Simply captivating update 2017

SIMPLY Captivating JUNE 2017 EDITION

2016 ANNUAL REPORT | 2017 THE STORY SO FAR

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Welcome to our June 2017 update - a reflection on what was achieved in 2016, and a glance at how 2017 is taking shape. Amazing stories, incredible supporters and of course, beautiful pictures of smiling children and families who, today, live with genuine “hope of a better tomorrow”. All of this possible thanks to the generosity of our supporters, and hard work from amazing partners and staff. Welcome to our Simply Captivating - June 2017 edition.

Each year we like to embrace a theme, and this year is all about wings, bravery, and flying. As our mission statement has always said, we believe every child of the world has the capacity to achieve great things - the ability to soar, to fly. But for too many children their wings are incapable, in their current state, to get them airborne. Some wings are damaged, broken. Others have never been given the chance to stretch, exercise and strengthen. Some wings have been clipped making it almost impossible to even dream of flight - as birds locked in a cage.

Captivating exists to bring strength and purpose to these wings. But, it all starts with a child who is first brave enough to risk making a change. Sometimes that decision is easy (like a girl having a dream chance to get back into school), while at other time it requires true strength of character (a girl rescued from trafficking being willing to speak up against her trafficker, or a girl leaving what she knows to take on a new opportunity). But, it’s then that the magic happens. With BRAVE (and mended) wings, she will fly.

That’s why we exist, why our supporters embrace, and why desperate girls and their families spread the word. EVERY TWO HOURS a child somewhere in China, Nepal or Kenya starts charting their airborne adventure. This is not aid - it’s permanent transformation. And, it’s simply Captivating.

As founders of Captivating, we reserve our most precious words of thanks to our hardworking and dedicated Captivating team. Tracy, Vivian, Francine, Emily, Daniella, Lynn, Dana, Carrie & Everlyne, without you, there is no Captivating.

Thanks for your commitment, support, diligence and undying passion for the children we love and serve.

Andrew & Julie Colquhoun Founders - Captivating International

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CONTENTS 3

Message from the CEO

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Message from the Chairman of the Board

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Captivating at a Glance

10 2016 Highlights 12 Our Year in Review 14 Educating Girls 20 Ending Poverty 30 Stop Human Trafficking 34 Child Sponsorship 36 2017 So Far 39 2016 Auditors Report 41 Abridged Financial Statement 42 Captivating Events 47 About us

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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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A MESSAGE FROM DEAN BEVERIDGE Chairman of the Board

Dear Friends and Supporters, As we reflect on the work of Captivating in 2016 we need to be mindful of the complex world that we live in. We have a world where the divide between the wealthy and poor countries is expanding, leaving millions in extreme poverty. Add to this the ever-real threat of global terrorism and unrest and we find ourselves in an environment where the cry of the poor is all too often ignored. It is tempting to build a wall around our comfortable lives and never peer out at those who share our world. Captivating is committed to tearing down walls and giving those trapped in extreme poverty a voice so that more disadvantaged and impoverished children and families can soar towards a better tomorrow.

In 2016 we continued to receive incredible support from our donors. We express our deep gratitude for those who continue to sacrifice and dig deep to enable Captivating and its partners to reach out to children and families in extreme poverty. Without you, our work is not possible. To you we say thank you. You are the heroes who refuse to ignore the injustices in this world.

This year the work of Captivating continued to grow and expand in the countries where we focus - China, Nepal and Kenya.

In China, our focus has continued to be largely in the remote, Western regions. China is an amazing country that leads the world in terms of its own poverty reduction strategies.

What has been achieved over the past 3 decades is nothing short of phenomenal. But, China is also a fifth of the world’s population, and gaps exist. Captivating, through our registered grassroots partners and thanks also to our partnership with the Shenzhen Charity Federation, continues to work in these gaps. We are thrilled to know that 1,000 children, and many of their families, are today living sustainably better lives thanks to what we’ve been able to do this past year. 2017 is looking to be even more impactful with a continued push towards development activities that build individual and family capacity to progress themselves.

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In Nepal we continue to take a stand to eradicate human trafficking. During 2016 on average every THREE HOURS a girl was intercepted and safely returned home by one of our 8 monitoring stations. In addition, many more thousands were educated about the tactics of the human traffickers and risks of being trafficked. These community awareness initiatives are seeing villages become safe zones for children to grow and flourish.

Recognizing that the root cause of human trafficking is poverty, Captivating has opened a microfinance branch in Nepal. Trained loan officers support women in establishing small businesses to provide for their families.

With increased family earnings, comes the reduced risk of children being trafficked as the fake offers of work abroad do not carry the same temptation.

In Kenya 2016 saw our microfinance program reach sustainability. This is an exciting milestone enabling Captivating to expand with confidence enabling recipient families to take in and care for orphaned children in a sustainable way.

We now look forward to 2017 and beyond with confidence and excitement, preparing to impact more children and families to see them reach for a better tomorrow.

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BOARD DIRECTORS

Dean Beveridge (Australia)

Scott and Judene Irvine (China)

Greg Schultheis (China)

Finally as a Board we would like to express our gratitude and appreciation for the tireless work and commitment of our founders Andrew and Julie Colquhoun. Their work inspires us all and continues to impact children and families throughout the Captivating world.

Regards

Glenn Roberts (Australia)

Dean Beveridge (BSc LLB) Chairman Lynn Velez (USA)

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CAPTIVATING at

a Glance

TOTAL DONATIONS: 2016 was a stable year of fund-raising delivering slightly higher total donations than 2015. Captivating is well supported by a loyal support base, but expansion beyond this base is imperative. Our efforts moving forward will continue to grow our existing support base, but also start focusing on corporate grants as well as new Captivating events which continue to gain popularity.

TOTAL PROJECT SUPPORT: is up 10% on 2015 due to an expanded project implementation program with our partners. Along with this, our direct project support costs (where Captivating is directly involved in project planning and implementation) have reduced by 12% compared to 2015. This is due in large part to Captivating’s hands-on involvement in program design and implementation becoming less as projects and partnerships mature. We believe this downward trend will continue thanks to good partners and strong relationships, as well as expanding projects within these same partners giving us more economies of scale.

TOTAL ADMINISTRATION, Fundraising & Marketing: This year, 18% of total expenses were Captivating Administration, Fundraising and Marketing costs (the net effect to project supporters was between 7 and 15% - read next section). Captivating follows the international charity standard of separately reporting costs not directly related to making projects happen. This means expenses such as Captivating office rent, staff salaries, governance and compliance costs, anything accounting related, and any costs to do with presentations, fundraising, reporting, or donor relations. The costs of preparing this update is an example of what fits into this category, as do all blog stories and communications, child sponsor updates etc. We’ve made good progress reducing these total costs as a percentage of total expenses this past year, but we still believe more efficiencies can be made as we expand our project footprint in China, Nepal and Kenya.

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9% 9%

STATEMENT OF ACTIVITIES January to December, 2016 82% 2016

2015

TOTAL DONATIONS

HK$ 6,319,452

HK$ 6,280,628

82%

PROGRAM EXPENSES

5,511,003

5,148,916

77%

73%

Funds to Programs

4,885,601

4,395,103

66%

9%

Direct Project Support (incl project salaries)

625,402

753,813

11%

18%

CORPORATE SERVICES

1,205,355

1,524,751

23%

9%

Fund-raising

630,434

794,558

12%

9%

Administration

574,921

730,193

11%

6,716,358

6,673,667

TOTAL EXPENSES

DEDICATED ADMINISTRATION DONATIONS: Thanks to dedicated administration donations, where specific donors or fundraising events choose to directly fund administration, Captivating’s net administration, fundraising & marketing costs ranged from just 7% - 15% depending on the project. We are very excited by this outcome, and aim to see these numbers even further decrease in 2017.

Paula Whalen

PMS 376 C

PMS 415 C

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 2 0 1 6

HIGHLIGHTS 12,503 people

educated on Human Trafficking and prevention strategies

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

174 girls back in school

3,760 Nepali girls/women intercepted in the act of being trafficked

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912 families

in Kenya and China increased their family incomes through sustainable projects

5,000+ children directly and significantly benefiting from our work in 2016

228 Kenyan AIDS orphans now in a Foster Family

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2016 January

February

Healthy Village program impacts 3,500 people

216 families are in the Kenyan Foster Family Loans Program, supporting 228 orphans

Our commitment to House of Joy doubled for 2016, benefiting 100 special needs children each month

July

Planning work begins for the 1st PCH Capacity Building program for 25 students

August

30 families benefit from the Share-a-Sheep program (each receiving 5 sheep)

60 girls begin the Vocational School Scholarship Program

2 more monitoring stations are funded in Nepal

Planning commences for 2nd PCH Capacity Building Program for 25 students

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March

10 girls commence My First Job training as Apprentice Chefs 1,164 girls intercepted at Captivating Monitoring Stations (Jan-Mar)

September STOP the Traffick 5k Global run/walk against human trafficking 582 girls intercepted at Captivating Monitoring Stations (July – Sept)

in Review April

May

Kidz with Heart Mini Olympic Event

8 schools throughout Western China receive a library

Construction work commences on greenhouse solutions in Qinghai

Discussions start about forming a Micro-Finance program in Nepal to reach 1,000 at risk women

October 84 families receive greenhouses thanks to the GPA Greenhouse program 8th Annual Charity Gala Auction

November

8th Annual Midnight Charity Race Kaili Village development program enters final stage (helping 450 families in total) 90 families receive solar panels

June SGVTS Cooking & Tailoring Programs continue for another year 10 girls graduate from the Seng Girls Vocational Training School

December Nepal Anti-human trafficking Radio Station reaches 22 million, 96% of Nepal 494 girls intercepted at Captivating Monitoring Stations (Oct – Dec)

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EDUCATING

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GIRLS Everyone is quick to acknowledge the importance and value of educating girls.

Years of preference towards boys as being the “producers” has left girls in many developing nations lagging well behind in terms of education and opportunity investment – a GAP that poses a real barrier to advancement. Captivating aims to stand in this GAP, forming a bridge leading to a better, safer and poverty-free future. We know that doing this does SO MUCH MORE than just helping a girl. It helps her family, her community, her world.

The education of girls sits behind much of the work we do in Nepal, China and Kenya. Although education is no guarantee to a poverty-free future, it is still one of the most solid investments that can be made. At Captivating, educating girls is more than simply offering a scholarship.

Because we accept new projects on a case-by-case basis, our solutions must remain flexible to ensure we achieve program success as well as good value.

K E Y FACTS 50

University Students trained in project management skills

68

Girls

in vocational school training

332

children in catch-up education

3,500

Women, children and men receive health examinations, supplies and education

977

Children now have access to a school library

251

Children attended 30 days of summer school, catchup education

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Girls in their first Assistant Chef job

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EDUCATING Girls in 2016

Libraries

Summer Schools

School Libraries – Quality school libraries

Vacation Summer Schools – Catch up

were established in 8 schools throughout

education was provided for 251 children

Western China. These amazing libraries

throughout Western China. These

have equipped 977 children with resources

children participated in 30 days of fun and

to expand their learning. Over 1,700

learning. Some of these students were

kindergarten and primary school books

behind in their grades and found the 30

and learning resources together with

days incredibly valuable particularly in

shelving, tables and chairs, school bags

Math and Chinese where students were

and pencils have brought a new desire and

struggling with comprehension.

passion for learning in these communities.

Thank you to Keith Tawse, AMBD Gala

Thank you to the Midnight Charity Race,

Dongguan and the British Chamber Golf

Nanshan Challenge, Tairan School, Darling

Day for making this possible.

Downs Christian College Australia, QSI Dongguan and Shen Wai International School for making this possible.

Capacity Building Program Now in its 4th year, the partnership of Shamtse Charity, Captivating International and PCH, brought a quality program to 50 young college students. This program equips students with skills for effective project management and communicates the desire to give back to their villages in a way that best suits the social needs of a particular community. Our thanks to PCH for 16

funding this program.

Home Away From Home for 8 Girls 8 girls from Project Eden are studying in the School of Electronics and Technology in Dongguan. These girls are busy majoring in electronic commerce, English, multimedia, culture and art. This is a three-year program which will see the girls graduate in 2018 and 2019. Eden is a “home away from home� safe and loving environment where the girls come back to on weekends and holidays. Girls who attend Eden grow in good character while being healthy both physically and mentally. The girls develop communication skills and many practical skills that will help them through the life ahead of them to serve their community.

Dale & Cyndi Gummin and Alex & Dorcas Zhang support these girls along with wonderful local community groups including Treasures of Hope, neighboring business and women’s groups.

My First Job Program In 2016, Captivating & Shamtse Charity piloted a new program, My First Job, with 10 young ladies who fell in love with cooking and graduated as Assistant Chefs. These girls have missed too much schooling and are largely illiterate. Today, 9 of these girls have secured paid employment using their new found skills in restaurants throughout Qinghai.

Thanks to our supportive family of sponsors, these girls have a future that has given them skills and independence. Our thanks to all supporters, with special mention to the Smith and Anderson families in the US.

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EDUCATING Girls in 2016 Healthy Village Program Over 3,500 women and children attended several days of health training. This included free medical examinations, medicines and critical health information – explaining the dangers of STDs, the best ways to care for babies and how to manage women’s health.

Our thanks to the 8th Shenzhen Charity Federation Captivating Annual Charity Auction for underwriting this program, as well as other support from groups such as Project 0/1, CAF America and Altria.

Seng Girls Vocational Training School (SGVTS) Captivating and LOVEQTRA have been partners since 2009. LOVEQTRA is a registered charity organization in Qinghai focused on running a school for disadvantaged girls from remote locations, and Captivating underwrites the annual running costs of the school. The SGVTS program goes from Grade 1 to 6, and currently has 96 girls attending. Teachers are passionate about giving these girls a quality education with skills that each girl will be able to use in their future, including practical skills such as cooking and tailoring. As soon as they complete Grade 6, Dockpo (the founder of the school) looks for the next best steps for each girl. This could be going into a vocational development program to learn a trade, or if they have academic potential, progressing into middle school. Currently, 55 girls are in advanced learning opportunities spread around China studying medicine, language, dance, painting and electronics & technology (supported by other organizations in addition to Captivating).

123 sponsors from all around the world form our special SGVTS Child Sponsorship Family, some of whom have been sponsoring girls for over 6 years now. Our special thanks to Paula Whalen, Li & Fung and SCIE for your incredible support of this school.

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Vocational School Scholarship Program Dreams came true for 60 remotely located girls in September 2016. They received the dream chance to get back to school. These girls are currently studying a plethora of vocational subjects including; Nursing, Veterinary Studies, Tibetan Medicine, Primary School Teaching, Tangka Painting, Engineering, Pre-School Teaching and Computer Studies. This new initiative gives each girl 3 years of specific vocational studies that also include Math, Chinese and English.

Thanks to our incredible family of sponsors, this government subsidized program is helping to address the problem of low rural high-school attendance – especially for girls.

During the past year, the number of young people who came to House of Joy has grown. There are now approximately 120 young people rotating into the three House of Joy respite days. On these days (Tuesday, Wednesday, and Thursday), spending quality and personal time with each of our young friends, making sure they are cared for in every possible way, continues to be our priority. Though we continue to encourage our friends to be active during their visiting day, often ‘being with’, personal attention, is what matters most. Especially on those three days, House of Joy rings with the laughter of the young people and the staff alike.

On Friday afternoons, our team splits into two groups. Half of the team spends time with our friends at the Welfare Home, the other half goes to the orphanage, where they cuddle and play with babies, toddlers and little children.

The other commitment for which we are grateful is that of Captivating. Their commitment has made it possible for the work to continue. Thank you for being part of House of Joy! 19

ENDING POV For most of us, trying to comprehend what poverty is like is impossible. We live with pantries full of food – we’ve never experienced prolonged hunger.

Clean water is always a few steps away and never in short supply. How far we go in education is mostly a question of intent and motivation – not tough choices on who misses out. Yet, these basic life necessities we take for granted represent major hurdles for 900 million people in the world. 98% of them are in developing countries, and two-thirds of this group live in Asia.

MOST of them have as much individual capability as you and I. Unfortunately for them, they were born into a life that creates few options. There’s them……and then there’s us. So, what now?

TOGETHER WE CAN IMPACT THEIR WORLD and help them END THEIR POVERTY. At Captivating, our assistance does not usually come in the form of a ‘free gift’. Although welfare has its place, it is not generally our focus when it comes to our “end poverty” strategies. We look at everything on a case-by-case basis believing in the strong notion that impoverished families already know what is holding them back. Sometimes it’s starting capital, or specific knowledge, or basic infrastructure issues such as access to running water. Remove these barriers, and hard work does the rest. We use the following imagery: We all want our children to climb the ladder of success throughout their lives. Our job as parents is to give them the best starting point we can. However, to a parent trapped in poverty, they cannot provide this start for their children. In fact, they do not even see the ladder. So, to impact their children (our ultimate focus) we place our attention on these parents – position them as best we can on the ladder. It might be the bottom rung, but at least they’re in the game and, through hard work, can start to progress. These parents will then, with full dignity and respect, see their children progress through their own efforts.

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VERTY

K E Y FACTS 962

Families on their way to a poverty-free future

228

Orphans in Kenya now off the street and in loving foster families

266

Families in a loans program

828

Children whose education future is now secured

Our partners: Shenzhen Charity Federation, Shamtse, LOVEQTRA, ACDF & 3 Angels Nepal 21

ENDING Poverty in 2016 GPA Greenhouses - China 84 families and over 120 children are on their way to a poverty-free future thanks to greenhouses being constructed in their village. Already we are seeing amazing transformation and renewed confidence as crops of quality, organic produce is harvested and sold at local markets and schools. Every family is making a good profit – enough to ensure their children or grandchildren can remain confidently in school. Our thanks to GPA Global for fully funding this project.

Solar Panels - China 90 families now have solar panels in their lives and this is making a real difference. Used for lighting, cooking and heating their beds through very cold winters, these families are both safer, warmer, and saving money by not having to purchase alternative fuel or lighting needs. The environment is also noticing a difference as less firewood is used to cook with and keep warm. Thank you to the Huff family and Innovate International for helping to fund this project. Children are today studying longer at night without the suffocating fumes from kerosene or butter lamps.

Share a Sheep - China

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30 families were given support, advice as well as 150 sheep (5 sheep per family) to improve their family income and address their poverty.

These families were also educated on how to successfully raise and breed sheep and the best way to make money from sheep farming.

Project “Share a Sheep� will see poverty progressively addressed over the next 3 years, and will secure longer-term education for over 40 children. Our thanks to the 8th Midnight Charity Race, 2016 for helping to fund this project.

Foster Family Loans Program - Kenya The Captivating/ADCF Foster Family Loans Program is continuing to go from strength to strength. 2016 has seen 42 families successfully leave the program having achieved their goal of becoming self-supportive. Combined, these 42 families are fostering 55 orphans and they are now able to support the additional living costs thanks to this program. Currently, 216 families are part of this loans program with 228 orphans being fostered by them. We are so excited to see that the Foster Family Loans Program is equipping more and more families, enabling them to do what’s on their heart and foster an orphan child from their community. Our thanks to ACDF (our local partner), and Everlyne (Captivating Program Manager) for making this possible. Also, our thanks to key funding partners – The Davies and Irvines.

Kaili Village Development Project - China The original objective of the Kaili Village Development program was to have 450 families moving sustainably towards a poverty free future by December 2017.

This project, implemented by Heifer China, is now in its final phase. 300 families have completed the program, and final funds have been allocated to the last group of families. Over the next 3 years, the final group of 150 families (all based in Yunnan Province) will complete the program – and on their way to a poverty-free future. This has been a 5 year program to date, and we are thrilled to see it reaching it’s objectives as we enter this final phase.

Our continued thanks to those who have supported this program from the very beginning.

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ENDING Poverty in 2016 “My Business – My Freedom” – Micro-Finance comes to Nepal After months of planning, our dream of bringing a Micro-Finance solution to address the root cause of Human Trafficking in Nepal – poverty – has started. Thanks to amazing work undertaken by one of our Nepal based partner – 3 Angels Nepal, and thanks also to seed funding from the Jamoca Foundation, we are all set to implement Phase 1 of this new program. A community based micro-finance organization has been registered, training completed of key staff (thank you International Children’s Care Australia, and your Philippines team). Our first pilot program, rolling out in 2017, will see up to 300 women receive training and a small business loan to start generating their own income. What makes this program special is that these women will be all assessed as being “at-risk” of being trafficked if their income situation is not improved. Over the next 4 years, this program will then expand to cover over 1,000 women. Our continued thanks our funding partners (Jamoca Foundation, Whalen Family Foundation, Beveridge Family).

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“Sometimes living in a foreign country can feel limiting. If we aren’t careful, our lives can be driven by fear as we experience language barriers, cultural differences and unfamiliar things.

I have found that service is a universal language of love. Finding an organization or a purpose that gives me the opportunity to utilize my skills and talents while lifting others in the process is the perfect package for me. Captivating provides meaning, purpose, accountability and tools for success in their outreach. There are faces connected to my service and this speaks to me. I have 3 kids and enjoy my full life here in Shenzhen with my husband. It’s a gift to work with so many people that have a larger vision in mind. It just takes a choice to get involved. My choice to do so has resulted in an exponential return on investment.”

Ashley – Mother and Volunteer

“I love to be with my friends, I love to inspire people to do something bigger than themselves, I strongly believe in Captivating’s effective mission to rescue girls from being trafficked and I like to run...slowly. For me to be involved in the 2016 STOP the Traffick 5k meant that I was able to be part of my community while contributing to the fight against human trafficking.

It is one thing to get together with friends to have some fun and exercise, it is a totally different thing to be on a mission together. Before the run, the 10 of us took a moment to remember the girls we were running for, and then we took off! (Some of us slower than others.) Encouraging each other along the way, we were honored to be among the many people around the globe also running for the sake of freedom. Thank you Captivating for letting us run this race with you.“ Heidi - Shenzhen, China

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STOP HUMAN T

K E Y 3,760 FACTS

women intercepted at monitoring stations and returned home

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12,503 people directly involved in human trafficking education programs

TRAFFICKING

“

“When I met Captivating and saw their approach to helping less fortunate children, I was blown away. When I became a father of a little girl, my attention was drawn to Captivating’s successful efforts to stop the unimaginable act of stealing innocent young girls and selling them into a life that is cruel beyond comprehension.

My children are very fortunate not to have been born in an environment where this happens. My wife and I are fortunate to be in a position to make a difference by supporting Captivating. I feel it is my responsibility as a father and a human being to help make a difference. Regardless of ones means, any support directed to Captivating directly impacts the lives of children. These children are targeted by monsters (both male and female) who care more about money than humanity. Make a difference and support Captivating.“ Greg – Company CEO

96%

of Nepal with access to anti-human trafficking radio programs

21,000,000 50,000 potential radio audience

women interviewed at Captivating funded monitoring stations

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STOP Human Trafficking in 2016

At Captivating, we believe the issue of human trafficking must be addressed. We can’t stand by and get swallowed up by the size of the problem. Through two wonderful

partners, 3 Angels Nepal and Tiny Hands International, we are putting our full efforts behind a holistic strategy to bring this problem to an end for women and girls.

Education and Awareness

This year, 50,000 women and girls will come into direct contact with our anti-trafficking advocates and staff. They will be trained on the warning signs, latest tricks being used by traffickers and who to call for help and support.

Interception and Rescue EVERY THREE HOURS a woman is interrepted at a monitoring station and returned home.

Women are stopped, questioned, and counselled at Captivating funded monitoring stations located in trafficking hot-spots. High-risk cases are refused entry into India and women are returned home to their families.

Rescues are where enslaved girls seeking help are literally pulled from a brothel or sex massage parlor and the owner prosecuted.

Rehabilitation

Rescued victims need counseling and emotional support to recover from such a traumatic experience. The ultimate goal is to reintegrate victims back into their community. This can mean vocational skill program support and help to get a safe job.

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My Business – My Freedom PREVENTION is a key part of Captivating’s program. In partnership with 3 Angels Nepal (3AN), a new program called My Business-My Freedom was developed with the aim of helping vulnerable women in Nepal.

My Business-My Freedom will create increased sustainable income generation for: (1) Women assessed as most at risk of becoming victims of trafficking. They will be living in extreme poverty, with limited eligibility to access government support; and (2) Women who are rescued survivors of human trafficking needing help to sustainably support themselves.

Unless these women have genuine opportunities for income generation, they will easily slip back into high-risk situations (prostitution, or the prospect of being trafficked).

Our thanks to Jamoca Foundation, Whalen Family Foundation and the Beveridge Family for funding this exciting new initiative.

Radio Station Broadcasting Spreading the word about the dangers of human trafficking and bringing awareness about the methods traffickers use are just some of the topics broadcast throughout Nepal by 3ACR Anti-Human Trafficking Radio Station of which Captivating is the majority funder. 3ACR broadcasts for 17 hours every day covering 72 districts out of 75 in Nepal and is linked with 42 relay stations and is estimated to have a listening audience of over 21 million Nepalese people.

We are grateful to the Shelton family and the Velez family for funding this incredible human trafficking prevention strategy.

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STOP Human Trafficking in 2016 Intercepting Girls At Monitoring Stations Intercepting girls before they become victims of human trafficking works. It is cost effective (US$100 is the average cost to intercept a girl) and potentially saves a girl from a terrible fate. The simple monitoring station is the last line of defense before a girl’s worst nightmare starts. This work is so important. Trained staff with the approval to stop any suspicious looking cases will interview girls and their escorts to clarify legitimacy for traveling. Following risk-based questionnaires, suspicious cases will be investigated further, which may or may not lead to approval to proceed across the border.

Captivating fully funded 8 monitoring stations in Nepal in 2016. During the year, 3,760 girls were intercepted in their communities or near the Nepal / India border and in the opinion of monitoring station staff, likely spared from the horror of being trafficked.

Thank you to everyone who supported these stations in 2016, with special thanks to: The Jamoca Foundation, Lightstream, Dean & Chris Beveridge, Velez Family, Whalen Family Foundation, Johnson Family, Penman Family, Greg Schultheis and Nick & Sue.

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Community Education and Mobilization Captivating-supported community mobilization programs were implemented across 4 key hot-spot trafficking areas. These programs are multi-disciplinary in nature in order to have a widespread impact.

A dedicated team of anti-trafficking experts run programs in schools, mother’s groups and community neighborhood watch groups. Bulletin boards and mailouts are other avenues that are impacting thousands of Nepalese. Another area of focus is petitioning government groups and advocating for change in country policies while continuing to prosecute traffickers and bring them to justice with lengthy prison sentences.

We will never know how many girls were prevented from falling victim to human trafficking through this awareness in 2016 but we know it is significant.

Thank you to Jamoca Foundation, Lightstream, Whalen Family Foundation and the Velez Family for funding these life changing programs.

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CHILD SPONSOR “To the world you are one person, but to one person you are the world.”

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RSHIP When you sponsor a girl, her world immediately takes

a 180-degree turn. First and foremost, she will get back into school and start to dream again of what she hopes to make of her life. Your support makes this happen.

But even more so, she will receive an immediate

emotional lift. For days, she will reflect on the new

revelation that “someone chose to sponsor ME; my sponsor thinks I’m special.”

Sponsoring a girl = happy days, not just for the girl but also for you and your family. Your family population just

increased by 1. You will become part of this girl’s story – doing for her what her biological parents cannot.

Thank you to Captivating’s incredible, global

sponsorship family of concerned parents. Your girl will change the world, you gave her wings.

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SPONSORING Girls Begin your Sponsorship Story Today

Shambatso’s parents passed away when she was a little girl. She was raised by her grandparents until 2 years ago when her grandfather also passed away.

Shambatso and her sister live with their Grandmother who has to keep borrowing money to be able to send the girls to school.

Now 16, Shambatso has had to drop school because the debt is too great for her Grandmother.

Shambatso’s dream is to learn a vocational skill that will enable her to secure a good job to take care of her Grandmother and sister. When Grandmother passes away, Shambatso and her sister will be orphans, leaving the girls in a very vulnerable position for exploitation. Help Shambatso go back to school so she will have a future of independence, stability and safety.

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Jamyang is 17 years old. Her mother is very ill and cannot work or take care of the home. Jamyang’s father is not well but has to work hard to pay for the medical bills of her mother.

Jamyang was an A grade student however had to drop school because her family simply couldn’t afford to send her. Jamyang’s dream is to go to tech school and learn computers and work with technology. She knows she will able to secure a good job that will support her family. Jamyang cannot begin her 3 year Vocational studies until someone sponsors her. Will you be that person?

Shangchob is 19 years old and lives with her grandmother, parents and older brother. Shangchob has had to drop school because her family is too poor to pay the fees.

Shangchob’s dream is to get an education and become a doctor so she can help the sick in her village as well as others who live in remote locations. Shangchob’s grandmother and parents are illiterate and have only limited work. Help break the cycle of poverty for this family by sponsoring Shangchob today.

“

“My husband and I started child sponsorship because we know we are making a difference to an individual person. There is now at least one specific person better off in the world due to our giving. We can’t be on the ground, being hands-on and making a difference, so being able to fund that difference for a child is the next best thing. A child is still at the beginning of their life, so there is a whole lifetime of benefits that becomes available to them from child sponsorship. We now have our own son, and it’s so amazing

“

the vulnerability of a child. We hope to raise our son with the

compassion of thinking of others and showing him how to make a difference in the lives of others through child sponsorship.” ~The McCulloch Family

“

Healthcare, sanitation, education, nutrition, opportunity and a safe and loving environment are often things we take for granted but this is often not the case in some countries. We feel so honoured to be able to contribute towards bridging the gap and transforming lives as well as helping to create lasting changes for communities.

Sponsorship is effective as well as rewarding when you see the transformation of individuals and communities - so what are you waiting for?

Sponsor someone today...change their future and make a lasting impact!”

“

~ Steve & Lindy

If you would like to sponsor one of these girls, Sponsorship starts from US$40 a month.

Please email francine@captivating.org or go to our website www.captivating.org/sponsor-a-child/ where you will find more girls just like Jamyang, Shambatso and Shangchob who are waiting for you to help.

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2017 So Far

Jaja Water Project - CHINA After now completing 3 successful village water projects, Jaja Village is the next hopeful beneficiary. 66 families (100+ children) make up this village in one of the poorer locations in the Province. These families, as well as the local primary school, will be connected to a nearby water source saving hours of walking each day. This will transform their daily lives, keep kids in school longer, and improve health and income earning capacity.

Single Mothers Program – CHINA This program will train and equip 30 single mothers with small business solutions. This will be in the form of a repayable business loan, equipping them in two solution areas to start with - small restaurant and car washing businesses. These women are some of the poorest in the region and will help provide a regular income.

Pigs for Poverty - CHINA Two breeding piglets (sows) will be provided to qualifying impoverished families along with training on how to manage a profitable breeding program. This is one of the lowest cost solutions available. We will help 300 families over 5 villages. Each family needs to contribute 20% towards the cost of the piglets, and must pay back the value of the piglets after the first full breeding year which is around 18 months. This money will be passed on to other families to start the process again.

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Greenhouses - CHINA Materials, construction assistance/ mentoring, as well as latest Greenhouse growing techniques and support will be provided to 200 families eagerly waiting for this help. Success will mean children are more secure in school and eating more healthy green vegetables. This project, done in partnership with GPA Global, will benefit 200 families and over 400 children.

My First Job: Assistant Chef Training - CHINA In remote locations, we are finding many older girls who have missed MOST of their schooling. They are largely illiterate and need a lucky break. In 2017 we hope to train 20 girls to become Assistant Chefs. Our team will then safely transition and mentor these girls into their first job. THE TRAINING COMPONENT IS IN THE FORM OF A REPAYABLE LOAN over a two year period.

My First Job: Home Services - CHINA There are still many older girls with little or no education who need to reach independence. Without some basic level of skill, they have no choice but take whatever jobs they can get in their local setting. This carries high prospects of abuse due to their lowest status in the community. Home services is a rapidly expanding industry in Qinghai as the disposable income of more families increase. This program will instruct these girls on exceptional home services support – cleaning, child minding, and cooking services. Typically, it’s not an industry that is culturally attractive, however, the returns are great for the girls who are open to it.

Girls will be given 4 months of intensive vocational instruction, followed by a 2 month internship. Our team then helps them secure their first job with a safe family or business, and mentors them for 2 years as they settle in. Their monthly earnings will be higher, and future prospects great as their skills are completely portable.

This program will be benefitting 20 girls.

THE TRAINING COMPONENT IS IN THE FORM OF A REPAYABLE LOAN over a two year period. Our thanks to Li & Fung Foundation for partnering with us on this new pilot program.

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My Business - My Freedom - NEPAL This program is being rolled out in Pokhara as our first pilot region. If the pilot is successful, other regions will follow next year. 300 women considered “highly at-risk” of being victims of Human Trafficking without help will benefit in the first year. This program will then expand each year with new loan capital to eventually have in excess of 1,000 women in the program after 4 years.

Intercept Girls at a Monitoring Station – NEPAL In 2017, 3 more monitoring stations have been added to our existing 8 fully funded stations. Thanks to wonderful support from donors, we have been able to increase our support to 11 stations in Nepal. Combined, our partners are intercepting a girl and sending her home EVERY THREE HOURS. This act may have very well saved her from becoming a helpless victim of Human Trafficking.

Foster Family Loans Program – KENYA 1 in 10 children are orphaned by AIDS in Kenya. Instead of providing a hand-out, this program aims to equip local families willing to foster one of these orphans with extra income so they can cover their schooling and living expenses. Currently, 240 families are now in this program, with our aim to reach 300 by December 2017.

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CAPTIVATING INTERNATIONAL FOUNDATION LIMITED INCOME AND EXPENDITURE STATEMENT (Year ended 31 December 2016) 2016 HK$

2015 HK$

REVENUE Donations and Gifts Other income

6,319,452 729

6,279,803 825

Total Revenue

6,320,181

6,280,628

4,885,601 625,402

4,395,103 753,813

630,434 573,921

794,558 730,193

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

6,715,358

6,673,667

DEFICIT FOR THE YEAR

( 395,177)

( 393,039)

2016 HK$

2015 HK$

2,109,190 505,974 344,181 177,235 2,610

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

3,139,190

3,664,399

19,362

31,948

3,158,552

3,696,347

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

19,247 94,266 147,960

4,874 260,680 138,537

TOTAL LIABILITIES

261,473

404,091

NET ASSETS

2,897,079

3,292,256

RESERVES Funds available for future use

2,897,079

3,292,256

There is no other comprehensive income recognized during the year.

CAPTIVATING INTERNATIONAL FOUNDATION LIMITED BALANCE SHEET (31 December 2016)

CURRENT ASSETS Cash and cash equivalents Restricted Cash Trade receivables Prepayment 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

STOP the Traffick 5k, 2016 - We were thrilled with how our pilot STOP the Traffick 5k event rolled out in September, 2016. It was encouraging to see people who adopted this as part of their own community event. STOP the Traffick 5k is an annual, global event to raise funds and awareness to help the incredible work of our partners, 3 Angels Nepal & Tiny Hands, to intercept people being trafficked.

There were many teams registered throughout China, Canada, US & Australia.

Participants also registered for this event in Barcelona, Ireland and Nepal. Over US$8,500 was raised to stop many Nepalese girls and women’s dreams from turning into nightmares.

NEXT EVENT – SAVE THE DATE Date: September 2-10, 2017 Location: Anywhere in the world For more details and how to register, contact stopthetraffick@captivating.com or go to: captivating.org/events

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Shenzhen Charity Federation Captivating Annual Charity Auction – Saturday, October 22, 2016, once again saw guests filling the grand ballroom of the Futian Shangri-La, Shenzhen China, in support of the Annual Captivating Charity Auction. The event, was run in partnership with the Shenzhen Charity Federation – a fantastic partnership that will continue into the future. The evening was amazing – our best yet. The results were worth it. Net revenue for the night after deducting event and venue expenses was an amazing RMB1.08million (US$170,000).

This was a new record for us.

Through Captivating’s charity partners: The Shenzhen Charity Federation; SHAMTSE; and LOVEQTRA (The Seng Girls Home), funds raised from 2016’s event were used to impact the lives of more than 1,000 girls and many of their families in remote locations of Western China. With a focus on solutions such as greenhouses, solar panels, animal husbandry, health education and vocational school scholarships, Captivating and their partners made dreams come true thanks to the generosity of donors and sponsors.

NEXT EVENT – SAVE THE DATE - The 9th Annual Charity Auction Date: October 14th, 2017 Location: Futian Shangri-La, Shenzhen, China For more details please visit: captivatingevents.org If you are a company and would like to support this event please contact dana@captivating.org or tracy@captivating.org 43

KIDZ WITH HEART – Mini Olympics 2017 WAS DOUBLE THE FUN with 2 Kidz with Heart events in Shenzhen!

Captivating in conjunction with the Shenzhen Charity Federation, once again ran the Mini Olympic events. The purpose of these events was to raise funds to support Captivating’s mission of helping the most desperate of children – children that without help will miss opportunities to be successful in life.

Between the two events, 300+ kids (5 – 11 year olds) competed in multiple Olympicstyle events including soccer and basketball shoot, short and long-distance running races, three-legged race, bean bag toss, spoon and ping-pong ball race, archery, long-jump and a limbo event. Parents, volunteers, local businesses and multiple companies supported the event and a great day of fun and excitement was had by all.

Our thanks also to an overwhelming response by over 200 volunteers wanting to help.

RMB390,000 (US$60,000) was raised during these two wonderfully supported events.

If you are a company who would like to support a Kidz with Heart in 2018, please contact tracy@captivating.org.

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FUNFUL Kidz With Heart - Shekou Jingshan Villa’s – Shekou was once again filled with a buzz of action and activity on Saturday March 18, 2017. FUNFUL Kidz With Heart Mini Olympics, thanks to the wonderful support of our naming sponsor, Funful Bilingual School, was an amazing day of fun, high-5’s and passionate kids. Our thanks also to Shekou International School (SIS) and Jingshan Villa’s for free use of their amazing facility.

WIK Kidz with Heart - Nanshan Thanks to our wonderful naming sponsor WIK, the inaugural WIK Kidz with Heart Mini Olympics, Nanshan/Futian event took place on 25th March, 2017. We were excited to be able to hold a second event in 2017. We’d also like to thank Shen Wai International School (SWIS) for their support and for the free use of their amazing venue.

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Midnight Charity Race - Shenzhen Each year, the Annual Midnight Charity Race in Shenzhen, China gets better and better. Now in it’s 8th year, November 12, 2016 was another incredibly successful night. With a great turn out of runners, together with some very special sponsors a total of RMB220,000 (US$35,000) was raised. Greg Schultheis has once again amazed us with his ability to unite people for a common cause.

100% of these funds went to support the work of Captivating, specifically focused on improving the lives of disadvantaged girls in remote, Western China. Funds received outside of China went toward Captivating’s work in anti-human trafficking in Nepal.

NEXT EVENT – SAVE THE DATE Date: October 21st, 2017 Location: Lianhuashan Park, Shenzhen For information about the next Midnight Charity Race event, please contact info@captivating.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, CHINA, 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/our-blog Facebook: Captivating International YOUTUBE: CAPTIVATING STORIES captivating2008

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