Captivating International Newsletter June 2016

SIMPLY Captivating JUNE 2016 EDITION

2015 ANNUAL REPORT 2016 THE STORY SO FAR

OUR MISSION Captivating believes that within every child lies the potential for greatness something of incredible value to their world. For many, much of this value is lost because of poverty or injustice - they have fallen into a gap.

Our mission and passion is to see disadvantaged, impoverished, poorest-of-the-poor children soar - see them reach out for a better tomorrow.

THIS CHILD’S PROBLEM STOPS WITH US.

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We are excited to share with you our June 2016 Simply Captivating update, incorporating our January – December 2015 Annual Report.

In this update we detail our projects, achievements, challenges and highlights as we aim to expand our goal of bringing genuine hope for a better tomorrow to children and families struggling to survive or progress.

Financially, 2015 was a challenging year for us, although we still managed to expand our work through our wonderful charity partners in all regions – Nepal, China, and Kenya. Thanks to support from dedicated donors, we have together directly impacted the lives of over 5,000 children, women and families struggling to progress. For us, these are truly “Beauty from Ashes” stories, not Band-Aid solutions.

Over the past 10 years we have seen young girls transition from poor, troubling situations into beautiful young women full of potential. As a charity, we look for significant turnaround outcomes for those our partners choose to help. You will read about some of these solutions in this report. Parents, girls and young women who were all once in a “gap”, but now living with new opportunity and brighter prospects.

They’ve become “Beauty from Ashes”, our theme for 2016.

As always, we cannot achieve any of this without hard work and great support. This is why this report is so important. It’s a report not just about our programs and results, it’s a report about our dedicated

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on-the-ground partners, and it’s about you – our financial supporters and volunteers.

Captivating is a small organization that aims to punch well above our weight division.

This is only possible thanks to an incredibly large volunteer base, partners that never rest – passionate to help just one more girl, and our financial partners and supporters.

From families who sponsor a girl, through to our corporate partners who underwrite entire programs, we are so thankful to all of you.

We hope, in reading this report, you will feel moved to contact us and be part of the Captivating story – a story that’s all about changing lives and saying, “this child’s problem ends with me”.

Andrew & Julie Colquhoun Founders - Captivating International.

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CONTENTS Message from CEO 3 Message from Board Chairman 6 Captivating at a Glance 8 2015 Highlights 10 Our Year in Review 12 Nepal 14 China 20 Kenya 30 How can I Help 34 2015 Auditors Report 36 Abridged Financial Statement 37 Captivating Events 38 About us 40

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A MESSAGE FROM DEAN BEVERIDGE Chairman of the Board

It is an incredible privilege to be involved in serving the poor through the exciting work of Captivating International. Recently I travelled to a developing nation and visited several programs that are transforming the lives of those previously trapped in extreme poverty. Such trips are designed for me to impact and lead our staff who tirelessly carry out the work on the ground with the people in desperate situations. When I start such a journey I have a sense of anticipation as to what I can give to those in need.

When I return it is with a sense of gratitude as to what I have learnt from those who work tirelessly to make a better future for their families.

I visited a micro finance branch and was able to sit with women who have availed themselves of micro loans to expand their micro businesses. I asked these women what their dreams for their future were. Without exception every woman shared that her dream was to build a brighter future for her children and family. I also visited a red light district and spent time talking to the female and male street workers. I asked the same question and the answer was the same - ‘my dream is to build a better life for myself and my family’.

So what is Captivating about? According to those we serve, Captivating is about walking with and supporting people born into poverty as they seek to fulfil their dreams. What an exciting opportunity.

2015 was a year of impact and learning for Captivating. We continue to work alongside our country staff and partners. Our donors and supporters dug deep to make this work possible. As an organisation we want to acknowledge these supporters and partners who sacrifice with their time and finances to enable this work to continue. We salute you and look forward to 2016 with expectation of a growing impact in the communities where we serve.

2015 saw our work continue to expand in the three geographic areas in which we focus China, Nepal and Kenya. As you read the country reports we trust you will celebrate with us the transformed lives of people who we, at Captivating, have enjoyed the privilege of walking beside and supporting as they pursue their dreams.

In China, dreams were fulfilled for many children and families through programs involving education support, income generating ventures, vocational training and initiatives designed to assist the poor in their journey out of poverty. We have watched with excitement the implementation of programs enabling permanent solutions to be enjoyed by many.

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In Africa, we have seen our microfinance and orphan care program reach sustainability. This is an exciting milestone for Captivating as it enables us to expand with confidence knowing that families are being empowered by development in a sustainable manner. Strong families are enabling us to continue to reach out to the communities most destitute (orphans and widows).

In Nepal, our human trafficking program continues to impact the lives of those we serve. The world was horrified to see the devastation of the huge earthquake that hit the country last year. What went largely unnoticed with the after effects was that poverty and incidences of trafficking spiked. In response to this we were able to expand our border monitoring program intercepting and rescuing girls on a daily basis. Through our radio station and community awareness programs we were able to build community awareness as to the risks of being trafficked and the tactics used by traffickers. Most excitingly we were able to carry out the ground work for our preventative work striking at the root cause of trafficking - extreme poverty. Through a combination of prevention through poverty alleviation and awareness coupled with direct intervention through border monitoring and brothel raids we are seeing numerous women and children set free to pursue their dreams.

We look forward to 2016 with a sense of excitement and responsibility. We are excited that we can expand and impact in a positive way more lives enabling dreams to come true. We feel the responsibility to continue this work in a sustainable and transparent way. We continue to invite you to journey with us as we pursue a better world for those we serve.

On behalf of the board, I am privileged to pay tribute to the tireless work of our founders Julie and Andrew Colquhoun.

Their leadership and passion for the poor continue to enable us, as an organisation, to grow and impact more people in the communities we serve.

BOARD OF DIRECTORS

Dean Beveridge (Australia)

Scott Irvine (China)

Judene Irvine (China)

Glenn Roberts (Australia)

Regards

Dean Beveridge (BSc LLB) Chairman

Greg Schultheis (China) 7

CAPTIVATING AT A TOTAL DONATIONS: 2015 was a hot and cold year of fund-raising for Captivating. A conservative business climate in Asia resulted in some loss of corporate support as business charity budgets were decreased or cut completely.

A falling Australian dollar, down 10%, also contributed to total donations being down 12% on the previous year.

TOTAL PROJECT ACTIVITY UP: Despite a fall in donations, we pushed on with project expansion plans agreed with our various country registered charity partners. Total project expenditure increased 16% reflecting an increased number of new projects and expanding regional activities.

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A GLANCE STATEMENT OF ACTIVITIES - January to December, 2015 TOTAL DONATIONS

HK$ 6,280,628

77%

PROGRAM EXPENSES

5,148,916

66%

Funds to Programs

4,395,103

11%

Project Support

23%

CORPORATE SERVICES

11%

Administration

730,193

12%

Fund-raising

794,558

12% 11%

77%

753,813

TOTAL EXPENSES

1,524,751

6,673,667

TOTAL ADMINISTRATION & SUPPORT: Captivating’s total spending was 23% (11% for administration and 12% for fundraising and marketing expenses). In real terms, our total costs amounted to less than this (see below). Charity Navigator (a US based charity authority) gives its highest financial rating to organizations that spend 25% or less on administrative and fund-raising expenses.

DEDICATED ADMINISTRATION DONATIONS: Thanks to dedicated administration sponsors and events such as the Kidz With Heart and Midnight Charity Race, Captivating’s net administration & fundraising support costs per project ranged from just 12% - 18%. We were excited by this outcome for donors and are very thankful to our dedicated corporate sponsors (listed below).

OUR ADMINISTRATION PARTNERS: Throughout 2015, Captivating was honored to have the financial support from the following partners who each contributed in excess of US$5,000 towards our administration and fundraising expenses.

Paula Whalen AXESS

ACCOUNTING SOLUTIONS

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 2 0 1 5 HIGHLIGHTS

32,660 people

educated on Human Trafficking and prevention strategies

3,500 families in rural China receive Health Training and medical support

4,086 Nepali girls/women intercepted in the act of being trafficked

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638 families

in China and Kenya increased their family incomes through sustainable projects

5,000+ number of children directly and significantly benefiting from our work in 2015

117 Kenyan AIDS orphans now secure in a Foster Family

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2IN REVIEW 015 February January Seng girls Tailoring Program gets started

Nepal Anti-Trafficking Radio Station reaches 21million, 92% of Nepal

March

China Rigmo Water Project commences

August July GPA Greenhouse Program starts, 16 girls graduate from SGVTS

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Captivating Charity Fund registered with Shenzhen Charity September Federation 2nd PCH Capacity Building Program commences; 920 girls intercepted at Captivating Nepal Border stations (July – Sept)

June April Kidz with Heart event, 1st May PCH Capacity Building Program commences Nepal Earthquake emergency relief program starts

October

SGVTS Vocational Cooking Program; Pigs for Poverty Program commences

December Healthy Village Program implemented; 718 girls intercepted at Captivating Border November Stations (Oct – Dec); Nanshan Challenge Midnight Race; Solar Panels program completed

7th Annual Charity Auction; ACDF Kenya Program expands helping 150 orphans

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NEPAL 2015 THE YEAR THAT WAS

THE PROBLEM: The statistics are horrible. In excess of

15,000 – 20,000 Nepali women and children (mostly girls) will become victims of Human Trafficking this year. Our partners believe the real statistics could be 5 times higher. They will be tricked into crossing the Nepalese border chasing the promise of a better life.

Their reward will be enslavement, gang rape, prostitution, or being killed to support the ruthless body part industry. People like you and me are blessed to be born in a place of freedom and relative prosperity. ALL OF US have the capacity to bring life changing hope to these women and children.

WHAT WE ARE DOING: Through two wonderful partners:

3 Angels Nepal (3AN), and Tiny Hands International (THI), and with the support of Australian based NGO’s Asian Aid and International Children’s Care, we are working on a holistic strategy focused on (1) Interception and Rescue; (2) Prevention; and (3) Rehabilitation. Stopping girls in the process of being trafficked at the border is critical. However, without education initiatives and prevention activities the trafficking of women and girls will simply continue. Ultimately, until poverty and prejudice is addressed, the attractiveness of “a better life” will keep Nepal’s young women looking across the border, prepared to take on the risks. It’s a tough assignment – but a critical one. In all the work we do, it doesn’t get more desperate than this.

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K E Y FACTS 4,086

women intercepted in the likely act of being trafficked

98%

women successfully returned to families

5,532

people directly involved in HT prevention activities

32,660

people reached through HT education programs

92%

of Nepal with access to anti-HT radio programs

21 million potential radio audience

50,000+

women interviewed at Captivating funded border stations.

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HERE’S WHAT WE ACCOMPLISHED SPONSORS AND OUR AMAZING PA INTERCEPTING GIRLS IN THE VERY ACT OF BEING TRAFFICKED Captivating fully funded 5 border monitoring stations in 2015 located on both the Indian and Chinese Nepali borders. These 5 stations interviewed in excess of 50,000 women and girls whose situations looked “suspicious”. Most were able to continue across the border, but 4,086 were assessed by border station staff, and confirmed by further police interviews, to be “highly likely” in the very process of being trafficked. These girls would have already been priced and likely in the process of being handed over to their new owners. Refused to proceed further these girls were counselled and educated about what was happening, then safely returned home. In 2% of cases, returning home was not an option at which point they were given longer term rehabilitation and care at one of Captivating’s transit/ safe houses, and some being referred to a women’s safe haven program run by Asian Aid and 3 Angels Nepal.

EDUCATION AND AWARENESS – OUR KEY PREVENTION STRATEGY Throughout the year, education and awareness programs were implemented in four key regions covering trafficking hot-spots across nineteen districts. School awareness programs educating highschool students were also run as well as the mobilization of women’s community based network groups to act as neighborhood watch programs. Bulletin boards and mail-outs about the latest tricks and risks of human trafficking were also implemented. The construction of four help-desk stations started in key city locations offering free legal advice and support. We will never know how many girls were prevented from walking down the trafficking victim road from this work, but we believe it is significant.

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IN 2015 THANKS TO DEDICATED ARTNERS: MAJORITY FUNDING OF THE 3ACR ANTI-TRAFFICKING RADIO STATION - POKHARA

Captivating is now the majority funder of the operational costs of a radio station dedicated to educating Nepal on Human Trafficking, as well as Child Protection, and Health Care. Expanded to now, cover 92% of Nepal, an estimated 21 million Nepali’s have access to this station across 68 districts thanks to station relay costs covered by a combination of Captivating and Asian Aid programs. The message is getting out and awareness is on the increase.

NEPAL EARTHQUAKE RELIEF FUND April 2015 was a horrific period for Nepal.

Still to this day there are so many living in makeshift shacks having lost everything in the earthquake. Through our on-the-ground partners, Captivating was able to quickly respond with funds making it possible for the urgent supply of tents, food and clothing. In total, HK286,327 (US$37,000) was raised by an incredible support base. Thank you to everyone involved in this.

OUR THANKS TO KEY DONORS OF OUR WORK IN NEPAL in 2015: The Jamoca Foundation, Lightstream, 7th Annual Captivating Charity Auction, Dean and Chris Beveridge, Velez Family, Tim Shelton, Axess Accounting, Supersafe Hire, The Nanshan Challenge, Greg Schultheis, and the many people who supported our Emergency Relief Earthquake Fund.

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2016 - so far - 1,164 women have been intercepted for the Jan-Mar 2016 quarter.

ADDITIONAL BORDER STATIONS are being funded from this year. In total, Captivating now fully funds seven stations (up from 5 in 2015). Combined, these stations will intercept an estimated 5,000 women this year.

POVERTY ALLEVIATION PROGRAM – In partnership with 3 Angels Nepal and Asian Aid, we are in the planning stages of a new program specifically aimed at helping women in high risk trafficking areas address their poverty. Based on proven MicroFinance repayment loans programs, we will look to pilot this program with a group of 50 women (clients) in one district. If successful, this program will be expanded into four districts as stage 1 of the program. Our thanks to The Jamoca Foundation for underwriting this program.

First quarter 2016 has seen 1,164 girls intercepted at Captivating funded border stations.

This work requires many hands-on experts. While Captivating largely focuses on raising funds to make these programs happen, there would be nothing to support if not for the daily efforts of our two Nepal based partners, 3 Angels Nepal (3AN) and Tiny Hands. We are also indebted to the expertise and history of our Australian based partners in this work – Asian Aid regarding our 3AN activities, and International Children’s Care for their support of our Tiny Hands programs.

OUR PROGRAM PARTNERS 3 Angels Nepal, Tiny Hands, Asian Aid, International Children’s Care

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NEPAL 2016 THE YEAR SO FAR

ANNA’S STORY - NEPAL Anna* lived in one of the remotest villages in Nepal. Her family was economically so poor that they could not even afford daily living necessities. Her father died when Anna was 3 years of age. Soon after, her mother remarried. When Anna turned 9 years old she was taken to India and left in the house of a rich man. She cleaned the house and washed the clothes for four years.

The house owner used to come home drunk and raped Anna almost every day. She finally ran away and came back to Nepal where she met a man who promised to help her get a job. While crossing the border back into India, the 3Angels Nepal booth team stopped them and started asking questions. After a detailed investigation with the help of police, this man was found to be a trafficker. She was brought into the safety of a transit home. Anna’s mother said she did not care about her daughter anymore. With nowhere else to go, Anna was referred to a Safe Home where she is now learning skills to become an independent woman.

“I have no family, no one cares about me in this world. Why am I living?” were Anna’s thoughts when she was rescued. “I never thought I would be loved and cared for in my life but now I am here, I have a family and I am happy. Thank you for this,” says Anna, now 15 years of age, who is still suffering long-term physical and emotional affects from her trauma but now has hope. *Name changed for protection. The sad reality is that there are thousands of “Anna’s” facing this trauma today. We must not cease this work.

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CHINA 2015 THE YEAR THAT WAS

Captivating’s work in China is specifically focused on bringing opportunity to children who, for a variety of reasons, are missing out on their schooling. Chinese anti-poverty strategies have made INCREDIBLE progress over the past decade addressing rural based poverty and improving schooling attendance. The positive impact has been astounding. However, with such a vast population, there will almost always be gaps. It’s these gaps our Chinese registered partners are focused on. Finding a child who is slipping behind or missing school is one thing, but identifying the right and best solution is another. Our preferred method is helping families address their poverty first (so they can resolve their own schooling challenges for their children). When this is not possible, then education scholarships and other direct child support programs come into play. Here are the projects Captivating assisted our partners with throughout 2015:

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K E Y FACTS 163 SGVTS girls in catch-up education

3,500

remote villagers receive health training

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university students trained in project management

488

families increased their annual incomes through sustainable projects

1,300

women and men receive health examinations and supplies

Our partners: Shenzhen Charity Federation, Shamtse, LOVEQTRA 21

CHINA 2015 THE YEAR THAT WAS SOLAR PANELS to 59 families: In partnership

with Shamtse Charity, 59 families in Western China now have solar power in their homes enabling children to study into the night, and easing the burden for finding wood or drying yak dung to cook or boil water. Time saved will enable more time to be spent on earning extra income and money saved on alternative lighting solutions will help with schooling expenses. Our thanks to Apple employees and the Shenzhen Annual Charity Auction for supporting this program.

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HEALTHY VILLAGE MEDICAL Programs to 3,500 people: Thanks to Shamtse and with the

cooperation of township officials, 9 remotely located townships in Qinghai province eagerly received Xining based medical teams who presented advice on the importance of hygiene, infant child care, women’s health issues and dealing with infectious diseases.

With workshops spread over 3 days in each township, attendees received basic medical supplies and a free medical examination. Our thanks to the Shenzhen Annual Charity Auction and Macau Oilman’s Golf Tournament group for supporting this program.

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PCH CAPACITY BUILDING Program: 50 young

college students were equipped with project management skills to help them effectively implement and project manage good works programs. Run by Shamtse Charity, this program aims to help sow a seed into students who have the desire to help the poor in their own communities – giving them the tools that make for transparent and professional charity practice. Our thanks to PCH for funding this program.

COMPUTERS TO RURAL SCHOOLS: 120 computers were set-up

in 3 remote schools thanks to the support of the 2014 Nanshan Challenge with 40 teachers trained on how to use computers and implement a computer based learning program. These computers will benefit in excess of 1,000 students and increase motivation in learning.

PIGS FOR POVERTY Program: 50 families received

a pigsty, quality breeding sow, and expert training on how to run their own home based pig business. These families will be now able to generate additional income to keep their kids in school for longer.

CLEAN WATER PROJECT: Rigmo Village,

Qinghai, became connected to a nearby water source bringing clean running water to their back doors (instead of having to walk several kms to fetch water). Our thanks to Husky Energy who made this program possible. 36 families benefited from this solution.

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CHINA 2015 THE YEAR THAT WAS

THE SENG GIRLS VOCATIONAL TRAINING SCHOOL (SGVTS) AND HOME: Captivating International started the

partnership in 2009 with LOVEQTRA – a Qinghai registered organization who established the Seng Girls Vocational Training School (SGVTS). During the past seven years 236 girls have benefited from this program.

This project helped 163 girls in 2015 (104 living at the School in Qinghai, and the balance in advanced learning opportunities throughout China). Girls qualify for this government approved program if they are not in school either through poverty or prejudice. Captivating funded 60% of the schools operating expenses for the year; and 100% of the new cooking & tailoring vocational training programs run at the school. Additionally, we supported girls to attend medical, painting, language, and computer vocational schools across China at approved institutions.

Our thanks to those involved in our SGVTS Child Sponsorship program, the Shenzhen Annual Charity Auction, and project donors with special thanks to Paula Whalen and The Fung (1906) Foundation.

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HEIFER CHINA & KAILI Program:

Captivating Kaili Village Development Project (partnered with Heifer China) helps the most poverty stricken ethnic communities in Southeastern Miao and Dong Ethnic Autonomous Prefecture of Guizhou Province to work towards a poverty free future, together with the Animal Husbandry department of Kaili County.

To date, over US$200k has been allocated by Captivating to this program. This has included the supply of over 900 pigs, 190 cows, 5,000 kgs of feed & seed, and hundreds of hours of specialised training by agricultural and animal husbandry expert.

This 5 year program enters its final stage having helped over 300 families improve their annual incomes with animal husbandry and agricultural solutions. This program, fully funded by Captivating, will conclude June 2016. Our thanks to our dedicated project donors, Heifer China and government departments involved in this program.

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CHINA 2015 THE YEAR THAT WAS

“I LOVE YOU AND WANT TO SPEND TIME WITH YOU” Since the beginning of 2015, House of Joy has been receiving sponsorship from Captivating. Located in Guizhou, House of Joy provides love and support to more than 100 handicapped young people from a local Welfare Centre each month. Every Tuesday, Wednesday, and Thursday, a group of their friends, between 8 and 50+ years old visit House of Joy, where each one is blessed with baths, skin and hair care and clean clothes. Then activities, games, toys and outings fill up the rest of the day.

We believe that every person has potential and that the development of that potential gives joy and fulfillment. All of HOJ friends struggle with one or more handicaps; some are profoundly handicapped. Often, the greatest joy for someone, is to sit and have someone look into their eyes, saying, “I love you and want to spend time with you.”

HOJ do wonderful work, and we are very touched to be doing our part to support them, and will continue to do so during 2016.

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“CURRENTLY, 12 GIRLS CALL EDEN HOME.” PROJECT EDEN, situated in Guangdong Province, China, specifically

functions as a place of safety and a “home away from home”. Eden’s goal and purpose is for children under their care to know they are loved, precious, and to try to prepare them to be kind and responsible adults.

Most girls who come to Eden have completed schooling up to Grade 6, but now face uncertainty as to what happens next. As 15+ year olds, they are already 5 years behind in their schooling, so the next steps are challenging.

On first coming to Eden, girls usually require intensive language and math tutoring in order to meet the local Vocational School entrance requirements, but after that, and assuming they qualify, they commence a 3 year journey. Most weekends and holiday breaks are spent back at Project Eden to re-energize, get catch-up tutoring support and learn important life skills from the team. The final step is graduation from the Vocational School and into their first paying job. Eden is there to assist and support along the way. Dale & Cyndi Gummin run an amazing home helping these girls, supported by local community groups including Treasures of Hope, neighboring businesses, and women’s groups.

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GREENHOUSES & GREEN PACKAGING ASIA (GPA): Following the

success of last year’s pilot program, GPA has once again gotten behind helping not just one, but three new villages with this Greenhouse solution.

Multiple greenhouses are in the process of being constructed under the direction of Shamtse Charity.

84 families will benefit by consuming more green leafy vegetables, and saving money enough to keep their kids in school. Our thanks to the team at Green Packaging ASIA and the amazing team at SHAMTSE charity.

PCH CAPACITY BUILDING and

expansion projects: For the third year running, PCH continues their support for this project management skills program. Coordinated and run in conjunction with SHAMTSE charity, 50 students will go through the 6 month program in addition to their current university coursework. Each student will then submit a small budget project as part of their assessment. Those projects aimed at poverty alleviation that meet SHAMTSE criteria will be put up for funding support and eventual implementation by the students. At time of writing, 12 of these smaller projects have been funded largely thanks to support from several Shenzhen & Dongguan school communities.

MY FIRST JOB PROGRAM: A new

SHAMTSE charity initiative this year, this program aims to help girls who have missed too much schooling (who are largely illiterate) progress safely and positively into their first paying job and genuine independence. This particular pilot program will see 10 girls become assistant chefs following 6 months of intensive training, followed by job placement with approved employers, and 2 years of tracking, mentoring and support. This program will change their lives and open many doors.

VOCATIONAL SCHOOL SCHOLARSHIP: If you’re a

girl from a poor rural family, the odds are that you will never finish high-school. Seeing the reaction of a girl being told that she can complete high-school is priceless. And, thanks to some incredible initiatives being implemented by the Chinese Government to address the problem of rural high-school attendance, an opportunity exists for Captivating and our partners to economically see more girls into vocational school and into their first job. This new initiative for 2016, will see 70 girls receive the opportunity to continue their education for 3 years, in a field that will bring them a good paying job and a brighter future.

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CHINA 2016 THE YEAR SO FAR

“My name is Zhen Ga and I come from a nomadic family in Qinghai Province. I am 18 years old now and I was forced to drop school when I was in year 9 because my parents got divorced and I had to go back home to help my father.”

“I still remember the day I left my school and the picture of my teachers and classmates seeing me off. I was very reluctant to leave school and my teachers also encouraged me to stay at school as they believe that I would make a good life through further education, but I had to leave as my father ordered. I had hatred toward my father for the first few months after I dropped school but I learnt to do all the house chores that are to be taken care of by women in the family while my father was herding and I gradually started understanding his difficulties and helplessness.”

“My stepmother is always saying that I am the golden age of marrying and seems my father also thinks so, but I really do not want to get married and I hope I can get back to school. I know I am a few years late for school compared to my other classmates and I also understand the impossibility of entering a college or a university, but I know I still could get into a vocational school if I was financially supported and even this chance will be gone after another two years since the vocational school also have a limitation on the students’ age. I would be very appreciative if I can get support to enter a vocational school.”

Zhen Ga’s story is quite typical. The great news is that she has been sponsored by a US family (thanks Leigh & Donna) to attend further education at an approved Vocational School. This opportunity will give Zhen Ga a future that she would otherwise not have. There are many other girls who YOU can give this same opportunity to. Please contact andrewc@captivating.org to be connected with a girl who is waiting for YOU to say YES.

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KENYA 2015 THE YEAR THAT WAS

Captivating’s work in Kenya continued with our focus on Micro-Finance small business solutions in partnership with local registered Micro-Finance Institution, the African Community Development Foundation (ACDF). A staggering 10% of Kenyan children sadly become AIDS orphans. Thankfully, lots of Kenyan families are willing to foster a child but the problem is that usually these same families are struggling to feed their own family, let alone an extra mouth to feed and school. The Captivating/ACDF micro-loans program is about helping these foster families increase their financial situation to such an extent that they are able to sustainably support an orphan in their home.

2015 was a very progressive year for this program after a challenging start. The initial round of loan applicants did not quite understand the “this is not a free gift” idea. But, thanks to the dedicated work of ACDF and our locally based Program Manager, things are looking on track. So much so, that the decision was made to expand the program in September 2015 enabling support for up to 200 families in the future.

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K E Y FACTS 151

families in the loans program

117

orphans being supported

APRIL 2015

Program becomes self-sustainable (loan interest covering monthly expenses)

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New families are being added to the loans program every month. At the time of writing, 177 families have repayable loans and 138 orphans are being supported. Current loan capital makes it possible for up to 200 families to be in the program.

2016 will see us focus more on program outcomes with an attempt to see how long it takes before families are genuinely independent and no longer requiring a loan from the program. As a family fully repays one loan, they become eligible to take out another (slightly larger) loan. They continue this process until their savings program enables them to proceed with their businesses without further loans.

SALOME’SSTORY Life for little Andrew and his big sister Stella has been filled with sadness, sickness and loss. They were blessed however, to have a grandmother (Salome) to take care of them when their mother got sick and died. Andrew is a sick little boy and Salome tries to provide the medicines he needs but she struggles to provide the basic needs.

Education is something that she can’t afford for her grandchildren. She sells vegetables at the market but it isn’t enough to cover the family expenses.

In 2015, Salome came to ACDF for help. They introduced the Captivating/ACDF Loan’s Program and were able to supply Salome with a microloan. She has since then leased one acre of land for farming, and has been busy planting bananas and vegetables for commercial sale. Harvesting season for bananas was successful and Salome used the proceeds of her harvests to pay the loan back and used the remaining profits to sustain her family.

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KENYA 2016 THE YEAR SO FAR

GRACE MORAA’S STORY “My name is Grace Moraa. My parents died from AIDS and I became an orphan. But my life has many bright lights. I am twelve years old and in class seven at Suneka primary school. I now live with my aunty. Every morning I have to do some household chores before running to school. I also help my Aunty Mokeira with fetching water daily as she leaves very early for the market and comes home late. My aunty got financial help from the Captivating/ACDF micro-loans program and was able to start a chicken rearing business this year. This helps in our upkeep. My aunty is very hardworking and she is planning to construct a bigger place for the chickens soon as the business continues to grow. My aunty gets three crates of eggs every week for sale and also sells some chickens for extra money. She bought me an extra pair of shoes and a uniform for school. She is also now able to buy hygiene products for me to use.

Before, I would not attend school for a whole week every month fearing others will laugh at me!

I am really grateful to Captivating because I live with hope. Because of you I have not been sent home for school fees arrears this year. Thank you Captivating for your support. You are God send.”

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HOW CAN NEPAL

Intercept a girl before she is trafficked - 5,000 women will be intercepted in 2016 thanks to border monitoring stations operated by our Nepal based partners and funded by Captivating. Capacity exists to expand this work if total donations exceed our current border station financial commitments.

US$100 funds the interception of a girl at a border station US$8,500 - $15,000 funds an entire border station for a year

US$6.5K US$3.5K Community Radio – Human

Trafficking Awareness – Extend 3ACR radio station to further coverage for a year. 3ACR is making a Nepal-wide impact thanks to relay costs taking it to 72 of Nepal’s 84 regions.

Emergency Help Desk Operation - Fund Emergency hot-line/help-desk support to victims, girls seeking rescue, information and legal advice for a year.

US$8K

Vocational Development - Help bring solutions for rescued girls for a year. Programs are established to see rescued victims into selfsufficient situations.

US$150 34

KENYA

Captivating Foster Family Loans Program - Stabilize a foster family with a small business loan for US$150.

Within 6 to 9 months, this loan is repaid and then lent out again. You will be responsible for an orphan child being part of a more stable family – and your gift will keep on giving. The more supporters this program has, the greater the year-on-year impact.

N I HELP? US$13k

CHINA

Solar Panel Project - Bring lighting and water boiling capacity to 90 remote, mountainous families in a village (the whole village) including 126 children – many of whom study at night with candles/ kerosene/yak butter lamps. Cooking is done by sticks and dried yak dung due to a shortage of fuel (with hours spent gathering the fuel every few days). These solar panels will provide enough energy to cover cooking, lighting, and boiling water. It will save hours of time a week foraging for wood to focus on producing income, or helping support the children.

US$80 mth for 3 years Vocational School Scholarship Program – less than 37% of rural based students go past Grade 9.

This means they will likely work the farm and continue in poverty. Help support 70 of these girls through Vocational School and into their first job.

US$1,850

Women’s health education project for Que Ma Village, Qinghai - 270 women in this impoverished village will receive basic medical and hygiene training on important health topics such as basic hygiene, women’s issues, caring for infants, STD’s, AIDs. Train the mother, and the rest of the family benefits. The training will be provided by medical professionals, with basic treatment and medical examinations also being supplied.

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CAPTIVATING INTERNATIONAL FOUNDATION LIMITED INCOME AND EXPENDITURE STATEMENT (Year ended 31 December 2015) 2015 HK$

2014 HK$

REVENUE Donations and Gifts Other income

6,279,803 825

7,165,263 832

Total Revenue

6,280,628

7,166,095

4,395,103 753,813

3,936,417 559,408

794,558 730,193

621,511 537,431

EXPENDITURE International Aid and Development Programs Funds to International programs Program Support Costs Fundraising costs Public Accountability and Administration Total Expenditure

6,673,667

5,654,767

SURPLUS/(DEFICIT) FOR THE YEAR

( 393,039)

1,511,328

2015 HK$

2014 HK$

2,196,779 679,931 785,245 2,444

3,465,314 439,357 2,444

3,664,399

3,907,115

31,948

50,336

3,696,347

3,957,451

CURRENT LIABILITIES Trade payable Accruals and Other payable Due to a related company

4,874 260,680 138,537

118,093 154,063

TOTAL LIABILITIES

404,091

272,156

NET ASSETS

3,292,256

3,685,295

RESERVES Funds available for future use

3,292,256

3,685,295

CAPTIVATING INTERNATIONAL FOUNDATION LIMITED BALANCE SHEET (31 December 2015)

CURRENT ASSETS Cash and cash equivalents Restricted Cash Trade receivables Other receivables

NON-CURRENT ASSETS Property, plant and equipment TOTAL ASSETS

These statements form part of the audited financial statements

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CAPTIVATINGEVENTS

Saturday, October 17 marked Captivating Internationals 7th Annual Charity Gala & Auction once again at the glamorous Futian Shangri-la, Attended by a record breaking (and maximum capacity) 597 guests from Shenzhen and Hong Kong, the evening was awarded the “best event ever� label by many long-term event attendees. Our thanks to an amazing auction committee and team for so many hours of dedicated work. The results were worth it, raising HK$1.6m (US$215k) to support the work in Nepal and Western China.

NEXT EVENT - SAVE THE DATE Date: October 22nd, 2016 Location: Futian Shangri-La, Shenzhen, China This years event is organized in cooperation with the Shenzhen Charity Federation in support of the Captivating Charity Fund. For more details please visit: www.captivatinggala.com If you are a company who would like to support this event please contact lynn@captivating.org or dana@captivating.org.

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For the 7th year the Annual Midnight Charity Race attracted over 100 racers who suited up and raced through the Shenzhen race circuit from 23:00 on November 14th, 2015. Once again, Greg Schultheis and a team of wonderful volunteers organized and hosted a fantastic event with a 5km circuit and a 10km circuit for those who enjoy a challenge. This was the most successful night so far with HK$258k (US$33k) raised. 100% of funds raised goes to support the work of Captivating, with a specific emphasis on helping administration support and children in Western China.

Please contract info@captivating.org for information about the next event.

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Running, biking and hiking was first on the agenda Saturday, 5th December, 2015. 124 participants registered for The Nanshan Challenge. This annual event is held in Shekou, China. Thanks to sponsorship from Axess Accounting (Naming Sponsor), Thor and others, this event raises money to help Captivating International continue our work to help children in need throughout China. A huge thank you to Claire Taylor, Vivian Yuan, the Captivating Shenzhen office, and over 125 volunteers who made this event possible.

Over HK$106k (US$14k) was raised. Check out http://nanshanchallenge.weebly.com and we look forward to another great event again in December 2016.If you are a company who would like to support this event, please contact claire@snapdragoninteriors.co.uk.

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This event keeps getting bigger each year.

Financially, in excess of HK$344k (US$44k) was raised to support Captivating’s work in China. This event continues to show us that people have a real desire to get involved and make a difference in the world. On Saturday April 23rd, 2016, Claire Taylor from Snap Dragon Interiors and Vivian Yuan from Captivating organised the Mini Olympics events for the 5th year.

Held in the private estate of Jing Shan villas and supported by local schools and businesses. 187 kids (5 – 11 year olds) competed in multiple Olympic-style event with more than 400 parents, 150 volunteers, local schools, and multiple companies supporting them. A great day of fun and excitement was had by all.

If you are a company who would like to support this event in April 2017, please contact claire@snapdragoninteriors.co.uk or www.captivatingkidz.org

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About Captivating Captivating International is a registered tax exempt charity of Hong Kong (No. 91/9723).

In Australia, we operate in partnership with two Australian registered charity agencies - International Children’s Care (ABN 57146287274.), and Asian Aid Organisation Ltd. (ABN 98002286419).

In the US we operate in partnership with Friends of Hong Kong Charities Inc (FOHKC), a 501(c) (3) registered charity (ID No: 30-0136665), and are approved as a certified international charity by US based Global Giving.

In Nepal, we operate in partnership with 3 Angels Nepal, and Tiny Hands (registered Charities of Nepal).

In China, we operate in partnership with the Shenzhen Charity Federation, Shamtse Charity, and LOVEQTRA (all registered Chinese Charities) We can provide tax deductible receipts if you donate from: AUSTRALIA, HONG KONG & UNITED STATES We can accept donations from: ANYWHERE

To donate You can donate online by going to www.captivating.org, selecting the DONATE button and following the prompts.

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CONTACT US E info@captivating.org W www.captivating.org BLOG: www.captivating.org/blog Facebook: Captivating International Twitter: CaptivatingIntl YOUTUBE: CAPTIVATING STORIES captivating2008

WECHAT

This report is also available online.

Visit captivating.org to download a copy.

For more printed copies of the report, please email us.