2011 ANNUAL REPORT

1 EDUCATION CREATES OPPORTUNITY.

There are 67 million children in the TOGETHER, WE CAN PROVIDE EDUCATION FOR ALL. world without access to education.

2 3 EN K

TABLE OF CONTENTS. K ON BY NICO BY T HO 06 Mission Statement 37 PoP in the Press P

08 Opening Remarks 39 Financials

11 Founding Principles 43 Supporters

12 PoP History: A Timeline 46 Company Culture

14 Accomplishments 48 Our Team

15 The Impact of Education 49 Board of Directors

16 International Programs 50 Our Vision

24 Domestic Programs

30 Campaigns & Special Events

36 Digital Engagement

PHOTOGRAPHY: Bryce Ericksen, Marisa McGrody, www.pencilsofpromise.org [email protected] 37 West 28th St. 3rd Fl. 212.777.3170 Nick Onken & Agent of Change New York, NY 10001 DESIGN: Carlo Dumandan & Kristin Hodge

4 5 EN K K ON BY NICO BY T HO PENCILS OF PROMISE BELIEVES P EVERY CHILD SHOULD HAVE ACCESS TO QUALITY EDUCATION. WE CREATE SCHOOLS, PROGRAMS, AND GLOBAL COMMUNITIES AROUND THE COMMON GOAL OF EDUCATION FOR ALL.

MISSION STATEMENT.

6 7 OPENING REMARKS. HOPE TAITZ, Board of Directors I have worked in many strenuous environments during volatile financial times but the single most challenging job I have had is raising children– ADAM BRAUN, Founder and Executive Director especially ethical ones. It’s hard to believe that a little over three years ago All of this serves to further inspire each of us to- In a world focused on the idea of “me” and “mine,” teaching the next genera- Pencils of Promise started with $25 and the small wards our mission of increasing access to qual- tion the importance of sharing and giving is critical to our future success. Our ambition of completing one school. ity education for children in extreme poverty. This children represent hope, and instilling in them an appreciation of the world in past year we successfully entered Guatemala I still remember the moment when the name which they live will unleash creativity and brighten our outlook. while expanding our programs significantly in Ni- “Pencils of Promise” revealed itself. I was at my caragua and Laos. While the dream of one school The work that PoP performs on the ground in countries like Laos, Nicaragua, first symphony, witnessing the passion of one once seemed unfathomable, we have now broken and Guatemala is quantifiable. We have successfully partnered with the local man and his piano. There was a stroke of inspira- ground on over 50 schools around the world. villagers and municipalities to build schools. Every month our progress and tion so deep that it felt like a bolt of lightning, and tally of builds goes up and we can count the number of projects completed I immediately knew that this organization would PoP wants to reach 100 schools between Asia and students impacted. I have witnessed this work first hand and felt the become incredibly meaningful to so many of us. and Latin America by the end of this year. We gratitude of the families we are positively impacting. However, these numbers are deeply committed to building out robust pro- While the dream of As I look back at this past year, it’s hard not to be only represent a portion of PoP’s work. Pop KNOWS THAT CHARITY grams within each of our communities, focusing proud of the tremendous accomplishments of the one school once not just on the buildings themselves but on the What is truly impressive and much less tangible is the work that the PoP staff IS NOT SOLELY DEFINED PoP movement. Over the past 365 days, led by seemed unfathomable, student, teacher and parent successes as well. accomplishes both domestically and abroad in inspiring the next generation BY A DOLLAR SIGN, PLAQUE values, acumen, and heart, this organization has of leaders. These young role models are not satisfied with just erecting struc- we have now broken seen over 250,000 people actively join us through These are lofty goals. These are goals that were tures; they choose to teach, to tirelessly train, and to inspire others to care OR STRUCTURE. ground on 50 schools social media. We have inspired the creation of once thought impossible. each and every day about our global education crisis. over 23,000 individual fundraising initiatives, ex- But that’s okay. We believe they can become around the world. emplified by a 13 year-old girl who raised enough PoP’s staff works with students to spread the message of social good. They reality. funds to build an entire school, and organized our invite them to be a part of their work, to create fundraisers, and dare to make first annual Gala that raised over $1,000,000 in a As we’ve always said- we’re the Impossible Ones. a difference. These are lessons not learned in a classroom, but build charac- single night. Most importantly, we have provided ter and instill core values. access to education for thousands of students PoP knows that charity is not solely defined by a dollar sign, plaque or struc- and delivered over 1.3 million educational hours. ture. Every minute of involvement raises the bar on social conciousness and leads to change. PoP educates our children on the concept of giving— the most important parenting lesson.

8 9 FOUNDING PRINCIPLES. NOAH MARWIL, Latin America Regional Director

With every endeavor comes unforeseen revelations. pencils of promise gave me the power to From a cramped one-room office with a few Americans to a full-sized house with help other people. 10 local staff members, we are clearly growing in Guatemala. And with over a 1 2 3 dozen projects either in construction or already completed, it is hard to deny that 2011 has been wildly successful. If we don’t love what we do, then We must profoundly understand local Our most important partners are As I reflect back upon our very humble beginnings, I truly appreciate the enormous we are doing something wrong. cultures before we can hope to the communities themselves. transformation we have undergone in only 12 short months. LANOY KEOSOUVANE, Laos Country Coordinator improve their educational opportunities. Pencils of Promise’s bottom-up approach signifies that we work with communities My name is Lanoy. I am the Laos Country Coordinator and this is my story. to identify and solve local challenges. However, we quickly learned that the word I was working with my family at Rattana Guesthouse in Luang Prabang ‘community’ is an oversimplification of how people operate, especially in Guate- when I met Adam Braun, a backpacker staying at the guesthouse. I didn’t mala, where competition over resources and lingering distrust still reign supreme. know yet that Adam was building schools in the countryside. One day, In order to address this issue, we developed community workshops and increased Adam brought me to visit Champhet, where PoP was building a dormitory. 4 5 6 the amount of time spent getting to know community members before investing It made me so sad to see the huts that the students lived in. in construction projects. We used these opportunities to strive to push the impor- I was confused; Champhet was not so far from the town— right across the tance of education and its long-term benefits on the community as a whole. We build more than just four Innovation, collaboration and We are dedicated to the river. How had I never been there? How could I help them? walls: we foster lasting and creativity are at our core. long-term sustainability of Our efforts have seen unexpected success. sustainable education. each project we support. After that day, Adam helped explain Pencils of Promise to me and invited Not only has the added participation gleaned from each community member ac- me to work with him. Adam helped train me to work for him. He explained celerated the construction process, but also our projects have served as the rally- about PoP’s partner organizations, taught me how to collect information, ing point to bring together a formerly fragmented people. As a result, PoP can now and explained that I needed to study more English and learn how to use say that we no longer just build schools, but help build entire communities. the computer. Now, I’m in charge of getting all of the information about our villages, and controlling a build from start to finish. With one geographic expansion to the impoverished Boca Costa Region already 7 8 9 under our belt, we have begun making in-roads and planning a second expansion Adam and Pencils of Promise gave me the power to help other people. I’m into the war-torn Ixil area. And as the reach and depth of our impact continues to so very happy to work with Pencils of Promise, and I will work with Pencils grow, so does our incredibly passionate and dedicated local staff, which without of Promise all my life. A nonprofit should operate with All donors should have the Every single contribution and contributor whom none of this would be possible. complete transparency and efficiency. opportunity to choose where is a valuable part of the movement. I give you my heart! their money goes. The future looks bright from PoP Guatemala.

10 11 POP HISTORY: A TIMELINE.

Pencils of Promise began with a simple act of giving when founder, Adam Braun, placed $25 into a bank account on his 25th birthday. This was PoP’s first donation, JANUARY 2012 and from there, we began our development into a new kind of nonprofit. Over the Successfully last four years we have expanded immensely, both internationally and domestically. broken ground We are now in three countries, have impacted over 38,000 lives and have success- on 50 schools fully built 50 schools. We are proud of our accomplishments, but we can’t wait for MAY 2011 what is to come. First school in Guatemala This is only the beginning. completed

AUGUST 2010 JULY / AUGUST 2011 NOVEMBER 2011 Hired first PoP Leadership First gala raises staff member Institute launched $1 million in one in NYC night

OCTOBER 2008 SEPTEMBER 2009 APRIL 2010 DECEMBER 2010 JUNE 2011 SEPTEMBER 2011 PoP is founded First school in First school PoP becomes a Over 21,000 fundraising Concept of Laos completed in Nicaragua $1 million organization pages created with “For Purpose” completed Schools4All campaign is introduced

2008 2009 2010 2011 2012

12 13 ACCOMPLISHMENTS. THE IMPACT OF EDUCATION.

STUDENTS SERVED DOMESTIC VOLUNTEER HOURS EDUCATION CREATES OPPORTUNITY... 4,000+ 50 125,000 FUNDRAISING PAGES CREATED SCHOOLS INTERNATIONAL VOLUNTEER HOURS 23,000 150,000

LIVES IMPACTED INSTRUCTIONAL HOURS FOR THE STUDENT WHO IS NOW: WHO THEN GROWS UP AND BECOMES: AND CAN HELP CHANGE THE WORLD.

+ Healthy + An Active Citizen + Democracy AS OF JANUARY 2012, WE BROKE + Literate + A Leader + Economic Opportunity 38,000 GROUND ON 50 SCHOOLS 1,300,000 + Safe + A Provider + Female Empowerment + Societal Health Y ELLER Y BY EMILY BY H P

14 15 ICONOGRA EN K K ON BY NICO BY T HO P

INTERNATIONAL PROGRAMS 16 17 INTERNATIONAL PROGRAMS HOW WE BUILD.

IDENTIFY BUILD SUPPORT

We work with the local Education Ministry to We collaborate with village leaders and With the goal of each project becoming identify villages for potential school builds. community members. Each community community owned, we provide 3 years of provides at least 10 to 20% of the project supplies and programming to ensure aca- costs in materials or labor. demic success and sustainability.

MENTOR MONITOR

We invest in local talent and provide ongoing We compile data and exhaustively monitor professional development. the progress of each school.

At Pencils of Promise, we focus on building strong structures and sustainable education programs. By forming long-lasting, collabora- tive relationships with communities, we increase access to quality education and positively impact students and parents in high-need communities throughout Laos, Nicaragua, and Guatemala. EN K K ON BY NICO BY T 09

18 HO 19 P INTERNATIONAL PROGRAMS INTERNATIONAL PROGRAMS

LOCAL STAFF. WHY IS MENTORSHIP SO IMPORTANT? STAFF THOUGHTS ON WORKING FOR Pencils of promise PoP believes in the power of our local teams. These incredible men and women are the heart of our organization and make up over half of our paid I like working with PoP because we help children and encourage PoP focuses on education, which for me is most important for staff. We provide them with professional development opportunities, ongoing them to go school. We focus on education and building schools the development of countries like Guatemala. That’s why I work mentorship, and empower them to grow as professionals and take on lead- as well as support through playing games and activities with kids. with Pencils of Promise. ership roles. Here are the inspiring stories of two of our local staff members. — Bay —Anastasia

MEET ANASTASIA. Anastasia is a remarkable woman. As an indige- Anastasia refused to succumb to the barriers of GET TO KNOW BAY. Bay represents the ambitious and positive spirit of As the youngest of 7 children, Bay learned about nous woman in Guatemala, she is up against a lot: education that exist in Guatemala, especially for the Laos team. There is an incredible need for ed- the importance of education and moved away SHE IS THE LOCAL MONITORING HE IS THE ACCOUNTANT AND women. ucation in Laos, especially among minorities and from home after primary school to cut down on AND EVALUATION MANAGER OFFICE MANAGER IN LAOS. Bay understands this first-hand: his 2.5 hour commute. She is the only one of her family of 8 to success- IN GUATEMALA. of indigenous girls drop out of first grade [ UNICEF, 2008 ] fully finish secondary school and is now studying In 2005, he started learning English and contin- of Lao villages are more than 30 social studies at university. Anastasia is proud to ued his studies to expand into accounting, which 20% minutes away from the closest say that she is at the top of her class. Despite her he currently oversees in the Laos office. When primary school [ DECIDE.LA.85 ] busy schedule of university and motherhood, she 25% Bay joined PoP, he encapsulated the best attitude of schools have inadequate generously dedicates her time to PoP. Anastasia you could ask for— he was pure smiles and sun- facilities for girls [ UNICEF, 2008 ] is passionate about providing educational oppor- of 12–18 year olds are enrolled in shine. While he had no previous experience with 85% tunities to rural communities in order to improve secondary school [ WORLD BANK ] computers, he expressed interest and excitement the future of indigenous women like herself. 37% for knowledge acquisition. She speaks five languages: three local indigenous Bay is so passionate about learning that he reads of girls never reach secondary dialects, Spanish and a little bit of English. Be- professional development books in Thai in his school [ UNICEF, 2008 ] of Laos is illiterate, with rates cause of her fluency in indigenous languages, she spare time to increase his organizational and higher among ethinic minorities 90% is primed to connect with our community part- managerial skillset. 27% like Khmu, which is Bay’s ners on a much deeper level, allowing PoP to ethnicity [ WORLD BANK ] effectively measure and monitor our impact.

20 21 INTERNATIONAL PROGRAMS INTERNATIONAL PROGRAMS WHY LAOS, NICARAGUA & GUATEMALA? WHAT WE BUILD. COMMUNITY P HO

T SCHOOLS LIBRARIES LEARNING CENTERS BATHROOMS WILLIAMS O BY MEGAN Adequate school facilities protect students The presence of a library improves reading Community Learning Centers give students Bathrooms provide sanitary from barriers to learning such as adverse behaviors and literacy, creating a culture of an after-hours learning facility to get help with facilities that keep children healthy. weather conditions, outside distractions reading. homework and socialize with classmates. and overcrowding.

BEFORE AFTER, Xongja Preschool & Primary School, Laos

Laos Nicaragua Guatemala Distance can be a huge barrier to accessing edu- Poverty can deter school attendance when fami- School facilities are a large problem in Guatemala. cation, especially in rural areas. In Laos, where lies cannot afford school fees or uniforms, and in- 85% of existing schools are inadequate. They lack 67% of the population lives in rural areas, 25% of stead must have their children contribute to family sufficient space, classrooms, electricity, drinking Lao villages are more than 30 minutes away from income. Nicaragua is the second poorest country water and sanitation. This increases the possibil- their nearest primary school. (Decide.la.85) in the Americas after Haiti. (World Factbook) ity for distraction, especially in Guatemala, where inadequate facilities in the rainy season provide a With over 40 official ethnic groups, ethnic discrim- Only 50% of the total Nicaraguan population has particularly large incentive to stay home. (UNHCR) ination in Laos plays a large factor in disparities access to adequate sanitation facilities. This can of educational attainment. 80% of Tri and 33% lead to decreased school attendance, due to Discrimination along gender and ethnic lines, par- DORMITORIES KITCHENS FURNITURE of Khmu minority ethnicities have never attended health problems. (World Bank) ticularly severe in Guatemala where only 5% of ru- Dormitories provide a safe place on campus Clean and well-equipped kitchens give an im- Desks, chairs, and chalkboards are all integral

school, compared to only 11.8% of the Lao major- ral indigenous girls ever finish primary school, can Y ELLER for students to stay overnight on the weekdays, portant incentive and nutritional meal to some to creating a structured and supportive learn- ity peoples. (Decide.la.85) clearly discourage ethnic minority educational enabling many students to attend secondary children whose only hot meals are provided ing environment. participation and achievement. (UNICEF) school. during school. Y BY EMILY BY H P

22 ICONOGRA 23 Y GROD c BY MARISAO BY M T HO P

Domestic Programs 24 25 DOMESTIC PROGRAMS DOMESTIC PROGRAMS

SISTER SCHOOLS. SCHOOLS4ALL. A SIMPLE PROCESS

EN Today’s digital PEN PAL A CROWDSOURCED FUNDRAISING SUCCESS K

K ON The Schools4All fundraising challenge rallied friends, families, classmates, and

BY NICO BY communities together to raise money to help build schools for the 67 million T SUPPORTERS CREATED HO

P children without access to education. 21,000+ FUNDRAISING CAMPAIGNS

The Sister School program is truly the cross- section between PoP’s international and do- mestic programming. In its second year, PoP’s THE GRAND PRIZE CAMPAIGN HIGHLIGHTS Sister School program paired 12 classrooms in Guatemala and Laos with “sister classrooms” 1 FAMILY 2,540 LIVES IMPACTED LIKE BAKE SALES, E-MAIL The Finocchario family won the contest and in the United States, connecting our efforts CAMPAIGNS AND CAR WASHES abroad with our supporters at home. raised enough money to build two schools. Through the program, Sister Schools engage in various activities throughout the academic year. Students and teachers electronically 1 VIDEO 230 LIVES IMPACTED + share cultural information about their identi- $290,000 One of our young supporters produced and ties, customs, and experiences over Pencils of starred in the music video “Fundraise Friday,” TO RAISE OVER $290,000 Promise’s website. ( DONATIONS RANGING which was a creative way to galvanize lots of FROM $1–$51,739 ) These lessons and exchanges foster cultural donations from friends and family. understanding and identify ways for students A visit from Justin Bieber and Adam Braun to to create a more equitable world. the team’s winning school. 1 SCHOOL 533 LIVES IMPACTED Students in our Sister School Program Nunsavat Preschool, Laos Bringing together their entire student body in the campaign, this elementary school held a “Wear Yellow to School Day.” RESULTING IN 14 SCHOOLS

26 27 DOMESTIC PROGRAMS DOMESTIC PROGRAMS INTERNSHIPS. POP LEADERSHIP INSTITUTE.

OUR year-round domestic professional THE FIRST EVER development program In Summer 2011, PoP hosted its first ever PoP Leadership Institute, a series There is no better way to teach young people to take action than to house of free seminars aiming to educate, inspire, and motivate students to become the most passionate, energetic, creative and ambitious young people at our socially conscious leaders within their communities. More than 25 speakers office. PoP’s interns act as a catalyst for social good and serve as an internal and over 150 students attended the five summer sessions. innovation incubator. That’s why our interns don’t just stuff envelopes. At PoP we believe in having our interns spearhead a variety of integral com- pany initiatives, including website design, fundraising campaigns, and Gala FEATURED SPEAKERS execution— all the way acquiring valuable skills to help them succeed in the professional work force. Aria Finger Alex Albelin James Wu Billy Wheelan The clearest manifestation of our interns’ impact is our SHINE program. DoSomething.org Google Acumen Fund Sentia LLC SHINE is PoP’s supplemental curriculum designed to improve educational achievement by teaching students in the communities to lead healthier and more fulfilling lifestyles. It was created by the Intern Summer Class of 2010 with Founder and Executive Director, Adam Braun. They made me realize that as long as I have passion, I will achieve what I want as a leader. Each speaker was so approachable and they answered my questions so sincerely. INTERNSHIP positions At Pencils of Promise, I am able to work on meaningful assign- ments with some of the brightest and most passionate people, —Victoria, High School Student Special Projects Finance preparing me to not only be successful in the professional world, Technology Social Media Design Partnerships but to make a difference. Community International Engagement Programs — Suzanne Maietta, Community Engagement Intern 5 SUMMER SESSIONS 25+ SPEAKERS 150+ STUDENTS ATTENDED

28 29 ASON MALIHAN BY ROSSANEO BY WANG & J T HO P

CAMPAIGNS & SPECIAL EVENTS 30 31 CAMPAIGNS & SPECIAL EVENTS CAMPAIGNS & SPECIAL EVENTS THE PENCIL SHOP. MADE WITH PENCILS.

In partnership with AKQA, Pencils of Promise secured the world’s leading influentials to create original works of art made from pencil. Their pieces were auctioned off on our website and all funds raised went to build schools abroad.

HUGH JACKMAN SHAQUILLE O’NEAL DAVID FREESE LEA MICHELE KATIE COURIC CHELSEA CLINTON STEVE NASH COLDPLAY

Pencils of promise one-for-one pencils Pencils of Promise created our own line of one-for-one pencils with leading art supplier Faber Castell. Pencils range from $25 to educate one child to $25,000 to build a full school. A KQ JONATHAN ADLER MARIAH CAREY JOE FENTON IONS A BY T RA T 32 33 ILLUS CAMPAIGNS & SPECIAL EVENTS

OUR FIRST GALA. F CHANGE T O one night’s impact OS AGEN BY T

The Pencils of Promise gala raised over $1 million and enabled the development HO P of 40 new schools. With a sold-out crowd of new and old friends, we honored three of our most steadfast supporters— AgencyNet, Scott “Scooter” Braun and Justin Bieber.

It was a truly memorable evening and surpassed our wildest expectations. It dem- onstrated how far we’ve come as an organization and allowed us the humble privilege of honoring our original supporters.

— Brad Haugen, Chairman of the Board

34 35 DIGITAL ENGAGEMENT. POP IN THE PRESS.

TOP POP TWEETER: FIRST FACEBOOK POST: MEDIA HIGHLIGHTS @miyamonique Actress Sophia Bush on her admiration for the PoP communities in Laos: 01/08/09 “I’m thrilled by the commitments each village makes before construction be- 700,000+ gins, as it creates pride in the school with community investment.” WEBSITE VISITS — ENTERTAINMENT WEEKLY December 2011

“These entrepreneurs are putting those words into action. They have launched ARO

T for-profit and nonprofit firms, representing many different industries, and are

H MI at various growth stages. They were part of a pool of some 2,000 competi- T E B

A tion entrants who submitted video or written essays about how they plan Z INDIVIDUAL FUNDRAISING INITIATIVES: ONLINE COMMUNITY MEMBERS: to expand their businesses internationally...It was a tight race, but Pencils of Promise, a nonprofit dedicated to building primary schools in developing BY ELIO BY T countries, ultimately beat out contestants...” HO + P 23,000+ 290,000 — THE WALL STREET JOURNAL February 2011

Adam Braun on PoP: “The movement grew really quickly as did the staff and 400 our presence on the ground. Then with the suport of Justin and my brother, it almost put nitrous fuel behind it...The goal is now to build, to break ground on #SCHOOLS4ALL BECAME A AVERAGE DAILY 100 schools by the end of 2012. I think that it’s possible.” WORLDWIDE TRENDING TOPIC IN: TOTAL YOUTUBE VIDEO VIEWS: TWITTER MENTIONS — THE HOLLYWOOD REPORTER, PHILANTHROPY EDITION 10 MIN 640,000+ July 2011

36 37 FINANCIALS. Pencils of Promise FY 2011 Internal Statement Of Activities

2011 UNAUDITED 2010 AUDITED REVENUE Unrestricted TEMp. Rest. PERM. Rest. TOTAL total Public Support Contributions $ 1,234,586 $ 238,588 $50,000 $ 1,523,174 $1,133,364 Satisfaction of Prior 450,261 (450,261) - - - Year’s Restrictions In-Kind Contributions 125,843 - - 125,843 333,627 Special Events 523,074 - - 523,074 45,584 Merchandise Sales 4,985 - - 4,985 1,620 Other Income 634 - - 633 12 TOTAL REVENUE 2,339,383 (211,673) 50,000 2,177,710 1,514,207

EXPENSES Program Services 1,216,227 - - 1,216,277 452,099 Management & General 98,417 - - 98,417 25,749 Fundraising 134,634 - - 134,634 47,023 TOTAL EXPENSES 1,449,278 - - 1,449,278 524,871

CHANGE IN NET ASSETS 890,105 (211,673) 50,000 728,432 989,336

NET ASSETS BEGINNING OF YEAR 618,011 450,261 - 1,068,272 78,936

EN END OF YEAR $1,508,116 $238,588 $50,000 $1,796,704 $1,068,272 K K ON BY NICO BY 38 T 39 HO P OUR FINANCIALS OUR FINANCIALS

Pencils of Promise FY 2011 Internal Statement Of Financial Position GIFTS IN 12% -KIN NS: D: Cash flows from operating expenses 2011 unaudited 2010 audited IG ER 5% TOTAL EXPENSES $1,449,278 PA OTH REVEN M UE: A <1 Cash and Cash Equivalents $1,429,205 $344,893 C % % 4 : PROGRAM SERVICES $1,216,227 84% S Accounts Receivable 18,560 457,313 N IO S T P A E FUNDRAISING $134,634 9% Prepaid Expenses 28,385 19,347 D C I N A

U L MANAGEMENT $98,417 7% O Security Deposit 35,810 3,000 E F V

E & GENERAL

Property and Equipment, Net 300,372 256,893 N

T

TOTAL S

: $1,812,332 $1,081,446

2 UNRESTRICTED

2

%

SUPPORT

%

Liabilities and net assets

$2,339,383 AISING 3

DR : 9%

N

U

3

F

:

Total Liabilities $15,628 $13,174 M

S

A

N N

A

O

I G

%

Accounts payable and accrued expenses E

T 4

M 8

A

:

E R

S

N

O

E

T P

C

I

R I & N

O V

D

C G

I R

NET ASSETS V

E I E

D

U S N

A

L E

S

Unrestricted 1,508,116 618,011 :

M R 2 3 % A A Temporarily Restricted 238,588 450,261 R L : G

7

O TOTAL EXPENSES %

Permanently Restricted 50,000 - R

P

$1,449,278

TOTAL UNRESTRICTED SUPPORT $2,339,383 TOTAL NET ASSETS 1,796,704 1,068,272 $1,812,332 $1,081,446 CORPORATIONS $765,018 33% INDIVIDUALS $527,761 23% SPECIAL EVENTS $523,074 22%

CAMPAIGNS $292,353 12%

GIFTS IN-KIND $125,843 5% OF DONATIONS INCREASE IN SPENDING ON INTERNATIONAL UNIQUE DONORS RECEIVED WERE PROJECTS AND PROGRAMMING INITIATIVES SUPPORTING POP FOUNDATIONS $99,715 4% 75% UNDER $100 3X FROM 2010 TO 2011 4,000 IN 2011 OTHER REVENUE $5,619 <1%

40 41 WITH GRATITUDE. Our warmest thanks to the donors who have shown extraordinary support to Pencils of Promise in 2011.

100,000+ 15,000+ Phoneguard Section H 2,500+ AEG Live 1 800 Flowers Laurene Powell Jobs Harvard Business SchooL- Activision Publshing, Inc. Google, Inc. Alex & Ana Bogusky R.E.A.L. Change Production, Section I The Andrews Living Trust Braced-lets LLC Jennifer Hutchinson Gerald Appelstein 50,000+ DHB Foundation Marc Rowan Harlene Katzman Chris Babcock & Ms. Mookie A.B. Diversified Jan R. Lewis Kim & Marty Sands Marc Kushner & Laurie Salitan Margolis Justin Bieber Mr. Youth Webkinz Foundation Randye & Brian Kwait Roger Blanchette The Cahill Family Pacifica Foundation David Yurman Christine Lauridsen Troy Carter The Wright Foundation, Inc. Pure Growth Partners, LLC Richard Lent Consigliere Brand Capital, LLC David M. Schulte 5,000+ Dylan Lewis Country Music Television 25,000+ Randi & BoaZ Sidikaro Artists Arena Joe & Christie Marchese Martin Cunningham Scott “Scooter” Braun Hope & Glenn Taitz BNY Mellon Wealth Erica Martini Brian Dame Christopher Clarke Management Myman Greenspan Fineman Democracy Prep Harlem Dolce and Gabbana 10,000+ Gary & Catherine Briggs Fox Rosenberg & Light Charter School Craig & Caryn Effron Drs. Ervin & Susan Braun Sophia Bush New Venture Fund Epiphany School - The Finocchiaro Family Ralph & Nancy Casazzone Clothes Off Our Back Allison Rosen 6th Grade Girls Firmenich Cellairis Creative Artists Agency Sevenly First Hospital Corporation FJC/TopSpin Fund Robert E. Dickey Children’s Peter F. Culver Rebecca Sholiton Adrian Grenier Paul Fraser Trust Peter Daly Solomon Smallwood Adam Growald Island Def Jam FeelGoodz katrina davies Ryan Smith J. Ira & Nicki Harris Shakil Khan Give Back Brands The Davies Family The Sorensen Family Foundation, Inc. The McKenzie Foundation Foundation Hilary Decesare StyleCaster Media Group Harvard Business School- OPI Products, Inc. Peter Glatzer Jeffrey Fluhr Sweetgum Foundation Section B Joseph Patanella Matthew Kline Alex Gardner The F2 Family Foundation, Inc. Brad & Amanda Haugen Pizza Hut of America, Inc. William McDonough Sheri & David Gellman Robert Torres Robert Lee Usher Raymond IV The McKenzie River Halper-Rawiszer Financial Zach Veach Gary Lieberman David Seliktar Corporation Group Michael D. Weiss Barry Lowenthal EN

K Stanford University Marie Occhigrossi Karen & Ian Harris Steve Wiggins Elizabeth Luongo The Wiggins Foundation Peco Foundation Harvard Business School- Edward & Jennifer YOrke Mercedes Menocal Gregoire K ON BY NICO BY T

42 HO 43 P 2,500+ Continued Enessa Carbone Stephen Graham Valerie Mars St. Theresa of Lisieux Catholic Matt Borenzweig Foundation Wanita Mahan Joanna Prudence Derek M. Tucker Lauri Morris Erin Cerminara David Grant Melissa May High School Lisa Bowie Ethiopia Habtemariam Philip Marber Lisa Pruzan Jon Vanhala Alvin & Louise Myerberg Family David Chiappinelli Craig Gross Paige McCullough Mark Stein Branch Family Foundation Maurice Hage-Obeid Ivy Marwil Cory Puchall Ann Veneman Foundation, Inc. Debra Chickering Gene Gurkoff Allison McGregor Jay & Nancy Talbot Bruce Brickman James Hajjar Shari Mason Perry Rahbar Susan Voll-Arturi Farbood Nivi Shuvro Chowdhury Blair Hance Matt Michelsen Tenders, Inc. Norma Cirincione Angie Hargraves David Massey Ronald Randolph Peter & Deborah Weinberg Floyd Saltern Jonathan Chu Simon Harris Margaret Miller Time Home Entertainment City Chicks 4 Charity Harlem West Cathy McArthur The Randolph Foundation Family Foundation Richard Sands Sheryl Clark Scott Harrison Jim & Jackie Morris Michele Torres Andrew Cogut Jonathan Hartley Taylor McGlashan Kay Rehme Barry Weiss Patricia & David Schulte Peter Closs Harvard Business School - Anthony Moy Treyball, Inc. Lynda Collins Paul Heller Amy Menkowitz Lori Reinsberg Marcia Wells Foundation Justin Cohen Section F National Welding Supply Trifecta Entertainment, LLC Columbus Bar, LLC Jeff Hersh Joanna Meringoff Patti Renton David Wendelman Cliff & Kristy Su Donna Cordoba Ben Heineman Simone Nicholls Louis Trinchero Pat Daly Hillel 5th Graders Chris Merkle Sandra M. Rocks The Wisch Family Foundation The Veale Foundation Corr-Jensen, Inc. Lisa Hendrikson Aisling O’Leary Roger Trinchero Evan Davis Vjollca Ho Elani Meyers Margaret Ross Karen Yelick Trinity University Patricia Cox Christine Hikawa Anna O’Malley Verona Board of Education Thomas Davis Brian Honohan Mark Meyers David & Lindsay Rousso Sarah Yousefi Melissa Victor Peter Curran Matthew Hiltzik James Overlock Gabriela Vilaro Nicholas Demoura Hypervocal, Inc. Matthew Michelsen Michelle Ryan Betty Zornizer Norman Wankowski Kenneth DeRegt Carolyn S. Hrach Peter T. Joseph Foundation Deborah Vitale Mark Durliat William Irwin Gail & Abby Miller Sandra Salter Mathew Zore Elena di Maria Elaine Hughes Lawrence Petretti April Wegesin Deval Dvivedi Ken & Jill Iscol Jacqueline Mitchell Rahul Sangwan In Kind Diamantaire Designs, Inc. Mansoor & Valarie Ijaz Tracey Pruzan Weston Public Schools Donna Eby J.A.C Karen Norton Rosally Sapla Agencynet 1,000+ Susan Douglas Doug Imbruce R.L. Beattie Public School Michael White Dennis Engle Joseph Gould Public School The NY Community Trust Wendy Sarasohn akqA ACG Boston, Inc. Dr. Susan Drossman-Sokoloff Layla Jafar Robert Rieger Robert & Shelia Wilner Lois Enslow Amy Jurkowitz NYC District Council of Jonathan Sass british airways Daniela Altomare J. Ryan Dunn Melanie Jones Stuart Roberts Mitchell Young Everloop, Inc. Just Jared Carpenters RelieF Fund Henry Scholder channel one news American Express Matching Elizabeth Eidson Andrew Kaplan Joseph Rosenberg Libbie Fritz Shanti Kim Kandasamy Brendan O’Grady Dorothy Shapiro Faber castell Gifts Martin Eltrich Brad & Roberta Karp Lauren Rosenkranz 500+ Chris Fulman Albert Kassin Timothy & Linda O’Neill Nikki and Brad Silver latham & watkins Ruth Aronowitz Toby Ethington Jan & David Kittay Juan Roure Caitlin Andrews Cynthia G. Moreland Elias Kefalidis Foundation Erin Silvers nixon peabody Lynn Bagliebter Drs. Agnes & Tiberius Farkas Jocelyn & Brian Kmet Shelby Saer Nick Arison Allison Gans Courtney Kendrick Ivan Oei Kate Sinding paul, weiss, rifkind, wharton Kenya Bailey Marilyn Fisher Kolver Family Foundation Rob Sand Chidinma Asonye David Gardner Cefaan Kim John Oppenheimer Jan Smith & Garrison llp John Barnett Shana Fisher Mark Krentzman Patrick Sarkissian Kathleen Assaf David Gelobter GieFaan Kim Kate Osman Lawrence Sorrel simpson thacher & bartlett Ashley Bekton Maggie Flaishans Fredric Leary Steven & Karen Schlussel Dan Bagliebter Scott Goldberg Douglas Korn Overby Croswell Branch III Arlenis Sosa llp Clifford Berger Jacob Fleischman Debbie Lesser Thomas Schnepp Michael Bagliebter Jonathan Golding Karen Kwak Nicki Overholt Statoil North America, Inc. Jon Bond Keith Fleischman Larry Lieberman Jena Schuss Nichole Baker Lois & Blake Goodner Mari Lee Michi Pendergast William Stein Teresa Born Michael Flood Anne Lombardi Catherine Shainker The Beattie Family Robert Grayson Jacqie Leger & Katelyn Jones Patricia Perez Keegan Tarrant Jennifer Borzykowski Scott Frohman Lisa Luebbe Jeanine Smith Julie Bernstein Daniel Greenberg Jeff Levick Plan Tea Beverages, LLC Rahul Tejwani Joanne Bowen Furla USA Cosimo Mammoliti Robert Solow Ruth Bernstein Greenwich High School Ronald Levine Port Washington UFSD The Birch Wathen Lenox Kathleen Box Hans Gallas Scott Manson Jack Solowiejczyk Bert Church High School Bill Groll Cory Levy Organization Fund School Peter Brand Jennifer Gilbert Robert Markwick Rachel Springate Birchrock Foundation Vicki & Michael Gross Family Yong Li Shen Javier Prez-Farguell The TR Family Trust Thank You.

44 45 COMPANY CULTURE.

MOST UNIQUE OFFICE ITEM: FAVORITE LUNCH & LEARN QUESTIONS: BEST STAFF NAME:

Guatemala: Lemon Tree What is something that no one David Sunshine Hamburger Laos: Lulu The Dog here knows about you?

New York: 6 ft. Tall Lego Pencil What was your original AOL BBaLLfAn88: Nicaragua: Ceramic Dog screen name? I <3 PoP!!!

Name a moment that clearly changed the trajectory of your life.

If you were an ice cream flavor, what would you be? LANGUAGES WE SPEAK: 47% 53% 18 OUR FRIENDS WHO FEED US: MOST POPULAR ARTIST

Kind Healthy Snacks 1. Chapina 10. Khumu LesserEvil Snacks 2. English 11. Lao Pop Chips 3. French 12. Macedonian PLAYED IN THE OFFICE 13. Nicanol Prometheus Springs 4. Hebrew 5. Hmong 14. Portugese Runa Beverages Guatemala: Adrian Roberto- Dame Letra 6. Italian 15. Quiche Shreddies Laos: Phanh 16. Spanish New York: Rihanna 7. I x i l 8. Japanese 17. Z’utujil Whole Foods Nicaragua: Jamie Cullum P 9. Kaqchikel 18. Vietnamese HO T O BY NIC K ON K 46 EN 47 OUR TEAM. BOARD OF DIRECTORS.

ADAM BRAUN TOM CASAZZONE LESLIE ENGLE EMILY GORE JOCELYN KMET ADAM BRAUN CHRIS CLARKE RAYMONG G. CHAMBERS BRAD HAUGEN KAREN HARRIS Founder & Executive Director Chief Financial Officer Laos Country Director Director of International Programs Director of Community Engagement Founder & Executive Director, CEO, Pure Growth Partners U.N. Secretary-General’s Special Envoy CMO, Silent Media Group Director, Bain & Company Pencils of Promise for Malaria and MDG Advocate

NOAH MARWIL MELANIE STEVENSON JONATHAN STILES WENDY WECKSELL JOHN KLUGE JR. RICHARD LENT HOPE TAITZ RAHUL “HOOLIE” TEJWANI MICHAEL WEISS Latin America Regional Director Director of Operations Director of Technology Director of Partnerships Co-Creator & Managing Director Founder, AgencyNet Founding Executive Member, MBA Candidate, MBA Candidate, Eirëne Youth Renewal Fund MIT Sloan School of Management Stanford Graduate School of Business

ADVISORY BOARD.

GUATEMALA Moisés López Guiliya Laoxayda Bay Soulivanh NICARAGUA Marlon Alvarado Alyssa McGarry Joy Lorphhaehanh Mailee Thao Maria Valeria Gonzalez Alice Anléu Jesse Schauben Elizabeth Mitaro Siamphai Pan Thavong Omar Martinez Rocío Araujo Anastasia Ajanel Xon Hang Nguyen Megan Williams Esteban Icalbalceta Molina Esperanza Canay LAOS Noy Phantavong Jua Yang Kaitlyn Phillips Edwin Cosme De León Khamkeung Chitavanh Stephen Ritter NEW YORK Robin Smith Pablo Cordedda Phet Intapanya Ban Saysavanth Chris Battaglia SCOTT “SCOOTER” BRAUN ROBERT HOLLANDER ANN VENEMAN Nilvia González Phanh Keobupha Sonesay Saysavanth Carlo Dumandan Partner, SB Projects President, Give Back Brands Former Executive Director, UNICEF Diego Guzmán Lanoy Keosouvane Khamla Souksombath Robyn Wilds

48 49 OUR VISION FOR 2012 Break ground on 100 schools in Laos, Nicaragua & Guatemala.

Launch a national campaign to rally millions of young people around education. EN K EN K K ON K ON BY NICO BY T BY NICO BY HO T P

50 HO 51 P PENCILS OF PROMISE, HEARTIEST HEARTIEST CONGRATULATIONS CONGRATULATIONS ON YOUR WORK. ON YOUR WORK. KEEP LEARNING. KEEP WORKING. THE WORLD NEEDS YOU.

— Archbishop Desmond Tutu, Nobel Peace Laureate

+ www.pencilsofpromise.org + [email protected] + 212.777.3170 + 37 West 28th St. 3rd Fl. New York, NY 10001 52