Annual Report 2010 welcome Dear Friends, Like many of you, we’ve managed to weather the economic storm of the past few years, even if it’s meant tightening our belts a bit to do so. By making a few small sacrifices elsewhere, we have proudly met our com- mitments to our partners in Latin America. Thanks to your continued support. We are pleased to share with you our accomplishments for the 2009-10 fiscal year. Our 14 partner organizations in Mexico, Guatemala, Nicaragua, Costa Rica and Peru managed 21 projects in 217 communities, helping more than 20,000 families improve their quality of life. This year our partner in Costa Rica, the Rural Children’s Education Foundation (FHC), graduated as a Coffee Kids partner. Since 1996 FHC has granted over 2,600 scholarships to young people. This revolutionary schol- arship program has improved the educational infrastructure of rural schools throughout Costa Rica. FHC’s efforts created a sustainable model for education by establishing an agreement with the Costa Rican government to provide student loans that are guaranteed by a trust established by FHC. Thanks to this ar- rangement, the project has reached a level of sustainability that will allow FHC to continue without external funding. FHC will share its expertise with other organizations interested in creating educational opportunities for young people. In this way, the incredible success of this program provides hope for hundreds more communities throughout Latin America. Recently, I met coffee farmers from dozens of cooperatives throughout Central and South America, and every single one of them asked Coffee Kids to come and visit them and to implement the proj- ects that have already helped so many others farming families. The need for Coffee Kids’ projects is greater than ever. Yet in the current economic climate it’s also harder than ever to raise the money necessary to implement more projects and reach new communities. The success of these programs speaks for itself. I am confident that as we look to the future, just as many donors will knock on our door as farmers. When that happens, we can say yes to each and every community that seeks our support. On behalf of all the coffee-farming families whom we support, thank you for your past support and your un- yielding confidence in our programs. Carolyn Fairman Guy Burdett Executive Director Board President mission statement To work with coffee-farming families to improve their lives and livelihoods. To this end, our staff works with local organizations in Latin America to create programs in education, health awareness, mi- crocredit and food security in coffee-farming communities. These efforts allow coffee farmers to reduce their dependence on the volatile coffee market and confront the most pressing community needs. • Coffee Kids partners with local organizations in coffee regions that work directly with coffee-farming communities. • Our partners provide technical resources, training and follow- through to communities to implement grassroots projects. • We provide the resources that enable our partners and their communities to put their vision into action. • We facilitate idea-sharing exchanges between project partic- ipants and other organizations to find solutions to common problems. • All projects are designed by community members and based on their needs and priorities. Because every coffee-farming community is unique, every Cof- fee Kids project is unique. What is common is an attitude of re- spect for all people’s values, cultural integrity, intelligence and ingenuity. Mexico 13 COOPACFSI: Family Gardens and Small Animal Production 1 AUGE: Food Sovereignty 14 APROVAT: Community Grocery Store 2 CAMPO: Regional Training 15 AYNI: Gender Violence Eradication and Advocacy Centers 3 FomCafé: Community Butcher Shop and Drug Store 4 ICSUR: Traditional Medicine and Environmental 1 Education 2 3 Guatemala 4 Mexico 5 7 6 5 ACMUV: Caribbean Sea Microcredit Guatemala 8 Nicaragua 9 6 ADESPA: Children’s Nursery and 10 Costa Rica Kindergarten, Health Care, and Artisan Production 7 STIAP: Permaculture and Biodiesel Production 8 APROS: Reproductive Health Care and Support for Widows Nicaragua 11 9 CECOCAFEN: 13 Microcredit and 12 Savings, and Scholarships 10 SOPPEXCCA: Environmental and Peru Leadership 14 Education Costa Rica 11 FHC: Scholarships Pacific Ocean Peru 12 APROCASSI: Microcredit for Education financial information Statement of Financial Position (Audited) for the year ending June 30, 2010 ASSETS 2010 2009 Cash & equivalents $286,569 $323,971 Pledges receivable 57,352 132,366 Inventory 804 1,593 Total current assets $347,203 $457,930 Trademarks, net* $21,865 $23,911 Equipment, net 5,879 7,070 Total assets $374,947 $488,911 LIABILITIES & NET ASSETS Liabilities Accounts payable & accrued expenses $27,953 $21,183 Total liabilities $27,953 $21,183 Net assets Unrestricted $346,994 $467,554 Temporarily restricted - 174 Total net assets $346,994 $467,728 Total liabilities & net assets $374,947 $488,911 *Net of accumulated amortization of $26,046 for 2010 and $24,118 for 2009. financial information Statement of Activities (Audited) for the year ending June 30, 2010 Temporarily REVENUE & OTHER SUPPORT Unrestricted Restricted Total Business donations $388,079 212,791 600,870 Foundation Grants 11,843 25,500 37,343 In-kind goods and services 47,350 - 47,350 Individual donations 34,914 30,086 65,000 Other income 3,699 - 3,699 Merchandise sales 2,036 - 2,036 Net assets released from restrictions 268,551 (268,551) - Total revenue & other support $756,472 (174) 756,298 EXPENSES Program services $625,380 - 625,380 Fundraising 160,820 - 160,820 Management & general 90,832 - 90,832 Total expenses 877,032 - 877,032 Change in net assets $(120,560) (174) (120,734) Net assets, beginning of year 467,554 174 467,728 Net assets, end of year $346,994 - 346,994 For complete audited financial statements and footnotes, please contact Coffee Kids at (505) 820-1443 or [email protected]. program highlights The Tabaconas Valley, Peru - The Association of Organic Producers from the Tabaconas Valley (APROVAT) was founded in 1997 in San Ignacio Cajamarca, Peru. The organization is made up of more than 160 coffee producers who have implemented agricultural initiatives to develop the local economy and improve quality of life while also protecting the natural environment. In Peru more than 60 percent of the population lives below the poverty line. This project is based in an iso- lated region in Northern Peru known as the Tabaconas Valley. The Peruvian government rates the standard of living here as extreme poverty. The soil and warm climate in the Tabaconas Valley are good for growing coffee, but given its rugged ter- program highlights 2010 Results rain, it is costly to transport coffee over the moun- • 1 grocery store was opened at Taba- tains to distant markets. Thus, food supplies are conas community. scarce and expensive due to long distances and • 24 women participate in the man- difficult road conditions. agement of the grocery store. APROVAT’s Grocery Store project provides a • They attended two workshops on group of women with the capital and training basic accounting, invoicing and basic needed to manage a grocery store. The store of- computing. fers the women a venue in which they can also sell • Every family that buys at the gro- homegrown products. The project increases the cery store saves up to 10 USD per disposable income in the community due to lower month in comparison to buying in food costs and reduces the health problems associ- other shops. ated with poor nutrition. In the long run, profits •The store is run completely by local from the Grocery Store project will go to a fund women. to open new stores in other villages, expand the flagship store and other initiatives that boost the •124 families from 12 communities development of the community. are regular customers at the store. •Sales at the grocery store have in- creased about seven percent every month since it opened in January 2010. program highlights Provinces of Jaen and San Igna- cio, Peru - The San Ignacio Provin- cial Association of Coffee Producers in Solidarity (APROCASSI) was founded in 2000 and is comprised of 491 small- scale coffee producers in Northern Peru. APROCASSI promotes gender equality, solidarity, democracy and respect for na- ture. Since its creation, the organization has implemented economic and social initiatives outside of coffee farming that provide associates and their families with alternatives so that they can improve their income, education, technical skills and entrepreneurial abilities. 2010 Results Many children in these coffee-farming communities cannot attend school beyond • 116 children (ages 6 to 16) from 24 commu- the sixth grade. Parents often cannot af- nities benefited from the project. ford basic educational expenses and fre- • Each participating family received a loan of quently need help in their coffee plots. 90 USD per child to cover the costs of school Transportation is an additional obstacle as the nearest high school is often a two- to and materials. four-hour commute each way. • The interest paid by participating families This project provides families with ac- (20 USD per year) is used to provide loans to cess to low-interest loans to cover school more families that have children in school and expenses during the months of March expand project coverage. and April, which is also the time when there is no income from coffee. Thanks to • APROCASSI carried out one family plan- this project, many families are no longer ning and nutrition campaign directed to par- forced to sell their coffee in advance to ents in the participating communities. pay for school fees and materials. program highlights San Ignacio Province in Northern Peru - The Frontera San Ignacio Agrarian Coffee Co- operative – COOPACFSI, is a cooperative founded in 1969 and made up of 338 coffee producers from San Ignacio Cajamarca, Peru.