Fonkoze 2016 ANNUAL REPORT
Contents 1
From Fonkoze Founder Father Joseph Philippe
2
OUR VISION AND MISSION
3
OUR FINANCIAL SERVICES
4
OUR DEVELOPMENT SERVICES
5
CLIENT AND PROGRAM PROFILES
5. Rosemitha Petit-Blanc, Chemen Lavi Miyò (CLM) participant
6. Julienne Julcin, Solidarity Client
7. Islande Francois, Business Development Client
8.
9. Matilde Paul, Tikoze Participant/ Solidarity Client
10
OUR CLIENTS’ PROGRESS
2016 Social Performance Results
Odette Midy, Boutik Sante/Solidarity Client
12 OUR FINANCIAL RESULTS AND ORGANIZATIONAL DESCRIPTIONS
13. Fonkoze S.A. and Subsidiary, Sèvis Finansye Fonkoze, S.A.
14.
Fondasyon Kole Zepòl
15.
Fonkoze USA
16
DONORS AND INVESTORS
21
LEADERSHIP
Photos by Maxence Bradley (Cover, p. 2, 3, 4, 12, 16, 18, Back Page) Photos by Kiefel Photography (Inside front cover, 6, 8, 11)
FROM FONKOZE FOUNDER FATHER JOSEPH PHILIPPE
Dear Friends of Fonkoze,
W
e have been focusing on the theme of “hope” lately. Some might say that “hope” is such a foolish reflection in a country like Haiti because of the turmoil and devastations the country has faced for so many years. In 2016 alone, we endured continued economic decline and more political uncertainty — topped off with a devastating hurricane in October. But as one of my heroes, Dr. Martin Luther King Jr., once reminded us, while “we must accept finite disappointment, [we must] never lose infinite hope.” As we enter our twenty-third year of operation, we here at Fonkoze refuse to lose infinite hope. ▶ Hope is Rosemitha Petit-Blanc from the Central Plateau who was left begging in the market for food, but now has the skills and assets she needs to support herself and her family. ▶ Hope is Matilde Paul from Sodo. A Fonkoze client for ten years now, Matilde has not only grown her business, but has become a Center Chief who teaches Fonkoze’s Ti Koze classes in her center. ▶ Hope is Islande Francois from Mibalè. Islande started with a wheelbarrow full of underwear and used sandals — barely making ends meet — to now owning a formal-sector business that employs a staff member and has a line of patrons waiting to buy from her every day. ▶ Hope is Marie-Julienne who lost her home and business in Hurricane Matthew, but is now able to start rebuilding her life with Fonkoze’s support. Despite what she has lost, she exclaimed, “I won’t sit down — not for a second.” Within the pages of this Annual Report, you will read about some of these women, their progress, and their stories of hope. I am sure you will find them as inspirational as I do. Everyone says that Haiti is the “poorest country in the Western Hemisphere.” They say this phrase as if one cannot say Haiti without adding those last six disempowering words. You know what I say? I say Haiti is the home of “the bravest women in the Western Hemisphere!” They are my infinite hope. You — our partners and supporters — are, too, our infinite hope for Haiti.
“They are my infinite hope.”
In solidarity,
Father Joseph Philippe, Founder of Fonkoze
FONKOZE 2016 ANNUAL REPORT
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A sugarcane worker employed by Saincia Eric Tranquille, a Business Development client who worked her way up Fonkoze’s Staircase Out of Poverty.
Our Vision
Our Mission
Fonkoze’s vision is a Haiti where people, standing together, shoulder to shoulder, have pulled themselves out of poverty.
Fonkoze is a family of organizations that work together to provide the financial and non-financial services to empower Haitians—primarily women—to lift their families out of poverty.
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FONKOZE 2016 ANNUAL REPORT
Our Financial Services
I
n fiscal year 2016 (ending September 30, 2016), Sèvis Finansye Fonkoze (SFF), S.A. (Fonkoze Financial Services) worked to achieve its double bottom line: lifting families and communities out of poverty while operating in a financially self-sustaining manner.
SAVINGS: Fonkoze Financial Services’ clients range from individuals who have never had a savings account before to formal businesses, schools, churches and NGOs. ▶ 208,664 savings clients ▶ $21.4 million in savings ▶ 3,464 daily transactions
LOANS: With over 64,000 active loan clients (99% women) and average loans ranging in size from US$45 to US $240 — SFF reaches among the poorest women in Haiti. ▶ $11.5 million loan portfolio ▶ $29.5 million disbursed ▶ 125,634 loans disbursed
MONEY TRANSFERS: In addition to its savings and loans services, SFF processes nearly $70 million in remittances every year - providing an economic lifeline for hundreds of thousands of people across Haiti. ▶ $69.7 million in transfers ▶ 277,525 transactions
CURRENCY EXCHANGE: Both US Dollars (USD) and Haitian Gourdes (HTG) are accepted and used widely in Haiti. Fonkoze Financial Services provides valuable currency exchange services for its clients. ▶ $78.6 million in total transactions PAYROLL MANAGEMENT: Fonkoze Financial Services supports organizations — including those based overseas — to complete regular payroll cycles. For example, a charitable institution in the United States that sponsors a school in Haiti will send a lump sum to Fonkoze Financial Services that is deposited directly in their employees’ savings accounts. In fiscal year 2016, Fonkoze Financial Services provided payroll services to 27-30 such organizations.
60% of Fonkoze’s branches are located in rural Haiti — to reach the “unreachable.”
FONKOZE 2016 ANNUAL REPORT
3
Our Development Services
I
n 2016, Fondasyon Kole Zepòl (The Fonkoze Foundation) supported Fonkoze clients, members and their communities in the following ways: HEALTH: Fonkoze’s Health program provides our clients with crucial health support - offering health trainings, vitamin distribution and training, referrals, and screenings for child malnutrition. Boutik Sante (Community Health Store) is our innovative program that brings health products, services, and education to rural Haiti while introducing a new business opportunity to our nationwide network of microfinance clients. As a social enterprise, Boutik Sante is on course to be self-sustaining by 2021, no longer requiring further investment.
▶ 520 Community Health Entrepreneurs trained to open boutik sante in their communities ▶ 1,617 screened for cervical cancer ▶ 221 received multivitamins ▶ 1,298 received prenatal vitamins ▶ 610 community children screened for malnutrition EDUCATION: Fonkoze’s adult education programs provide basic literacy, business and life skills coursework (such as disaster preparedness) for clients — many of whom have had little access to formal education. ▶ 2,826 women graduated from Adult Education classes in 2016 ▶ Over 132,000 women have graduated from Adult Education classes since 2000
▶ 12 branches offered Adult Education classes ▶ 94% of participants graduated in 2016 CHEMEN LAVI MIYÒ (CLM), or “the Pathway to a Better Life”: is Fonkoze’s 18-month program for the ultra poor. Based on the internationally renowned “graduation approach,” CLM provides intensive support to help women lift their families out of poverty. At the heart of the program are CLM case managers who make weekly visits to every member, which often require overnight stays and hours-long hikes to reach women in Haiti’s most remote locations. ▶ 5,036 ultra poor households have participated in CLM since 2007 ▶ 906 ultra poor households graduated from CLM in 2016 ▶ Approximately 3,460 ultra poor children attended CLM’s annual summer camp ▶ 30 people with disabilities participated in a specialized pilot program ▶ 700 new families joined CLM in 2016 VALUE CHAIN DEVELOPMENT: To help advance Haiti’s economy through small and medium enterprises, Fonkoze seeks to take a value chain approach to supporting (tailored business support, training and loans) some core economic sectors. This approach looks at these sectors in a holistic way—from the individuals producing raw materials to the businesses selling products in domestic and foreign markets. ▶ 213 new loans in 2016 ▶ 866 clients since the launch in 2010 ▶ Average loan amount: $2,011 ▶ Amount disbursed in 2016: $410,320 ▶ 50 new jobs created in 2016
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FONKOZE 2016 ANNUAL REPORT
Rosemitha Petit-Blanc Chemen Lavi Miyò Graduate
R
osemitha lives in a small house right along the road that leads through Kolonbyè to Savanèt. She had been living in Pòtoprens — supporting herself by selling kleren, the locally brewed rum, and cigarettes, but she returned to Kolonbyè to live with and care for her aging grandfather. She felt she owed him this as he was the one who raised her. When he died, she continued to stay in his home in Kolonbyè, but was left with no source of food or income. She lived on whatever neighbors were willing to give her and would sometimes resort to begging or doing minor chores in exchange for food. Now married, Rosemitha is living with her husband, their three children and her mother-in-law. Before Rosemitha joined CLM, the family of six depended entirely on what her husband was able to make as a day laborer — less than 80 cents a day — forcing them to go days without eating at times. When Rosemitha joined CLM, she was able to start a small commerce which requires a lot of work but she is making progress. On Wednesdays, she buys plantains from women bringing them to the market in Kolonbyè. She lives right next to the main road, so she is able to catch them as they pass by her house. On Saturdays, she brings the week’s purchase to the market in Mibalè for sale. While in Mibalè, she uses the money she’s earned from plantain sales to buy okra to sell in Savanèt. The CLM program started her with 1500 gourds of merchandise, and
she’s already increased her investment to 2000 gouds, even though she also uses profits to help feed her family. But the business is risky. She depends on the trucks that pass by her house on market days to get her plantains to market. If she can’t flag down a truck with space for her plantains, her merchandise could go bad before she can get it to market. So she’s working to increase her capital until she can change her business model. She wants to sell rice, oil and basic groceries. “Oil doesn’t go bad,” she explains. Ultimately, Rosemitha is happy with the progress she is making. Her husband still works in fields for next to nothing, but at least now she is in a better position to contribute to the household income.
CHEMEN LAVI MIYÒ (CLM)
Client and Program Profiles CLM BY THE NUMBERS Number of new families who joined CLM :
700
Total number of families reached in 2016:
1550
2016 graduation rate:
95%
Rosemitha with her three children
FONKOZE 2016 ANNUAL REPORT
5
SOLIDARITY
Client & Program Profiles Julienne Julcin Solidarity Client
SOLIDARITY AND TI KREDI BY THE NUMBERS
J
ulienne Julcin has been a Fonkoze Solidarity client since 2007. She says, “Fonkoze has been there for us through so many hardships.” But when her husband died of a heart attack a few months ago, she says she started to see Fonkoze as so much more. When her husband was alive, they both worked long days and nights — making enough to feed their family and grow their small businesses. She would sell various products in the open market and he would farm the small land they owned. Now, Julienne — a mother to 7 — has to do it on her own. Despite the new challenges she faces, Julienne is determined to stay strong for her family. “Without my husband, it’s harder, but I work the garden myself with some help from my older children,” she says. Julienne works on the roof of her modest home.
Number of active clients:
62,350
Percentage women clients:
Julienne outside of her home in the mountains of Cap Rouge
To make ends meet, Julienne sells some of the vegetables from her garden, such as yams, corn and beans. But her business now consists of non-food products that she buys in Pòtoprens and Okay to sell in Jakmèl and Kap Wouj. “Sometimes, the walk to Jacmel can take up to 3 hours, but my Fonkoze [Solidarity] group travels together, so we never feel lonely or unsafe on the way.”
100%
Loan portfolio outstanding:
$8,602,279 Amount disbursed:
$24,273,009 Average loan amount:
$197
DID YOU KNOW? Solidarity lending is Fonkoze’s core microfinance program. It provides loans to groups of five women (called a Solidarity group), creating a built-in system of accountability and support. Five or six Solidarity groups from a common geographical area join together to form a Solidarity “Center” of 25-30 women. Centers meet twice a month to repay their loans, build community, and participate in education and training activities. Today, there are approximately 2000 Fonkoze Solidarity Centers that span virtually every corner of Haiti — bringing financial access, inclusion and training to those who did not have it before.
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FONKOZE 2016 ANNUAL REPORT
BUSINESS DEVELOPMENT
Islande Francois Business Development Client
A
single mother of two little boys, Islande Francois has worked hard to provide for her family by turning a business into a profitable one — a goal that seemed unattainable 10 years ago when she first joined Fonkoze as a Solidarity client. Solidarity is our core microfinance program that provides loans to groups of five women — called a Solidarity group — which creates a built-in system of accountability and support. Her hard work over the years has truly paid off. Today, Islande is in Business Development (Fonkoze’s toplevel 12-month lending program where loans begin at about $1,300). She owns a shop located on the Mibalè open market street, where she sells an array of products: household cleaning items, baby products, cosmetics and much more. With the help of the loans Fonkoze has provided her, she has been able to expand the business to what it is today. To Islande’s and the Fonkoze
BUSINESS DEVELOPMENT BY THE NUMBERS Number of clients:
2,035
Loan portfolio outstanding:
$1,953,761 Amount disbursed:
$3,452,944 Average loan amount:
$1,440
Islande serving a line of patrons
team’s delight, her business continues to grow every day — evident by the rows of people waiting to buy from her. She employs 2 full time workers and was even able to build a two-bedroom house in the outskirts of Mibalè where she lives with her two sons. Islande reflects on the struggles she faced before joining Fonkoze, saying with some embarrassment, “I had a wheelbarrel full of underwear and used sandals. I used to walk around trying to sell these things but made very little profits.” Having made so much progress in her life, Isalande says her business is “non-negotiable.” So when she discovered that her ex-fiancé — who once worked for her and is the father of her youngest son — was using her business as collateral for buying personal things, she ended the relationship. She says she is determined not to put her commerce in jeopardy. Islande credits Fonkoze for teaching her the business skills she has today and for giving her the opportunity to show just how far her
courage could take her. “Everything I own today is with the help of Fonkoze. I wouldn’t trade Fonkoze or my business for anything.”
SMALL AND MEDIUM ENTERPRISE BY THE NUMBERS Number of clients:
72
Loan portfolio outstanding:
$937,283 Amount disbursed:
$1,746,748 Number of loans disbursed:
68
Average loan amount:
$25,687
FONKOZE 2016 ANNUAL REPORT
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BOUTIK SANTE
Client & Program Profiles Odette Midy Boutik Sante Owner
U
ntil now, the nearest place to buy over-the-counter health products was more than an hour away for people living in Odette Midy’s community near Lavale, Haiti. It meant that rather than making the long trek by foot, Odette’s friends and neighbors would occasionally risk letting illnesses and wounds go untreated. As a result, illnesses would often worsen and infections would set in. Odette is trying to change this through her boutik sante (community health store). Her participation in Fonkoze’s Boutik Sante Program — an innovative social enterprise that expands access to over-the-counter health products and services in rural Haiti — is enabling her to do just that. The Program has helped Odette to expand her business and gain skills to serve as a valuable resource in her community. For example, Fonkoze’s registered nurses are training Odette and other Fonkoze clients to administer basic screening services (blood pressure, malnutrition, diabetes, and others) and to incorporate health-related products into their existing businesses. They thus become “Community Health Entrepreneurs.” When asked about her motivation in life, she says, “I am not married, but I work hard for my eight-yearold daughter. I want to see her succeed in life.” Odette also says that Fonkoze is the one partner she can really “rely on.” She was able to build a home with profits from her small business, which she expanded with loans from Fonkoze. Having been a Fonkoze client for ten years, she has gained the respect of the 55 other Fonkoze clients in her Credit Center, which they named Tèt
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FONKOZE 2016 ANNUAL REPORT
Odette smiles after counting the day’s earnings from her Boutik Sante.
Ansanm (Heads Together). They even elected her to be their “Center Chief” — the leader of the group. Odette is pleased with the progress she is making, saying, “Everything is selling well. My Fonkoze friends are also my clients, and the people in my village are happy to buy from me.” Sometimes, she serves more than 30 clients in a day.
BOUTIK SANTE BY THE NUMBERS Number of Boutik Sante entrepreneurs trained:
520
Number of households served in 2016:
42,170
Number of branches served by Boutik Sante:
18
M
atilde Paul has been a Fonkoze client for ten years. She started out selling small bottles of gasoline and diesel fluid for the handful of motorcycles in her community. As her business expanded, she and her husband were able to purchase a motorcycle, themselves, which he now drives as a taxi — shuttling people from their village to other villages nearby. In this way, they are able to provide for their two daughters. Now, Matilde is adding new products to her business, including cosmetics and health products. Since she joined Fonkoze’s core lending program, Solidarity, her business has grown and she has become a leader in the Fonkoze client community. Other clients in Matilde’s village of Penye — near Sodo — respect her so much that they elected
EDUCATION PROGRAMS BY THE NUMBERS
1,511
successfully passed Fonkoze’s literacy class
her to become their “Center Chief.” As a Center Chief, Matilde leads their monthly meetings, working closely with Fonkoze staff and helping her peers to better understand how to manage their finances. Recently, she launched one of Fonkoze’s adult education initiatives—Ti Koze or Little Chat—in her Credit Center. Ti Koze helps clients understand how to manage their finances, including their loans from Fonkoze. And it also addresses some of the most challenging issues they face in their communities. Ti Koze relies on peer educators, like Matilde, to lead discussions and activities that help women to confront some of the challenges they encounter, including preparing for natural disasters, protecting themselves from sexually transmitted infections and how to keep their families healthy. Each client receives a copy of the Ti Koze book, which has illustrated stories of women followed by questions
that the clients need to answer amongst themselves. They role play the stories and split into groups to analyze how they should respond. Matilde says, “I like Ti Koze because of the fun ambiance; we don’t speak about money or credit all the time. It’s a relaxing time to learn from one another and laugh at our mistakes.”
1,052
successfully passed Fonkoze’s business skills class
Matilde Paul
6,141
participated in Ti Koze trainings
385
individuals trained to teach adult education classes
FONKOZE 2016 ANNUAL REPORT
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EDUCATION PROGRAMS
Matilde Paul Ti Koze Participant and Solidarity Client
Our Clients’ Progress
F
onkoze’s Social Impact Team collects data on client and program participant wellbeing. Tracking the same individuals annually, some for more than five years, enables Fonkoze to measure impact on indicators that extend beyond financial progress. Using a variety of research tools and techniques—the Progress out of Poverty Index (a poverty measurement tool developed by Grameen Foundation), a food security assessment, individual interviews, observation, and focus group discussions—the Social Impact Monitors help Fonkoze receive client feedback; evaluate the results of the programs and measure changes in clients’ lives.
CHEMEN LAVI MIYÒ (CLM) or “The Pathway to a Better life,” is the Fonkoze Foundation’s 18-month program for the ultra poor — those who live on the very margins of rural society in some of the most extreme poverty in Haiti. Based on the internationally known “Graduation Approach,” CLM supports these individuals who have fallen through the cracks of Haiti’s social structure. Through the provision of productive assets, small commerce, training, nominal stipends and extensive coaching, CLM supports women as they lift themselves and their families out of ultra poverty. (sample size: 107) SOLIDARITY LENDING is Fonkoze Financial Services’ core microfinance program. It provides loans to groups of five women (called a Solidarity group), creating a built-in system of accountability and support. Beginning at $45 and increasing to over $850, Solidarity loans enable women who have already established themselves as micro entrepreneurs to expand their businesses. Five or six Solidarity groups from a common geographical area join together to form a Solidarity “Center” of 25-30 women. Centers meet monthly to repay their loans, build community, and participate in education and training activities. To date, there are more than 2,000 Credit Centers located throughout Haiti. (sample size: 56)
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FONKOZE 2016 ANNUAL REPORT
Percent living below $1/day
BASELINE (FOR 2016 GRADUATES)
78%
Percent living below $2/day
92%
Food insecure with hunger
100%
14% 2016 GRADUATES
63%
Percent living below $1/day
AT FIRST LOAN
52%
AFTER 5 YEARS
47%
81%
Percent living below $2/day
70%
Average savings
$7
$36
64%
Julienne Julcin (right) with members of her Solidarity group after a Center meeting.
Tin roof or better
54% 95%
Own house
88%
18%
Can read and write her name
57%
95%
96%
Food insecure
Send all children to school
95%
42%
95% 100%
Latrine
Cement floor
99%
Latrine
95%
Send all children to school
82%
81%
Own small assets
68% 84%
88%
87%
20% 93% 89%
98%
100%
FONKOZE 2016 ANNUAL REPORT
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Our Financial Results and Organizational Descriptions
Fonkoze S.A. and Subsidiary Sèvis Finansye Fonkoze, S.A.
F
onkoze S.A. is a Haitian holding company incorporated in 2002. It was established to facilitate the creation of Sèvis Finansye Fonkoze, S.A. (Fonkoze Financial Services or SFF) and owns 99.99% of that entity. Founded in 2004, SFF is a Haitian microfinance company with a double bottom line: we aim to lift families and communities out of poverty while operating in a financially self-sustaining manner. SFF offers micro and small business loans, savings products, international and domestic money transfer services, currency exchange services and payroll services, among others. In terms of outreach, SFF is Haiti’s largest microfinance institution and provides financial services to some of Haiti’s poorest citizens. For fiscal year 2016, our average loan size was just 14,279 Haitian gourdes (approximately
US $218 dollars) — a fraction of Haiti’s GDP per capita of US $818 (World Bank, 2015). In fiscal 2016, SFF made significant progress in our goal to expand our operations. During the year, SFF disbursed a total of 125,634 loans (average term of six months) to 77,176 clients with a total value of 1,794 million Haitian gourdes (approximately US $29.5 million). Financial revenue for the year grew 24.1%. Overall, the outstanding loan portfolio grew 19.0% to 753 million Haitian gourdes (approximately US $11.5 million). The total number of savings accounts increased to 208,473 and the total volume of savings grew 14.7% to 1,402 million Haitian gourdes (approximately US $21.4 million). Through Fonkoze S.A., SFF raised 1.73 million US
CONSOLIDATED BALANCE SHEET All amounts are expressed in Haitian gourdes (HTG) Exchange Rate HTG/USD at end of reporting period ASSETS
CONSOLIDATED STATEMENT OF INCOME 65.5368
52.1417
Sept. 30, 2016
Sept. 30, 2015
449,999,447 196,895,335 753,235,579 (12,205,920) 741,029,659 28,678,596 35,812,077 24,326,793 257,089,451 38,963,783 1,772,795,141
267,894,318 61,812,996 635,500,403 (14,623,728) 620,876,675 21,758,980 35,666,957 16,995,116 168,151,048 202,911,610 1,396,067,700
1,401,652,348 442,536,490 90,308,764 1,934,497,602
1,222,519,351 227,374,198 68,668,049 1,518,561,598
Capital Stock and Paid in Capital Accumulated Deficit Revaluation reserve-land and buildings Accumulated Other Comprehensive Income Total Shareholders’ Equity
463,279,316 (677,041,761) 49,251,943 2,808,041 (161,702,461)
359,579,001 (484,880,940) — 2,808,041 (122,493,898)
Total Liabilities And Shareholders’ Equity
1,772,795,141
1,396,067,700
Cash and Equivalents Term Deposits Loans Less Impairment provision Net Loans Interest receivable on loans Accounts Receivable Prepaid expenses and supplies Net Fixed Assets Other Assets Total Assets LIABILITIES
Deposits Notes Payable Other Liabilities Total Liabilities
dollars in equity from existing shareholders. Oikocredit contributed an additional 287 thousand US dollars following the close of the fiscal year. This year the consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS). In prior years, the consolidated financial statements were prepared in accordance with US GAAP. In fiscal year 2016, SFF recorded a number of non-operating expenses totaling 221 million Haitian gourdes which negatively impacted our overall financial results. These include a provision for loss and finance costs on related party receivables, unrealized losses on foreign exchange, write-off of deferred tax asset, and fair value loss on assets. Overall, on a consolidated basis we recorded a net loss of 192 million Haitian gourdes (approximately US $3.2 million). For further information, please see our fiscal year 2016 audited financial statements and accompanying notes.1, 2
SHAREHOLDERS’ EQUITY
All amounts are expressed in Haitian gourdes (HTG) Average Exchange Rate HTG/USD during reporting period
60.867
48.8716
REVENUES
Year Ended Sept. 30, 2016
Year Ended Sept. 30, 2015
Interest Income (Loans and Other) Less: Interest Expense Net Interest Income Less: Provision for Loan Losses Net Interest Income After Provision for Loan Losses Other Operating Income Net Interest Income and Other Income
339,752,953 33,230,562 306,522,391 32,968,652 273,553,739 153,160,766 426,714,505
273,102,012 13,783,283 259,318,729 22,859,040 236,459,689 145,256,936 381,716,625
258,340,559 157,872,996 25,424,090 441,637,645
222,826,514 122,654,882 17,751,463 363,232,859
(14,923,140) (71,752,318) (4,508,101) 35,692,546 (20,490,000) (112,728,753) (11,519,159) 8,068,104 (192,160,821)
18,483,766 (57,502,696) — 35,770,139 — — — (3,165,185) (6,413,976)
FONKOZE 2016 ANNUAL REPORT
13
OPERATING EXPENSES
Salaries and Benefits Other Expenses Depreciation and Amortization Total Operating Expense Net Profit (Loss) from Operations Before Other Income (Expenses) and Income Taxes Unrealized Loss on Foreign Exchange Finance Costs on receivable from related party Grants Write off of deferred tax assets Provision for loss on receivable from related party Fair value loss on assets(lands) Other income (expense) Net Loss
Our Financial Results and Organizational Descriptions Fondasyon Kole Zepòl
F
ondasyon Kole Zepòl (the Fonkoze Foundation) was the founding institution of Fonkoze. The Fonkoze Foundation provides development services to allow Haitians, especially women, to work together and create prosperity. These services lower barriers to the effective use of financial services. The Foundation’s 100 staff members provide health services, basic literacy training, business skills courses, value chain development and accompaniment to extremely vulnerable families. Once again, the Fonkoze Foundation’s statement of financial position is strong this year. A substantial part of the Fonkoze Foundation’s assets are in USD, which has protected the institution from the effects of the devaluation of the gourde against the USD for the period (approximately 20%). In 2016, we signed two important grant aggreements. One, a nutrition program with a strategic donor for Health, which is “Aksyon Kominote nan Sante pou Ogmante Nitrisyon”. The other program is for Zafen dealing with a handicraft project in the Central Plateau. The financial support to micro enterprises was reinforced thanks to a partnership with one donor who allowed us to double the amount of funds dedicated to this sector. Also, one program for training targeting micro entrepreneurs was launched with success in various branches. The success in the program for the most vulnerable; Chemen Lavi Miyò (CLM) helps to maintain the interest of individual donors and organizations. In 2016, the value of program services delivered increased by 56%. Administrative costs for the central office remained level compared to 2015. In general, the Foundation shows a solid financial position and interesting prospects — particularly for the Health program.
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FONKOZE 2016 ANNUAL REPORT
STATEMENT OF FINANCIAL POSITION All amounts are expressed in Haitian gourdes (HTG) Exchange Rate HTG/USD at end of reporting period
67.3944
56.697
Year Ended December 31, 2016
Year Ended December 31, 2015
Cash and Equivalents Investments Accounts Receivable Loans, Net of Allowance for Loan Losses Prepaid Expenses Total Current Assets
134,507,952 5,054,580 567,646,168 25,759,434 392,034 733,360,168
103,460,650 25,701,434 183,660,760 9,135,479 336,239 322,294,562
Net Fixed Assets Other Assets Total Assets
11,544,505 32,707,851 777,612,524
5,405,019 13,137,698 340,837,279
23,678,491 109,426,042 133,104,533
48,206,362 112,955,541 161,161,903
Unrestricted Temporarily Restricted Total Net Assets
(11,346,538) 655,854,528 644,507,990
(104,011,764) 283,687,139 179,675,375
Total Liabilities And Net Assets
777,612,524
340,837,279
ASSETS
LIABILITIES
Current Liabilities Long Term Liabilities Total Liabilities NET ASSETS
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS All amounts are expressed in Haitian gourdes (HTG) Exchange Rate HTG/USD (Average Exchange Rate during reporting period)
63.2985
50.7064
Year Ended December 31, 2016
Year Ended December 31, 2015
592,070,868 9,092,926 63,549,228 13,538,370 678,251,392
206,803,620 1,599,272 44,684,029 11,706,583 264,793,504
Program Services Central Office Costs Total Expenditures
186,692,271 26,726,506 213,418,777
120,099,840 26,694,289 146,794,129
Change in Net Assets
464,832,615
117,999,375
REVENUES
Revenues From Donors Interest Income Gain Due to Exchange Rate Fluctuations, and Revaluations Other Income Total Revenues EXPENSES
Fonkoze USA
F
onkoze USA is the U.S. based partner that supports the Fonkoze Family’s efforts in Haiti. We conduct communications and outreach campaigns; raise funds; accompany donors and social investors to the field; provide due diligence and tax-deductions for donations; and leverage technical assistance for the Fonkoze Family. During 2016, Fonkoze USA increased its capacity to provide technical assistance to the Fonkoze organizations in Haiti. As part of this process, we supported our partners in securing funds that flow directly to them rather than being managed by us. Although such funds flowing to Haiti do not appear on Fonkoze USA’s financial statements, they are the direct result of our efforts. For example, in 2016 we provided critical technical support in drafting an application to the United States Agency for International Development. This resulted in a five-year, $18 million cooperative agreement that will go directly to the Fonkoze Foundation in Haiti. Fonkoze USA provided similar assistance in drafting applications to the W.K. Kellogg Foundation whereby the Fonkoze Foundation received multiyear grants in excess of $2 million in support of their Zafèn and Chemen Lavi Miyò Programs. Fonkoze USA is proud we were recognized as a “go to” organization for recovery efforts when Hurricane Matthew struck in Haiti. We raised over $180,000 to support the recovery efforts. We are committed to efficient stewardship of our funds — always ensuring that administrative costs are kept to a minimum. When Matthew hit, we knew that funds would be most needed in Haiti, so we opted to send 100% of the funds raised to our partners.
STATEMENT OF FINANCIAL POSITION All amounts are expressed in U.S. Dollars Year Ended December 31, 2016
Year Ended December 31, 2015
$324,829 1,262,851 17,600 1,605,280
$473,254 1,220,324 13,073 1,706,651
5,510 1,246,600 1,727,355 5,796 $4,590,541
10,738 1,191,909 1,847,000 6,296 $4,762,594
$1,777,391 2,027,355 $3,804,746
$1,821,795 2,132,175 $3,953,970
$(349,251) 550,322 385,087 199,637 $785,795
$(317,684) 512,872 433,799 179,637 $808,624
$4,590,541
$4,762,594
Year Ended December 31, 2016
Year Ended December 31, 2015
$2,352,199 96,907 369,198 $2,818,304
$2,560,729 104,129 78,251 $2,743,109
$2,246,657
$3,147,839
Fundraising Administration Total Supporting Services Total Expenses
309,117 285,359 594,476 $2,841,133
206,099 330,779 536,878 $3,684,717
Change In Net Assets
$(22,829)
$(941,608)
ASSETS
Cash and Equivalents Short-term Receivables Prepaid Expenses Total Current Assets Net Property and Equipment Investments Long-term Receivables Other Assets Total Assets LIABILITIES
Short-term Payables Long-term Payables Total Liabilities NET ASSETS
Unrestricted Unrestricted — Board Designated for Endowment Temporarily Restricted Permanently Restricted for Endowment Total Net Assets Total Liabilities And Net Assets
STATEMENT OF ACTIVITIES All amounts are expressed in U.S. Dollars REVENUES
Contributions and Grants Interest, Dividend & Capital Gain Income Other Income Total Revenues EXPENSES
PROGRAM SERVICES AND GRANTS TO HAITI SUPPORTING SERVICES
FONKOZE 2016 ANNUAL REPORT
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Donors and Investors
Hurricane Matthew strikes Haiti on October 4, 2016.
2016 Donors and Investors* $100,000 or more Anonymous Matthew T. and Margaret D. Balitsaris Caris Foundation Grand Challenges Canada and the Government of Canada Haitian Timoun Foundation Inter-American Development Bank Swiss Agency for Development and Cooperation United States Agency for International Development The Vincentian Family Haiti Vista Hermosa Foundation W.K. Kellogg Foundation Whole Planet Foundation
$50,000 — $99,999 Anonymous Clinton Foundation Gary and Mary Becker Collis Warner Foundation Kanpe Foundation Seamont Foundation The Sprocket Foundation Uplift an initiative of Confiance
$25,000-49,999 Anonymous The Flora Family Foundation Melanie Griffith Rebecca and James Langer Jillian Mannus
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Opportunity International Deutschland Ties That Matter Women’s Empowerment International
$10,000-24,999 Aid Still Required Anonymous Jerry and Anna Bedford Beyond Borders Michael J. and Susan M. Callahan Columbia University Daniels Family Foundation David and Carrie Dortch Dolores A. and Lynn Drayton Michael and Linda Fisher Bernice Galbreath Charles Gravitz and John Borstel Gruber Family Foundation Bishop Thomas Gumbleton Harold Simmons Foundation Mary Catherine Kilday and George W. Malzone Foundation Marguerite and Stan Lathan Dave and Debbie Leininger Linked Foundation Laura K. and Marc W. McKenna Jacqueline Monash Prior Family Foundation Riverside Presbyterian Church of Jacksonville, FL Roger and Susan Stone Family Foundation SC Ministry Foundation Cynthia Shevel
FONKOZE 2016 ANNUAL REPORT
St. Edward Church, Richmond, VA C.Jeffrey Wright Urban Ministries
$5,000-9,999 Anonymous Blessed Sacrament Parish, Midland, MI Daniel F. Capshaw and Linnea M. Nilsen Capshaw Children’s Hospital Los Angeles Steve and Christine Clemens Brian Cornell Gerard A. and Christine Dever Elephants in the Livingroom Therese Feng and Ronald W. Lennox Haynes Finney ICM Partners Reverend Robert O. Johnston David T. and Kelli W. Jones Jones Family Charitable Foundation Love Meyer Family Foundation Brian and Diana Lovett Daniel and Kathie Molter Morris Yorn Barnes Levine Krintzman Rubenstein Kohner & Gell Netflix Evelyn B. Newell Jean-Guy Noel Carrie Odell and Simon T Pan American Development Foundation Panexus Haiti
The Petty Family Fund Charles and Starlett Quarles Marjorie Roberts Ruth duP. Lord Charitable Trust The Samuel & Latanya R Jackson Foundation Elaine Selo Russell Simmons Sisters of the Holy Names of Jesus & Mary, Marylhurst, OR St. Joseph the Worker Catholic Church, Winnetka, CA Texas Christian University Theodore A. Von Der Ahe, Jr. Trust Laura Roberts Wright
$2,500-4,999 Warren Adams The Allemall Foundation, Inc. Anonymous Msgr. Charles Brown Kathleen A. Condon Dick and Dee Cavalier Charitable Fund Ray Escoffier Margaret Fourré and Larry L. Anderson Paul and Kathleen C. Fuhs A.H. Gage Private Foundation William and Jean Graustein Fund Jefferies Group, LLC Charles F. Johnson Bonnie S. Jones Mary Macgregor Madison Avenue Presbyterian Church, New York, NY The Marvin H Davidson Foundation Inc Mary Mother of Peace M. C.
Katarina Mesarovich Michael Stars Natl Shrine of St. Rita of Cascia, Philadelphia, PA Elaine L. Pero Roenen Family & Friends Rotary Club Léogâne Gwen Sherman Sisters of Charity of New York, Bronx, NY Still Point Fund Karen Wagener Lucy West
$1,000-2,499 All Saints Church, Pasadena, CA Allen Family Venture Partners Altman/Kazickaz Foundation Donna and Steve Antebi Bank of America Foundation Roz Becker Tony Bedard Catherine M. and John Bentwood Paul C. and Sachiko S. Berry M. Judith Billings Martin Bohnenkamp Stephen Bordes David Bortz Denise Bradley-Tyson and Brenard J. Tyson Janet L. Braun Breslauer, Rutman & Anderson Lorraine Brignall Father Douglas C. Brougher Christopher Brown Monique Brown Jana L. Brueggmeyer
Marcia Burchby and George Wood Bettina Bush Isabelle Camille CE Blake Ministries Inc Rev. Msgr. Ross Chenot Christ United Methodist Church, East Moline, Il Christian Mission Pentecostal Tabernacle, Cambridge, MA Leroy and Lucy Close Kenneth Cohen Community Bank, Pasadena, CA Daniel Cosgrove Alexander and Emily Counts Keith P. Cross Alain Cunqueiro Abigail Davis Debley Foundation Ms. Francoise E. Denis Margaret Devine W. Lee Dickson and James R. Graham Cyrilla B. and Edmund P. Dillon Reverend Doug Doussan Christine Doyle Christopher Durang and John L. Augustine Eileen Ludwig Greenland Foundation Elizabeth and Joseph Bascom Charitable Foundation Mary Elliott Empowering Others Inc Kim and Justin Etheredge Bernadette C. Ethridge Ellen Evett Fidelma Fitzpatrick Gerard Flavin
Pòdpè Pomago Jan Rabèl Gwomòn
Lenbe
Okap Fòlibète Milo
FONKOZE BRANCH
Twoudinò
Gonayiv Sen Michel
CLIENT CENTERS (approximate locations)
Ponsonde
AREA DAMAGED BY HURRICANE MATTHEW (shaded in orange)
Wanament
Sen Rafayel Piyon
Montòganize Ench
Tirivyè
Tomonn
Boukàn Kare
Mibale
Beladè
Sodo Lagonav
Kabarè Latwazon
Jeremi
Pòtoprens Bomon
Miragwan Aken
Okoto Okay
Gantye
Leyogàn
Ti Rivye d’Nip
Fondèblan
Twen Fondwa
Lavale
Marigo
Fonverèt
Belans
Tyot
Jakmèl
The southwest tip of the country was hit the hardest.
Mr. and Mrs. Bert Forbes Ruth Ford Stephen D. and Mary Ford B. Jean Fort Elizabeth and Fred Frick Lisa Gallerano Ralph V. and Doris T. Gilles Allan I. and Joyce C. Goldberg The Grant Family Foundation The Gross Family Fund Michael J. and Rebecca A. Gumbleton Daniel and Kitty Gustafson Robert and Elke Hagge Daniel Hardie and Alice McMahon Leigh Hardiman and Peter Mostow Gertrude E. Harris Ida Hawkins Edward S. Herman Winifred Hervey John Holly Hope for Haiti Bob Hsu and Bonnie Chang William Hudson Mark Humowiecki Katherine Huynh If/When Ofer Inbar Irving & Constance Phillips Charitable Fund Kathryn Erickson and Albie P. Jarvis Earleatha Johnson JPMorgan Chase Foundation Michael Karlin Keck School of Medicine of USC Joseph and Nancy Kunkel Kurtz Family Fund Steve and Susan Kute
Joy T. Lawrence Tina Knowles and Richard Lawson Michael Levitt Christina Liebner Dawn and Dan Limerick Ari Lipman The Lisa E. Craig Family Charitable Foundation Mary Jo Martin Sheila MCalinden Janet McCormack Drew McCoy and Amy Aquino Chris McGrath McKenna-Orbeton Foundation Virginia Merritt Carmina Mevs C. Wayne Middleton Carole Middleton Stephen Milliken Maureen A. Morello Richard Mouw Nativity of Our Lord Church, Detriot, MI Nazareth Literary & Benevolent Institution, Nazareth, KY Sherri Nelson Bruce Nesbitt Paul Nesbitt Newman Catholic Center, Charleston, IL Dr. Karen Norrick North Forty Group LLC David and Janet O’Leary Elizabeth and William E. Oliver Patrick Ophuls Barbara Ostrowski and Mary A. Novascone The Oxholm Family Fund Jacques M. and Karen S. Pasquier
The Paul and Edith Babson Foundation Woody Peterson Mary Ann Pfeifer Patricia A. Pierce Erda C. Pradel, D.M.D. Tammy Pulver Jennifer A. Ramsey Tim Reuben Gayle and Jeffrey Rosenthal Stephen Saudek Carter Schelling Eve Schmitz Jean Ann Scott Josie Sentner Eugene Sepulveda Adam Shapiro Marsha Siegel Dylan Simanowitz Sisters of Mercy Northeast Community, Cumberland, RI Sisters, Servants of the Immaculate Heart of Mary, Monroe, MI Thomas Smith Sharmi Sobhan and Sumit Sasidharan St. Ignatius Catholic Community, Grosse Pointe Woods, MI St. Peters Episcopal Church, Lewes, DE State Street Matching Gift Program Laura Stephens Beverly and Shadoe Stevens Dick and Penny Stevens The Ray & Ellyn Stevenson Fund of the Martin County Community Foundation
Craig Stewart Richard and Wanda Stillwell Kutluk Testicioglu Jane E. Thompson Laura Thompson Karen and James Thoms Jeffrey Toohig Richard and Elizabeth Vanden Heuvel Vera Nelson Real Estate Victory Apostolic Church, Matteson, IL Brian J. and Jennifer A. Vosburgh The Waldman Family Charitable Trust Neil and Mary Patricia Walsh Melanie Watts Barbara S. Webster The Weiss Fagen Fund Amber and Andrew J. West Mr. and Ms. B. Briscoe White, III Wilco Investments Marcia L. Wilz Naomi Winick Michael Wolfe and Elizabeth Barr Wolfe Gregory and Rachel Yates Mary N. Young Gregg Zucker
$500-999 Eddie Abramson and Ariane DuBois Luanne Alexis Carole Lewis Anderson Roger Angell L. Kelly Atkinson, Jr. Barbara Ault Jacqueline and Clarence Avant
Daoud Awad and Katherine Shorts Julia P. Bailey Richard P. and Victoria M. Baks Molly B. Ballantine Lorraine Barba Lucy G. Barber Leslie Parks and Gary C. Barbour Pauline M. Bassett Rasa and Robert Bauza Catherine A. Beal Reverend Joseph F. Beckman Barbara and John Beirne Robert and Marie Belenky Jeffrey M. Bergelson and Linda D. Finkelstein Max Berger Jeanine Black Jonathan and Lisa F. Bloch Dawn S. and Marshall Bowen L. Michael and Carole D. Braig Jack Brewer Edward Briody Bruce Ford Brown Charitable Trust Dale J. Burch Called to Serve Roxanne and James M. Chargois Paul F. and John A. Chateau Citrix Carol Clause Linda J. Clay-Long Daniel Clifton Coach, Inc Anne L. Coleman Lenore Collins Joan Collopy Communitas
Community of The Sisters of Saint Anne, Marlborough, MA Elizabeth Cox Susan Crawford Ruth V. and Ludlow Creary Christian de Mazieres Deborah K. Delano Phyllis Dennery Reginald Dieudonne Kim Driscoll Sharon Dunas Elgin Charles Inc William and Anne C. Ewing Frank H. and Mary R. Fee Traci A. Ferguson Mr. and Mrs. John B. Field Alex Fleig and Anna Lord Regina M. and Neil K. Fleming William J. and Karen P. Flynn Marc and Deborah Fogel Marie and John Foley Fund Constance Fourre Tom and Carol Fourre Michelle Fox Pauldine France Pamela and Michael Fuhrig Renee Full Lynn Garfunkel Palmer P. Garson Peter E. Gavin Mary G. George Betsy Gidwitz Ralph Giesler Frances A. Gillette Yvonne Goff Cindy M. Golbert The Good Shepherd Fund Kathleen C. and C. John Goodwin
FONKOZE 2016 ANNUAL REPORT
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Donors and Investors
Fonkoze’s team drive behind a bus - en route to visit clients and members located in the hardest hit areas.
2016 Donors and Investors* Google Matching Gifts Program Denise Gordy Karen Longley Gordy Grace Church, Buena Vista, CO Phyllis A. Grady Elizabeth Green Sharie Green Stephen Gross Gerrard L. and Rosanne S. Gumbleton, Jr. Karen Haire James P. and Betty Hanigan Marianne Harris Helena Hermes Elliot Hernandez Professor Arthur Horowitz Rikki Hughes Zeljko Ivanek Serge and Rosa Jean Darlene Jeris Hayley F. Jessup J’ouvert Records Joanne Jubelier Anne Keating Georgia L. and William R. Keeran John C. and Elizabeth M. Keller Julie M. Kemper Dale J. and Kay M. Kempf Kenneth A. and Sharon Kind Knights of Columbus, Saint Ignace, MI Mark Kreider Robert Lahue Anne R. Lambert Ashley Lanfer Therese Langer
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Jessica Lee Robert D. and Susan C. Lee Melissa Leffler Mary Lellouche Anne M. Lewis Emily A. Lippert Kendra Little Dr. Patricia Locke Malene Lee Lynch Vladimir Magloire Lynn A. Marks Peter Mathis Peter Mayer Ms. Lillian Maynard and Dr. Walter Maynard Tom and Ingrid McDonald Cary S. McGehee Kathleen Mcghee-Anderson and Reginald McGhee Paul F. and Christine McGuire Marcia H. McLaughlin John and Gloria McManus Mercy Investment Services, Inc. and Mercy Partnership Fund Microsoft Matching Gifts Program Carol and David Miller Kathleen T. Moloney and Edward S. Egnatios Morris Foundation Jared Muirhead Parnelle Nacier Mary T. Neilan Reverend Elizabeth M. Nestor, M.D. Patricia and Dennis Newton Dr. Joan O’Brien William O’Brien and Helen Risher
FONKOZE 2016 ANNUAL REPORT
L. Glenn and Cecilia O’Kray Cynthia Oredugba Kathleen O’Reilly Rick and Regina Pettus David and Joy Peyton James Pfeifer Robert and Jean Phay Lynne Pickens P. Martine Pierre-Louis Sherry Preiss Louis E. Prezeau Stephanie L. Quade Lisa Radcliffe Jaquelin S. Reed Lisa C. Reed and John Seabrook Cecilia R. Regan Raine Micale and Christophe Remy de Campeau Ingrid Renaud Charles Rich Dr. Karl Rockne Larry and Leah Rood Robert Rooy Claudia Rosen Margaret R. Rosenkrands Trust Roy Rosin Dr. E C Ryterband Saint Mary Magdalene Community, Drexel Hill, PA David Sarr Sara L. Schnur Susan M. and Charles P. Scholer Dennis F. Schreiner Edward J. Schumacher Mary Ellen and Joseph Sheridan Bradley Ajay Shetty Dan Siegel
Deborah Simons Harvey W. Slager Barbara D. Smith Eula Smith Hope and John C. Smith Alison Soccodato Catharine Soros Martha S. Sproule St. Anne Altar Society, Saint Ignace, MI St. Michael Parish, Sterling Heights MI St. Philomena Parish, Detroit, MI Harold Stankard and Crystal Browning-Stankard Christine Starnes Philip L. and Carol Stein John K. Steinmeyer Monte Stettin Lawrence Suffredin and Gloria Callaci Julie A. and Padraic J. Sweeny Ten Thousand Villages Rev. Dr. Jay Terbush Zorita Thomas Thrivent Financial Leslie Thurman Garry Toussaint Sara Townsend Margaret L. Trost Connie Turner Robert P. Ufer United Methodist Women of First United Methodist Church, Philadelphia, PA Marguerite Urban Jeffrey and Sheila U’ren Mary Louise and George B. Van Antwerp
Dr. Mary Ann Venezia Joan Vermeulen Linda Wallace Anneke Wambaugh Shaaron M. Warne and William J. Mueller The Weatherlow Foundation Rochelle and Marc Weinberg Marlene Wellington and Anthony Glaser Richard C. Welsh Rosemary J. and Bruce M. Wentworth Tom and Beverly Westheimer Kathleen and Shawn White Irlene Whiteman Kevin Williams Michael E. and Sharon F. Williams Women International Leaders of Greater Philadelphia, PA Sara Wotman Frances K. Wu and Wilburn Chesser Robert and Grace Wuertz Gene Yagow Maria Yanes Mary T. Yelenick and Elizabeth L. Broad H. Berrien Zettler Donna L. and J. James Zocco
$250-499 Barry Abrams Dr. Gillian K. Adams and Mr. Warren A. Ferster Dr. Stephen Alsdorf Virginia Anderson Delores and Mervin Antoine Marielise S. Archer
Joseph F. Augustin Linda Auwers Mr. Phil Bahng and Ms. Grace Bahng Sarah Barnhard Reverend and Ms. John N. Bartholomew Harley and Lori Bassman Steve Bauck Beth and Mark Bauer BBVA Compass Marie-Flore Beaubien Tahiese K. Beckford Steven J. Bennett and Erin M. Loubier Wendy Wright and Roger Bergman Bill and Melinda Gates Foundation Agnes Black and Tim Takaro David Blanchard B’nai Or of Boston, Cambridge, MA F. Alix Born Linda Boucard George S. Bowen and Maria I. Fernandez Robert Breech Ms. Edna Johnston and Dr. Ann L. Breeden William Brenner Christine S. Breu Eloise and Jean-Francois Briere Elizabeth Broad Arvin Brown Patrick Cannon Lenore and Thomas Caruso Terrance Cedar Elizabeth C. and David W. Champney Barbara Chapman
Solidarity client Aline Charles, holding water purification tablets that Fonkoze distributed to thousands of clients and members post Hurricane Matthew.
Leo Chausse Gail V. Civille Jayne Cohen Stephanie Condrell Bob and Kathleen Conway Jacqueline Cordry Yardley Custura Matthew Dahms Carol Davidson Bill Davis Maria M. and John D. Davis Eugene and Diane DeJoannis Samantha DeKoven Paula Delehanty Layla Ware DeLuria and Marcos DeLuria Keila DePoorter Natasha Desruisseaux Lauren Doctoroff Dominion Resources Marjorie Dorcely-Henderson and James P. Henderson Don & Jan A. and Janice Downing Robert Duke Dr. Marianne Dwyer Marianne M. and John M. Eckert Renee Eells Helen Engelhardt Dr. Edwidg Eugene Mara Evans John Evans-Klock Jenny Everett Robert G. and Antonia B. Fasick Lisa Feix Bernard D. and Barbara A. Felling Susan Fenoglio Linda J. Ferren James A. Ferruggiaro
Gary Fine Brian Fitzpatrick Steven Fletcher Peter Flint Jean I. Foley Carol V. Foster Rebecca and Douglas Foster William D. and Patricia S. Friel Celestia G. Gaudreault Melanie J. Gavin Roxane Gay General Reinsurance Jessica Gentile Carol A. Goll Marla Gordon George A. Gowen and Anita Von Wellsheim Gowen Corwin Greenberg and Parvati Maggie Grais Linda K. Groth Richard S. and Lois Gunther Fund Tiffany Haddish Judith and Robert Hadley Mary B. Hall Stephen Halper Ted Harrison Anne Hastings Jay and Catherine Hausler Jane D. and Mark A. Heald Joan G. and Joseph E. Heckel Meguire Heston Earl Heuer Peter Hoeger Carol Sue Hofer Dr. Richard Hoffman Steven Holzer Heidi Hoover Shelia Horan
Lee R. and Paula J. Hougen Jane Howard-Martin Robin S. and Michael Hoy Diane S. Humphrey Serge Hyacinthe Susan Hymers Elizabeth Greenberg Ie and Darmakusuma Ie Joseph Israel Jan Jalenak and John R. Ordway Dominique Janssens Teresa and Paul Jennings Norma Joiner and Noreen A. Lyne Anoosh Jorjorian Ellen Joss Harvey Kantor and Janet Felker Donna Keith Mackenzie Keller Micheline and Max Keller Betty A. Kerwin Christina Kind Fred Kleinsinger Stephen V. Kobasa and Anne E. Somsel Very Rev. Mark W. Koczak and Mrs. Janet A. Koczak Loren and Sherrie Konkus Rhea Kuhlman Thomas and Emily B. Kuhny Sister Joan Kusak Ms. Priscilla Labovitz Iole Le Tissier Patricia Leddy Jerry Lee Lyla and Tracy Leigh Darrell Levi Drs. Daniel J. Lew and Sally A. Kornbluth
Sally A. Lewis Seung Han Li Louise Lindenmeyr and Elliot Osborne Laura Locklin JoHanna Losert Lynni Hutton Inc Cathleen Mahon Norman I. and Mary Anne Maldonado Simon Rita A. Marchand Joan T. Marth Cory Martin Ross Mathews Erica Max Dr. Peter Mayock Paul J. McCarthy and Orla C. O’Callaghan Faye McClure John H. McConnell Marjorie S. McCoy Carol Mcphee Zachary Mellette John Melrose Richard Merritt Emmi Meyer Michigan Coalition for Human Rights Tom Mikulka Frances McClellan Miller and Steve Miller Judith J. Miller John Modell James Morgan John Musco Khamisi Mwaniki Stephen Myers Carol A. Nash Rita Neilan
Audrey Niffenegger Marielle Noble Lisanne Norman Dr. Michael Nussbaum Timothy O’Dell Maureen E. O’Reilly Dawn Ostroff Parish of the Holy Spirit, Virginia Beach, VA Karen Patterson Andrea Paulson Stuart Poplin The Powell Family Charitable Trust Kathleen Reno Laura Rhoads Joyce L. Richarson John Romero Gary M. and Toby L. Rosen Joan Roth Cassidy Rush Sacred Heart Church, Norfolk, VA H. Louis and Anita B. Salomonsky Sara Satterthwaite and Neil Froemming Robert M. and Sally B. Schaible Dr. Mary Schmidt Laura Schmieder Dr. Alyssa Sepinwall John Severini Jean-Emmanuel Shein and Christiane Janssen Shawn and Meghan Sheridan Seana L. Shiffrin Dr. Matthew Shuster Susan G. and William Sikov Bruce and Nancy Silverman Janice Smart Anne P. and Lincoln Smith
Ann Sodja Denise Soffel Vic Soghomonian Clive A. and Gayle H. Sommer Christopher and Vanessa Spencer Philip Spiro St. Ambrose Parish, Grosse Pointe Park, MI St. Bernadette Parish, Severn, MD David Stanford Steinmetz/Cummings Gift Fund William Stephenson Sally Temple Stern and Jeffrey H. Stern Gerald B. and Susan Sternstein Jill M. Strickler and John E. Gullion Dr. Barbara Stroud Jessie Sweeney Martin V. Sweeney Meagan Tandy Mari Tangredi Therese Tangredi Nirupam Tanna Scott M. Tayne Agnes Thaler The Trust Company Thomas & Marilyn Giacobassi Rev. Living Trust Michael J. and Marina B. Todd T. Michael Toole Judith and Ekkhart Trenkner Eileen and Jerry Tydlacka Dr. Kathryn Utter Lois and Hubert Van Tol Ann and Karl Vehlies Hannah Vernon Johan and Henrik Von Knorring
FONKOZE 2016 ANNUAL REPORT
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Donors and Investors Sainte Rose Dorescat is one of many Fonkoze clients who received new credit to support recovery and rebuilding efforts post Hurricane Matthew.
2016 Donors and Investors* Carolyn R. Waller Stafford Warren Dr. Louise Bay Waters Catharine Way Myra Weathington William Wells Kayla Werlin George A. Whitley Richard Whittington and Jane L. Coleman Caroline and David S. Wischmann Letty Wood Kim Wooldridge Marlys Wulfsberg Beatrice Young Lawrence T. Young Stephanie Yucius Andrew W. Zanella Kevin Zanit Steve and Lois Zentner Earl and K. Lois Zumwalt Laura Zylstra and Todd Garth
Investors Adrian Dominican Sisters, Adrian, MI Adorers of the Blood of Christ, St. Louis, MO Alternative Gifts International, Witchita, KS Alternative Insurance Company Matt & Margaret Balitsaris Baltimore Ethical Society, Baltimore, MD James Barry Paul Beach Gary & Mary Becker
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Beyond Borders Bon Secours Health System Kelly Bottone Calvert Foundation Catholic Health Initiatives Timothy Cimino City National Bank Shares Carroll and Joseph Clay Congregation of the Sisters of Charity of the Incarnate Word, Scranton PA Congregation of the Sisters, Servants of IHM, Houston TX Charles Conlon Leatrice Crivello Larry Dansinger & Karen Marysdaughter Digicel Haiti International Finance Limited Barbara DiTommaso The Domestic and Foreign Missionary Society of the Protestant Episcopal Church in the United States of America Dominican Sisters of Hope, Ossining NY Dominican Sisters of Springfield, IL David W. Dortch Douglas Wingeier Trust Robert W. Dulaney Deanna Durban Thomas Ellis Ethical Action Committee of St Louis, MO Judith Favor Finian Taylor Revocable Living Trust
FONKOZE 2016 ANNUAL REPORT
Fitzpatrick Family Revocable Trust Fonkoze Employee Trust Fonkoze Foundation Fonkoze USA Peter Gebhardt-Seele Global Partnerships Grey Nuns of the Sacred Heart, Yardley, PA Idyll/Untours Foundation Inter-American Investment Corporation Jonathan P. Haggard Haiti Solidarity of the Northeast Haitian Microfinance, Inc. Anne Hastings Robin and Michael Hoy Chantal Hudicourt Dr. Henry Kaminer Michael Komba Constance Lesold Loretto Literary & Benevolent Institution Christine Low Kimberly McCormick John & Christine McKay Mary Elizabeth Meehan MEDA Mercy Partnership Fund Susan Metz Michigan Committee for a Democratic Haiti Mid-Atlantic Regional Christian Life Community Jean M. Miewald Patricia Miller Fred Montas Nazareth Literary and Benevolent Institution, Nazareth, KY Jane N. Newton
Oikocredit Our Lady of Victory Missionary Sisters, Huntington, IN Joseph & Mary Palen Partners Worldwide Joseph Philippe John R. Poole Louis Prezeau Religious Communities Investment Fund Merilie Robertson Joseph Rund Sacred Heart Monastery, Yankton, SD St. Augustine RC Church, Brooklyn, NY St. Bridget Church Manchester, CT St Martin de Porres Catholic Worker House, Harrisburg, PA Ed Schmidt School Sisters of Notre Dame, St. Louis, MO Julian & Ruth Schroeder Josie Sentner Seton Enablement Fund, Mount St. Joseph, OH Sisters of the Blessed Sacrament, Bensalem, PA Sisters of Charity of New York - Bronx Sisters of Charity of Saint Elizabeth, Covent Station, NJ Sisters of the Holy Cross, Notre Dame, IN Sisters of the Holy Names of Jesus & Mary - US - Ontario Province Sisters of the Humility of Mary, Villa Maria, PA
Sisters of Notre Dame of Toledo, OH Sisters of St. Dominic, Racine, WI Sisters of St. Francis of Philadelphia, PA Sisters of St. Joseph of Carondelet St. Paul, MN Sisters of St. Joseph of Carondelet, St. Louis, MO Sisters, Servants of the Immaculate Heart of Mary, Monroe, MI Sharmi Sobhan Society of the Holy Child Jesus, Rosemont PA Lawrence J. Suffredin Jr. and Gloria Callaci Doug Thompson Untours Foundation Ursuline Sisters of Tildonk Jamaica NY William G. Wegener
Shoulder-toShoulder Legacy Society Jerry and Anna Bedford Mary and Gary Becker Leigh Carter and Andrew Schuman Alex and Emily Counts Barbara DiTommaso Rev. Judith L. Favor Dr. Francis P. Fuhs Jim and Betty Hanigan Anne H. Hastings Brian and Diana Lovett John R. Mercier Cynthia Odierna
Joe and Mary Palen Martine Pierre-Louis Reverend Gene R. Preston and Mrs. Nancy A. Preston Peg Rosenkrands Marsha Siegel Karen Locke Thoms
In-Kind Donors and Volunteers Akin Gump Strauss Hauer & Feld LLP Colette Pollitt, P.C.
Endowments and Memorials The Jerry and Anna Bedford Endowment Fund John Borstel and Charles R. Gravitz Endowment Fund H. Fred Clark Memorial Fund The Margaret Demere Memorial Fund Bob and Marie Fehribach Memorial Fund Raymond and Lise Giraud Memorial Fund The Dr. Faith M. Jones Memorial Fund
* The Fonkoze Family makes every effort to acknowledge all donors and expresses their regrets for any donor who is not listed. If you see that your name was excluded in error, please contact Fonkoze USA at 202.628.9033.
2016 Fonkoze Leadership ENDNOTES
Fonkoze Family Senior Staff
Fonkoze USA Board of Directors
1
SÈVIS FINANSYE FONKOZE, S.A. Matthew Brown, Chief Executive Officer Dominique Boyer, Chief Operating Officer Bridgitte Rousseau, Chief Financial Officer
Therese Feng, Chair Beth Daniels, Vice Co-Chair Jean Guy Noel, Vice Co-Chair Daniel Robinson, Secretary James Kurz, Treasurer Charles Quarles Marguerite Lathan Father Joseph B. Philippe, CSSp Marjorie Roberts Laura Stephens Laura Roberts Wright Herold Rodrigue Larry Arbuthnott, Board Fellow Nicholas Johnson, Board Fellow
On October 4, 2016 (four days after the close of SFF’s fiscal year), Category 4 Hurricane Matthew made landfall with winds up to 145 miles per hour along the Southwestern peninsula of Haiti. Six Fonkoze Financial Services branches located in the South with over 14,000 borrowers were adversely affected by the storm. At December 31, 2016, Fonkoze Financial Services recorded a loan loss provision of 32.6 million Haitian gourdes which adversely affects our financial performance. An inability of clients to meet rescheduled repayments or an inability of clients who are not currently delinquent to continue making repayments on a timely basis may lead to additional loan loss provisions and net losses in fiscal 2017. As of the date of this report, Fonkoze Financial Services has received grants equivalent to 25.3 million Haitian gourdes to support Hurricane Matthew recovery. 2
Fonkoze USA has no role with respect to any offering by Fonkoze Financial Services and will not receive any proceeds therefrom. Accordingly, Fonkoze USA takes no responsibility for the accuracy or adequacy of any disclosure or other materials delivered in connection with any offering by Fonkoze Financial Services.
FONDASYON KOLE ZEPÒL Carine Roenen, Executive Director FONKOZE USA Leigh Carter, Fonkoze USA Founder Peg Fourré, Interim Executive Director*
Sèvis Finansye Fonkoze, S.A. Board of Directors Damian Blackburn, Chair Brian Kearney-Grieve, Vice Chair Mary Jo Sentner, Secretary Matthew Brown Daniel Dorsainvil Michèle Duvivier Pierre-Louis Fabienne Jolivert Geneviève Michel Guy Paraison Fr. Joseph Philippe Daniel Robinson* Ben Simmes
Fonkoze, S.A. Board of Directors Julian Schroeder, Chair Brian Kearney-Grieve, Vice Chair Daniel Robinson, Secretary* Deanna Durban, Secretary Guy Paraison Fr. Joseph Philippe
Fondasyon Kole Zepòl Board of Directors Father Joseph B. Philippe, CSSp, Chair Alexandre Claude, Vice Chair Marie Deleure Jean, General Secretary Guy Paraison, Treasurer Gilnette Charles Emmazilie Charles Edrix Alcimé Marguerite Lathan Marilia Charlestin Fabienne Jolivert Jarbath Carmelia Gévénise Saint-Louis Herold Rodrigue
Fonkoze USA Emeritus Board Members Leigh Carter Anne Hastings
Honorary Board of Directors of Fonkoze USA Jose Artiga Garcelle Beauvais Jerry Bedford Maryann Boord Matt Balitsaris Alex Counts Dr. Paul Farmer Mary and Gary Becker Maureen Fenlon, OP Brian Gately Beverly Lucas Michael McClanen Ruth Messinger Louis Prezeau Marie M.B. Racine Michael Rauenhorst Winston Tellis
Credits EDITORIAL TEAM Linda Boucard Matthew Brown Leigh Carter Charles Gravitz Lyla Leigh Natalie Parke Carine Roenen Sherry Todd-Green DESIGN Brad Latham PRINTED BY Petree Press, a Division of Worth Higgins & Associates, Inc.
Special Thanks We are deeply grateful for the 800+ dedicated staff members working throughout Haiti to fulfill our mission.
*Outgoing members of Fonkoze’s leadership.
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SĂˆVIS FINANSYE FONKOZE, S.A. 119 Avenue Christophe Port-au-Prince, Haiti 505 (from Haiti) 1.800.293.0308 (from US)
FONDASYON KOLE ZEPĂ’L 119 Avenue Christophe Port-au-Prince, Haiti 505 (from Haiti) 1.800.293.0308 (from US)
FONKOZE USA 1718 Connecticut Avenue NW, Suite 201 Washington, DC 20009 202.628.9033
www.fonkoze.org
Fonkoze USA is proud to be a Charity Navigator rated organization.
Guidestar recognizes Fonkoze USA as a platinum-level partner, for its commitment to transparency.
Fonkoze USA participates in the Combined Federal Campaign.
The Better Business Bureau recognizes Fonkoze USA as an Accredited Charity.