the word “savings” had little meaning to Naomi, and she could not imagine running a business. She worked as a casual laborer, but jobs were scarce. Naomi could not even afford soap to bathe her children, and regularly had to pull them from school because she could not pay fees. She relied on them to work in the fields to generate additional income. Now, Naomi is the proud co-owner of the most successful restaurant in the area. Their bright, cheery restaurant is open for both lunch and dinner every day. Her customers appreciate the reliable hours, and they love the delicious githeri (maize and beans) she serves! Naomi and her fellow business owners are using profits from the restaurant to diversify into rearing chickens. Naomi is elated with what she has accomplished in just one year. “I no longer struggle to provide for meals, medical care, and clothing for my children. They now regularly attend school, and each week I still have money to deposit savings into the Business Savings Group.” A future that once seemed bleak is now full of promise for Naomi and her partners.
Odwarat Business Savings Group, Kumi District, Uganda Keeping Incomes Safe and Growing One year ago the members of the Odwarat Business Savings Group (BSG) received their grants from Village Enterprise. Today there are ten thriving businesses, with 30 households firmly on the road out of poverty. The BSG offers its members loans to expand or diversify their businesses and a place to keep their incomes safe and growing. Like other BSG’s, they begin each bi-weekly saving session collecting dues for an Emergency Fund, monies designated for deaths, sickness, or other immediate non-business situations. Now business owners do not have to sacrifice profits from their business to meet these personal needs. Florence Atai quickly made good use of the access to capital, finding a way to put into practice the business and financial literacy training she received. While waiting for the 24 piglets in her business to mature for sale—a four to six month process—Florence took out a small loan to start a business selling dried fish. Her profits enabled her to feed and clothe her six children, pay fees to send them to school, while repaying all her loan to the group.
STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2013 ASSETS Cash and Cash Equivalents Contributions Receivable Property and Equipment Prepaid Expenses TOTAL ASSETS
2013 $781,667 $105,733 $23,482 $910,684
2012 $106,282 $145,294 $16,703 $1,536 $269,815
LIABILITIES & NET ASSETS Current Liabilities Accounts Payable Grants Payable TOTAL CURRENT LIABILITIES
$55,473 $77,954 $133,427
$33,279 $114,083 $147,362
$787,271 $(9,816)
$159,594 $(37,141)
$910,882
$269,815
Net Assets, Restricted Net Assets, Unrestricted TOTAL LIABILITIES & NET ASSETS
Fiscal Year 2013 was very exciting for Village Enterprise. We saw significant growth in revenue (up $828,273, +76%) and Program Expenses (up $119,736, +14%) while reducing US overhead by $9,938. The significant increase in revenue came from the Foundations Category, where we received $750,000* to fund a three-year randomized control trial (RCT) to evaluate our program. In March, Village Enterprise hosted its 25th Anniversary Gala, which helped bring Net Event revenue to $224,591 (up from $44,470 in FY12) and contributed to the slight decrease in contributions from Individuals as many donors contributed at the Gala. (We held no Gala in FY12.)
General & Administrative: 6% Fundraising: 14% Program Expenses: 80%
Consistent with the program growth from FY12, Village Enterprise Program expenses now account for nearly 80% of total expenses in FY 2013. Expenditures on Field Personnel, Field Operations and the SMART program had the largest increasing 22%, 18% and 64% respectively, compared to FY12. The US office increased efficiency as well, reducing Supporting Services by nearly 4%. Over the last three fiscal years, the percentage of program expenses has grown from 75% to 80%, due to expected economies of scale. Due to the significant increase in Revenue, Net Assets rose from $122,453 to $777,455 year over year. Liabilities reduced by $13,935, driven by a 32% reduction in Grants Payable. Unrestricted Net Assets reduced by $27,325 while Temporarily Restricted Net Assets increased significantly due to the funding for the RCT. These funds (totaling $787,271) will be expensed during the next three years.
Florence continues to sell dried fish, and her business group is now gradually selling their piglets, generating a steady income stream. Their original three sows are pregnant again, giving promise of another income-generating cycle. The BSG loan provided an additional way for Florence to realize her hope: “to be far away from poverty”. Page 2
NET INCOME/LOSS
Creating sustainable businesses. Transforming lives.
Safa Rashtchy Finance Committee Chair
www.villageenterprise.org
*$750,00 of a $1,083,000 grant to fund the RCT Page 7
FIELD TEAM Winnie Auma • Linnet Ayuma • Macrine Bakesiima • Heartwell Bigirwenkya • Nicholas Businge • Collines Buyinza Peter Dema • Maurice Eriaku • Charles Erongot • Francis Khamaluli • Fabian Khamati • Khatuchi Khasandi Nathaniel Maiyo • David Mango • Ellen Metzger • Maureen Mudeyu • Martin Mutebi • Leah Newman • Frankline Ochae • Isaac Otim Selina Otima • Kwatoya Mike Peru • Wilson Peru Nancy Shikuri • Melvin Shisanya • Solomon Tumusiime • Konstantin Zvereff MENTORS - UGANDA Margaret Aluka • Catherine Ameso • Esther Apolot • Paul Etiang • Doreen Icumar • Stella Ikiring • Nancy Kabajawa Doreen Kabajulizi • Geoffrey Kajuma • Annet Kyahurwenda • Doreen Kemigisa • Evelyn Kusiima • Gerald Kyalisiima Patrick Mulinde • David Okanya • Anthony Omongin • Samuel Onaba • Ben Opolot • Bernard Otim • Mildred Wengonzi MENTORS - KENYA Fred Akala • Michael Amulabu • Calistus Imbayi • Nelson Kemboi • Lawrence Kimutai • Eunice Chebet Kiombe • Rodgers Minyato Nancy Muaka • Patrick Muganzi • Marion Ombeva • Emmanuel Rugut • Felix Tiony • Gloria Veela • Magdalene Wanja ENUMERATORS Paul Adungo • Agnes Ariokot • Beatrice Busiboz • Moureen Kahwa • Dennis Kwaligia • Godwin Okiria Alfred Masheti • Adolphus Okumu • Wycliffe Sayia US TEAM Philip Arscott • Ryah Belford • Caroline Bernadi • Kyson Bunthuwong • Dianne Calvi • Anne Olson FELLOWS Sisay Ashenafi • Douglas Bove • Heather Clingman • Kim Davis • AJ Doty • Paola Elice • Ibrahim Ndaou • Daniel Duarte
751 Laurel Street, PMB 222, San Carlos, CA 94070 • (650) 802-8891 • (800) 785-1775 info@villageenterprise.org • villageenterprise.org • facebook.com/villageenterprise.org
Annual Report 2013