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A DAY IN THE LIFE

9 9 Annual Report


AND

A MESSAGE FROM THE PRESIDENT CHAIR OF THE BOARD OF DIRECTORS

CARE WAS FOUNDED 54 YEARS AGO so that Americans could reach across the oceans to help survivors of World War II. Over the years, CARE’s focus has expanded, but our spirit has remained constant and true: to relieve human suffering and to strengthen people’s ability to improve their lives. The past halfcentury has seen both dramatic progress and dreadful misery. Most people now live longer and healthier lives, children have greater opportunities for education, and many lives are made more productive by technology. But such advances have not been universal. Gross inequalities persist, violent conflict simmers and explodes, and millions of people struggle every day just to survive. Globalization has not brought shared prosperity: 1.3 billion people – more than one in every five people – live on less than a dollar a day. We are collectively responsible for the opportunities that could be theirs. At CARE, we are intensely aware of the complexity of the world in which we work. Poverty is often deeply rooted in political and social structures, and defies quick solutions. But we are unbowed by the challenge. As we stride into the 21st century, we are developing cutting-edge approaches to achieving our mission. OUR BOTTOM LINE. The concept of household livelihood security guides our work. It helps us to design programs that target the root causes of poverty. It also helps us to implement programs and measure their impact – be it in education, health or agriculture – with the goal of making lasting improvements in families’ livelihoods. Simply digging wells or providing loans is not enough. Our work is not done until communities have the capacity and the commitment to build on CARE’s investments. Household livelihood security is CARE’s bottom line: we will be disciplined by it and held accountable to it. PARTNERSHIP. We look to forge alliances at all levels, giving special priority to strengthening local organizations. Continuing dependence on CARE’s operational ability can be counter-productive. In fact, our best indication of success is when we can leave a village or even a country – when families and communities no longer need our support. ADVANCING HUMAN RIGHTS. CARE works in difficult conditions – often where governments have failed – with people who are marginalized and oppressed. In such settings, basic human rights – from the right to food to the right to free expression – are frequently abused. In the coming years, we will increasingly look at our work through a human rights lens to ensure that we affirm the dignity and worth of the people we serve. ADVOCATING FOR CHANGE. Many of the causes of, and solutions to, poverty and conflict rest in public policy. CARE is using its experience in poor communities selectively to influence policy decisions. Whether it is securing the rights of street vendors in the Philippines, protecting workers from pesticide poisoning in Nicaragua or advancing a just peace in Sudan, CARE helps communities to amplify their voice and advance the cause of justice and dignity. INTERCONNECTEDNESS. The world is shrinking. Money, goods, services and people flow in and out of countries with increasing rapidity. CARE strives to bring home the message that we share a common future shaped by the choices we make today. We are reaching out to younger audiences so that today’s youth will live up to their role as world citizens. To do this, we are embracing new media to connect people from distant places, for example, through our website’s virtual fieldtrips to Mali and Bolivia. We live in a complex and interdependent world. Yet modern comforts can provide the illusion of a snug cocoon. The harsh realities of poverty and injustice may seem oceans away, even though we know they are not. We draw energy from knowing that humanity has never been better equipped to attack these problems. The world is richer now than ever before. The possibility of doing so much good has never been closer at hand. As we stand on the cusp of a new century, let us mobilize our resources and embrace the opportunity to fully realize the promise of our common future. Every step we advance is measured in hope, opportunity and lives fulfilled.

Peter D. Bell, President

Lydia M. Marshall, Chair


FEATURES: A DAY IN THE LIFE

TA B L E O F CONTENTS

8 AFTER THE STORM

TIME FOR CHILDHOOD

CARE’S PROGRAMS

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CRISIS IN KOSOVO After losing their home, possessions and spending three months in a refugee camp, Fadil Bytyci and his family return to Kosovo. Join them on their bittersweet journey home.

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In the wake of Hurricane Mitch, Miriam García rebuilds her home and her life. Spend a day with Miriam as she lays the foundation for her new house and a brighter future for her family.

AFRICA AND THE MIDDLE EAST REGIONAL REPORT

2

Nigist Azene has an opportunity that is rare and precious in many countries of the developing world – the chance to enjoy her childhood. See how CARE has helped her laugh, learn and live securely.

20 PROGRAM OVERVIEW AND HIGHLIGHTS

25 ASIA AND THE PACIFIC REGIONAL REPORT

EUROPE REGIONAL REPORT

28 LATIN AMERICA AND THE CARIBBEAN REGIONAL REPORT

30 CARE WORLD MAP 32 OUR SUPPORTERS 34 OUTREACH 36 CARE INTERNATIONAL 37 CARE LEADERSHIP 40 FINANCIAL REPORT AND STATEMENTS


A DAY IN THE LIFE

Three

I

Lives

n the summer of 1999, we set out to recount the major events of CARE’s work over the past year, as well as to capture the breadth and depth of CARE’s programs worldwide. We concluded that the power and beauty of CARE’s work is found in the individual story: in the details of a life saved, a household rebuilt, a future secured. And that the events of one day in a person’s life could tell CARE’s story eloquently and explicitly. So we set out to find three people to help us illustrate our work. The location of two of these people – Honduras and the Balkans – was obvious: Hurricane Mitch and the crisis in Kosovo not only dominated world headlines, but they also comprised major new challenges to CARE’s emergency work. The third story, that of a young girl from a village in Ethiopia, exemplifies CARE’s development efforts in thousands of villages that do not make the headlines, but that are making a dramatic difference in millions of lives each year. On the following pages, you’ll meet Fadil Bytyci (Kosovo), Miriam García (Honduras) and Nigist Azene (Ethiopia) and spend a day with each of them. You’ll learn their sorrows and their joys, their obstacles and their achievements. Their stories aren’t particularly unique – they aren’t any sadder or any sweeter than those of millions of others who are working with CARE to improve their lives. But by spending a day with them, you’ll come to appreciate the scope of CARE’s work. You’ll see the cycle of our programs, from lifesaving aid in emergencies, to reconstruction and rebuilding in the wake of disasters, to the long-term development activities that are springboards for secure livelihoods. You’ll also see the impact of CARE’s work, and you’ll know the difference that you are making as you support CARE.

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EMERGENCY RELIEF

A Bittersweet Homecoming (top) Fadil Bytyci surveys the burned remains of a building in his home village. (top right) Tent cities like this one provided shelter for more than 1 million Kosovars. (bottom right) Naim Bytyci stands inside Cegrane Camp.

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Crisis in

Kosovo IN MARCH 1999, WAR EXPLODED IN KOSOVO AND MORE THAN 1 MILLION PEOPLE FLED. THE HUMANITARIAN COMMUNITY RESPONDED WITH EMERGENCY AID. WHEN THE FIGHTING ENDED, A NEW JOURNEY BEGAN. THIS IS THE STORY OF A DAY IN THAT JOURNEY – THE RETURN OF ONE MAN AND HIS FAMILY THROUGH THE LANDSCAPE OF A TRAUMATIZED LAND.

F

ADIL BYTYCI IS AN OPTIMIST. He has to be. After enduring the loss of home, possessions and extended family, and spending three months in a refugee camp, Fadil is surprisingly upbeat. It is not just because he is finally going home – back to Kosovo from the CARE-run Cegrane Refugee Camp in Macedonia. It is also because his wife Flore and their five children depend on him to be so. For the Bytyci family, the last few months have been a nightmare. Driven from their home by paramilitary forces, separated from other family members and then deported to Macedonia, they lost everything except the few possessions they could carry. Food, tents and other supplies provided by CARE only partially eased the trauma of war: Fadil’s wife lost 22 pounds from stress. Of the life they left behind, they have little information. And so Fadil stands in Cegrane Camp as the bus loads, talking to his wife and children, exchanging wry comments with his countrymen and trying to keep spirits up.

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“If our house is burned, we will go to my relatives. If their house is burned, we will try some of our friends and neighbors,” he says firmly. “Whatever happens, we’ll get by.” It is only 9 a.m., and already Fadil’s resolve is being tested: The bus that will take them back to Kosovo arrives late. His son Betim kicks the fender of the bus in frustration, and Fadil laughs. “The kids put pressure on us to leave with the first groups,” he notes. “Their mother and I are the ones afraid of mines and booby traps and crazy people.” Fadil has reason to be afraid. A relative in the camp has told him that Flore’s mother was shot and killed. Although he has not yet broken the news to Flore, her silence and drawn features tell him that “she is suspicious… something is not right.” Fadil will wait to break the news back in Kosovo, surrounded by other family members he hopes have survived the war. Flore sits quietly as the bus loads, dread eclipsing her face. The last time Fadil saw his house was the backward glance he gave it as the family was marched away. Since then, all he has heard is that his village was shelled and some of the houses destroyed. “We’re skeptical anything is left,” says Fadil. Most of the refugees face the same circumstances, and conversation on the bus is tinged with the worry of uncertainty. Flore remains silent. “I just hope everyone is okay,” she says finally, shifting her

The Journey Home (top) Avni, 11, and Fitim Bytyci, 10. (left) CARE distributed identity bracelets to children to prevent separation. Betim Bytyci’s name, his parents’ names and the name of their village are on his bracelet. (bottom) The bus approaches the border.

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youngest child, Naim, on her lap. It is the most she has said all day. As the bus approaches the border, the tension – as well as the excitement – grows. But excitement soon gives way to dismay at the more ominous signs of return: Burned and abandoned cars litter the road, signs of the hasty flight of Kosovo’s people. Even more frightening are the dozens of rounded holes cut into the pavement at 20-foot intervals. They are the remains of antitank mines placed by retreating forces and now removed by NATO troops. Still, the bus driver flinches every time the wheels bump over one of the holes. Closer and closer to home, and then, the first shock: the village of Ferizaj. It is not one of the most badly damaged areas, yet the refugees stand, whisper and point at the bombed and burned houses of friends and relatives. Fadil whispers, “I am more worried about our own place.” The bus finally stops at the crossroads to their village, and the Bytyci family disembarks. They have heard that the dirt road leading to their village may be mined, but Fadil sees friends working in a field, “so they’re alive!”

Uncertainty and Hope (top) Fitore Bytyci, 7, gets her first glimpse of home as her family disembarks from the bus. (right) Flore Bytyci and her youngest child, Naim, 3. CARE 1999 ANNUAL REPORT

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As they draw nearer to their home, Fadil runs ahead, shouting delightedly, “I see the roof of our house!” Fadil’s sister and sisterin-law walk from the house. Seconds later, Fadil’s mother comes running from the fields, cheeks wet with tears. His family survived the war, the house is untouched and “everyone is safe!” Fadil’s sister tells how only his mother stayed – the rest fled to Kosovo’s capital, Pristina. “We hid in friends’ houses. We went through terrible times. We feared for our lives,” she says. But of Flore’s family there is no mention. Finally, Flore asks, “But… how is my mother?” When Fadil’s mother starts to respond, he stops her. It is our cue to go. Fadil walks us down the green hills overlooking the empty houses and roads of Slovinje and speaks of the future: “I’m optimistic,” he says. “We are a big family, and we will help each other and manage to survive. I don’t want charity. All I want is a loan to buy a tractor so I can start farming again. “I have my family and my house. I guess I’m a lucky guy.”

A Joyful Reunion (top) Fadil’s mother, Sabile, listens as Fadil recounts the family’s experiences since they left home. (left) Fadil joyfully greets his sister.

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MAKING A DIFFERENCE Fadil Bytyci and his family stayed for nearly three months in Cegrane Camp, the largest refugee camp in Macedonia and one of eight run by CARE. CARE and its partners supplied them with food, shelter, health care, education facilities for the younger children, water and sanitation, and mother and child services. Back in Kosovo, the Bytyci family is eligible for short-term shelter, food and demining assistance from CARE. CARE is providing these services throughout the Bytyci family’s home region of Ferizaj (Urosevac), and in Mitrovica and Lipljan as well. CARE also is offering longer-term agricultural rehabilitation assistance for Kosovars to get back on their feet and revive the local economy. Your support of CARE helps provide emergency humanitarian aid in the wake of both natural and man-made disasters and makes a difference between life and death for victims. “We are very grateful for the help we’ve received from CARE,” says Fadil. — Article by Wendy Driscoll; Photography by Wendy Driscoll and Jacob Holt

Snapshots (top) Flore’s grandfather, Bajram Vitijia, stands framed in the window of his house. (middle) Fadil stands with his neighbor, whose wife was killed in the fighting. He holds her photo aloft. (bottom) The Bytyci family at home.

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RECONSTRUCTION

After the

Storm

HURRICANE MITCH BROUGHT DEVASTATION TO CENTRAL AMERICA, BUT NOW THAT THE EMERGENCY IS OVER, FAMILIES ARE CONFRONTED WITH THE DAUNTING TASK OF REBUILDING. FOLLOWING IS THE STORY OF A DAY IN THE LIFE OF ONE WOMAN, TAKING THE FIRST STEPS WITH CARE TO BUILD A BETTER, STRONGER FUTURE…

M

IRIAM GARCÍA IS 28 YEARS OLD. Her face is tanned and lined from many hours of working in the sun. Though she rarely speaks, her kind-hearted smile frequently lights up her face. “It will be bigger, better, stronger,” she says of the new community of El Portón, a mile from the wreckage of Poza Honda – the small town she called home before Hurricane Mitch wiped it away. “We will be bigger, better, stronger.” Though nearly a year has passed since the storm struck, the memory remains sharp in Miriam’s mind and heavy on her heart. “Through the window, I could see trees being uprooted around us,” she recalls. “The house was shaking.” Pregnant, scared and crying, Miriam fled her house, wading in knee-deep water with her four children. People were scattering in all directions trying to escape the path of an oncoming wall of mud. Winning the race to higher ground, Miriam and her children found shelter in a nearby school. “We were safe, but I wondered if our house still stood,” she says. The answer came at dawn. The town of Poza Honda was utterly

Miriam’s Former Home The kitchen cornerstone is the only remaining landmark of Miriam’s former home. In Honduras, more than 200,000 homes were partially or totally washed away by flooding following Hurricane Mitch.

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destroyed. “Nearly everything was washed away,” she recalls. “Now we’re starting over,” she says without expression. The emotion is there, but it’s behind a stoic facade. She is trying to leave the memory of that time behind and start anew. But it’s hard work for this single mother of five. At daybreak, Miriam stands beside a weather-beaten shack, making corn tortillas for breakfast. “This is home for now,” she says, looking at the one-room tin structure which sits beside the framework of her future home, being built with help from CARE. “This house is going to be well taken care of,” she says. “It’s going to last for a long time.” Saúl, Miriam’s 5-month-old baby boy, starts to cry. He is recovering from malaria. She feeds him and blots his forehead with a wet towel. Her other four children are staying a few miles away with her mother until the house is ready. Today, Miriam’s house is one of 12 being worked on. She hopes the east wall will be up by sunset. At 7 a.m., a chorus of hammers and saws, combined with the shuffle of cement being scraped between blocks, begins. An oxen-drawn cart staggers up the muddy road to the building site with a fresh load of dirt. Miriam goes to work, sifting rocks from dirt piles and carrying cement blocks, two at a time, on her head. She gently stacks the blocks at the base of each foundation. In this community, everyone helps one another. No one complains. At noon, in the shade of a scruffy tree, Miriam takes a break from the construction work and gently holds Saúl. She then washes baby clothes by hand, stretching them across a fence to dry. Then it’s back to work. The work continues throughout the humid, sun-baked afternoon. Perspiration beads Miriam’s brow. She offers something to drink to the men helping on her wall, filling small glasses with well-water drawn earlier. Then she heads down the hill, returning with two more 10-pound cement blocks. Miriam works steadily for the rest of the afternoon. She is silent and determined. With each of the more than 50 trips back up the hill, she glances over, gauging the progress on her house. That evening, a breeze steals across the hillside, blowing dust as tools are washed and put away for the night. Everyone begins to take notice of each other’s work. Smiles swell from beneath the

Daily Life After Mitch (top) Miriam teaches her daughter Nancy how to grind corn for tortillas and (middle) how to secure a net over the baby’s bed to keep mosquitoes at bay. (bottom) Miriam’s youngest daughter Karen and baby Saúl.

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Miriam’s Children (top) Nancy, 6, Luis, 4, and Karen, 3, smile as they look forward to living in their new home. (right) A proud grandfather plays with his grandson.

sweaty faces of men, women and children. Miriam washes her face and hands, and lifts baby Saúl. Facing the sunset, she leans against the completed wall of her future house and holds her breath. Then she emits a long, heavy sigh. Saúl stops crying. It’s starting to feel like home.

MAKING A DIFFERENCE Hurricane Mitch left Miriam García without a home. She had no insurance to rebuild. In the months following the storm, Miriam and her children lived in a temporary shelter where CARE provided them – along with thousands of other families – with emergency food, water and medicine. In the midst of ruin, Miriam gave birth to Saúl. After the storm, Miriam and her family faced the prospect of rebuilding and starting anew. Miriam and 39 other families again crossed paths with CARE and began working together to

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New Beginnings (top) For Miriam, standing beside her new front door, conquering the chaos left by Mitch has not been easy. (right) A young girl makes mud pies on a work bench. (bottom) People of El Portón work together to put up tents.

A Mother’s Concern

rebuild their lives in El Portón. The people of El Portón acquired their land through the local government and developed a building plan. They terraced the entire hillside to make it safe for construction. CARE is supplying materials and technical expertise to complete the construction while community members provide the labor. Miriam’s story, and the story of the re-birth of El Portón, is just one example of the reconstruction that is taking place across Central America in the wake of Hurricane Mitch and of the work CARE does worldwide to help families rebuild after disaster. Your support of CARE is helping people like Miriam all around the world lay the foundations for better futures. CARE helps communities begin anew by rebuilding homes, repairing and installing water and sanitation systems, re-establishing agricultural production and restoring infrastructure. This lays the foundation for longer-term development programs that stimulate economic opportunity and growth. “Because of CARE,” Miriam concludes, “we are able to build something better than we had before.” — Article by Allen Clinton; Photography by Kimberly Conger

Balancing work and family, Miriam nurses Saúl back to health after a bout of malaria.

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OVERCOMING POVERTY

Time for

Childhood IN MANY DEVELOPING COUNTRIES, CHILDHOOD

IS PRECARIOUS AND SHORT-LIVED. IN THE BATTLE TO STAVE OFF HUNGER, THE ESSENCE OF CHILDHOOD – PLAYING, LAUGHING, LEARNING – OFTEN SUCCUMBS TO POVERTY. BUT IN ETHIOPIA, A CARE PROJECT HAS RELEASED CHILDREN FROM THE THREAT OF HUNGER AND ALLOWED THEM TO GROW, PROSPER, AND EVEN HAVE SOME FUN…

S

PIN COINS, ROLL A PRECIOUS MARBLE or a lemon, chew sugarcane, tell jokes, go to school, jump rope, clap hands and sing… What do children do? Twelve-year-old Nigist Azene should know. Unlike many children in the developing world, she has been given a chance to enjoy her childhood. Nigist awakens at 6 a.m. to fix breakfast for her family – a generous portion of cooked maize and njera, the sponge-like bread of Ethiopia. Since school is out for the summer, Nigist receives a group of excited friends, and they pile out into the yard for an exuberant bout of jumping rope before racing down the road to their families’ thriving farms. Into the green fields they plunge for an hour or so of energetic onion-harvesting. Nigist’s braids fly around her face as she yanks the green stalks from the ground. She then washes the muddy ends in water that flows into the new irrigation

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canal, which was built with help from CARE and now nourishes her family’s farm. The canal spares Nigist and her mother hours of back-breaking effort carrying buckets of water out to their fields. Not that Nigist would shirk her chores. “I like to work,” she says, smiling. “And I like to help my family.” In the fields, Nigist wields an enthusiastic hoe, stopping only to laugh at her friends’ antics or chew on a bit of sugarcane. But work – such as picking onions on her family’s plot of land – is now liberally interposed with school and time to play, both precious commodities in Africa. In less than two hours, Nigist and her friends are ready to go back to her house, carrying a sack of grass to feed the four cattle her mother bought with money earned from the farm. Selling milk – in addition to farming – has become a moneymaking enterprise for the family. It is Nigist’s job to help milk the cows, but not just yet! She’d much rather relax around the house with her friends, or run outside to join a pack of singing and clapping children,

Looking Forward (top) Nigist sits with her mother, Bezunesh Tcheneke, and her grandmother, Werkinesh Derese. (left) A little boy from Doni Village.

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or eat lunch with her mother and grandmother, or let her mother fix her hair, or even take a nap… Later in the evening, as the sun drops to a golden shimmer and the heat of the day settles like dust on the road, the women of the family head out to collect more grass for the cattle. Nigist is proud to be considered “one of the women” and carries back as much grass as her mother and grandmother to her favorite cow. Her head practically disappears beneath the bundle of reeds she carries home, but she does not complain. On the contrary – the sky is blue, the countryside is glorious, and her mother is near: What more could a child ask for? In the evening, the family shares a meal from one of the large, colorful baskets typical of Ethiopian culture and chats about the day’s work. Nigist’s mother and grandmother recall starker times – before they had their irrigation canal, when drought and hunger were constant threats. But Nigist seems surprised to hear that her family once lacked for anything

All in a Day’s Work (top) Nigist’s mother walks home carrying grass for the family’s cows. (bottom) Nigist and friends relax in her home.

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and doubtful that she herself might ever be in such a position. “I have never felt hunger,” she says, wonderingly. “I’m happy playing and helping my family, and as long as I’m with them, I don’t think I’ll have problems.” And what will she do tomorrow? Spin coins, roll a precious marble or a lemon, chew sugarcane, tell jokes, go to school, jump rope, clap hands and sing…

MAKING A DIFFERENCE With help from CARE, farmers in Nigist Azene’s village have harnessed the power of the Awash River through the construction of a low dam and sluice gate. By sheer gravity, redirected river water now shoots into farmers’ fields. With the ability to access and control precious water, farmers have doubled and even tripled their crop yields, raising incomes and overall standards of living. The result is that, even as much of Ethiopia suffers in the grip of drought, the farmers of Doni Village have cash in their hands, and children like Nigist have food, money for school fees and time to play.

Time to Work Since school is out for the summer, each child is expected to contribute to the family’s livelihood. (bottom) Nigist is hard at work washing muddy onion stems and hoeing a new row in which to plant vegetables.

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This development program – planned and implemented with assistance from CARE – is typical of worldwide efforts to increase income through new irrigation schemes, spring-fed wells, roads that link farmers to markets, programs that encourage new agricultural techniques and the development of small businesses. CARE pairs such economic activities with health care and education programs, efforts to build local capacity and programs that advance gender equity. CARE’s long-term focus is on self-sufficiency – on giving people the tools to pull themselves out of poverty. Your support of CARE is helping families like Nigist’s all around the world find solutions to chronic hunger and poverty. As one farmer from Doni Village notes: “CARE is here because they want to get us out of poverty and [help us] support ourselves, not to wait for others to give us something. The final outcome is development.” Ultimately, it also means giving children like Nigist Azene the chance to enjoy their childhood and the prospect of a secure livelihood. — Article by Wendy Driscoll; Photography by Brennan Linsley

Empowerment (top) Walking home with onions from the family field. (right) The sluice gate channels river water to the thirsty farms of Doni Village. CARE 1999 ANNUAL REPORT

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PROGRAM OVERVIEW

THE YEAR IN REVIEW Fiscal year 1999 (FY99) runs from July 1, 1998, to June 30, 1999.

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CARE IS ONE OF THE WORLD’S LARGEST private international relief and development organizations. Founded in the aftermath of World War II, CARE enabled Americans to send more than 100 million CARE Packages® to survivors of the conflict in Europe and Asia. CARE has become a leader in sustainable development and emergency aid. CARE reaches out to people whose lives are devastated by humanitarian emergencies, or who are struggling each day in poor communities to survive and improve their lives. CARE believes that every family should have food, health care, a place to live, education, a safe and healthy environment and the ability to participate in decisions affecting their family, community and country. The organization’s programs are increasingly geared around this framework of household livelihood security (HLS). Today, CARE is a global movement – a confederation of 10 member nations working with a multitude of partners to administer programs worldwide. CARE seeks a world of tolerance and social justice, where people have overcome poverty and live in dignity and security. To that end, CARE USA’s program expenses in FY99 totaled nearly $376 million, supporting programs across 53 developing countries in Africa, Asia and the Pacific, Europe, and Latin America and the Caribbean. These programs advanced work across a spectrum from emergency relief, to rehabilitation in the wake of disaster, to long-term development. From Central America in the aftermath of Hurricane Mitch, to crises in Sierra Leone, Sudan and Kosovo, CARE responded to desperate emergencies. And from Bolivia to Uganda to the Philippines, CARE helped sow seeds of hope in the battle against poverty, helping millions of men, women and children to survive, to overcome and to build a better life. In FY99, CARE programs in agriculture, education, health, water and sanitation, nutrition, infrastructure and small enterprise activity development reached tens of millions of people. The following pages offer a summary of CARE USA’s programs in FY99.


PROGRAM OVERVIEW

1999 CARE HIGHLIGHTS HOW CARE’S EXPENSES ARE ALLOCATED

In fiscal year 1999 (FY99), CARE DIRECTLY IMPROVED THE LIVES OF MORE THAN 25 MILLION PEOPLE in Africa, Asia and the Pacific, Europe, and

Latin America and the Caribbean. Tens of millions more – family and community members alike – benefited indirectly from CARE projects addressing the complex problem of poverty. Below are some of the changes CARE’s generous and committed supporters helped make possible:

91%

100%

Program Activities

80%

60%

P More than 2 million farmers in 34 countries were trained in activities relating to AGRICULTURE AND NATURAL RESOURCES.

40%

P P More than 228,000 people in 20 countries received

9%

23 MILLION TREES were planted.

BASIC

Support Services and Fund Raising

20%

EDUCATION AND TRAINING.

More than 9.6 million people in 14 countries received Pthrough school feeding, food-for-work and community kitchens.

FOOD

0%

P

More than 8.8 million women and children benefited from mother and child HEALTH PROJECTS in 15 countries.

CARE’S PROGRAMS BY ACTIVITY

P

2.1 million people in 31 countries gained access to CLEAN WATER and SANITATION SERVICES and received hygiene education.

100%

79%

P

8 million men and women in 32 countries benefited from HEALTH SERVICES, such as family planning, maternal health and STD/HIV prevention activities. Nearly were built or repaired Pthrough food- or cash-for-work programs.

Development Assistance 80%

87,000 KILOMETERS OF ROADS

P

More than 500,000 people – 76 percent women – in 36 countries were helped through projects in credit, savings, marketing and other BUSINESS-RELATED SERVICES.

60%

40%

21% Emergency and Rehabilitation

20%

0%

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REGIONAL REPORT

AFRICA AND THE MIDDLE EAST Africa’s development efforts in fiscal year 1999 (FY99) were rocked by extremes of hope and horror. Significant efforts to liberalize economies, improve democratic governance, build civil society and mitigate conflict marched side by side with natural disaster, war and disease throughout much of the continent.

well as in advocacy and conflict mitigation efforts. On the negative side, Africa’s health statistics remain the grimmest in the world. Life expectancy has dropped – in some countries the average life span is now less than 40 years. The African continent is home to the largest refugee populations in history – in FY99, hundreds of thousands of people fled conflict in Sierra Leone, the Democratic Republic of Congo and Angola. And no other continent is home to as many people with HIV/AIDS – an estimated 23 million men, women and children in Africa are infected with the virus. And, it was in Africa that AIDS and war-related death tolls prompted the United Nations to use the demographic category “child-headed household” for the first time. In FY99, CARE USA supported programs totaling more than $87 million in 25 countries in Africa and the Middle East. The following report details CARE’s work in accord with its two operational units: East Africa and the Middle East, and Southern and West Africa.

EAST AFRICA AND THE MIDDLE EAST In East Africa and the Middle East, CARE programs focused on emergency relief, A woman receives a regular checkup at one of about 100 health facilities established as part of a CARE project in eastern Uganda. health care and new approaches to food security. CARE On the positive side, well-attended democratic USA supported programming in Burundi, elections took place in South Africa and Nigeria, the Egypt, Ethiopia, Kenya, Rwanda, Somalia, economic and political engines of the continent. Sudan, Tanzania, Uganda and West Bank/Gaza. Efforts to bring peace to the Democratic Republic of Congo and Sudan resulted in struggling cease-fires. Development Amid Conflict The economic performances of Tanzania, Uganda, CARE examined its role as an international Mozambique and Ghana were rewarded with debt relief and development organization working in forgiveness. And agencies like CARE made strides in the midst of long-running civil conflict. It looked rebuilding infrastructure, improving food security especially at its role in Sudan, a country torn by and health care, and promoting civil society as decades of civil war. Asserting that the war is

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undermining long-term relief and development efforts, CARE and others in the international nongovernmental organization (NGO) community united in a campaign advocating on behalf of a just peace in Sudan. At the same time, CARE helped an estimated 500,000 Sudanese people suffering as a result of floods, drought, and other catastrophes either created or exacerbated by the civil war. In Unity State and the Bahr El Ghazal region, CARE operated emergency feeding centers and distributed shelter materials, cooking utensils, seeds and tools to people suffering from the effects of famine. In Khartoum and the River Nile State, CARE provided shelter and food assistance to flood victims. In Tambura County in the south, CARE partnered with the International Medical Corps and the Centers for Disease Control and Prevention to treat and prevent the resurgence of the deadly sleeping sickness. Emergency relief was not CARE’s only focus in Sudan. The North Kordofan Food Information Systems Project conducted monthly market surveys and seasonal crop assessments and produced quarterly bulletins on the food security of more than 300,000 people. These reports were used as an early warning system against potential famine. The Tambura Marketing and Development Association helped local farmers in the agriculturally rich western region of Sudan to grow food that they could sell to relief agencies fighting famine in drought-stricken areas of the country. The program put money in the pockets of poor farmers and provided relief agencies with emergency food at one-third of the price it would have cost to import foreign food. By working to mitigate disaster and advance a just peace while simultaneously enabling communities to enhance their livelihood security, CARE is helping to build a more hopeful and sustainable future in Sudan. Integrated Health Uganda has battled to halt the spread of the AIDS virus. Building local institutional capaci-

In Africa, CARE projects in health, education and nutrition give children the chance of a brighter future.

ties has been essential in this fight, as well as in the greater struggle to promote economic development of the nation. CARE supported these efforts through the Eastern Uganda Family Health Project in the Kapchorwa, Mbale and Pallisa districts. The project partnered with the government of Uganda health services, NGOs and private health providers to strengthen the nation’s health care infrastructure, including the construction, renovation and re-equipping of nearly 100 health care facilities. In Somalia, the Somali Partnership Program has built a network of more than 20 grassroots Somali organizations dedicated to a wide range of relief and development efforts. With these groups’ knowledge of the culture, politics and conflict areas of a land still torn by feuding warlords, the project helped deliver aid effectively, inexpensively and safely.

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REGIONAL REPORT

AFRICA SOUTHERN AND WEST AFRICA In Southern and West Africa, CARE programs focused on issues of household livelihood security, coordinated sector programming, refugee assistance and resettlement, and new projects to strengthen civil society. In FY99, CARE USA supported projects in Angola, Cameroon, Ghana, Guinea, Lesotho, Madagascar, Malawi, Mali, Mozambique, Niger, Sierra Leone, South Africa, Togo, Zambia and Zimbabwe. Working with networks of NGOs, communitybased organizations and local government agencies, CARE helped to support local institutional capacities and rural economic development. In Lesotho,

CARE’s land mine action teams remove or mark the location of land mines placed during Angola’s civil war.

for example, the Training for Environmental Agricultural Management Project worked with community-based organizations in 10 districts to help farmers improve crop production and natural resource management. In Madagascar, the Antananarivo Urban Household, Food and Livelihood Security Project improved the environment and local health conditions, strengthened local associations and basic infrastructure and

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empowered communities in 30 of the city’s poorest neighborhoods. And in Mali, CARE worked with thousands of farmers along the length of the mighty Niger River to control the flow of water to their land to help fulfill the country’s potential as a rice-growing powerhouse. Responding to Civil Conflict An eight-year civil war has devastated the West African country of Sierra Leone. During FY99, CARE provided emergency food, helped rebuild homes and schools and distributed agricultural crop seeds in Sierra Leone. In addition, hundreds of thousands of refugees from Sierra Leone fled to neighboring Guinea. CARE responded quickly to this situation, providing emergency food assistance to 250,000 people in 60 refugee camps. Angola’s 19-year civil war has claimed an estimated 1.5 million lives and left up to 20 million land mines buried throughout the country. CARE continued to assist with mine removal and with mine-awareness training programs. The Mine Related Interventions Project worked in Angola’s northern regions to remove or mark the location of mines so communities could resume day-to-day living, including farming their land, without fear. These activities were carried out in conjunction with other programs in health, agriculture, and water and sanitation. Rebuilding Civil Society To prevent future conflict, CARE invested in education as an essential building block of more peaceful, productive societies. In the northern districts of Timbuktu, Dire and Goundam in Mali, CARE promoted peace and strengthened civil society through primary schooling and long-distance education programs. Working with 40 parent-teacher associations in the Primary Education and Civil Society Project, CARE helped establish 24 primary schools for children who previously had no access to school. CARE also helped create an education curriculum that is delivered via the radio for children in distant rural areas. The curriculum also focuses on the rights and responsibilities of citizens.


REGIONAL REPORT

AFRICA SOUTHERN AND WEST AFRICA In Southern and West Africa, CARE programs focused on issues of household livelihood security, coordinated sector programming, refugee assistance and resettlement, and new projects to strengthen civil society. In FY99, CARE USA supported projects in Angola, Cameroon, Ghana, Guinea, Lesotho, Madagascar, Malawi, Mali, Mozambique, Niger, Sierra Leone, South Africa, Togo, Zambia and Zimbabwe. Working with networks of NGOs, communitybased organizations and local government agencies, CARE helped to support local institutional capacities and rural economic development. In Lesotho,

CARE’s land mine action teams remove or mark the location of land mines placed during Angola’s civil war.

for example, the Training for Environmental Agricultural Management Project worked with community-based organizations in 10 districts to help farmers improve crop production and natural resource management. In Madagascar, the Antananarivo Urban Household, Food and Livelihood Security Project improved the environment and local health conditions, strengthened local associations and basic infrastructure and

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empowered communities in 30 of the city’s poorest neighborhoods. And in Mali, CARE worked with thousands of farmers along the length of the mighty Niger River to control the flow of water to their land to help fulfill the country’s potential as a rice-growing powerhouse. Responding to Civil Conflict An eight-year civil war has devastated the West African country of Sierra Leone. During FY99, CARE provided emergency food, helped rebuild homes and schools and distributed agricultural crop seeds in Sierra Leone. In addition, hundreds of thousands of refugees from Sierra Leone fled to neighboring Guinea. CARE responded quickly to this situation, providing emergency food assistance to 250,000 people in 60 refugee camps. Angola’s 19-year civil war has claimed an estimated 1.5 million lives and left up to 20 million land mines buried throughout the country. CARE continued to assist with mine removal and with mine-awareness training programs. The Mine Related Interventions Project worked in Angola’s northern regions to remove or mark the location of mines so communities could resume day-to-day living, including farming their land, without fear. These activities were carried out in conjunction with other programs in health, agriculture, and water and sanitation. Rebuilding Civil Society To prevent future conflict, CARE invested in education as an essential building block of more peaceful, productive societies. In the northern districts of Timbuktu, Dire and Goundam in Mali, CARE promoted peace and strengthened civil society through primary schooling and long-distance education programs. Working with 40 parent-teacher associations in the Primary Education and Civil Society Project, CARE helped establish 24 primary schools for children who previously had no access to school. CARE also helped create an education curriculum that is delivered via the radio for children in distant rural areas. The curriculum also focuses on the rights and responsibilities of citizens.


REGIONAL REPORT

Development efforts in Asia and the Pacific were a mixture of successes and setbacks during fiscal year 1999 (FY99). Overall, the Asian economic crisis slowed previous expansion, and while the region managed to hold the line on long-term gains in health and literacy, progress was tempered by floods, famine and concerns over the impact of accelerating population growth. Flooding in India and Bangladesh hindered access to clinics, markets and clean water for nearly 17 million people in the region and also posed immediate threats of food shortages, waterborne diseases and malnutrition. In FY99, CARE’s programs in Asia and the Pacific sought to provide immediate aid to families affected by economic crisis and natural disaster while expanding efforts that promoted long-term economic growth and household livelihood security. Important initiatives included promotion of small businesses, urban programming, and further emphasis on the participation of women and girls in development activities. From North Korea, where CARE helped distribute food and seeds to families plagued by famine, to Thailand, where CARE projects aimed to prevent the spread of HIV/AIDS, CARE sought to meet diverse and evolving needs. In FY99, CARE USA supported programs totaling more than $170 million in 16 countries in Asia and the Pacific, including Afghanistan, Armenia, Azerbaijan, Bangladesh, Cambodia, China, Georgia, India, Indonesia, Laos, Nepal, North Korea, Philippines, Sri Lanka, Tajikistan and Thailand. Integrated Solutions Seven of the world’s 10 most populous nations are in the Asia and Pacific region. Population growth is placing great demands on resources for food, water, land and income. As populations expand, increased competition for limited resources is likely to make access to health care, education, sanitation and economic opportunities in general even more difficult for the poorest people. CARE has long recognized the relationship between the environment and families’ health and

ASIA AND THE PACIFIC economic opportunity, and has developed integrated approaches to promote their advancement. For example, CARE worked in two of Nepal’s poorest districts – Bajura and Gorkha – to bring about social change through a wide range of integrated community development activities. The Remote Area Basic Needs Project in Bajura targeted 30,000 people in nine communities, seeking to improve maternal and child health by training local health workers in areas such as immunization and family planning. Emphasis also was placed on preventing soil erosion, providing basic education for women, supporting small-scale income generation, helping communities organize for increased civic participation and empowerment, and improving water supplies and irrigation for farming. In Gorkha, the Remote Areas Basic Needs Project had a somewhat different focus based on the specific needs of the

In Nepal, CARE has helped Drupati Darjee improve her family’s nutrition by growing vegetables in a home garden.

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region’s people. It focused on home gardening, agroforestry, improved water supply, irrigation, and increased community participation and planning. Through training and other support, CARE helped the small village of Laprak assume management of its local watershed. The forests are protected and managed sustainably by the community, while still generating income for local families. Additionally, residents learned to stabilize surrounding farmlands and roads previously threatened by landslides and erosion.

areas – about HIV/AIDS prevention. Courses provided concise messages on risk behaviors. The project also encouraged factory management to create longer-term AIDS awareness programs in the workplace. In FY99, CARE also began a five-year effort in India to improve basic services, such as clean water, health care and education, for thousands of people living in poor urban areas in the city of Delhi. Working with local nongovernmental organizations (NGOs) and community-based groups, the Promoting Linkages for Urban Sustainable Development Project provided training and technical assistance to local community development workers and helped local organizations create coalitions among communities, the government and the private sector.

E m p o w e r i n g Wo m e n Throughout Asia and the Pacific, women are poorer than men. In East Asia, the gross domestic product per capita for women is only 62 percent that of men, while in South Asia it is 36 percent. Women and girls often have few opportunities to extricate themselves from poverty. Yet, studies show a link between women’s schoolCARE programs target women and girls who often lack educational opportunities. Here, girls in Cambodia attend an awareness workshop. ing, even if only two or three years, and improved income and health of Ta r g e t i n g t h e M o s t Vu l n e r a b l e women and their families. Educated women typAsia’s cities are growing at a rapid pace. Since ically earn more, are healthier, and are likely to 1975, the percent of people living in urban areas have fewer and healthier children. in East Asia has nearly doubled, from 19 percent CARE’s education programming focuses to more than 34 percent today. The rapid influx strongly on women and girls. The Girls’ of people to cities throughout the region is strainAssistance Project in Cambodia, for example, ing local resources and economic infrastructure. addressed gender inequities and the need for CARE is addressing the growing needs of poor development for all children. In India, the Girls’ communities in urban and peri-urban areas in the Primary Education Project provided awareness region with integrated and innovative outreach training to parents, schoolteachers and commuprojects. As an example, in Thailand, the nity leaders in 150 villages in the Hardoi district Samutprakarn AIDS Prevention in the Industrial of Uttar Pradesh. Mobilizing communities to Workplace Project educated factory workers – improve access to formal education for young many of whom migrated to the city from rural girls helps break the cycle of poverty.

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REGIONAL REPORT

Since the end of the Cold War, CARE has diversified its programming in Europe – primarily the Balkans – to include food security and development of civil society, infrastructure and the economy, as well as emergency relief and rehabilitation. In fiscal year 1999 (FY99), CARE USA provided nearly $2.9 million to support programs in Albania, BosniaHerzegovina, Macedonia and Yugoslavia. Crisis in Kosovo CARE moved immediately to assist the long lines of people who fled escalating conflict in Kosovo into Albania, Macedonia, Montenegro and Bosnia-Herzegovina. As the humanitarian crisis unfolded, CARE’s response intensified, eventually to the point where CARE managed eight refugee camps housing more than 120,000 people. In Macedonia, CARE managed Stenkovec II and Cegrane, which became two of the largest of seven camps in that country. In Albania, CARE managed six camps – Spitalle, Rrashbull II, Korce, Gramsh, Hope (Fier) and Kukes II. In conjunction with other nongovernmental organizations (NGOs), CARE identified and reunited separated families, focusing on unaccompanied children, the elderly, and the mentally and physically impaired. CARE also established community service and health programs, including youth centers, information centers, mother and child health centers, trauma counseling and mine-awareness programs. When refugees began returning home, CARE established four rest stops that provided a safe area for refugees to pull off the road, receive hot food and clean water, use sanitary facilities and obtain basic medical attention. An estimated 90,000 refugees benefited from these services. Three days after the first NATO troops arrived, CARE re-entered Kosovo and began a broad emergency and reconstruction program in Ferizaj (Urosevac), Lipljan and Mitrovica. In FY00, CARE will continue providing relief and rehabilitation assistance to all the countries in the Balkans affected by the crisis.

EUROPE Developing Civil Society Throughout FY99, CARE continued its programming in the aftermath of the 1991-1995 ethnic conflict in Bosnia-Herzegovina. The Trauma Healing and Peaceful Problem Solving Project focused on healing the psychological rather than the economic wounds of war for hundreds of 11- to 13-year-olds. CARE also expanded programs in Bosnia for the promotion of civil society and the repair of schools, houses and hospitals. For example, the Phoenix Project worked with local grassroots organizations to assess community needs and problems. Activities included training civic groups in management and mobilization of resources, rebuilding communications networks and linkages, and providing assistance to repair schools, community meeting spaces and health facilities.

CARE aided Kosovar refugees by providing food, shelter and other basic services in camps in Macedonia and Albania.

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REGIONAL REPORT

LATIN AMERICA AND THE CARIBBEAN I

n fiscal year 1999 (FY99), Hurricane Mitch swept through Central America, affecting the lives of millions. An estimated 500,000 people were left homeless, and damages totaled more than $6 billion. Twenty years of economic progress were washed away as roads and bridges were demolished, communication lines were severed and agricultural areas were wiped out. Prior to the storm, CARE had a strong presence throughout the region, implementing a range of long-term development programs. In the aftermath of Hurricane Mitch, CARE was able to draw on this background to mount a quick response. While South America was not affected by the physical disaster of Hurricane Mitch, growing government deficits and regional recessions raised concern that economic stagnation would increase poverty. CARE programming in FY99 focused on economic development activities and plans to meet the needs posed by rapid urbanization. Village banking and other micro-finance programming, which have been effective in Latin America

After meeting immediate needs for shelter and safety, CARE began helping Hurricane Mitch survivors rebuild their lives.

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over the years, evolved into stronger partnerships with local nongovernmental organizations (NGOs) and formal lending institutions, and boosted the capacities of these local organizations. CARE also broadened application of its household livelihood security approach and implemented innovative programming in women’s health and education, environmental protection and marketbased agricultural production. In FY99, CARE USA supported programs totaling approximately $103 million in Bolivia, Cuba, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Nicaragua and Peru. Hurricane Mitch CARE was one of the first NGOs to respond in the wake of Hurricane Mitch. CARE staff were already in place and were able to move quickly to provide emergency relief, putting existing development projects on hold only for a brief period. Medicine, clean water and food were distributed, and the construction of temporary shelters began almost at once. As communities stabilized and people’s lives were secured, CARE quickly moved into rehabilitation programs to help families resume their daily lives – getting children back to school, parents back to work, and structures built to house the displaced. Though much progress has been made, the rebuilding of Central America will take years to complete. Environmental Protection Many of CARE’s programs are based on the understanding that biodiversity and environmental and economic security are interdependent. Human settlement and migrations can threaten the natural balances of eco-systems through deforestation, the destruction of watersheds, the loss of arable land and the extinction of plants. However, without land to farm or use for grazing, families lose food and income. CARE environmental programs in Latin America aim to preserve and protect the environment and at the same time provide economic


opportunities to poor families. For example, in Honduras, where 47 percent of the population lives on less than $1 per day, the Lenca Community Forest Management Project worked with families in Intibucá to improve management of communal forests. The project provided training and supported increased community participation in sustainable agroforestry management. It also provided access to credit so that families could pursue activities to supplement their incomes. Community forestry committees were established to enhance participatory planning and management among all community members. In the same region, the Institutional Strengthening for Environmental Management Project worked with poor farming families to diversify crops, increase cash crop farming, and improve access to basic services and markets through the building of roads. Improved primary health care, education, nutrition, and water and sanitation were integral to this project as well. Families that previously faced potential loss of their livelihoods are now able to plan for a future. In Ecuador, CARE has initiated an innovative development project to address the health, environmental, educational and economic issues of nearly 1,000 extremely poor families. On the outskirts of the city of Cuenca, recycling trash from the public dump has been a source of employment for hundreds of people, mostly women. Glass, scraps of metal, plastic and paper are collected and sold, earning families an average of $35 each month. CARE’s Solid Waste Recycling Project helped people organize recycling centers, obtain equipment, implement a marketing plan and start an association. It also helped them adopt health measures to prevent illness resulting from unsanitary conditions. The association is now advocating in favor of effective local solid waste management policies. In addition, the project is building a day-care center for young children of the recyclers. Local women are being trained as child care providers, and the children receive food, health care and some schooling while their mothers work.

In Ecuador, CARE helped people who survive by recycling trash to organize, obtain equipment and adopt health measures.

Providing Access to Credit Seventy-four percent of Latin America’s population lives in cities or on their outskirts and the microenterprise sector has become increasingly important for this population. As a result, access to credit for people wanting to start or expand small businesses, as well as training to manage these small moneymaking activities, is increasingly important for the survival of millions of people in the region. In Peru, for example, microenterprises employ 62 percent of the working population. CARE helped to improve access to credit and training for small business owners around Peru’s capital of Lima through the EDYFICAR Project. With a focus on women, EDYFICAR is a legally recognized financial institution that CARE helped create. While CARE’s role in the project has decreased, the institution continues to provide a wide range of legal and financial services, including management training and credit, for people operating or starting small businesses. By supporting local organizations like EDYFICAR, CARE encourages sustainability and reduces dependency on international organizations.

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CARE INTERNATIONAL

World Map

This map represents the world of CARE.* In gold are the 10 members of CARE International, the confederation that supports relief and development projects worldwide (see page 36 for more information). Displayed in green are the 67 countries where CARE International works. In order to coordinate operations, one member of CARE International is designated “lead member.” CARE USA is the lead member in 41 countries, which are italicized below. LATIN AMERICA AND THE CARIBBEAN 1 Bolivia 2 Cuba 3 Ecuador 4 El Salvador 5 Guatemala 6 Haiti 7 Honduras 8 Nicaragua 9 Peru AFRICA AND THE MIDDLE EAST 10 Angola 11 Benin 12 Burundi 13 Cameroon 14 Chad 15 Comoros 16 Egypt 17 Ethiopia 18 Ghana 19 Guinea 20 Iraq 21 Jordan 22 Kenya 23 Lesotho 24 Madagascar

25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Malawi Mali Mozambique Namibia Niger Rwanda Sierra Leone Somalia South Africa Sudan Tanzania Togo Uganda West Bank/Gaza Yemen Zambia Zimbabwe

ASIA AND THE PACIFIC 42 Afghanistan 43 Armenia 44 Azerbaijan 45 Bangladesh 46 Cambodia 47 China 48 Georgia 49 India

50 51 52 53 54 55 56 57 58 59 60

Indonesia Laos Myanmar Nepal North Korea Papua New Guinea Philippines Sri Lanka Tajikistan Thailand Vietnam

EUROPE 61 Albania 62 Bosnia-Herzegovina 63 Bulgaria 64 Croatia 65 Macedonia 66 Russian Federation 67 Yugoslavia

CARE INTERNATIONAL MEMBER COUNTRIES 68 Australia 69 Austria 70 Canada 71 Denmark 72 France 73 Germany 74 Japan 75 Norway 76 United Kingdom 77 United States

– Countries with ongoing CARE programming – CARE International members

*The regional partition of this map reflects CARE’s operational structure.

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CARE 1999 ANNUAL REPORT

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OUR SUPPORTERS

1999 FUND RAISING HIGHLIGHTS Fiscal year 1999 (FY99) broke all records in terms of private support for CARE’s emergency relief and development programs. Individuals, corporations, and foundations and other organizations provided more than $64.5 million to CARE. Individual Donations In FY99, individual contributions totaled $35.5 million, the result of more than 400,000 donors making more than 750,000 gifts. CARE also received $8.4 million through bequests and other planned gifts, such as gift annuities, charitable remainder trusts and pooledincome funds. Corporations Businesses supported CARE through annual unrestricted gifts, long-term strategic social investments to countries in which they work, and marketing programs, such as sponsorships, causerelated marketing and other licensing agreements. CARE received more than $4.2 million in gifts from corporate citizens.

Donor Patricia Sprincin, Cokie Roberts and California’s first lady Sharon Davis at a Women’s Initiative luncheon.

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Led by Frank N. Newman, former CEO of Banker’s Trust Company, CARE’s Corporate Council marshaled 147 companies with contributions of $5,000 or more during the fiscal year. Of these, 34 companies contributed $25,000 or more, and nine gave $100,000 or more. Donations in the form of products provided relief to Hurricane Mitch survivors, Kosovar refugees, and victims of famine and drought in Sudan. Supplies of pharmaceuticals, seeds and other contributions-in-kind totaled $800,000 in FY99. Foundations and Organizations A variety of private foundations granted more than $8.1 million to CARE in FY99, while contributions from cooperatives, civic associations, social clubs, religious bodies and other groups totaled an unprecedented $4.8 million C e l e b r i t y a n d We b S u p p o r t Humanitarian crises in FY99 prompted support from the music community. The rock group Pearl Jam and Epic Records, a division of Sony, donated 100 percent of the proceeds from the single “Last Kiss” to CARE’s Kosovo relief efforts. Pearl Jam’s rerecording of “Last Kiss” was the first single on Epic Records’ 16-track album No Boundaries. One-third of the album’s proceeds will support Kosovo relief efforts. Contributions from the single and the album are expected to surpass $1.6 million. Emusic.com Inc. donated all proceeds from sales of the downloadable CARE for Kosovo on-line benefit CD. In addition, CARE received a donation whenever fans downloaded one of The Beastie Boys’ songs from the Launch.com web site. These donation vehicles also helped raise awareness of CARE among new audiences. In addition, another web site alliance with ClickRewards.com encouraged web surfers to donate by awarding them a frequent flyer mile for every dollar contributed to CARE. Such alliances with high-traffic sites that feature automatic Internet links to CARE’s donor page helped contribute to on-line donations of about $600,000 in FY99.


Making Changes Happen “I

’ve often wondered why I give,” CARE donor E.T. Baldridge ponders. “I like to think about it as sharing rather than giving. And I have found that when I give more, I get more out of life. It especially makes me feel good to give others the opportunity to do things for themselves, to find their own solutions.” Baldridge has visited CARE projects around the world to see firsthand the benefits of his gifts to CARE. He speaks of those trips in profoundly moving terms. “When I was down in El Salvador, the country was just coming out of a 12-year civil war, and I met people who were putting in a water system. They had a ditch that was about six or seven miles long, and they had to dig the ditch and

lay the water pipes to bring water from a reservoir. The people working on the ditch had fought during the war and were pretty tough people. They were down there working and had been at it about five months. I asked them how long it would be before they got finished, and they said about four more months. I asked one of the men why he was doing this, and he just looked at me with a blank look on his face and said, ‘So my children can have water.’ Tears came to my eyes, and I just stood there by that ditch about to cry. “Before, I didn’t know why I gave. I didn’t know why anybody did. But to see people’s lives change, to see the woman that looked at my wife with just pure love in her eyes

To raise support for relief efforts in the wake of Hurricane Mitch, CARE worked with the Confederation of North, Central American, Caribbean Association Football (CONCACAF) to sponsor CONCACAF/CARE Soccer Relief 1998. The national soccer teams of Mexico, Guatemala, El Salvador and Honduras played in two doubleheaders in the Los Angeles Coliseum, raising more than $625,000. Honors and Events CARE hosted several events in FY99, as both a tribute to the remarkable contribution of donors and a forum for bringing pressing issues to the forefront of public attention. At its Global Leadership Awards Ceremony, CARE USA’s Philanthropist Award was presented to E.T. and Pat Baldridge (profiled above),

E.T. Baldridge visits a CARE project.

because she was about to get water. And to see the women in Africa and their faces light up just because they can feed their children. To be a part of that is wonderful. There’s just nothing better in the world.”

whose generous support for CARE has enabled the organization to help thousands of people worldwide. Michel Azcueta was honored with CARE USA’s International Humanitarian Award for his leadership improving conditions in the poor squatter settlement of Villa El Salvador, Peru. In addition, CARE honored Archbishop Desmond Tutu with its first Lifetime Achievement Award. ABC News’ Cokie Roberts was the keynote speaker at a 500-person luncheon in San Francisco for CARE’s Women’s Initiative, the nationwide effort to build awareness and financial support for programs that create opportunity for women in the developing world. Other Women’s Initiative events throughout the year included receptions in Washington, D.C., Connecticut, Dallas and New York.

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OUTREACH

SHAPING OUR WORLD C

ARE’s ability to carry out programs effectively can be helped or hindered by government policy. CARE’s on-the-ground experience and independence, together with its avoidance of partisan politics, lend the organization credibility and respect.

CARE President Peter D. Bell, U.S. Rep. John Lewis and CARE board member Alan Wheat pack CARE Packages®.

CARE uses these qualities selectively to advocate in favor of policies fostering development, peace and justice. Following are highlights of CARE’s advocacy efforts in fiscal year 1999 (FY99). Hurricane Mitch After Hurricane Mitch, CARE worked closely with other organizations in calling on the international community to provide more support to the region – not just to rebuild physical infrastructure, but also to strengthen social structures. CARE helped communities to identify needs and communicate them to local governments and the international community. In coalition with other organizations, CARE urged the U.S. administration and Congress to provide resources and technical assistance to the region. Seven months after the hurricane, CARE invited members of Congress to assemble CARE Packages®

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for people who were building new homes on land secured through local advocacy efforts. Ninety-four members showed their support by assembling packages for families in Marcovia, Honduras. The enormous suffering from Sudan’s ongoing civil war gave rise to another important advocacy initiative. In FY99, CARE and other relief organizations lobbied the U.S. government to make a just peace the centerpiece of its Sudan policy. In-Country Advocacy Much of CARE’s efforts to effect policy changes take place in the developing world itself. Following is an update on two such cases. In Ecuador, CARE used its technical expertise and community relationships to contribute to changes in land-use policies. The Sustainable Use of Biological Resources Project is an integrated conservation and development effort in the Cotacachi-Cayapas Ecological Reserve in northwest Ecuador, one of the world’s 10 most biologically diverse areas. CARE coordinated with community leaders and government officials to improve land management practices and empower communities to resolve property ownership issues. CARE helped establish a paralegal training program that mediates land disputes and helps local communities gain legal title to their land. On the national level, CARE provided consultants to support a forestry policy review. CARE’s advocacy efforts in the Philippines support the organization’s work there in a different way. Street vendors in the Philippines have few rights or protections in the marketplace, but they account for a large segment of the informal economy. Through a project by the same name, CARE helped the local community establish the Coalition for Recognition and Empowerment of Street Traders in order to provide street vendors with more access to financial and social resources. The project also promoted partnerships with leaders on the local, regional and national levels to support policy reform and build alliances between street vendors and authorities. These efforts have resulted in fewer confrontations between vendors and police and expanded opportunities for small-business entrepreneurs.


OUTREACH

Awareness

of CARE’s work and mission was heightened as a result of visibility and outreach efforts during the year. Prompt web updates, highquality public service announcements (PSAs), timely news releases and informative media commentary enhanced the organization’s reputation as a reliable and trusted authority on humanitarian relief and development in fiscal year 1999 (FY99). We b S i t e I s N e w s L e a d e r The public’s quest for timely and accurate information on international events catapulted CARE’s web site into a major vehicle for news as well as enabling donor support. CARE’s web site, redesigned in December 1998, featured immediate updates on world events, including relief efforts for Hurricane Mitch and the Kosovo crisis. The site increasingly topped 2 million hits each month and, in April alone, achieved 4.7 million hits – an 800 percent increase over April 1998. The Chronicle of Philanthropy and NonProfit Times lauded the site’s record traffic among charities on the Internet, and USA Today encouraged readers to visit CARE’s first virtual field trip, a five-day visit to CARE programs in Bolivia. Videos Reach Broad Audiences The year saw record airings of CARE PSAs, with television stations donating more than $9 million of broadcast time. In the last half of FY99, TV stations aired CARE’s PSAs more than 25,000 times – an increase of 36 percent over the record-breaking volume achieved in the same period in 1998. Three of the big four national networks and some 800 local stations featured CARE PSAs, contributing to a campaign that reached millions of people. CARE produced four emergency relief PSAs, two in Spanish in response to Hurricane Mitch and two concerning the Kosovo crisis. These spots augmented CARE’s annual campaign, which included seven new spots and five popular spots from previous campaigns. In FY99, CARE also worked with the Smithsonian Institution to produce a mini-documentary about the village of Siaya, Kenya, for the

TELLING CARE’S STORY Smithsonian’s Hall of African History and Cultures. The film depicts CARE’s success establishing pharmacies and training community health workers to eradicate malaria and other diseases. The exhibit is scheduled to open in December 1999. M e d i a S e e k s C A R E ’s A u t h o r i t y Intensified interest in emergencies contributed to more than 2,400 CARE media placements with a circulation of more than 3.9 billion in FY99. Coverage of CARE’s aid to victims of Hurricane Mitch appeared on CBS “Sunday Morning,” CNN en Español, ABC news and NPR, while CARE’s response to the crisis in Kosovo drew television reports by CNN Headline News, “CNN Today,” “News World International” and MSNBC. In addition, CARE staff members were featured in articles in the Los Angeles Times, New York Times, Boston Globe and Atlanta Journal-Constitution. CNN and Fortune spotlighted CARE staff working in Kosovo refugee camps. In addition, more than 100 CARE press releases focused attention on programs in Sierra Leone, Guinea, Afghanistan, Indonesia, Niger, Sudan, North Korea and other parts of the world.

CARE’s new virtual field trips take web surfers on far-away educational adventures.

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WORLDWIDE EFFORT

C A R E PRESIDENT Sir Harold Walker

SECRETARY-GENERAL Guy Tousignant

MEMBER NATIONS AND DIRECTORS

Australia Charles Tapp

Canada A. John Watson

Danmark Niels Tofte

Deutschland Manuela Rossbach

France Jean-Claude Buchet

Japan Satoshi Endo

Norge Karin Gulichsen

Österreich Franz Schmid

United Kingdom Will Day

United States Peter D. Bell

CARE INTERNATIONAL is a confederation of 10 member organizations working together to combat poverty and respond to emergencies worldwide. Under the direction of the CARE International secretariat in Brussels, the confederation has expanded its role since its launch in 1982. While each member of the confederation raises funds individually, CARE International’s board of directors and secretariat helps coordinate efforts among members in the areas of development programming, emergency response, communication, advocacy and relations with multilateral agencies. In countries where CARE works, one member of the confederation is designated the “lead member” and oversees the management of programs in that country; however, CARE International members collaborate in their efforts whether the focus is on emergency relief or development. Highlights of CARE International activities in fiscal year 1999 (FY99) include responses to the crisis in the Balkans, the devastation of Hurricane Mitch, and civil strife in Africa and elsewhere. The coordinated response to the crisis in the Balkans is one example of collaboration among the members of CARE International. During the initial phase of the emergency response, CARE Australia and CARE Canada took the lead roles in Macedonia and Albania respectively, while strong support was provided by member CARE organizations from the United States, United Kingdom, Germany, Austria, France and Norway. In Africa, CARE International helped people displaced by drought and civil wars. One collaborative effort was in Sierra Leone, where more than 2 million people were displaced or killed by an eight-year civil war. Though CARE USA led the aid efforts, funding was provided by several CARE International members. And in response to famine and disease in Sudan, CARE International supported food distribution, health initiatives and other emergency assistance. CARE International also actively pursued advocacy efforts to end that country’s 16-year civil war.

CARE International Envisions Its Future Two years ago, CARE International began a process to determine its vision and mission for the future and develop a plan to achieve it. In FY99, 42 representatives from a broad cross-section of CARE’s

36

CARE 1999 ANNUAL REPORT

I n t e r n a t i o n a l

staff and governing bodies met in Thailand to define their vision of a truly global organization. In the first half of fiscal year 2000, the CARE International board of directors approved a new vision and mission statement to guide the future evolution of the organization. It also launched a strategic planning pro-

cess that will translate the vision into concrete steps leading to a more cohesive and integrated global organization. This will enable CARE International to undertake more coordinated and efficient relief and development efforts and better equip it to meet the challenges of the new millennium.


LEADERSHIP

C A R E

I n t e r n a t i o n a l

O f f i c i a l s

CARE Country Directors, Acting Country Directors and Representatives and CARE USA Regional Directors

Afghanistan Stuart Worsley

Angola Patricia Buckley

Bangladesh Stephen Wallace

Bolivia Jan Schollaert

Burundi David Rhody

Caucasus* Tamara Tiffany

China Kristian Whittaker

Ecuador Gordon Molitor

Egypt Anne Goddard

El Salvador Rafael Callejas

Ethiopia Paul Barker

Guatemala Kirsten Johnson

Gulf of Guinea** Jean Michael Vigreux

Haiti Sandra Laumark

Honduras Marc de Lamotte

India Thomas Alcedo

Indonesia Walter Crandall

Kenya Leo Roozendaal

Laos Mike Carroll

Lesotho Steve Zodrow

Madagascar Lisa Dean

Malawi Nicholas Osborne

Mali Joseph Kessler

Mozambique Rowland Roome

Nepal Robin Needham

Nicaragua Mary J. Conway

Niger Douglas Steinberg

North Korea Charlie Danzoll

N. Sudan Michel Belisle

Peru Beat Rohr

Philippines David Neff

Somalia/ S. Sudan Scott Faiia

Sri Lanka Steven Hollingworth

Tanzania Geoffrey Chege

Thailand Promboon Panitchpakdi

Vietnam Richard Harman

West Bank/Gaza Earl Wall

Yugoslavia Bernard Barron

Zambia Kevin McCort

Zimbabwe Dennis O’Brien

Not Pictured: Albania, Richard Rathwell; Bosnia-Herzegovina and Croatia, Howard Bell; Bulgaria, David Clapp; Cambodia and Myanmar, Neil Hawkins; Cameroon, Gerard Holdrinet; Chad, Patrice Chanuel; Comoros, Jacques Gruloos; Iraq, Margaret Hassan; Jordan, Johan Ramon; Kosovo, Tom Hurley: Macedonia, Jo Hutton; Rwanda, Uwe Korus; Sierra Leone and Guinea, Nick Webber; Tajikistan, Thomas Leckinger; Uganda, Phil Vernon; Yemen, Tim Kennedy.

REGIONAL DIRECTORS

*Caucasus includes Armenia, Azerbaijan and Georgia.

Asia/Europe Robert LaPrade

East Africa/ Middle East Jon Mitchell

Southern and West Africa Christopher Conrad

Latin America/ Caribbean Virginia Ubik

**Gulf of Guinea includes Benin, Ghana and Togo. Note: Operations in Cuba, Namibia, Papua New Guinea, the Russian Federation and South Africa currently do not have country directors.

CARE 1999 ANNUAL REPORT

37


CARE USA LEADERSHIP

B o a r d

o f

D i r e c t o r s

0fficers Chair Lydia M. Marshall President Peter D. Bell

Vice Chairs Nancy S. Calcagnini Lincoln C. Chen, M.D. Glenn H. Hutchins

Secretary Carol Andersen President Emeritus Philip Johnston, Ph.D.

Treasurer James G. Mathews

Members Peter Ackerman, Ph.D. Managing Director Rockport Capital, Inc.

Karen R. Johnson Former President Entergy/GSU, Texas

John P. Morgridge Chairman Cisco Systems

Peter D. Bell President CARE

Mary Ellen Johnson Former Vice President and Treasurer Sara Lee Corporation

David M. Olsen Senior Vice President Starbucks Coffee Company

Nancy S. Calcagnini Former Managing Director CS First Boston, Inc. Lincoln C. Chen, M.D. Executive Vice President Rockefeller Foundation W. Bowman Cutter, III Managing Director E.M. Warburg, Pincus & Company, LLC Joan B. Dunlop Director Women’s Lens on Global Issues Rockefeller Brothers Fund William H. Foege, M.D., MPH Distinguished Professor International Health Rollins School of Public Health Emory University Glenn H. Hutchins Founder and Principal Silver Lake Partners, L.P.

38

CARE 1999 ANNUAL REPORT

Philip Klein Senior Partner Browning, Jacobson & Klein James T. Laney, Ph.D. President Emeritus Emory University Deborah Leff President and CEO America’s Second Harvest Kenneth Lehman Principal KKP Group LLC Lydia M. Marshall Chairman and CEO eVantage Incorporated Paul G. Matsen Senior Vice President - Alliances Delta Air Lines, Inc. Gay Johnson McDougall Executive Director International Human Rights Law Group

Bruce C. Tully Managing Director Deutsche Banc, Alex. Brown Monica Vachher President The Astor Group, Ltd. A. Morris Williams, Jr. President Williams & Company Alan Wheat President Wheat & Associates Sally Yudelman Senior Fellow International Center for Research on Women (All directors are also members of the board of overseers.)


CARE USA LEADERSHIP

AFRICA E x e c u t i v e

Peter D. Bell President and Chief Executive Officer

Marilyn F. Grist Senior Vice President, External Relations

Te a m

A. Patrick Carey Senior Vice President, Program

James G. Mathews Senior Vice President, Finance and Administration

Barbara Murphy-Warrington Senior Vice President, Human Resources

Milo Stanojevich Chief of Staff

CARE 1999 ANNUAL REPORT

39


FINANCIAL REPORT

C A R E

R e p o r t

f r o m

M a n a g e m e n t

CARE USA’S PROGRAM AND OPERATIONAL ACHIEVEMENTS DURING FISCAL YEAR 1999

(FY99) were reflected in a highly successful year financially, as the accompanying statements and notes illustrate. Total support and revenue of $419.6 million represented an 11 percent increase over the prior year and was the second highest in CARE’s history, exceeded only in FY95 when support for emergency activities added substantially to income. Funding in most revenue categories increased to record levels, including $64.5 million from individuals, corporations and private foundations and $56.2 million generated by other CARE International members. U.S. government support totaled $239.7 million, a 7 percent rise over FY98, while host governments, multilateral and other donors provided another $52.9 million during the year. Included in these amounts were $290.4 million in cash grants and contracts, $125.0 million in agricultural commodities, and $4.2 million in in-kind gifts, each representing an advance over the previous year. Some of these increased financial resources were the direct result of generous donor response to humanitarian crises in Central America and the Balkans, but CARE also generated a record amount of funding for development activities during FY99. In total, almost $376 MILLION WAS APPLIED TO CARE PROGRAMS, representing more than 91 percent of the organization’s annual expenditures. This efficiency was due in large part to continuing emphasis on cost controls in administrative and fund-raising areas, which produced headquarters’ expenses only modestly higher than in FY98. As a result, all the regularly monitored operating ratios and other productivity indicators remained at very favorable levels. Such measures are, of course, only one gauge of good stewardship. What is most gratifying is that, in an environment that requires increasing investment in support services, CARE continues to direct an overwhelming proportion of available donor funds to its work overseas. MANY KEY INITIATIVES going forward are founded upon a strategic plan that extends through FY01. This plan was thoroughly examined and updated during the past year to confirm its relevance to the most critical organizational challenges and to ensure that monetary commitments are similarly directed. CARE USA has been very fortunate in attaining a level of financial strength in recent years, and an important part of the organization’s strategy is to utilize available resources to invest in areas with the greatest potential of achieving long-term benefits for project participants. The first such initiative was last year’s establishment of the Africa Fund, a $6 million board-designated endowment dedicated to furthering development programming in sub-Saharan Africa. In June of this year, the board of directors authorized substantial expansion of that fund and increased resources for the existing CARE International Support Fund to further build on global organizational strengths. The board also made specific resource commitments to two additional funds – the Central America Transformation Fund for rehabilitation of areas affected by Hurricane Mitch and a Program Innovations and Development Fund directed toward program expansion and improvement as well as increased efforts in advocacy. Each of these funds is detailed under Note 3 of the Financial Statements, which describes the various net asset designations and their balances as of June 30, 1999. THESE COMMITMENTS, as well as overall results for FY99, illustrate particularly well that one of the principal benefits of a strong financial organization is the ability to maintain existing programs of the highest quality while making substantial investments in future development efforts.

James G. Mathews, Senior Vice President, Finance and Administration

40

CARE 1999 ANNUAL REPORT


R e p o r t

o f

I n d e p e n d e n t

P u b l i c

A c c o u n t a n t s

To the Board of Directors of CARE USA:

In our opinion, the accompanying balance sheets and the related statements of activities, functional expenses, and cash flows present fairly, in all material respects, the financial position of CARE USA (a District of Columbia corporation) at June 30, 1999 and 1998 and the changes in net assets and cash flows for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of CARE USA’s management; our responsibility is to express an opinion on these statements in accordance with generally accepted auditing standards, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP Atlanta, Georgia September 2, 1999

C A R E

U S A

B a l a n c e

As of June 30, 1999 and 1998

S h e e t s

In Thousands

1999 Assets Cash and cash equivalents (Note 2) Investments (Note 4) Receivables (Note 2) Deposits and other assets Property and equipment, net (Notes 2 and 5) Perpetual trust held by third party (Note 3) Total Assets

$

48,355 127,928 39,272 25,307 8,281 105,853

1998 $

54,990 127,575 20,572 16,833 7,027 98,682

$ 354,996

$ 325,679

$

$

Liabilities and Net Assets Liabilities Accounts payable and accrued expenses Program advances by government & nongovernment agencies Annuities payable, pooled income fund, unitrusts (Note 2) Benefits accrued for overseas national employees Bonds payable (Note 5) Total Liabilities

43,431 63,960 17,705 11,408 3,635

43,621 55,772 14,638 9,727 3,835

140,139

127,593

75,945 28,379 110,533

74,897 19,894 103,295

Commitments and contingencies (Notes 5 and 12) Net assets (Note 3) Unrestricted Temporarily restricted Permanently restricted Total Net Assets Total Liabilities and Net Assets

214,857

198,086

$ 354,996

$ 325,679

The accompanying notes are an integral part of these financial statements.

CARE 1999 ANNUAL REPORT

41


FINANCIAL STATEMENTS

C A R E

U S A

S t a t e m e n t s

For the years ended June 30, 1999 and 1998

Unrestricted Support Public Support General purpose Temporarily restricted Addition to endowment CARE International Interest and dividends on restricted net assets Net Assets released from restrictions Satisfaction of program restrictions

$ 40,642) 56,181) 3,293) 12,747)

A c t i v i t i e s

In Thousands

Temporarily Restricted

Permanently Restricted

$ 19,927) $

67)

522) (12,747)

1999

1998

$ 40,642) 19,927) 67) 56,181) 3,815) 12,747) (12,747)

$ 38,144) 10,193) 350) 46,964) 3,575) 9,666) (9,666)

Total Public Support

112,863)

Government and other support U.S. government Host governments Others

239,728) 27,202) 25,652)

120,632) ) 239,728) 27,202) 25,652)

99,226) ) 224,422) 23,242) 25,874)

Total Government and Other Support

292,582)

292,582)

273,538)

5,545) 861)

5,545) 861)

5,732) 1,133)

Other Revenue Interest and dividends on unrestricted net assets Rent and miscellaneous Total Other Revenue

411,851)

Expenses Program (Notes 10 and 11) Fund Raising Management and general Public information Grants to CARE International

375,900) 16,627) 13,113) 2,615) 2,633)

Total Expenses

410,888)

Other Changes in Net Assets ) Foreign exchange gains Actuarial loss on annuity obligations Actuarial gain on pooled income fund obligations Realized and unrealized gains on investments (Note 4) Increase in value of trust held by third party (Note 3) Total Change in Net Assets Net Assets, Beginning of Year Net Assets, End of Year

963)

(1,048)

67)

7,702)

7,702)

67)

6,406)

6,865)

419,620)

379,629)

375,900) 16,627) 13,113) 2,615) 2,633)

339,284) 15,512) 13,799) 1,844) 2,802)

410,888)

373,241)

67)

8,732)

6,388)

7,171)

(1,048) 8) 1,908) 7,171)

534) (1,513) 356) 6,704) 20,251)

1,133)

8) 775)

1,048)

8,485)

7,238)

16,771)

32,720)

74,897)

19,894)

103,295)

198,086)

165,366)

$ 75,945)

$ 28,379)

$ 110,533)

$ 214,857)

$ 198,086

The accompanying notes are an integral part of these financial statements.

CARE 1999 ANNUAL REPORT

7,702)

6,406)

Total Support and Revenue (Note 8)

Excess of Support and Revenue Over Expenses

42

o f


C A R E

U S A

S t a t e m e n t s

o f

F u n c t i o n a l

For the years ended June 30, 1999 and 1998

Program Activities Personnel costs Professional services Equipment Materials and services Travel and transportation Occupancy Financing/depreciation Grants/subgrants AgCommodities/CIKs

$

89,218 8,573 5,762 82,009 30,115 10,817 3,877 16,434 129,095

Fund- Management Raising & General $

5,452 829 127 8,724 466 509 505

$

7,976 1,703 676 479 593 949 679

E x p e n s e s

In Thousands

Public CARE Information International

1999 Total

15

58

$ 1,538 308 24 514 132 23 63 6 7

$ 104,184 11,413 6,589 91,726 31,306 12,298 5,124 2,633 19,073 129,175

Total Operating Expenses for 1999

$ 375,900

$ 16,627

$ 13,113

$ 2,615

$ 2,633 $ 410,888

Total Operating Expenses for 1998

$ 339,284

$ 15,512

$ 13,799

$ 1,844

$ 2,802

1998 Total $

95,664 9,536 6,548 78,901 28,038 11,742 4,260 15,904 122,648

$ 373,241

The accompanying notes are an integral part of these financial statements.

CARE 1999 ANNUAL REPORT

43


FINANCIAL STATEMENTS

C A R E

U S A

S t a t e m e n t s

For the years ended June 30, 1999 and 1998

C a s h

F l o w s

In Thousands

1999)

1998)

$ 16,771)

$ 32,720)

612) (67) (1,908) 1,048) (8) (7,171)

594) (350) (6,704) 1,513) (356) (20,251) 1,194)

(18,700) (8,474) (190) 8,188) 1,681)

(222) 3,822) 11,296) 1,157) 711)

Net Cash and Cash Equivalents Provided by (used for) Operating Activities

(8,218)

25,124)

Cash Flows (used for) Investing Activities Net decrease (increase) in investments less realized and unrealized gains Net purchases of property and equipment

1,555) (1,866)

(5,181) (2,551)

(311)

(7,732)

67) (200) 2,027)

350) (200) (315)

Cash Flows Provided by (used for) Operating Activities Change in net assets Adjustments to reconcile change in net assets to cash flows Depreciation Contributions restricted for investment in endowment Realized and unrealized gain on investments Actuarial loss on annuity obligation Actuarial gain on pooled income fund obligation Increase in value of perpetual trust held by third party Loss on disposal of software Changes in assets and liabilities Increase in receivables Decrease (increase) in deposits and other assets Increase (decrease) in accounts payable and accrued expenses Increase in program advances Increase in benefits accrued for overseas national employees

Net Cash and Cash Equivalents (used for) Investing Activities Cash Flows Provided by Financing Activities Proceeds from contributions restricted for investment in endowment Principal payments on bonds payable Net increase (decrease) in annuities payable, pooled income fund, unitrusts Net Cash and Cash Equivalents Provided by (used for) Financing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year

The accompanying notes are an integral part of these financial statements.

44

o f

CARE 1999 ANNUAL REPORT

1,894)

(165)

(6,635)

17,227)

54,990)

37,763)

$ 48,355)

$ 54,990)


C A R E

U S A

N o t e s

t o

Note 1 – Organization The Cooperative for Assistance and Relief Everywhere, Inc. (“CARE USA”) is a not-for-profit organization formed in 1945 under the laws of the District of Columbia. CARE USA is a tax-exempt organization under Section 501(c)(3) of the U.S. Internal Revenue Code (“IRC”) and is therefore exempt from federal income taxation under Section 501(a) of the IRC. In addition, under IRC Section 509(a)(1), CARE USA is a public charity and, thus, donations to CARE USA qualify for the maximum allowable charitable deduction. CARE USA is a member of CARE International, an umbrella organization that coordinates the program activities of the CARE International member organizations. In the regular course of its operations, CARE USA makes certain grants to CARE International and its member organizations and receives certain funding from members of CARE International.

F i n a n c i a l

S t a t e m e n t s

bio-intensive crop and production technology, livestock practices, post-harvest practices (storage/processing), agriculture-based income-generation activities, recuperation/ more environmentally sound use and/or conservation of natural resources, planting trees on private and community lands, integrated conservation and development, and the supply of seeds and tools (usually in relief situations).

Basic and Girls’ Education Includes formal education, literacy and other forms of non-formal education.

Children’s Health Includes, but is not limited to, disease prevention (e.g. malaria and pneumonia), immunization, control of diarrheal disease, integrated management of childhood illness, nutrition education, breast feeding, addressing micronutrients deficiencies, and home gardening.

CARE USA Mission Statement CARE USA’s reason for being is to affirm the dignity and worth of individuals and families in some of the poorest communities of the world. We seek to relieve human suffering, to provide economic opportunity, to build sustained capacity for self-help, and to affirm the ties of human beings everywhere. We are committed to pursuing our mission with excellence because the people whom we serve, beneficiaries and donors, deserve nothing less. CARE USA’s immediate goal is to provide more rapid and comprehensive relief in humanitarian crises and to enable a growing number of poor families in the developing world to significantly improve their lives. CARE USA will support this goal as a partner, implementor and advocate to help families achieve: (1) improved nutrition, (2) better access to food, (3) improved health, (4) increased income, (5) more opportunity for education, and (6) greater participation in decisions that affect their lives. CARE USA classifies its program activities into two major types: (1) emergency relief and rehabilitation and (2) development. CARE USA also classifies its program activities by technical sectors (refer to Note 11 for expenses per sector and per type). The classification of a program activity (called a project) into a sector is based on the dominant sector of the project. The technical sectors are:

Reproductive Health Includes, but is not limited to, family planning, prevention of STD/HIV/AIDS, maternal health and newborn care.

Water and Sanitation Includes, but is not limited to, water supply, institutional arrangements for operation and management of water and/or sanitation systems, watershed management, environmental sanitation, hygiene education, sanitation, solid waste management, surface water and drainage.

Integrated and Other Health Includes a combination of the above health sectors, with none predominant, and/or other health interventions, such as prevention of chronic and other infectious diseases.

Nutritional Support Includes feeding of children under age 5, take-home food and on-site feeding, feeding of pregnant or lactating women, feeding of school children, and general feeding (such as in relief situations), including take-home and onsite dry rations.

Infrastructure Includes roads, bridges, buildings, shelters, and other construction or maintenance (commonly done through food-for-work or cash-for-work).

Agriculture and Natural Resources (ANR) Includes, but is not limited to, sustainable agricultural and natural resource management techniques such as:

Small Economic Activity Development (SEAD) Includes, but is not limited to, finance-related services,

CARE 1999 ANNUAL REPORT

45


FINANCIAL STATEMENTS

C A R E

U S A

N o t e s

t o

such as loans to individuals, loans to solidarity or other community groups, savings programs, business development, business management training, technical training, and marketing.

Multi-Sector and Other Multi-sector projects include activities related to three or more sectors, none of which is predominant. “Other” includes certain activities that cannot be classified in any of the sectors described above, such as logistical support not related to infrastructure or nutrition programs during emergencies, and land mine awareness and removal activities.

Note 2 – Summary of Significant Accounting Policies

S t a t e m e n t s

Gift Annuities CARE USA enters into agreements with donors in which the donor contributes assets to the organization in exchange for an annuity to be paid to the donor or their designee for a specified period of time. The assets received for an annuity are recorded at fair market value at the date of the gift. The liability associated with these annuities is recorded at the present value based on IRS mortality tables and prevailing interest rates. The difference is revenue and is recorded as unrestricted support in the statements of activities.

Bequests Contributions obtained via bequests are recorded as contribution revenue when the amounts are determinable and collection is reasonably assured.

Basis of Accounting

Pooled Income Fund

The accounts of CARE USA are maintained in accordance with generally accepted accounting principles. The following is a summary of CARE USA’s significant accounting policies.

CARE USA has formed, and now manages and invests, a pooled income fund in which donor contributions are combined. The fund is divided into units representing the proportional fair market value of each contribution to the total value of the fund at the date of each gift. A donor may name up to two beneficiaries, one of which can be himself, at the time of the contribution. All income earned on the investments is distributed to the beneficiaries during their lifetime, and the principal originally contributed is released to CARE upon the death of the last beneficiary. CARE USA recognizes the remainder interest in the assets received as temporarily restricted contribution revenue in the period in which the assets are received from the donor. The net assets associated with specific units are released from restriction at the date of death of the last beneficiary for those units.

Cash and Cash Equivalents Cash and cash equivalents include demand deposits plus all time deposits and highly liquid investments with an original maturity of three months or less.

Investments Investments are carried at reported market values. See Note 4 for further discussion.

Receivables The receivables on the balance sheets are net of allowances of $2.0 million and $2.4 million for the years ended June 30, 1999 and 1998, respectively. Included in receivables are SEAD loan receivables that are offset by corresponding program liabilities.

Property and Equipment Property and equipment are recorded at cost if purchased or, if donated, at the fair value at the date of the gift. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets, which are 15 and 5 years for buildings and equipment, respectively. Equipment acquired for direct use in programs is expensed in the year of acquisition.

46

F i n a n c i a l

CARE 1999 ANNUAL REPORT

Agricultural Commodities CARE USA receives agricultural commodities from agencies of the U.S. government, the United Nations and others for the following: distribution via CARE USA projects, monetization with the cash proceeds to be used in CARE USA projects, or monetization with the proceeds to be distributed to other non-profit organizations. Agricultural commodities (“commodities”) received for distribution are recorded at an amount approximating fair market value. These commodities are recorded as revenue and expense upon receipt. Commodities received in the


C A R E

U S A

N o t e s

t o

U.S. are considered received when shipped. Commodities for distribution received outside of the U.S. are recorded as revenue and expense when title is obtained. Commodities received to be sold (monetized) with the related proceeds designated for CARE project activities are recorded as a liability when the cash proceeds are received. Revenue and expense are recognized when the proceeds are utilized for project activities. Commodities received to be sold (monetized) with the related proceeds designated for other non-profit organizations are recorded as a liability until the funds are distributed to the other organizations. CARE USA usually receives a management fee for facilitating the shipping and sale of such commodities.

F i n a n c i a l

S t a t e m e n t s

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

See Note 9 for the tonnage and value of agricultural commodities received during the years of this report.

The carrying amounts of CARE USA’s cash and cash equivalents approximate fair value because of the short maturity of those investments. See Notes 4 and 5 for fair value information related to CARE USA’s other financial instruments.

Nonfood Contributions in Kind

Classification of Changes in Net Assets

Contributions in kind received for use in assistance programs that meet the criteria for recognition are recorded at fair value.

All public support related to general purpose and CARE International, and all government and other support and other revenue are unrestricted. All other changes in net assets related to foreign exchange gains and the actuarial gain or loss on annuity obligations are unrestricted. All other changes in net assets related to the actuarial gain on pooled income fund obligations are temporarily restricted. All public support related to addition to endowment and all other changes in net assets related to increase in value of trust held by third party is permanently restricted. See Note 4 for classification of public support related to interest and dividends on restricted and unrestricted net assets and other changes in net assets related to realized and unrealized gains on investments.

In countries where CARE USA operates, government and local communities supply labor, technical services, materials, transportation and storage facilities to the programs in which they participate. In addition, various media for public information and fund-raising campaigns are provided at no charge to CARE USA. The value of these contributions is generally not recorded in the financial statements, as the fair value of these contributions cannot be readily determined.

Foreign Currency Translation The U.S. dollar (“dollars”) is the functional currency for CARE USA’s operations worldwide. Transactions in currencies other than dollars are translated into dollars at the rates of exchange in effect during the month of the transaction. Property and equipment purchased with non-U.S. currency are translated into dollars at the exchange rate in effect at the time of purchase. Current assets and liabilities denominated in non-U.S. currency are translated into dollars at the exchange rate in effect at the date of the balance sheets.

Reclassifications Certain 1998 amounts in the notes to the financial statements have been reclassified to conform to the 1999 presentation.

CARE 1999 ANNUAL REPORT

47


FINANCIAL STATEMENTS

C A R E

U S A

N o t e s

t o

F i n a n c i a l

S t a t e m e n t s

Note 3 – Description of Net Asset Designations and Restrictions The donor-imposed restrictions (listed under Temporarily Restricted and Permanently Restricted) and the board-designated uses (listed under Unrestricted) of Net Assets as of June 30, 1999, with comparative totals as of June 30, 1998, are listed below (in thousands): Unrestricted Operating Fund Emergency Response Fund CARE International Support Fund Africa Fund Central America Transformation Fund Program Innovations and Development Fund Donor-Designated Endowment Board-Designated Endowment Fixed Assets Fund

Temporarily Restricted $ 14,294 8,634

Permanently Restricted $

503

3,316

501

2,135

109,529

8,423 12,160

1999 $ 35,294 14,137 8,000 14,679 2,000 8,500 111,664 8,423 12,160

Total at June 30, 1999

$ 75,945

$ 28,379

$ 110,533

$ 214,857

Total at June 30, 1998

$ 74,897

$ 19,894

$ 103,295

$ 198,086

The Operating Fund U n r e s t r i c t e d : A board-designated fund intended to facilitate day-to-day operations and to protect against short-term unrestricted revenue shortfalls. The board of directors has authorized an unrestricted operating fund of $21 million in support of the unrestricted expense budget of the fiscal year 2000.

Te m p o r a r i l y r e s t r i c t e d : CARE USA receives various donations for non-emergency operations that also have donor-imposed restrictions. In addition, CARE USA’s endowment funds generate revenue that can be used for operations but are also subject to donor-imposed restrictions. The restrictions may be time restrictions (the donation cannot be used until a later date), purpose restrictions (the donation may only be used for a specific purpose), or both time and purpose restrictions.

P e r m a n e n t l y r e s t r i c t e d : Donations that require permanent maintenance of the gift and allow use of the related investment income for emergencies.

The CARE International Support Fund A board-designated unrestricted fund that facilitates the implementation of program activities before the receipt of donor funds. Program implementation is facilitated by lending money to the other CARE International members based on the member’s secured contracts with institutional donors.

The Africa Fund

resources to enable the organization to mount significant and timely responses to major humanitarian disasters.

U n r e s t r i c t e d : A board-designated fund to increase CARE USA’s programming in Africa during fiscal years 1999 through 2003. CARE USA’s existing program in Africa that adapted to the changing social and political environment on the continent. The fund’s purpose is to increase CARE USA’s involvement in response to the changing environment and the enormous challenges due to chronic food insecurity, conflict and emerging infectious diseases.

Te m p o r a r i l y r e s t r i c t e d : Donations and revenue

Te m p o r a r i l y

The Emergency Response Fund U n r e s t r i c t e d : A board-designated fund to provide

from other funds that are restricted for emergency response or preparedness.

48

$ 21,000 5,000 8,000 10,862 2,000 8,500

CARE 1999 ANNUAL REPORT

r e s t r i c t e d : Donations and revenue from permanently restricted funds that are restricted to non-emergency use for Africa.


C A R E

U S A

N o t e s

t o

Pe r m a n e n t l y

r e s t r i c t e d : Donations that require permanent maintenance of the gift and require use of the related investment income for Africa.

The Central America Transformation Fund A board-designated fund to advance Central America’s transformation through CARE USA’s programming and through the policies and strategies of national and international policymakers. This fund will provide grants to increase CARE USA’s programming in a region recovering from the effects of Hurricane Mitch.

The Program Innovations and Development Fund A board-designated fund to improve CARE USA’s programming and advocacy activities. The fund’s purpose is to strengthen CARE USA’s capacity to enhance the household livelihood security of poor people through expanded and improved programming. The fund also is used to develop CARE USA’s intellectual and financial capacity to create high-impact and cutting-edge programming and to increase and improve CARE USA’s policy intervention activities.

The Donor-Designated Endowment Fund (non-emergency, non-Africa) Te m p o r a r i l y r e s t r i c t e d : CARE USA receives donations for which the principal must be temporarily maintained. The income generated from donor-designated endowment funds is generally restricted to specific uses. This related income is listed above under Operating Fund, Emergency Response Fund or Africa Fund, in the temporarily restricted column.

P e r m a n e n t l y r e s t r i c t e d : CARE USA receives donations for which the principal must be permanently maintained. This includes permanent endowments other than the Emergency Response Fund and Africa Fund.

W i l l i a m s Tr u s t : A component of the permanently restricted donor-designated endowment fund, which includes $105.9 million and $98.7 million at June 30,

F i n a n c i a l

S t a t e m e n t s

1999 and 1998, respectively, related to a trust created under the will of Thomas Lyle Williams (the “Trust”). These amounts represent two-thirds of the fair value of the investments of the Trust. CARE USA is an income beneficiary, but not a trustee, of the Trust. The corpus of the Trust is to be maintained in perpetuity. Two-thirds of the annual income of the Trust is distributed to CARE USA. The distributions to CARE USA are not to be less than $2 million in a calendar year. CARE USA received distributions of $3.3 million and $2.6 million for the years ended June 30, 1999 and 1998, respectively. These amounts are included in the statements of activities as interest and dividends on restricted net assets. Fair value increases of $7.2 million and $20.3 million for the years ended June 30, 1999 and 1998, respectively, are reflected in the statements of activities under other changes in permanently restricted net assets.

The Board-Designated Endowment A long-term fund with the following purposes: (1) to replenish or increase the Operating Fund, the Emergency Response Fund, the CARE International Support Fund, the Africa Fund and the Fixed Assets Fund as the need arises; and (2) to ensure continuance of CARE USA programs in the event of government and other support reductions. Government and other support of CARE USA programs exceeded $250 million in each of the years ended June 30, 1999 and 1998.

Fixed Assets Fund A portion of unrestricted net assets is segregated for use in the purchase of fixed assets. The fixed assets authorized by the Board of Directors at June 30, 1999, is reported below (in thousands): Fixed assets, net of depreciation (see Note 5) Capital expenditures authorized from net assets Related operating expenses authorized from net assets

$ 8,281 2,205 1,674 $12,160

CARE 1999 ANNUAL REPORT

49


FINANCIAL STATEMENTS

C A R E

U S A

N o t e s

t o

F i n a n c i a l

S t a t e m e n t s

Note 4 – Investments CARE USA carries all investments in debt and equity securities at reported market values. For financial reporting and budgetary purposes, interest and dividends are considered operating support and revenue. Interest and dividends on restricted net assets are reflected in public support, and dividends and interest on unrestricted net assets are reflected in other revenue in the statements of activities. Realized and unrealized gains and losses are considered non-operating and are classified as other changes in net assets in the statements of activities. CARE USA maintains certain investments on behalf of others, including the U.S. government. Income related to these investments results in an increase in a liability to the other entity and is not reflected in the total return. Investments at June 30, 1999 and 1998, were comprised of the following (in thousands): 1999

1998 Fair Value

Cost U.S. Treasury obligations Mutual funds Marketable equity securities Marketable debt securities Overseas time deposits

$

13,387 16,364 41,785 42,754 5,499

$ 119,789

$

13,236 18,018 49,157 42,018 5,499

$ 127,928

Fair Value

Cost $

11,685 14,116 33,594 44,275 8,677

$ 112,347

$

15,033 15,490 41,271 47,104 8,677

$ 127,575

Total return on cash balances, investments and the trust held by a third party was as follows for the years ended June 30, 1999 and 1998, (in thousands): Unrestricted Dividends and interest: Unrestricted Temporarily restricted Unrestricted support from trust held by third party Investment income included in operating revenue Net realized gains: Unrestricted Temporarily restricted Change in net unrealized gains: Unrestricted Temporarily restricted Net change in value of trust held by third party Total Return on Cash Balances, Investments and Trust Held by Third Party

50

CARE 1999 ANNUAL REPORT

Temporarily Restricted

Permanently Restricted

$ (5,545) $ 522 522

9,360)

9,307

697

5,379) 697)

5,999 25

$ 7,171

(4,246) 78) 7,171)

164 516 20,251

$ 7,171

$ 18,439)

$ 36,262

5,379)

(4,246) 78

$ 9,971

1998

5,545) 522) 3,293)

3,293) 8,838)

1999 $

$ 1,297

$

5,732 929 2,646


C A R E

U S A

N o t e s

t o

Note 5 – Property and Equipment

1999)

1998)

$)1,209) 6,976) 5,123) 490) (5,517)

$)1,233) 6,648) 3,440) 440) (4,734)

$ 8,281

$ 7,027

See Note 3 for a summary of Fixed Assets authorized. CARE USA financed a portion of the purchase and renovation of the headquarters located in Atlanta, Georgia, with the proceeds of $5.0 million urban development bonds. The bonds mature on June 1, 2013 and bear interest at a rate which is adjusted periodically. As of June 30, 1999 and 1998, the adjustable rate was 3.75 percent and 3.60 percent, respectively. The bonds required payments of interest only through June 1, 1995, and interest and principal payments thereafter. The principal is payable in annual installments pursuant to a sinking fund redemption schedule. These bonds are collateralized by a letter of credit. The letter of credit is collateralized by the building and improvements thereto. Under the terms of the agreement, CARE USA is required to maintain minimum unrestricted net assets of $10.0 million. In addition, other indebtedness, as defined, cannot exceed $500,000. Annual sinking fund payments, excluding interest, are payable as follows (in thousands): Year ending June 30: 2000 2001 2002 2003 2004 Thereafter

S t a t e m e n t s

Note 6 – Pension Plans

The components of property and equipment, at cost, are as follows at June 30, 1999 and 1998, (in thousands): Land Buildings and improvements Equipment and software Leasehold improvements Accumulated depreciation

F i n a n c i a l

Effective January 1, 1992, CARE USA adopted a defined contribution plan for employees who meet the eligibility conditions. Under the plan, CARE USA contributes to a participant’s account an amount equal to 8 percent of the participant’s gross salary and, if the participant qualifies, a supplemental contribution also is made. The plan allows employee after-tax contributions. The plan was amended, effective January 1, 1997, to also allow employee pre-tax contributions. All of the contributions by the employees are invested in various funds within the plan. Employer contributions were $1.9 million and $1.7 million, and employee contributions were $1.4 million and $1.2 million for the years ended June 30, 1999 and 1998, respectively. Within the various countries in which CARE USA operates outside of the United States, most employees are citizens of the operating country. These employees are not generally eligible for the CARE USA defined contribution plan, but they are eligible for local government or CARE USA sponsored plans appropriate for that country.

$200 200 200 200 200 2,635 $3,635

The recorded amount for bonds payable approximates fair value.

CARE 1999 ANNUAL REPORT

51


FINANCIAL STATEMENTS

C A R E

U S A

N o t e s

t o

Note 7 – Post-retirement Benefits CARE USA provides certain health care and life insurance benefits to eligible retired employees. CARE USA provides Medicare supplemental coverage to eligible retirees who have reached age 65. In addition, CARE USA provides retirees under age 65 with the option to continue medical coverage until age 65, if the employees contribute a portion of the premium. Generally, the medical plans pay a percentage of most medical expenses reduced for a deductible and payments made by government programs. The plans are unfunded. CARE USA accrues the cost of providing post-retirement benefits, including medical and life insurance coverage, during the active service period of the employee. This accrual is included in accounts payable and accrued expenses in the balance sheets. The following table sets forth the accumulated postretirement benefit obligation (APBO) reconciled to the accrued post-retirement benefit cost recognized in CARE USA’s balance sheet as of June 30,1999 and 1998, (in thousands). Accumulated post-retirement benefit obligation (APBO) (in thousands) June 30 1999) 1998) Retirees Fully eligible active plan participants Other active plan participants APBO Unrecognized net loss Accrued post-retirement benefit cost

52

CARE 1999 ANNUAL REPORT

$2,194) 189) 912)

$2,186) 143) 905)

3,295) (303)

3,234) (392)

$2,992)

$2,842)

F i n a n c i a l

S t a t e m e n t s

Net periodic post-retirement benefit expense for the years ended June 30, 1999 and 1998, was approximately $321,000 and $289,000, respectively, and included the following components (in thousands): June 30 1999) 1998) Service cost of benefits earned Interest cost on accumulated post-retirement benefit obligation Net amortization and deferral Net Periodic Postretirement Benefit Expense

$115)

$104)

215) (9)

207) (22)

$321)

$ 289)

Actuarial Assumptions

June 30, 1999 Pre-65 Post-65

Discount rate Health care trend Initial Rate Ultimate Rate (in 2003) Annual charge (decrease)

7.55%

7.55%

8.00% 7.00% 6.00% 6.00% 0.50% 0.25% Cost basis is incurred costs June 30, 1998 Pre-65 Post-65

Discount rate Health care trend Initial Rate Ultimate Rate (in 2003) Annual charge (decrease)

6.80%

6.80%

8.50% 7.25% 6.00% 6.00% 0.50% 0.25% Cost basis is incurred costs


C A R E

U S A

N o t e s

t o

F i n a n c i a l

S t a t e m e n t s

Note 8 – Sources of Support CARE USA receives support for its programs from charitable contributions, and grants and contracts from government and non-governmental entities. The following describes CARE USA’s sources of support and revenue (in thousands):

Donor U.S. government Direct public support CARE International Host governments United Nations Dutch government Others (grants, contracts) Other revenue (interest, dividends, rents, etc.)

Cash

Agricultural Commodities (See Note 9)

Non-Food In-Kind

$ 118,603 63,136 52,048 25,511 5,968 9,177 9,502 6,406

$ 120,798

$

3,788 71 392

327 1,315 345 1,620 18

Support and Revenue 1999

$ 290,351

$ 125,049

$ 4,220

Support and Revenue 1998

$ 256,826

$ 118,948

$ 3,855

595

1999 Total $ 239,728 64,451 56,181 27,202 6,378 9,177 10,097 6,406

1998 Total $ 224,422 52,262 46,964 23,242 6,198 10,258 9,418 6,865

$ 419,620 $ 379,629

Note 9 – Agricultural Commodities A summary of agricultural commodities received by CARE USA for the years ended June 30, 1999 and 1998, is as follows: Metric Tonnage 1999 1998 Commodities received for distribution via CARE USA programs U.S. government CARE International Others

Dollar Value (in thousands) 1999 1998

269,904 12,749 1,929

237,028 11,887 3,778

$ 120,798 3,788 463

$ 114,251 3,241 1,456

284,582

252,693

125,049

118,948

See Notes 8 and 10 Commodities received for monetization with proceeds used by CARE USA U.S. government CARE International

165,548 1,400

139,354 4,810

38,189 786

33,417 3,422

166,948

144,164

38,975

36,839

54,536

25,957

26,692

16,945

506,066

422,814

$ 190,716

$ 172,732

Commodities received for monetization with proceeds going to other non-profit organizations U.S. government Total Agricultural Commodities Received During the Fiscal Year

See Note 2 for revenue recognition policies related to agricultural commodities.

CARE 1999 ANNUAL REPORT

53


FINANCIAL STATEMENTS

C A R E

U S A

N o t e s

t o

F i n a n c i a l

S t a t e m e n t s

Note 10 – Program Expenses by Geographic Region For the years ended June 30,1999 and 1998, are as follows (in thousands): Agricultural Commodities

Cash Africa and the Middle East Asia and Europe Latin America and the Caribbean Multi-Regional

$

75,733 80,240 79,487 11,346

$

Non-Food In-Kind

1999 Total

9,978 92,620 22,451

$ 1,883 903 1,198 61

$

$ 375,900

Program Expenses 1999

$ 246,806

$ 125,049

$ 4,045

Program Expenses 1998

$ 216,719

$ 118,948

$ 3,617

87,594 173,763 103,136 11,407

1998 Total $

82,429 159,791 87,833 9,231

$ 339,284

Note 11 – Program Expenses by Sector and Type For the years ended June 30, 1999 and 1998, are as follows (in thousands): Types Emergency and Rehabilitation Development Agriculture and Natural Resources Basic and Girls’ Education Children’s Health Reproductive Health Water and Sanitation Integrated and Other Health Nutritional Support Infrastructure Small Economic Activity Development Multi-Sector and Other

$

104 17,288 2,264 23,473 1,836 2,054 30,452

62,146 3,880 26,850 9,372 12,524 7,038 94,743 26,611 10,897 43,287

Total Program Expenses by Type for 1999

$ 78,552

$ 297,348

Total Program Expenses by Type for 1998

$ 64,105

$ 275,179

Note 12 – Commitments and Other Matters As of June 30, 1999, CARE USA is obligated under noncancelable operating lease agreements for warehousing, office space and staff housing at minimum rentals as follows (in thousands): Year ending June 30: 2000 2001 2002 2003 2004 2005 and Thereafter Total

$ 3,596 1,462 635 298 237 440 $ 6,668

Total rent expense was approximately $7.9 million and $6.6 million for the years ended June 30, 1999 and 1998, respectively.

54

CARE 1999 ANNUAL REPORT

957 124

$

Year Ended June 30 1999 1998 $

63,103 4,004 26,850 9,476 29,812 9,302 118,216 28,447 12,951 73,739

$ 61,389 5,815 23,804 8,940 16,150 10,424 110,373 35,135 16,992 50,262

$ 375,900 $ 339,284

In the normal course of business, CARE USA is party to various claims and assessments. In the opinion of management, these matters will not have a material effect on the organization’s balance sheet or statement of activities. CARE USA has $2.0 million of credit facilities to facilitate foreign exchange transactions. These facilities were fully available at June 30, 1999. CARE USA maintains a letter of credit to collateralize the urban development bonds used to purchase and renovate the Atlanta headquarters building. The amount of the letter of credit was $3.7 million and $3.9 million at June 30, 1999 and 1998, respectively. A .625 percent commitment fee is paid on the letter of credit. In addition, CARE USA has a $3.0 million line to support letters of credit, of which $2.5 million was utilized as of June 30, 1999.


CONTACT INFORMATION

C A R E

R e g i o n a l

O f f i c e s

HEADQUARTERS AND CARE CORPORATE COUNCIL 151 Ellis Street, NE Atlanta, GA 30303-2440 T) 1-800-422-7385 404-681-2552 F) 404-577-6662 NORTHEAST REGION

New York (Regional Center) 650 1st Avenue, 2nd Floor New York, NY 10016-3240 T) 212-686-3110 F) 212-683-1099 Boston 37 Temple Place, 3rd Floor Boston, MA 02111-1308 T) 617-338-6400 F) 617-574-7345 Philadelphia 117 South 17th Street, Suite 413 Philadelphia, PA 19103-5081 T) 215-564-3875 F) 215-564-2501 MIDWEST REGION

Chicago (Regional Center) 70 East Lake Street, Suite 1430 Chicago, IL 60601-5917 T) 312-641-1430 F) 312-641-3747 Minneapolis 1400 Highway 101 North, #218 Plymouth, MN 55447-3064 T) 612-473-2192 F) 612-473-4042 SOUTHEAST REGION

Atlanta (Regional Center) 151 Ellis Street, NE, Suite 300 Atlanta, GA 30303-2440 T) 404-681-2777 F) 404-577-5557

Washington 1625 K Street, NW, Suite 200 Washington, DC 20006-1611 T) 202-296-5696 F) 202-296-8695 West Palm Beach 515 North Flagler Drive, Suite 300P West Palm Beach, FL 33401-4321 T) 561-802-4194 F) 561-220-4162 SOUTHWEST REGION

Los Angeles (Regional Center) 6100 Wilshire Boulevard, Suite 220 Los Angeles, CA 90048-5107 T) 323-954-8063 F) 323-954-1973

Houston 3700 Buffalo Speedway, Suite 560 Houston, TX 77098-3707 T) 713-621-5058 F) 713-621-2611 NORTHWEST REGION

San Francisco (Regional Center) 41 Sutter Street, Suite 300 San Francisco, CA 94104-4903 T) 415-781-1585 F) 415-781-7204 Seattle 1402 Third Avenue, Suite 912 Seattle, WA 98101-2118 T) 206-464-0787 F) 206-464-0752

Dallas 3626 North Hall Street, Suite 504 Dallas, TX 75219-5130 T) 214-522-2692 F) 214-528-1362

CARE 1999 ANNUAL REPORT

55


CARE REMEMBERS

IN MEMORIAM ON THE FRONTLINES OF WAR, famine and poverty, CARE staff face frequent hardship and danger as they seek to carry out the organization’s mission. In 1999, a sculpture commemorating the lives of staff members who have died while in service to CARE was unveiled at a memorial ceremony. The sculpture, by Kenyan artist Irene Wanjiru, stands in permanent display at CARE USA’s headquarters in Atlanta, Georgia, paying tribute to the spirit of compassion and humanity of our fallen comrades.

“THE KILLING KEEPS UP, THE TERROR PERSISTS, PLANS FAIL, ROADS ARE CUT OFF, CONVOYS ARE LOST, BUT THE WORK GOES ON. FOR THERE IS A SPIRIT BEHIND IT WHICH WILL NEVER DIE.” —Bill Deeds, CARE United Kingdom board member, In a dispatch sent from Mozambique during that country’s civil war.

56

CARE 1999 ANNUAL REPORT


CARE USA

C r e d i t s This report was produced by the CARE USA Marketing and Communications Department.

Photo Credits Cover, clockwise from top: Jacob Holdt, Kimberly Conger, Brennan Linsley Page i, Daemon Baizan Page ii, l to r from top: Wendy Driscoll, Kimberly Conger, Brennan Linsley, Cynthia Glocker, Scott Faiia, Wendy Driscoll, Kim Johnston Page iii: Brennan Linsley, Jacob Holdt Page 1: Kimberly Conger Page 2: Wendy Driscoll Page 3: Brian Atkinson, Wendy Driscoll Pages 4-6: Wendy Driscoll Page 7: Jacob Holdt Pages 8-13: Kimberly Conger

Editorial and Production Team Managing Editor Erin Burns Art Director/Designer Kimberly Conger Associate Editor Colleen Moynahan Photo Editor Suzy Hopper

Pages 14-20: Brennan Linsley Page 22: CARE staff Page 23: Toby Peters Page 24: ©J.F. Housel Page 25: Scott Faiia Page 26: Tom Powell Page 27: Jenny Matthews Page 28: Kimberly Conger Page 29: Kim Johnston Page 32: Ruth McAnnich Page 33: Steve Werner Page 34: Charles Carter Page 39: Daemon Baizan Page 55: ©Mark Mason Page 56: Wendy Driscoll Back Cover: Kimberly Conger

Production Coordinator Rosemary Sicay-Perrow Writers Erin Burns Allen Clinton Wendy Driscoll Sherine Jayawickrama Colleen Moynahan Kay Pfeiffer Printing Commercial Graphics

Unless otherwise indicated, all photos ©CARE.

With appreciation to the many members of CARE’s staff for their contributions to this publication.

CARE® and CARE Package® are registered marks of the Cooperative for Assistance and Relief Everywhere, Inc. (CARE).

C

Printed on recycled paper

This edition of the CARE Annual Report is made possible in part by a generous grant from Delta Air Lines. Delta carried more passengers worldwide last year than any other airline. Delta, Delta Express, the Delta Shuttle, the Delta Connection carriers and Delta’s Worldwide Partners operate 5,266 flights each day to 357 cities in 59 countries. Delta is committed to providing philanthropic support to organizations like CARE that promote assistance for families with young children, cultural understanding and economic development for communities worldwide.


For further information, please contact: CARE 151 Ellis Street, NE Atlanta, Georgia 30303-2440 1-800-422-7385 www.care.org

CARE’S REASON FOR BEING IS TO AFFIRM THE DIGNITY AND WORTH OF INDIVIDUALS AND FAMILIES IN SOME OF THE POOREST COMMUNITIES OF THE WORLD.

WE SEEK TO RELIEVE HUMAN SUFFERING, TO PROVIDE ECONOMIC OPPORTUNITY, TO BUILD SUSTAINED CAPACITY FOR SELF-HELP, AND TO AFFIRM THE TIES OF HUMAN BEINGS EVERYWHERE.

WE ARE COMMITTED TO PURSUING OUR MISSION WITH EXCELLENCE BECAUSE THE PEOPLE WHOM WE SERVE, BENEFICIARIES AND DONORS, DESERVE NOTHING LESS.


CARE USA 1999 Annual Report: A Day in the Life