INCOME STATEMENT FOR 2008
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a nonproﬁt organization www.serrv.org Ceramic artisan with Mitra Bali, Indonesia ANNUAL REPORT 2008 2008 was a year of many new beginnings for SERRV. We clarified and reaffirmed our core organizational values working with Just Works Consulting, And we embarked on an ambitious effort to more fully energize and mobilize our customers, volunteers, donors and supporters with new organizational messaging, an improved catalog and a stronger web site. Increased staff and resources have been devoted to insuring that all our interactions with our artisan and farmer partners provide them with the tools, training and expertise to better participate in the global economy. And though we continue to offer a robust market for more than 75 cooperatives and community-based organizations in 35 developing countries, increasingly SERRV has also become a significant product design, training and capacity- building resource for artisans around the globe. Though the current recession reduced our sales in 2008 by 5% producing a very significant loss, we believe we are now on target to generate a surplus in 2009, and that we have created the conditions for renewed growth as our country emerges from the current economic downturn. We continue to be grateful to so many supporters who make possible our important work to eradicate poverty wherever it resides. Robert S. Chase President\CEO, SERRV International INCOME STATEMENT FOR 2008 BALANCE SHEET AS OF 12/31/08 Revenue Assets Sales of fairly traded handcrafts & foods $8,730,249 Cash & Cash Equivalents $2,178,188 Partial reimbursement of shipping costs 504,257 Accounts Receivable 837,318 Contributions 311,360 Allowance for Doubtful Accounts (8,901) Other non-operating income 44,820 Inventory 1,967,116 Gross Revenue 9,590,686 Reserve for Obsolete Inventory (100,000) Payments to producers for goods sold 3,445,677 Advances to Producer Partners 179,936 Prepaid Supplies & Misc Accounts 161,297 Net Revenue $6,145,009 Equipment & Leasehold Improvements 85,055 Expenses Total Assets $5,300,009 Program Expenses: Program salaries & benefits $2,186,976 Liabilities Inventory Financing Payable $2,145,882 Postage & domestic shipping costs 1,132,931 Accounts Payable 473,767 Payment of international shipping for producers 584,473 Accounts Payable Inventory 1,218 Promotion 603,613 Payable to Partner Organizations 147,011 Occupancy including warehouse rent 419,665 FASB 106 Obligation 30,000 Program supplies 360,047 Notes Payable 1,583,500 Consultants to assist producers/other services 123,386 Miscellaneous Liabilities 41,756 Interest on advances paid to producers & inventory 128,353 Donations to partner organizations 159,721 Total Liabilities $4,423,134 Volunteer expense/contract labor 128,053 Miscellaneous program expenses 85,050 Fund Balance $876,875 Grants to producers/producer development 80,426 Travel 69,084 Telephone 40,579 Subtotal Expenses $6,102,357 Administration & Fundraising $795,899 Total Program and Administrative Expense $6,898,256 Change in net assets ($753,247) For a complete copy of our audited financial statements, please contact us at 410.635.8755. WHERE WE WORK USA BOSNIA-HERZEGOVINA MEXICO ISRAEL/WEST BANK CHINA PAKISTAN NEPAL GUATEMALA HAITI MALI BANGLADESH NICARAGUA HONDURAS INDIA THAILAND PHILIPPINES EL SALVADOR COSTA RICA CAMBODIA GHANA SRI LANKA CAMEROON UGANDA KENYA VIETNAM ECUADOR RWANDA TANZANIA INDONESIA BOLIVIA PERU ARGENTINA MADAGASCAR SWAZILAND CHILE SOUTH AFRICA PURCHASES BY REGION NORTH AMERICA 5% LATIN AMERICA 16% SERRV ARTISAN & FARMER PARTNERS IN THESE COUNTRIES RECEIVED ASIA ONE OR MORE OF THE FOLLOWING IN 2008: 41% • EMERGENCY AID CHOCOLATE* • IN-COUNTRY/REGIONAL TRAINING (Ghana, Germany) • GRANT FOR EQUIPMENT 28% • TRAINING OR TRAVEL AFRICA 7% • ORGANIZATIONAL VISIT MIDDLE EAST/EUROPE 4% COUNTRY-BY-COUNTRY SNAPSHOT Total 2008 purchases are listed by country. AFRICA ASIA LATIN AMERICA GHANA/GERMANY* $947,213 INDIA $549,649 PERU $219,417 KENYA $111,850 VIETNAM $185,715 CHILE $61,040 SWAZILAND $29,750 NEPAL $170,632 GUATEMALA $58,295 CAMEROON $24,467 INDONESIA $166,344 MEXICO $39,678 UGANDA $20,861 BANGLADESH $160,442 ECUADOR $39,406 SOUTH AFRICA $18,300 PHILIPPINES $78,305 HAITI $34,068 GHANA $8,412 SRI LANKA $36,755 COSTA RICA $22,800 TANZANIA $7,200 PAKISTAN $28,408 NICARAGUA $18,869 MALI $6,003 CHINA $8,007 HONDURAS $14,101 RWANDA $3,570 CAMBODIA $7,630 EL SALVADOR $13,015 MADAGASCAR $2,600 THAILAND $6,960 ARGENTINA $10,740 BOLIVIA $4,560 MIDDLE EAST/EASTERN EUROPE NORTH AMERICA WEST BANK $70,167 USA $163,298 * Farmers in Ghana grow the cocoa used in Divine Chocolate, which is made in Germany. ISRAEL $50,505 BOSNIA $5,653 2008 DEVELOPMENT ACHIEVEMENTS “In the cooperative SERRV is committed to working with artisans and farmers to provide we work together, and them with skills and tools to improve their lives. In addition to our everyone supports each purchases, SERRV’s Development Achievements for 2008 include the other. When SERRV following: places an order with us • Four major overseas trainings in product design, crafts production we are happy because and market trends benefiting both SERRV partners and other crafts there is work. It is a organizations. source of hope.” • Equipment grants totaling $15,326 to SERRV partners to put needed tools into their hands. These grants helped purchase – Margarita Torres, computers, generators, sewing machines, looms, silkscreen ACOOPRAC, El Salvador equipment, and storage racks. • Training and travel grants totaling over $15,000. These grants supported marketing activities, travel to regional fair trade conferences, and local trainings in business skills and basket making. • Grants for emergency relief to help people rebuild their lives following flooding in India, hurricanes in Haiti, and wind storms in India, totaling $11,500. • Staff visits to 40 of our artisan and farmer partners in 19 countries to learn about their needs, work on product design or provide other training. • Hosting visits to SERRV offices in the U.S. by artisan partners from India and Nepal. • Worldwide distribution of two Trend Reports to all of our partner organizations which help them develop new products. • Facilitation of donations of reading glasses, emergency relief and school supplies. NOTES OF GRATITUDE GENEROUS CONTRIBUTIONS To the thousands of ARTISANS AND FARMERS with whom we partner, We gratefully acknowledge the generous support of the thank you for your continued hard work and enthusiasm for fair trade. following organizations through their loans or grants: To our numerous CUSTOMERS who incorporate fair trade into their Calvert Foundation SERRV Loan Fund Investors business or mission work, or promote justice with their gift purchases, Mennonite Mutual Aid Google Grants thank you for believing in our organization and our partners. Untours Foundation West Foundation eBay Foundation Catholic Relief Services To our generous DONORS AND INVESTORS across the country, thank you for helping us further our work and the work of small-scale Shared Interest Society Thousands of individual and organizational donors producers worldwide. To our PROGRAM PARTNERS who advocate for fair trade, thank you 2008 BOARD OF DIRECTORS for your work to grow demand for the handcrafts and foods that create work for our artisan and farmer producers. Marsha Hoover - Chair Kimberly Grimes Ann Engelman - Vice Chair Sally Keller To the thousands of VOLUNTEERS who give their time in our New John Krieck - Treasurer Howard Royer Windsor office, gift shop and warehouse, our Madison office, and in communities across the country, thank you for your dedicated support. Pushpika Freitas - Secretary Dan Patterson Colin Crawford Robert Chase* To the committed BOARD OF DIRECTORS AND STAFF thank you for Julie Danis *non-voting member contributing your energy and skill to fulfilling our mission. SERRV INTERNATIONAL is a 501(c)3 nonprofit organization founded in 1949. OPERATIONS CENTER PO Box 365, 500 Main Street, New Windsor, Maryland 21776 410.635.8750 SERRV is an accredited member of the ADMINISTRATIVE OFFICES International Fair Trade Association 122 State Street, Suite 600, Madison, Wisconsin 53703 and a charter member of the Fair 608.251.3766 Trade Federation.