Voices from the Field

Voices from the Field

Grameen Foundation

2007–2008 Annual Report

Empowering people. Changing lives.

Innovating for the world’s poor.

global impact | regions | technology | innovation | supporters | people | financials

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voices from the field | 2007–2008 annual report

Our Grameen Heritage Inspired by the work of Grameen Bank in Bangladesh, Grameen Foundation was created to help share the Grameen philosophy and accelerate the impact of microfinance on the world’s poorest people. Started in 1976 by Professor Muhammad Yunus with a mere $27 from his own pocket, Grameen Bank now serves more than six million poor families with financial services. Grameen Foundation replicates the success of Grameen Bank internationally by supporting microfinance institutions that embody its vision and values. Although they are independent organizations, Grameen Foundation and Grameen Bank maintain an enduring relationship.

Professor Yunus is a founding and current member of Grameen Foundation’s Board of Directors.

Our Mission To enable the poor, especially the poorest, to create a world without poverty.

On the cover: Sinapi Aba Trust client Sadiya Dokurogu is a clothmaker in Ghana. With her first loan of 500 cedi (US $432) she bought more materials and can now keep up with her customers’ requests. |2007–2008 2007—2008 annual annual report report | voices | from the field

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Grameen Foundation 2007–2008 Annual Report

Table of Contents

3 Message from President and Chair

4 Global Impact

6 Reaching Nearly Seven Million Regions

8 Sub-Saharan Africa 10 Americas 12 Asia 16 Middle East and North Africa

Technology 18 Grameen Technology Innovation 20 Leveraging Hope

22 Reaching the Poorest 23 Family of Supporters 29 People 31 Financials 33 What You Can Do

Results Number of Partners

48 Number of Clients Reached

6,876,003

Countries Served

27

Average Loan Size

$250.27

Total Amount of Active Loans in the GF Network

$944,158,349

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voices from the field | 2007–2008 annual report

“I took out my first loan over two years ago, and I am still with my same group. There are four of us, and we take care of each other.

When one member of our group couldn’t repay her loan on time, I gave her some of my savings to help her. She paid me back within two weeks. I knew she would.”

­ —Junie Dubisson, Fonkoze, Haiti

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Message from President and Chair Dear Friend of Grameen Foundation, Our recently completed fiscal year was one that advanced microfinance on many fronts and on a global scale. It was also a time of important transitions for Grameen Foundation that will make us a stronger organization.

This was the first full year after the awarding of the Nobel Peace Prize to founding board member Professor Muhammad Yunus, and we worked hard to channel the vastly increased interest in microfinance toward enabling the poorest to escape poverty. Never before have we had so many donors, volunteers and employees working for our common goal. Yet, with close to one billion people living in extreme poverty worldwide, we have only begun to scratch the surface of the opportunities and needs before us.

We are pleased to share some of our proudest achievements in 2007–2008: • We mobilized $5.3 million in new financing for Amhara Credit and Saving Institution (ACSI), a leading microfinance institution in Ethiopia, with a loan guarantee of $2.5 million. By fiscal year end, we had leveraged $125 million in new financing through our “growth guarantee” program that was launched in 2005.

• Our grassroots microfinance partner institutions collectively surpassed 6.8 million families served. This is 5.6 million more than when we first launched our strategic plan in 2005. This means that we exceeded our strategic goal of reaching five million poor families, one year ahead of schedule!

• Our technology team, in cooperation with corporate partners like IBM, successfully completed the first two installations of our Mifos software platform at Grameen Koota in India, and Jitegemea in Kenya. Mifos is a revolutionary product that promises to increase efficiency and help microfinance institutions better serve their clients.

• We received the prestigious “member of the year” award from SEEP, a network of 67 microfinance networks and institutions operating in 140 countries.

We also honored former Board Chair Susan Davis, who served on our Board of Directors more than six years, and former Vice Chair Yvette Neier, who served more than nine years.

We are grateful to all of our supporters and ask that you share in our sense of accomplishment and also in the urgency of the work ahead.

Sincerely,

Paul Maritz, Chair Alex Counts, President & CEO 3

voices from the field | 2007–2008 annual report

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Our Global Impact

Middle East and North Africa Egypt, Lebanon, Morocco, Saudi Arabia, Tunisia, Yemen

Grameen Foundation and our 48 microfinance partners currently serve more than 6.8 million clients, in 27 countries around the world. www.grameenfoundation.org/where_we_work

Americas Bolivia, Dominican Republic, El Salvador, Haiti, Honduras, Mexico, Peru, United States

What is Microfinance?

Sometimes called “banking for the poor,” microfinance is a simple approach that empowers very poor people around the world to pull themselves out of poverty. Relying on their skills and entrepreneurial instincts, very poor people, mostly women, use small loans from local organizations called microfinance institutions (MFIs) to start, establish, support, or expand small, self-sustaining businesses. A key to microfinance is the recycling of loan dollars. As each loan is repaid—usually within six months to a year—the money is recycled as another loan, thus multiplying the value of each dollar in defeating global poverty, and changing lives and communities.

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East Asia China, East Timor, Indonesia, Philippines

South Asia Bangladesh, India, Pakistan

Sub-Saharan Africa Cameroon, Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Uganda

Grameen Foundation provides services and products to enable microfinance institutions across the globe to serve more and more of the world’s poorest.

Finance

GF provides grants, loans, Growth Guarantees and equity to microfinance partners; this capital goes directly to loans for the poor or to support special projects.

Training & Technical Assistance

Our Partner Services staff provide our partners with training on business planning, staff recruiting and training, and financial management.

Technology & Industry Innovation

GF has pioneered innovations to ensure that our partners are reaching the poorest of the poor, introduced telecommunications to rural villages, and developed open-source software to help microfinance institutions better serve their clients.

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Reaching Nearly 7 Million Clients

In 2007, Grameen Foundation strengthened our partners and added new ones as well, expanding into new regions and reaching more than 6.8 million clients around the world.

Number of Active Clients Region/Country

Partner

2005≈

3-31-2008*

China

Funding for the Poor Cooperative- Nanzhao Branch (FPC)

14,211

15,486

China

Association for Rural Development of Poor Areas in Sichuan (ARDPAS)

1,539

2,014

China

Chifeng Zhaowuda

3,166

2,945

East Timor

Moris Rasik

4,626

11,862

India

Activists for Social Alternatives (ASA)

68,781

261,062

India

CASHPOR/ Cashpor Financial and Technical Services

27,769

354,668

India

Covenant Centre for Development (CCD)

India

Evangelical Social Action Forum (ESAF)

1,064

221,932

India

Grameen Koota

9,083

139,114

India

Society for Helping, Awakening Rural poor through Education (SHARE) Microfin Limited

197,943

1,040,718

India

Swayam Krishi Sangam (SKS) Microfinance

21,946

1,879,258

India

Sonata

Indonesia

Mitra Bisnis Keluarga Ventura (MBK)**

Indonesia

Mitra Karya East Java (MKEJ)

85

1,441

Indonesia

Yayasan Mirtra Dhuafa (Yamida)

789

8,987

Indonesia

Yayasan Kariya Bunda Sejahtera (YKBS)

445

3,770

Pakistan

Kashf Foundation

59,389

312,439

Pakistan

Urban Poverty Alleviation Program (UPAP)

36,020

92,455

Philippines

Ahon Sa Hirap Incorporated (ASHI)

10,701

21,333

Philippines

Center for Agricultural and Rural Development (CARD) NGO

79,745

339,286

Philippines

Center for Community Transformation (CCT)

78,066

111,672

Philippines

Negros Women for Tomorrow Foundation (NWTF)

54,863

79,589

Philippines

Tulay Sa Pag-Unlad Incorporated (TSPI)

84,517

164,814

798,334

5,110,366

Asia

806

44,387

Subtotal Asia: 23

Middle East & North Africa Egypt

Al-Tadamun

9,232

44,216

Egypt

Regional Association to Develop Enterprise (RADE)

6,115

12,677

Egypt

Dakahlya Businessmen’s Association for Community Development (DBACD)**

Lebanon

Al Majmoua

Morocco

Fondation pour le Développement Local et le Partenariat – Micro-crédit (FONDEP)

20,485

125,571

9,573

Morocco

Foundation Zakoura**

Tunisia

enda inter-arabe

Yemen

Hodeidah

Yemen

Abyan

25,018

68,911 3,900 2,584

Subtotal MENA: 10

67,123

280,102

Number of Active Clients

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region/Country

Partner

2005≈

3-31-2008*

Sub-Saharan Africa Ethiopia

Amhara Credit and Savings Institution (ACSI)

Ethiopia

Specialized Financial and Promotional Institution (SFPI)

834,503 26,724

Ghana

Sinapi Aba Trust (SAT)

56,448

Nigeria

Development Education Centre (DEC)

Nigeria

Lift Above Poverty Organization (LAPO)

Nigeria

Self-Reliance Economic Advancement Programme (SEAP)

48,188 166,278

Subtotal Sub-Saharan Africa: 6

14,044

1,146,185

Americas Bolivia

Fondo de Desarrollo Comunal (FONDECO)

Bolivia

ProMujer Bolivia

8,120

8,860

75,239

100,511

195

13,308

Dominican Republic

Esperanza International

Dominican Republic

Fundación San Miguel Arcangel, Inc. (FSMA)

2,601

9,816

El Salvador

Las Mélidas

1,300

1,385

24,990

177,51

Haiti

Fonkoze

Honduras

Fundación Adelante

1,956

5,270

Mexico

Alternativa Solidaria Chiapas (AlSol)

3,224

16,499

Mexico

Centro de Desarrollo Comunitario (Centéotl)

Mexico

Grameen de la Frontera

Nicaragua

Asociación de Consultores para el Desarrollo de la Pequeña (ACODEP)**

Peru

EDPYME Confianza**

Peru

EDPYME Edyficar**

Peru

ProMujer Peru**

USA

Project Enterprise

USA

The Plan Fund

895

2,308

1,308

3,644

76

395

144

65

Subtotal Americas: 16

120,048

339,350

Total All Partners

1,010,050

6,876,003

≈ In 2005, Grameen Foundation launched our strategic plan to reach 5 million new clients by 2008. We have accomplished that goal early. * The 2007 Annual Report covers our fiscal year between April 1, 2007 and March 31, 2008. ** Growth loan Guarantee partner only: this microfinance institution received a Growth Guarantee to support their financial needs.

Hundreds of clients of Grameen Foundation partner Amhara Credit and Savings Institution (ACSI) fill a small building for their loan meeting in Bahir Dar, Ethiopia. You can help our partners expand their facilities and reach even more clients with financial services.

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voices from the field | 2007–2008 annual report

Bosede Ogunleye has been a borrower with Grameen Foundation partner SEAP for more than six years. Her small store gave her a chance to start a new life—one that ensures a promising future for her family.

Empowering African Women With New Opportunities “I have been with SEAP from the beginning,” says Bosede Ogunleye, beaming with pride.

“They are growing rapidly. I’m so happy to be one of the original members.” Bosede has been a client at Self-Reliance Economic Advancement Programme (SEAP), a Grameen Foundation partner in Nigeria, for more than six years. In that time, she has seen an incredible improvement in her family’s quality of life.

Before joining SEAP, Bosede sold small containers of filtered water on the street, earning less than 26 cents a day. She was barely able to feed her children, and also faced physical abuse from her husband. After taking a loan for 10,000 Naira

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(US $90), she began to diversify her inventory and expand her clientele. In 2007 Bosede opened a small shop purchased a freezer and generator, and now sells frozen fish and meats. Her husband soon left the family, but Bosede’s store allowed her to maintain a good income.

Since joining SEAP and caring for her children on her own, Bosede has increased her household income more than six-fold, earning nearly $4.50 per day. While such a figure may be modest by global standards, it places Bosede and her family squarely in the Nigerian middle class, freeing her from worrying about where their next meal will come from, and allowing her to pay school fees for her children.

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Sub-Saharan Africa

Accomplishments • Trained our microfinance partners on how to efficiently track their financial performance and create sound business plans • Worked with Nigerian government regulators on how to effectively support microfinance institutions, and trained staff from the Central Bank of Nigeria on how to monitor and contribute to the microfinance sector Grameen Foundation works with governments, regional organizations, • Provided training in the latest small business commercial banks and microfinance partners to ensure that more and more people can rise out of poverty. best practices for staff of the Kenya Central Bank and staff of Kenyan microfinance institutions, allowing them to streamline their processes and assist more poor clients • Provided $18,500 in grants and $150,000 in loans for our Africa partners.

• Provided a Growth Guarantee for an Ethiopian partner, ACSI, for $2.5 million, leveraging a total of $5.3 million in financing for loans to clients.

Learn more about our approach to fighting poverty in Africa at www.grameenfoundation.org/africa

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voices from the field | 2007–2008 annual report

Reaching the Poorest of the Poor

Grinding, unrelenting poverty. Desperation that only grows worse in the “hungry season,” but never disappears.

Watching your children die without medical care from treatable diseases. That is the life of some 300 million people across Sub-Saharan Africa–people who live on less than $1 a day.

That’s why Grameen Foundation launched its ambitious Africa Strategy in January 2007. A year later, our partners are reaching more than one million clients across the continent. Grameen Foundation works to enable the growth of poverty focused microfinance in Africa, by providing direct support to our partners and persuading local and government institutions to support microfinance and support policies that will alleviate poverty.

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Microfinance Plus

Americas In the Americas, a growing trend has been for microfinance institutions to deliver desperately needed social services in tandem with microfinancial services.

By using microfinance as a platform, both social services and microfinance multiply their impact on poverty. Spurred by that insight, GF and its partners are enthusiastically supporting initiatives that go beyond simple financial services, such as health education, nutritional supplements, and educational scholarships for the children of microfinance clients. In 2007, Grameen Foundation supported our Americas partners’ with $2.8 million to reduce poverty and provide social services for the poor.

At AlSol in Chiapas, Mexico, clients’ children can now benefit from nutrition and literacy classes.

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Not By Microfinance Alone Grameen Foundation’s partners in the Americas value to become a more valuable resource to their clients by fostering health and education programs like these: Esperanza (Dominican Republic)—HIV/AIDS education Pro Mujer Bolivia—Financial and health services, young entrepreneurs program Fonkoze (Haiti)—Adult literacy, sustainable agriculture, and maternal health Grameen de la Frontera (Mexico)—High school and college scholarships for daughters of clients AlSol (Mexico)—Nutrition and literacy education for clients and their families

A young daughter of a ProMujer Bolivia client gets a checkup at a local health clinic.

New Hope for Dominican Children those who can afford it, and awards scholarships to Milán Tapia, a petite woman with a warm smile, those who can’t. She is full of ideas and plans for the was standing in her doorway when a group of small future. “I have long-term dreams. I want education children caught her eye. They were hurling insults, quality to improve, I want the kids to have better squared off in two opposing groups on the street, food, I want kids to feel better wearing tattered, dirty clothes. and be more confident, and to Clearly, they were about to fight. be treated better. I also want all Quickly preventing the oncomparents to be educated so that ing skirmish, Milán called them they can help their children with to her house and distracted them their homework. For me, I want with snacks and stories. She found to continually be strengthened knives, scissors, and rocks in their

by God.” pockets. In exchange for their Esperanza, a Grameen Founimprovised weapons, she gave dation partner since 2004, is them pencils and notebooks.

Milán used her microfinance loan to reaching almost 13,000 clients They returned to her house daily, bring hope and opportunity to the lives of hundreds of young children in her like Milán in the Dominican for her gentle nurturing, cookies, community.

Republic. Grameen Foundation and more stories. With only a provided scholarships to Esperanza staff to learn seventh-grade education herself, she taught them about improving efficiency by visiting Bangladesh all she could about reading, writing and math. and seeing Grameen Bank in action.

Milán’s little school grew rapidly. She was alAt the end of 2007, Grameen Foundation’s Amerready a successful client with Esperanza, a Grameen icas Initiative was benefiting nearly 200,000 of the Foundation partner in the Dominican Republic, but poorest families in the Americas, and impacting an her small clothing and upholstery business could estimated 1 million people. Our partners’ outreach not make enough money to feed her new students in the region has grown by 17 percent since last year. and give them school supplies. Esperanza gave her Learn more about how our partners are innovatlarger loans to support her new line of work.

Milán now teaches 212 students and has plans to ing in the Americas at move into a new building where she can teach 200 www.grameenfoundation.org/americas more. She charges tuition on a case-by-case basis to

“I thank Milán because she helped me, so that today I am not chased by policemen but actually have my own business.”

—Cesarin Apotola, one of Milán’s first students, now a successful home repair technician 11

voices from the field | 2007–2008 annual report

Children in a Bangalore village, where Grameen Foundation’s social performance tool, the Progress Out of Poverty Index™ (PPI), is helping Grameen Koota measure how microfinance is moving their clients out of poverty.

“At the end of the day if you are very tired, and you see the smile of a child, all your pains go away.”

—Anup Kumar Singh, Managing Director of Indian MFI Sonata

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Asia

Childhood Friends on a Mission to Defeat Poverty Fresh from university, Rakesh Dubey and Anup Kumar Singh were on their way to make their dreams of fighting poverty come true. Between them, they had one pair of good shoes to wear in an interview with CASHPOR, a prominent Indian microfinance institution and Grameen Foundation partner. With all the shoe shops closed, the friends came up with a creative solution.

Anup recalls, “During the whole process there was only one pair of shoes. One person went for the interview, came out, said, ‘Okay take off the shoes,’ and gave it to the second person, who then went for the interview. That was almost ten years back.”

The two friends have come a long way since then. They joined CASHPOR in 1997, and worked their way into top positions. But they knew there was much more work to be done, and they decided to form their own microfinance institution to work

in other areas of Uttar Pradesh, the most populous and one of the poorest states in India. “We feel that we should work in areas that are unserved,” says Rakesh.

Their MFI, Sonata, was born in January 2006 in the state of Uttar Pradesh. Grameen Foundation helped Anup and Rakesh with their new project by sponsoring them to attend our Partner Forum in Bolivia, where they learned from other microfinance professionals from around the world. Sonata currently serves more than 50,000 clients. In five years, Anup and Rakesh plan to reach 200,000 clients like Rametri.

Rametri, a mother of two sons, used to rely only on her husband’s meager income of 40 rupees (93 cents) every day to get by. She met a field officer from Sonata who explained to her that with a small loan, she could contribute to the family income.

With a loan of 2000 rupees (US $46) Rametri opened a tea-stall in the local marketplace, an idea that her husband enthusiastically supported. Their stall has now expanded, and her husband sells small snacks to their ever-increasing clientele.

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voices from the field | 2007–2008 annual report

Poverty and Promise

“More than two-thirds of the world’s poor live in Asia, in countries as diverse as China, India and the Philippines.

Despite vast cultural and geographic differences, they suffer from similar problems: low incomes, poor housing, lack of food security, inadequate sanitation and clean water, low education levels, and lack of access to financial services.

Across the continent, Grameen Foundation’s Asia partners expanded dramatically in 2007, from 1.9 million clients to 3.3 million clients.

In 2007, GF added two new Indian partners, ESAF and Sonata, to our 21 Asia partners, to help them expand into underserved regions of north India. Meanwhile, our partners in Indonesia, with $253,579 in Grameen Foundation funding, are continuing to help people get back on their feet after the 2004 tsunami.

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“Meeting the women in Inner Mongolia has inspired me as a volunteer to reach out to the Shanghai community and build support for Grameen Foundation’s programs here, so that the lives of even more women can be transformed by microfinance.”

—Susan Place Everhart, Coordinator of the Shanghai Volunteer Group

Sun Li Hua, a client of Grameen Foundation partner Chifeng Zhaowuda, and her loan officer Wang Yan Hong.

Getting Off the Ground in Shanghai Microfinance is just really getting off the ground in China, and a unique group of Grameen Foundation volunteers in Shanghai is helping to spread the word. The founding members, Alan and Mae-Ling Tien and Susan Place Everhart, had a passion for GF’s mission and the desire to help.

Now, with 70 local volunteers, they have assisted Grameen Foundation in corporate relations, securing pro-bono work, reaching out to donors, translations and fundraising. By 2008, the group had raised more than $65,000. Grameen Foundation and its Chinese microfinance partners that have been the beneficiaries’ of the volunteers support currently serve about 20,900 families in China.

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A New Social Business Strengthens Microfinance In India, microfinance institutions need about $50 billion to achieve their client outreach goals, yet only $2 billion is currently available.

Grameen Capital India aims to ensure access to life-changing loans for the 27 percent of Indians living in poverty. This innovative social business was launched by Grameen Foundation in partnership with Citicorp Finance and IFMR Trust, an Indian finance company. Led by CEO Royston Braganza, GCI links grassroots microfinance institutions and local commercial banks, allowing MFIs access to crucial funds to expand their outreach. In the first three months of operations, it mobilized more than $9 million in new financing for two leading Indian MFIs. Learn more about how microfinance is changing lives in Asia at

Kashf, our microfinance partner in Pakistan was able to access $20 million in Pakistani rupees in loans for poor women, with the strength of $5 million in loan guarantees provided through Grameen Foundation.

www.grameenfoundation.org/asia

Clients of CASHPOR in India, a Grameen Foundation partner serving 300,000 clients.

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voices from the field | 2007–2008 annual report

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A s t r at e g i c a l l i a n c e

Middle East and North Africa Grameen-Jameel Pan-Arab Microfinance Limited, a joint venture between Grameen Foundation and the Abdul Latif Jameel Group, a private Arab company, began as an initiative in 2003. Following a four-year partnership between the two organizations, Grameen-Jameel launched as a company in 2007. By the end of 2007, Grameen-Jameel reached 240,830 clients through its 10 partners, exceeding their 2007 outreach goal by 20 percent.

Their goal for 2008? Reach 400,000 clients and their families.

Microfinance Overcomes the Odds Conflict didn’t stop microfinance in Lebanon when war broke out in the summer of 2006. Despite fierce battles, microfinance institution Al Majmoua proved that microfinance can serve the poor even in a war zone.

More than two-thirds of Al Majmoua’s clients lived and worked in the most war-torn areas, and many of their staff had to flee their homes with their families.

Amid widespread panic, the organization offered its clients shelter in its office and provided sports, cultural and educational activities for clients’ shell-shocked children, to give them a small taste of normal life.

According to Al Majmoua director Youssef Fawaz, “The morning after [the cease fire], Al Majmoua staff members and clients alike returned to discover the scale of the destruction visited on their villages, homes, businesses, fields, livestock, and on their livelihoods. A couple of staff members found their apartments reduced to a

pile of rubble.” In the aftermath of the conflict, nearly 70 percent of their clients could not make regular payments on their loans.

Grameen-Jameel partnered with Al Majmoua in 2007, and gave them a loan of $187,000 to provide, “solidarity loans” modeled on Grameen Bank’s methodology. This initiative helped hundreds of clients in the refugee camps that were badly hit by the attacks.

The new loan proved invaluable in getting their clients back on their feet. Soon after, the majority of Al Majmoua’s clients were paying their loans on time again.

Learn more about our joint venture at www.grameen-jameel.com

Thousands had to flee their homes in Lebanon during the summer of 2006. Grameen Foundation partner Al Majmoua made sure that refugees got the assistance they needed.

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Zeinab’s determination has paid off. As a client of Grameen- Jameel partner Al Tadamun for four years, she is now reaping the benefits of her successful small business.

Six Children, No Income Zeinab desperately needed to find a way to provide for her six children. Four years ago, her husband suddenly became sick and had to quit his job, so Zeinab frantically asked around her community for a way to feed her family. One friend told her about an agency, Al Tadamun, that gave small loans to groups of women like her without collateral. Filled with a new hope, Zeinab talked to her neighbors the very next day, organized a group of five women, and headed over to the Al Tadamun office.

Her first loan was 250 EGP (about US $46). She used it to start a business making wooden pots, crafts and kitchen supplies. Over time, Zeinab moved from one success to another, and now she has her own workshop at home. Three of her children are helping her, and she is very happy with her life. Her last loan was for 4000 EGP (US $735). “This is more than any government officer gets in two months,” she says with a smile.

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voices from the field | 2007–2008 annual report

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c u t t i n g e d g e i n n o v at i o n

Grameen Technology The Grameen Technology Center was established in 2001 to leverage advanced technology, particularly information technology, for the benefit of microfinance institutions and their clients around the world. Two of GF’s most exciting technology innovations are: • Mifos—Microfinance Open Source software, enabling MFIs to capture and store information more efficiently, and build their business using world-class computer support • Village Phone, allowing the rural poor to take advantage of 21st century communications through the use of cell phones Mifos: Better Data, Quicker Loans Polly Gikonyo, Jitegemea’s IT officer, says, “Implementation of Mifos has helped Jitegemea in streamlining our processes. My most memorable day was when we phased out the old system.” Polly and her team can now process loans much faster, which means better service for clients. It will now be easier for them to meet their goal of reaching 7,000 clients by the end of 2008.

Jitegemea is not unusual. Around the world, many microfinance institutions face critical challenges in managing their heavy workloads. Mifos allows the microfinance industry to streamline, so it can focus on its goal of enabling people to escape poverty.

Jitegemea is a small but growing MFI in Nairobi, Kenya. With 5,000 clients and almost 8,000 loan payments to process each week, Jitegemea’s IT staff was struggling to manage their accounts using basic computer spreadsheets. Their rudimentary system made it hard for them to perform essential information management functions, such as entering data and ensuring it was available to top decision makers.

Microfinance Open Source (Mifos) software was the answer to these kinds of problems, which are pervasive in microfinance today. Developed by Grameen Technology Center, Mifos was created with the specific needs of microfinance loan officers in mind.

Powerful Corporate Partnerships: GF and Qualcomm At a time of declining profit margins and a shaky global economy, few would think that a multi-billion dollar private corporation would invest time and money to create an alliance with the objective of empowering the rural poor. Qualcomm, a California-based wireless communications company, rose to the occasion and joined hands with Grameen Foundation to pilot Village Phone Indonesia in 2007. The pilot was very successful, and GF plans to launch Village Phone Indonesia in summer 2008. Qualcomm has helped Grameen Foundation by providing funding and expertise, and powerful introductions to members of local government and telecommunications companies.

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Since 2003, Grameen Foundation has launched Village Phone programs in Uganda and Rwanda and assisted with programs in Cambodia, Haiti and the Philippines.

Village Phone: A Voice for the Rural Poor Imagine being unable to call a doctor when your child is ill, or reach friends or family in a different city, or to contact the police quickly in an emergency.

In developing countries, most people living in rural villages still lack access to these basic communications that we take for granted. Village Phone brings communications technology into remote areas where none previously existed, while also creating business opportunities for microfinance clients.

When microfinance clients become Village Phone Operators, they offer phone service to their neighbors at an affordable price. Not only does the operator now have a source of income, but they are also providing an important resource for their village.

In 2007 . . .

• Village Phone Rwanda is working with six microfinance institutions, and established 1,000 Village

Phone Operators—an important milestone for a program that was launched just a year earlier. By 2009, Village Phone Rwanda plans to support more than 2,500 operators.

• Our Village Phone Direct website launched, making information about starting Village Phone projects available to all microfinance institutions around the world.

• GF published a Village Phone Direct training manual, which anyone can use to start a Village Phone business. The manual is published in five languages: English, French, Spanish, Chinese and Arabic.

Learn more about Village Phone and our technology programs at www.grameenfoundation.org/technology

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voices from the field | 2007–2008 annual report

>> global impact | regions | technology | innovation | supporters | people | financials

C ataly tic Financing fo r th e Poor

Leveraging Hope In most countries where Grameen Foundation supports microlending, the need for loans far exceeds the supply of funds. Our Capital Management and Advisory Center (CMAC) has devised a way to leverage wealth and capital from the US directly for microloans.

Through our Growth Guarantees Program, GF uses the assets of wealthy individuals as collateral to enable local commercial banks to provide local currency loans to microfinance institutions. This guarantee provides security for commercial banks, making them far more willing to give loans to the MFIs at competitive market rates, and the MFIs are protected from foreign exchange risk. Since donor-guarantors use their credit rather than actual funds, they can also continue to earn returns on their individual investment portfolios while simultaneously empowering the poor. All funds secured through the program must be used only for direct lending services to clients.

How can you participate in the Growth Guarantees Program?

The Growth Guarantees Program presents a unique opportunity for individuals or institutions in the U.S. to make a significant impact on the lives of microfinance borrowers in the poorest regions of the world. To participate, donor-guarantors—participants who share GF’s vision that microfinance is a scaleable solution to global poverty—provide their assets as a guarantee to Citigroup. Citigroup then issues letters of credit to local banks to support financing for MFIs selected by GF. An important feature is the multiplier effect of these guarantees. Each dollar provided as a guarantee can enable the MFI to borrow at least twice that amount, thus increasing its overall impact. For example, a donorguarantor’s commitment of $2 million could generate more than $8 million in direct financing for a MFI, or the equivalent of loans to approximately 50,000 women and their families.

If you or your institution would like to provide a guarantee of at least $1 million to the Growth Guarantees Program, please contact Camilla Nestor at cnestor@grameenfoundation.org.

2007–2008 annual report | voices from the field

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The Record So Far (As of July 15, 2008)

Round 1 28M in Growth Guarantees issued globally

0

30

140M in local currency commercial debt financing for MFIs

60 $ millions

90

120

150

“Now I can work for myself.”

—Ibu Irmawahyuni, an Indonesian borrower since 2004

Working for someone else, Ibu Irmawahyuni was paid Rp 30,000 (USD $3) for an entire day’s work. With her own equipment, she makes Rp 60,000, doubling her daily income selling dried coconut. GF’s Growth Guarantees can help MFIs reach thousands more clients just like her.

Hesitant? They Just Wouldn’t Lend to Us! Dr. Shafiq Dhanani, the founder of Grameen Foundation collateral and helped us start a relationship with compartner Mitra Bisnis Keluarga Ventura (MBK), used to strug- mercial banks.” With this new funding, we’re growing by gle to secure financing. When asked if commercial banks in 5,000 clients a month, so it’s very significant,” says Dr. Indonesia were initially hesitant to Shafiq. “And we’re going to keep “Grameen Foundation’s Growth work with MBK, he responds, “Hesidoubling our customer base every Guarantee provided the bank tant? They just wouldn’t lend to us! year. with collateral and helped us We didn’t have any collateral, they CMAC also offers a variety of start a relationship with just wouldn’t lend.” advisory services for our microcommercial banks.”

“In Indonesia, there is no shortfinance partners, helping them age of funds,” Dhanani says, “But the formal banking access vital funding from commercial banks. Find out sector is not used to supporting microfinance. Grameen more about Growth Guarantees and our CMAC programs at Foundation’s Growth Guarantee provided the bank with www.grameenfoundation.org/cmac

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voices from the field | 2007–2008 annual report

>> global impact | regions | technology | innovation | supporters | people | financials

Progress Out of Poverty

Reaching the Poorest Grameen Foundation strives to make sure that microfinance is benefiting the poorest families in the countries where our partners operate. An innovative tool for making sure that happens is the Progress Out of Poverty Index™ or PPI, used since 2005 as a practical way to measure poverty levels of microfinance clients. It’s tailored to each country, making it easy to observe and verify indicators of poverty.

By using it, microfinance institutions can track how quickly their clients are moving out of poverty.

Case in point: Negros Women for Tomorrow Foundation (NWTF), a microfinance institution in the Philippines, is one of the largest partners in the Grameen Foundation network. With 40 branches and 80,500 clients, the organization was thriving but wanted a way to ensure that its services were benefiting the poorest families.

NWTF was using a “Client Profile Index” based on an Indian model but found that it didn’t accurately represent poverty levels in the Philippines. Gomby Maramba, NWTF’s Manager of Research and Development, says, “We cannot assume that the [poverty indicators for] people who are poor in India are the same as the poor in the Philippines.” Grameen Foundation developed a Progress Out of Poverty Index based on Philippines national data, with grants from the Consultative Group to Assist the Poor and the Ford Foundation. Now, Gomby and his team can use the PPI Microfinance helps a client of NWTF in the Philippines with her to track their clients movement out of poverty. brickmaking business.

Grameen Foundation has developed PPIs for Grameen Foundation and the Progress Out of Povthe Philippines, Mexico, Haiti, Bolivia, India, Pakistan, erty Index are providing a valuable impact on social Bangladesh, Morocco and Peru. Our goal is to have performance management throughout the microfi35 PPIs by the end of 2009, ensuring that it will be available in countries home to more than 85 percent of nance industry. Learn more at the world’s poor. Nine MFIs within the GF network are www.progressoutofpoverty.org piloting or implementing the PPI.

“The Progress Out of Poverty Index has helped us a lot in identifying our target clients efficiently and it is a fast way to measure poverty movement of our clients. We can now make decisions that will improve social impact.”

—Gomby Maramba, Manager of Research and Development at Negroes Women for Tomorrow (NWTF), Philippines 2007–2008 annual report | voices from the field

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>> global impact | regions | technology | innovation | supporters | people | financials

Our Family of Supporters Lifetime $1,000,000+ Anonymous Abdul Latif Jameel Group Bill & Melinda Gates Foundation Chiapas Project Citi Foundation Craig and Susan McCaw John and Ann Doerr Fund for the Poor Paul and Yaffa Maritz Janet McKinley and George Miller Michael and Susan Dell Foundation Omidyar Network Qualcomm Incorporated US Agency for International Development $1,000,000+ John and Ann Doerr Paul and Yaffa Maritz Qualcomm Incorporated $500,000 – $999,999 Anonymous Bill & Melinda Gates Foundation Cisco Systems Foundation Craig and Susan McCaw Halloran Philanthropies Janet McKinley and George Miller Michael and Susan Dell Foundation David and Susan Russell $100,000 – $499,999 Anonymous (4) Citi Foundation Fund for the Poor Google.org High Water Women Joyce and Donald Rumsfeld Foundation Marge Magner Marshall and Pamela Saunders McGraw Hill Companies Mosaic Foundation Nokia Corporation Phil and Shannon Smith Richard and Lois Gunther Family Foundation Russell Investment Group $50,000 – $99,999 Lucy and Henry Billingsley Beverly and Gordon Dukerschein Craig Jenkins Charitable Foundation Guerrant Foundation, Inc. Kazarian Family Foundation Microsoft Raja Malkani

Rick and Mahasti Mashhoon Rock Paper Scissors Foundation Rockdale Foundation Mark and Cindy Schoeppner John and Cindy Whitehead $10,000 – $49,000 Anonymous (3) April Fund Paul Atlas Bochnowski Family Foundation Christopher and Nina Buchbinder Charles Engelhard Foundation Charles Spear Charitable Trust Michael Chastain Scott Budde and Charlotte Cole Mrs. Trammell Crow Jeffrey Culpepper Delta: A California Company Evslin Family Foundation Federated Church, United Church of Christ Deborah Fink Susan Freeman James Froese Meera and Vikram Gandhi Jonathan Gans and Abigail Turin Corydon and Kristin Gilchrist Diana Gondon Esther Hewlett Joseph Higdon and Ellen Sudow Issa Family Foundation Richard Kafka Shel Kaphan and Ericka Locke Susan Karp and Paul Haahr Roberta and Charles Katz Douglas and Elizabeth Kinney Donald Mankoff and Neelam Patel Ellen McNally Moeller Foundation Inc. Jane Mundy Pierre and Pamela Omidyar Open Society Institute Reed Oppenheimer Osa Foundation Chris and Silvana Pascucci Omar Qandeel Steven Rockefeller Betty Sams SEEP Network Yeardley Smith Stanley Family Foundation David and Sherrie Stephens Stichting Hivos Thomas F. Deutsch 1998 Trust United Nations Foundation US Agency for International Development Nancy Waldman

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Whole Foods Market Belinda Willis and Howard Cook Paul and Pamela Wood Foundation $5,000 – $9,999 Anonymous B. T. Rocca Foundation David and Leigh Bangs Robert Brooks Jacqueline Cambata Charles & Peggy Norris Family Fund Jonathan Chen Robert Cloutier Lory Crisorio Dancing Tides Foundation Darby Foundation Maria Luisa de Cartassac Gerald and Henrietta Rauenhorst Foundation Prabandham and Gita Gopal Insurance Service Office, Inc. John and Joan Thalheimer Family Foundation Vidar Jorgensen Kaufman Family Foundation Michael and Linda Keegan Angelique Knapp Kris Komarnitsky Eugen Laegler Jaime Lamo de Espinosa Bruce and Susanne Landau Heidi and Nathan Luedtke Timothy and Stacy Lutz Marketing Group, L.L.C. Aryeh and Yvette Neier Oak Tree Philanthropic Foundation Edward and Marlena O’Connor Jan Olsen Jeanette and Christopher Phelps Christine Pielenz Potrero Fund of the Tides Foundation James Protz Paul Robb Sheri Berman and Gideon Rose Joel Rubinstein and Sylvia Sabel David and Deborah Sauer Craig and Hsiao-Hui Sickel Jeffrey Simons Trond Skramstad Susan Surova Michael and Sylvia Szpak Tom Tapp Phyllis and Richard Taylor Barbara Webb Daniel Wright Michael Yirilli Steven Young

voices from the field | 2007–2008 annual report

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$1,000 – $4,999

Anonymous (7) Duke and Sally Ackerman Sandra Adams and Tom Roberts Eliot and Julia Adelson Fahima Ahmadi Ahson Ahmad-Pai Alan L. Blum Family Fund Judy Albers Alice Alexander Hugo Alfonso David and Phoebe Amante Lane and May Ameen American Gas Association Matching Gifts Dario Amodei Lisa and Tom Anderson Gregg Andrews Timothy Andrews Armstrong Family Charitable Foundation Fund K.R. Baker Kenneth Baker Matthew and Margaret Bannick Charles Barnaby Paula Barsamian Shirley Baum Jerry and Anna Bedford Behnke Foundation Mary Beijleveld William Benac Tracey Bennett Miriam Benor Thomas and Brenda Berleth Cynthia and Fazil Bhimani Jayant Bhutani Douglas Bolick Rena and Sanford Bookstaver Rosemarie Boucher Timothy and Ellen Boyer Timothy Brackett Brighter Vision Foundation Thomas Brody Grigory Bronevetsky Jefrey Brown Willard Brown Sally Browne Edward Brush Emily Busch Karen and Matthew Byron Alan and Lacey Calac Paul and Carol Caldron Stephen and Barbara Cameron Campus Management Marcia Cannon Carol and Howard Anderson Family Fund James and Elizabeth Carr John and Mildred Casson Frank Catrickes Century 21 Mike Bowman Inc. Sharyn and Vincent Cerniglia Joanna Chapin

Jill Chen Chester Tracy Farm Juliana Chisholm Emily Chueh Martin and Lien Cibulka Dimitri and Myrto Cocconi Collins Family Foundation Robert Conway David Cooper Julio Corredor Priscilla Cortez Alex Counts and Emily Wainwright Peter Cowhey and Margaret McKeown Mark Criswell Margaret Crone William Cross Dawn Crotty Emma Cullingham Michael Curtin David Cushing Thomas Daniel Indranil and Barnali Das Gupta Ann and Tony Davies Susan Davis Sanchayita DebVerma Ben and Christine Diehl Scott Doran Robert Dossett Douglas and Maria Bayer Foundation Alan Dunn Amy Edwards Robert and Lore Eichfeld Daniel Eitingon Johan Ekenberg James Elam Mark Engasser Howard and Sara-Ann Erichson Robert and Viola Everett Gerard Farrelly Ann Feldman Dan Feuerborn Robert Finger John Flock Eric Ford Sarah Ford Foundation for Enhancing Communities Frederick A. DeLuca Foundation John Frederiksen David Garcia and Maya Suryaraman Janeane Garofalo GE Foundation Sandaruwan Geeganage and Kristin Johnson Bob Gerber Bill and Nancy Gerdes Paul and Rebecca Gerlach Michael and Anne Germain Beverly Gibson Susan Gibson and Mark Bergman Joseph Giles Hilary Giovale

2007–2008 annual report | voices from the field

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Matthew Goldberg Jan Gombotz Christopher Gootkind Jade Goranson Kevin Gormley Anton Grambihler Sadja Greenwood D.L. and Constance Greer Piana Grgurina Zack Grossbart Robert Grossman Peter and Kerri Guerin Andrew and Teresa Gunther Pinkee and Shirish Gupta Cheryl Guyre Robert and Frances Gwynn Giselle Hagenmayer Donna and James Halow Donald Hamer and Marie Bednar David Hamrick Rod Handeland Shea Hanford Larry Hankins Rabab Hashim Greg Hayden HCB, Jr. Partners LTD Deborah Hebblewhite Patricia Heilig Edwin Hemwall Richard Henderson Daniel Hepp Ronald Herzog Bruce and Cheryl Hibbett Mary Hidalgo Highland Technology, Inc. Bachani Hiro Hirschi Investments Roland Hoekzema Dave Horlick Peter and Susan Hornbostel Horne Family Charitable Foundation, Inc Helen Hower and Colin Lanzl Leslie Hutchison Ideal Project Group, LLC Bob and Sheryl Ilse Mr. and Mrs. Harold Isbell JAGEX Ltd. Stacey Jarrell Joby Foundation John R. and Maria PV Young Family Foundation Reed and Kathleen Johnson Robert and Michelle Johnson Virginia Johnson Joseph Noble Inc Stewart and Sherry Kahn Peter Kalotay Neal Kanodia Renata Karr Stanley Kayes Max Keller

>> global impact | regions | technology | innovation | supporters | people | financials

“I think it was really about empowering women, it’s giving these women financial control.”

— Amanda Pullaro

Spreading the Dream of Microfinance When Amanda Pullaro, a church administrator in Colorado, read Banker to the Poor by Professor Muhammad Yunus, she came away with an indelible impression of the power of microfinance.

For her wedding shower in 2008, her longtime neighbor Irene Elgart made donations to Grameen Foundation in honor of Amanda’s guests in lieu of party favors. “What better gift could I give them than a donation to Mandy’s favorite charity?” says Irene.

Amanda and her fiancé, Elike Nuku, were so moved by the concept of microfinance that they are researching starting their own microfinance institution in Elike’s home country of Ghana.

Michael Kemp John and Ada Kennedy Matthew Kerner Shakir Khan Anthony Kim David King and Dolores Arroyo Jane King King Family Fund Neerav Kingsland Philipp Kircher Beth Kirkhart John Kirkland Nicola Kline Christian and Ineke Knetsch Paul and Diane Kolak Gerardus Kraak Brinlee Kramer and James Jackson Stefanie Kranendonck Maria and Pranish Kumar Susan and Steve Kute Lacher and Associates Insurance Agency Achilles Lakes David and Linda Lakhdhir Darryl Larson Martha Lawlor Le Thieu Hong Trust Scott Leckman Choo Lee Michael Lehenbauer

Amanda Pullaro and her fiance, Elike Nuku, are dedicated to promoting microfinance in his home country of Ghana.

Hank Leininger Daniel and Masami Lieberman Cindy Lin Erwin Linke Anita Lish James and Flora Logie Gordon Lovett Che-Hao Lu Michael Lubic Angela Luscombe Steven Luxenberg Lyda/Ginnis Charitable Trust William and Lois Lydens Lee Lynn Brian and Amy Maas Yasmine Mahdavi and Patrick Campbell David Mamo Deborah Mancuso Mark Victor Hansen Foundation Bruce and Cindy Markey MarkMakers Foundation Inc. Paul Marrkand Mary Martorella Mauriel Family Foundation Andrea Mazie Michal Mazur Jon McAlister Russell Quong and Sarah McCabe Colleen McCarthy

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David and Celia McCarty Erin McConahey Hal McCown Amar Mehta Christina Melin Thomas Melsheimer Mesa Design Group Brant Miller Robert Mills Tang Ming Scott Mitchell Tomoko Miyahara Riaz Moledina and Lily Chiu Lori Mondshine Kathleen Mooney MSHC Partners, Inc. David Mulligan Duncan Murdoch and Wai Ling Chan Joyce Murphy Rizwan Naeem and Rubina Heptulla NAIOP Massachusetts Chapter Jim and Fran Naylor John Neeley Stuart and Sara Nelson Barbara Norman Maura Odell James OKeefe Shawn and Cynthia Olds Pappas Family Charitable Fund

voices from the field | 2007–2008 annual report

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Jeff Parker Partners HealthCare System Vikas and Lois Passi Kiran and Jigisha Patel Viral Patel Kimberley Paul Nick Pavlina Gail Petersheim Isabelle Peterson Dean and Jane Peyton Peter Pierce Frank and Linda Plaut John Poole Janniah and Shanti Prasad Colm and Rena Prendergast Rabahy Foundation Kent Radspinner Arti Raj Shrikant Ramamurthy Rosanna Ramos-Velita and Hans Levin Lyle Ramshaw Joseph and Licia Rando Sarah Randolph Jaya Rao Tamer Rashad Elizabeth Raymond Marcia Reed and Tai Yee Hannah and Gerald Rees Carole Reiner William and Pamela Rhodes Bernd Rieger Janet and Nick Riehle Coenraad Rietman Rohit Rishi Robert and Donna Harper Foundation Scott Robinson Monica Rodriguez Jamie Rome Thomas and Elizabeth Ross James Rubin Philip Russell Huma Salim Sallie Mae Fund Tammy Santarsiero Annamaria Saroli Stephen Scarbrough Nick and Debra Schatzki Gary Schindler Bryan Schmidt Schmitz-Fromherz Family Fund Jane Schwartz Shoma and Prasad Setty Lauren Shallcross Abby Sher D. Wayne Silby Craig Silverstein Jason Simmons Nirupam Singh David and Julee Sipes Sabina Skulsky Charles Smith

2007–2008 annual report | voices from the field

Society of the First Church in Boston Mark Sommerfeld Robert and Nancy Sonderman Franklin Spees Danton Spivey Marsha Springut Jacob Stacey-Schreier Lynn Streeter and Thomas Landauer Rodney Strickland Chris Stronks Martina Sturm Lalith Subramanian Ronald Sugameli Renu Swartz James Swisher Brenda Swithenbank Stewart and Rebecca Taggart Robert Thau Moody’s Foundation Rowny Foundation Scott and Ky-Van Benson Charitable Fund Charles Thomas Thorman Boyle Foundation Sara Throckmorton and Joseph Vance Kathleen Timiney Christine Tiplady M. E. Tracey John Trentacosti Triangle Community Foundation, Inc. Marjorie Trifon Wyatt Troll Diane Trombetta TTF Foundation Betty Tutton Unity in Chicago Stephen Van de Wetering Shyam Vanga Villanova SAMOSA Mark Vitha Mark Vonder Haar and Laurie Kopec Anne Wade and Gil Hagan Patrick Wallace Susan and Richard Wallace Jerry Walsh Melanie Wark Dana and Linnea Warren Natalie Watkins Paul Watts John Weller Dana Whitaker and Mark Petersen Sinclair White Stuart White Hans-Peter Widauer Alfred and Kimberly Williams Russell Williams David and Martha Wilson Gordon Wilson Brent and Robin Winters Jennifer Wirth Ila Wist and Neal Alagia Witten/Nappi Charitable Fund

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WJ & JK Truettner Family Foundation Adrienne and William Wootters Jennifer Wright Ethan Yake Charles Yang Ati Yates Waikuen Yee and Anil Thomas Noah Yosha Susan Yost Ira and Nini Zackon Mehdi Zafar M. Zonenberg

$500 - $999

Anonymous Morten Abildstrom Jonathan Abourbih Katharine Abraham and Graham Horkley Lorraine Adams Shantanu Agrawal and Kavita Parikh Judith Albrecht Edith Alexander Olle Alexanderson David Allen and J. C. Puckett John and Sharon Amdall American School in London Maria Amore Susan and Drew Arnold Ramsey & Associates Associates Bradford Axel Akhtar and Alka Badshah Rohit Bakshi Barbara Somerfield and John G. Guffey Fund Jean Barolet Debra Baskin Marsha Bennett Nicholas Bennett Sat Best Rakesh Bhalla Steve Biafore Robyn Billington Charlotte Pedersen Dean Blackketter and Kath Wydler Jake and Mary Blehm Kathryn Bogdan Judith and Michael Bohan Dave and Mindy Bostick Kenneth Bowles Virginia Breen Mark Brissette Jan Brunner Farah Bullara Kathryn Burg Micheline Burger Jeffrey Burk Mireille Buser Samantha Buxton Johan Buys Anonymous Jeffry Byrne

>> global impact | regions | technology | innovation | supporters | people | financials

Elin Carlson Kenneth and Susan Carpenter Alison Chaiken Wayne and Karen Chamblee Huei-Chia Cheng Sandra Cheng Amanda Cheung John Cheung Cathy Chou Anisur and Swati Chowdhury Susan and Ronald Choy Lung and Lila Chung Richard Clampitt Jacqueline Clark Dianne Cmor Christie Connard Brent and Kimberly Cook Richard Cook Jennifer Cooper E.J. and M.E. Copeland Ethan Crawford Melinda Creson John Crespo Glen Crust Nancy Cundill Janet Cunningham Melissa Czarnecki Bill and Emily Danner Darcie and Kiko De Freitas Nathan and Jamie De Lorey Laura DeBonis Thierry Deegan and Patricia Confort Wim Dekker Jamie DeLorey Joyce Denooyer Richard and Gail deRosset Deutsche Bank Americas Foundation Eloy Diaz Thomas Dickson Dennis Dillon Nali Dinshaw Discovery Canyon Campus Michael Dorris Agnes and Jack Dover Deanna Dunn Walt Eldredge Episcopal Church of the Epiphany McCann Erickson William and Roberta Erwert Daniel Esty Ettare Technologies Inc Kristin Fangmeier Ruth Farnham Fazeela Ferouz Steve Fink Martin and Cheri Fisk Patricia Fiske Michael Flatico Dean Flugstad Dolores Forsythe Monica Francis

Ned Freed Michael Frerker Christine Fryer G&C Leasing Jimmy Gent Mike and Cora Getubig Scott Gibson Harneet Gill Patricia Goldman Heather Goodman Robert Gordon Henry and Catherine Graham Grantham, Mayo, Van Otterloo & Co. LLC Gema Grau-Bullon Heidi Green Mark Green Mike Gross Gretchen Gruner Eric Gurna Mitchell Guthman Robert and Sandra Hagan Jeffrey Haley Rev. Hall Sherrie Hall Daniel Hallencreutz Marcia Halpern Chris Harrelson Stephen Harrison Randall Heath Richard and Barbara Heimbaugh Erik Heinen Kenneth Heller Lorraine Hendrickson Gary and Debbie Hepler Nancy Hersage Donald Hill Doris Hoffman John Hogan Holy Rosary Catholic Church Paul Hornick Linda Houser David Hudgins I-Phone Network Limited Elizabeth Jacobs Margaret Jaffe Sharad Jain Damon Jansen Elizabeth Jeffrey and Robert Lonning Wesley Jones Melanie Jordan Amy Jurasek Peter Kalajian Linda Kamm Michael Kennedy Cynthia Kenyon Shaq Khan Taimur Khan Jerry Kidd Kenji Kikuchi Timothy and Jennifer Kingston Anne Kinsinger

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Susan Kirkness Ashish and Colleen Kishore Joost Knapen Richard Knapp Phillip Knoll Andreas and Hajira Koeller Karl Koffler Thomas and Juna Krajewski Renate Kristoffersen Betty and Warren Kuehner Vinay Kumar Ronald Kwok Luis and Lee Lainer Winnie Lam Margaret Lamb Ann and Bert Lane Peter Langhoff Barbara and Jim Lawler Emmanuelle and Margarita Le Du Richard and Laura Ledford Bonnie Ledyard David Lee Stephanie Letourneau Daniela Levati Lawrence Levy Wendy and Donald Lewis Margaret Lindblom Peter Link Shirley Linteau Eric Lipson and Lorene Sterner Amy Lu Grant MacFarlane Alexander Macgillivray Karen and Phillip Macko Lynn and Eva Maddox Carol and Alan Magner Jyoti Mahapatra William Maher Lena Malik Dr. R. and Dr. Sarojam Mankau Selena Maranjian Daniel Margolis Marjorie R. Van Steen Memorial Fund Laura Martin Santosh Mathan Strahan McCarten Sydney McShane Jeffrey Mendell and Eddie Adkins Jeffrey Meyer Annie Michaelis Michael Miller Sylvia Miller Tamera Minnick Mehran Mohammed Shirley Monroe Monsanto Fund Harold and Karen Mortensen James Morton Angel Mossberg John Moxon Daniel Mufson

voices from the field | 2007–2008 annual report

>> global impact | regions | technology | innovation | supporters | people | financials

Suresh and Meera Muppalla Maeve Murray Padmaja Muthiah Ramneek Nayyar Ann and Wayne Nelson Christiane Neugebauer Joseph Neumayer Ken Niehaus Peter Nilson Kimberly Noble Mark Norris Patricia Nowak Brandon Nutter Monica Oldham Linda O’Neall Katherine O’Neill Robert and Faith Ottenhoff Charles Otto Mr. and Mrs. Jeffrey H. Palmer Tim Palmer Marcia Parry Warren Paul Jean Pawluk Maria Paz Bret and Rebecca Perisho John Pittard Pointe International Inc. Richard Porter Jane Potenzo Susan Pozer Charles and Laura Prober Peter and Janet Proli Jesse Pujji Kathryn Rafter Salvatore Ragucci Sara Rahimian Robert and Ilknur Ralston Justin Ray Drummond Rice Nancy Rice Stanley Riggenbach Gail Riley Kenneth Rines Rochell Foundation Ronald Rohrbach Roanna Rosewood Carolyn Ross Richard and Susan Rosthal Amanda Rowe Lisa Ruby Katherine Runyon David and Catherine Rush Saint James’ Episcopal Church Salon Family Foundation, Inc. Charles Sanford Santa Clara University Julienne Scanlon School Clinical & Consulting Services Xavier Schwartz Gregory Scott Gwen Scott

2007–2008 annual report | voices from the field

Jacob Searing Yoshiko Shimazu Kartik Shridhar Lianne Simonse Becky Simpson Carla Sinopoli Susan Skene Smalldairy.com Brian Smith Jeanette Smith Peter Smith Abby Smutny Raphael Spannocchi Douglas Spiro and Lynn Brown Jaya Srikrishnan St. John’s Episcopal Church Claudia Stadelmann Kelly Stanmore George Staples Christine Steele John Stevens Laurel Stine Ted Stinson Nancy Stott Debby Strauss Zachary Struyk Students Against Poverty in Africa Frank and Michelle Swift Gary Tanigawa Harshwardhan Thaker Ludovic Thebault Marie and Tom Theiss Sarah Thomas Thomas and Sue Pick Family Fund Kevin Thompson Lisa Thorne Thrivent Financial for Lutherans Foundation Alan and Mae-Ling Tien Jennifer Tipton Sam Tipton Martha Tobias Karen and William Toland Alphonso and Mary Topp Richard Tornello Robert and Jean Tucker Meredith Turner Nina and Prem Uppaluru Vance C. Demong Charitable Trust Thukalan Verghese Duane and Mary Wainwright Tim and Mary Jo Wainwright Janice Washington Luke Watson Jen Webb Jennie Weiner Sandra Weintraub Robert Weiss Janet West West Hollywood Presbyterian Church Weston Financial

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Trudy Willemsen William Conway Photographer Vivien Williamson Donald Winters James and Kathryn Wire Ralph B. Wittman Melvyn Wong Yingchuan Wong Greg and Joyce Wood Jerry Wright Susan Wright Pablo Yabran Martha Yanez Nedra Young

Grameen Foundation is grateful to the following individuals, organizations and companies that demonstrated their support and commitment to our work by providing in-kind services: Caroline Aston AZB & Partners Allison Basile Mona Bentz Best Buy Peter Bladin Cisco Cleary Gottlieb Steen & Hamilton Alex Counts Davis Wright Tremaine LLP Debevoise & Plimpton LLP Dechert LLP Susan Place Everhart Brad Gerdeman Goldman Sachs Google.com Amelia Greenberg IBM Kenyon and Kenyon (US –IP) Kohhhar & Co. McDermott Will & Emery LLP Morgan, Lewis & Bockius LLP (tax) Murtha Collina, LLP O’Melveny & Myers Puyat Jacinto & Santos Law Offices Russell Investments Shearman & Sterling Thelen Reid Brown Raysman & Steiner LLP Wilmer Cutler Pickering Hale and Dorr LLP

See our complete list of supporters at www.grameenfoundation.org/supporters

>> global impact | regions | technology | innovation | supporters | people | financials

board of directors Lucy Billingsley Alex Counts* Peter Cowhey Susan M. Davis John Doerr Jennifer Drogula Robert Eichfeld* Vikram Gandhi Jim Greenberg Richard S Gunther* Paul Maritz* Yvette Neier Robert Ottenhoff* Chris Pascucci Rosanna Ramos-Velita* David Russell Wayne Silby Muhammad Yunus *Also a member of the Executive Committee of the Board of Directors.

Finance Committee

Rosanna Ramos Velita, Chair Bob Eichfeld, Vice-Chair Richard (Dick) Gunther, Member Paul Kane, Member Chris Pascucci, Member Hans Levin, Member Si White, Staff Liaison

India Advisory Council Vikram Gandhi, Chair Bob Eichfeld, Member Susan Davis, Member Elke Ward-Smith, Member James Greenberg, Member Chandni Ohri, Staff Liaison

China Advisory Council Wayne Silby, Chair Lynn Chia, Vice-Chair Richard Gunther, Member Ying Wang, Member Karen Wong, Member Kate Druschel, Staff Liaison

Philippines Committee Janet Thompson, Chair Joe Higdon, Vice-Chair Robert Atendido, Member Darcy Kopcho, Member George Sycip, Member Janet McKinley, Member Mike Getubig, Staff Liaison

Capital Markets Committee

Technology Advisory Council Shel Kaphan, Member Paul Maritz, Member Peter Cowhey, Member Craig McCaw, Member Mary Evslin, Member Anand Narasimhan, Member Pradeep Singh, Member Rob Mechaley, Member Deepak Amin, Member Wayne Silby, Member David Stephens, Member Debbie Arnold, Member Peter Bladin, Staff Liaison

Pakistan Advisory Council Bob Eichfeld, Chair Jim Greenberg, Member Steve Rasmussen, Member Maliha Hussein, Member Atif Raza, Member Faisal Khan, Member Erin Connor, Staff Liaison

Social Performance Committee Peter Cowhey, Chair Janet Thompson, Member Nigel Biggar, Staff Liaison

Audit Committee

Bob Ottenhoff, Chair Eric Miller, Vice-Chair Peter Cowhey, Member Si White, Staff Liaison

Bob Eichfeld, Chair Harmohan Ahluwalia, Member Janet Thompson, Member Scott J. Budde, Member Rosanna Ramos-Velita, Member Bridget Lidell, Member Roz Hongsarangon, Member Hans Levin, Member Camilla Nestor, Staff Liaison

Development Committee

Investment Committee

Paul Maritz, Chair Willene A. Johnson, Vice-Chair Dr. Wolday Amha, Member Jennifer Dorgula, Member Godwin Ehigiamusoe, Member Lynn McMullen, Member Malini Tolat, Staff Liaison

Voting Members

Sustainability Committee

Lucy Billingsley, Chair Steve Rockefeller, Jr, Member Robert Ottenhoff, Member Yvette Neier, Member Susan Russell, Member Sandra Adams, Staff Liason

Bob Eichfeld, Co-Chair Susan Davis, Member Jennifer Drogula, Member Wayne Silby, Member

Governance Committee

Non-Voting Members Doug Barry, Member Vinod Khosla, Member Bridgett Lidell, Member Camilla Nestor, Staff Liaison

Program Committee

Latin America and Caribbean Advisory Council

Jennifer Drogula, Chair Matthew Lesnick, Vice-Chair Yvette Neier, Member Julia Soyars, Staff Liaison

Janet Thompson, Chair Janet McKinley, Vice-Chair Susan Davis, Member Richard Gunther, Member Chris Pascucci, Member Donna Rohling, Member Dana deKanter, Member Salvatore Pappalardo, Staff Liaison

Africa Advisory Council

Robert Ottenhoff, Chair Lucy Billingsley, Member Robert Eichfeld, Member Richard Gunther, Member Janet Thompson, Member Chris Pascucci, Member Jennifer Meehan, Staff Liaison Si White, Staff Liaison

Rosanna Ramos-Velita, Chair Lucy Billingsley, Vice-Chair Chris Pascucci, Member Gary Mulhair, Member Erica Lock, Member Salvatore Pappalardo, Staff Liaison

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voices from the field | 2007–2008 annual report

>> Global impact | regions | technology | innovation | supporters | people | financials

Staff Alex Counts, Chief Executive Officer Sandra Adams, Vice President of External Affairs Peter Bladin, Senior Vice President and Executive Director, Grameen Technology Center Salvatore J. Pappalardo, Chief Operating Officer Julia Soyars, General Counsel and Assistant Corporate Secretary Si White, Acting Chief Financial Officer Zaved Ahmed Mohammed Nurul Alam Charlene Balick Megan Beck Thomas Bell Ally Bellage Elizabeth Berthe Nigel Biggar Sam Birney Rebecca Booker Jeff Brewster Sharlene Brown Edward Cable Eric Cantor Lian Carl Kay Chau Jill Chen Sherita Coates George Conard

Erin Connor Sean DeWitt Priscilla Dosiou Kate Druschel Matt Duncan Michael Eber David Edelstein AdeOla Fadumiye Scott Feldman Adam Feuer Ken Fox Mike Gabriel Whitney Gantt Gwyneth Gaul Mike Getubig Tilahun Habtegiorgis Laura Hartstone Heather Henyon Jorge Highland Kay Hixson Nicole Iden John Ikeda Beverly Jackson Greta Kauffman David Keogh Mary Jo Kochendorfer Namita Koppa Emma Le Du Beth Mazur Matt Mechenbier Jennifer Meehan Patrick Meriweather Cheri Mitchell Van Mittal-Henkle

Adam Monsen Joe Mwangi-Kioi Camilla Nestor Chandni Ohri Vladimir Petrov Keith Pierce Sabrina Quaraishi Christine Roberts Cameron Rosenthal Fabrizio Rotati Viviana Salinas-Lanao Christina Santiago Shannjit Singh Radha Singla Brian Slocum Stuart Smith Julie Stahl Peachey Malini Tolat Jeff Toohig Joshua Tripp Emily Tucker Maya Uppaluru Marie Valdez Kathleen Van Zutphen Preeti Wali Aliya Walji Steve Wardle Lea Werbel Ryan Whitney Tim Wood Liselle G.A. Yorke Helen Yuen Denise Ziegler Stephen Ziobro

Pro Mujer Bolivia, a Grameen Foundation partner in the Americas, is helping its clients’ children to develop their own business skills, through its Young Entrepreneurs Program. Grameen Foundation supported these microfinance plus programs in 2007.

2007–2008 annual report | voices from the field

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>> global impact | regions | technology | innovation | supporters | people | financials

Financial highlights The outstanding financial results for fiscal year 2008 (April 1, 2007 to March 31, 2008) illustrate only part of the exceptional year we have had at the Grameen Foundation.

For the first time in our history, our revenue exceeded $20 million reaching a total of $21.9 million. As in prior years, our funding came primarily from individuals and foundations. Our focus on sustainable sources of revenue this year led to a 100 percent increase of our earned revenue to $2.5 million. We ended the year in a very strong financial position with our total cash and investments at $11.3 million and total net assets of $23.8 million.

As the organization has grown, we have leveraged our infrastructure allowing us to lower our overhead percentage to 15.9 percent. This percentage represents the overhead percentage from an accounting (GAAP) point of view and does not take into account the benefit of our Growth Guarantees and loans. Including those programs would lower our actual overhead to a world-class 7.5 percent*.

Using $17.2 million in guarantees, the innovative Growth Guarantees Program generated an additional $90.5 million of loans to local microfinance institutions in FY08. With funds supported by Growth Guarantees, these institutions in turn provided over 500,000 new loans to the poor. Since the inception of the program in 2005, with a $31 million guarantee pool, we have generated $120.8 million of loans to the poor.

The CPA firm of Gelman, Rosenberg & Freedman has audited the financial records and statements of Grameen Foundation and expressed an unqualified opinion for the year that ended March 31, 2008. In addition they issued a Management Letter with no “material weaknesses” noted during the audit. You can find the complete audited financial statements at www.grameenfoundation.org.

After a great year, the Grameen Foundation is in a very strong financial position and is ready to meet our mission “to enable the poor, especially the poorest, to create a world without poverty.”

Si White * The pledges to the Growth Guarantee Program are retained by the donor-guarantors, and for this reason standard accounting treatment does not allow us to include them in our financial statements as programmatic activity.

31

voices from the field | 2007–2008 annual report

>> global impact | regions | technology | innovation | supporters | people | financials

Financials Statement of Activities for the Period April 1, 2007 through March 31, 2008

Statement of Activities and Change in Net Assets for the Period April 1, 2007 through March 31, 2008

Assets

support and revenue

Cash and cash equivalents

9,409,856

Restricted deposits

Contributions and Grants

604,580

Total cash

16,022,609

Program revenues

10,014,436

2,110,933

Loan interest

128,461

Investments

1,263,831

In-kind contributions

Loans receivable

1,781,027

Total Support and Reveune

Grants and contributions receivable

3,916,728

Other receivables and advances

306,745

expenses

Prepaid expenses

142,810

program services

Total Assets

$17,425,577

property and equipment Net property and equipment

Partner services

4,499,192

Strategic services

8,816,493

Public education

749,483

Total Program Services

172,628

$14,065,168

supporting services

other assets Loans receivable, net of current portion

Mangement and general

4,340,431

Loans to program related investments

199,600

Fundraising

Program related investments

883,420

Total Supporting Services

Grants and contributions receivable net of current portion Deposits

1,846,632

2,206,230 445,084 2,651,314

Total Expenses

103,767

Total Other Assets

16,617,482

Change in net assets before other items

5,224,829

17,425,577 $24,972,055

Where Our Money Comes From 2008 liabilities and net assets Liabilities Program Revenues - 10% Accounts payable and accrued expenses ContributionsNote and Grants - 73% payable Interest and Investments - 1% Total Liabilities In-Kind Contributions - 16%

Where Our Money Goes Allowances for: uncollectible loans receiv-Fundraising - 3% -80,694 Sources of Contributions able and foreign exchange risk Management and General - 1 Present value discount of loans receivable Corporations - 22% Program931,447 Services - 84% 765,626

Foundations - 19% 384,000 Change in net assets 6,075,582 Individuals - 48% 1,149,626 Net assets at beginning of year 17,746,847 Non-Profits - 11% Other items

Net Assets

103,767

Unrestricted

9,769,616

Temporary restricted

14,052,813

Total Net Assets

23,822,429

Total Liabilities and Net Assets

Net Assets at End of Year

$24,972,055

1% Interest and Investments

11% Non-Profits

16% In-Kind Contributions 10% Program Revenues

$23,822,429

13% Management and General

22% Corporations

48% Individuals

84% Program Service

3% Fundraising

19% Foundations

Where Our Money Comes From

Sources of Contributions

Where Our Money Goes* *Please see our Financial Highlights on page 31 for more information on our Growth Guarantees program and our overhead expenses.

2007–2008 annual report | voices from the field

32

Design: Lloyd Greenberg Design, LLC

Total Assets

73% Contributions and Grants

3,435,767 $21,941,311

What You Can Do • Make a gift: Your donation today helps reduce extreme poverty tomorrow. Gifts are fully taxdeductible as charitable contributions to the extent allowed by law.

• Stay informed: Visit our website, www.grameenfoundation.org, and sign up for our e-newsletter for free updates on how microfinance is transforming communities worldwide. You can also forward our e-newsletter to others so they can learn and get involved.

You can support our work to provide access to financial services for millions of poor women around the world:

• Spread the word: Invite friends and family to join our e-mail list to learn more about our work, host an event featuring a Grameen Foundation speaker, or host a session where books written by microfinance leaders can be discussed, such as Small Loans, Big Dreams by Grameen Foundation President and CEO Alex Counts, or Creating a World Without Poverty by Grameen Bank Founder Muhammad Yunus.

• Share your expertise: Ask us about volunteer opportunities by emailing us about your skills and the time you can devote to applying them in microfinance.

• Designate Grameen Foundation for your workplace matching-gifts program. Grameen Foundation’s code for the Combined Federal Campaign is 15029.

• Include Grameen Foundation in your will or as a beneficiary of your life insurance policy or IRA.

Join the fight against poverty. Visit www.grameenfoundation.org/get_involved.

Grameen Foundation 50 F Street, 8th Floor Washington, DC 20001 Phone +1-202-628-3560 Fax +1-202-628-3880 Grameen Technology Center 2101 4th Ave., Ste. 1030 Seattle, WA 98121 Phone +1-206-325-6690 Fax +1-206-325-0634 www.grameenfoundation.org

Grameen-Jameel Pan-Arab Microfinance Ltd. International Humanitarian City Building #4, Ground Floor P.O. Box 506025 Dubai, U.A.E. Phone +971-4-430-9120 Fax +971-4-430-9121 Fax Grameen Capital India Unit # 402, 36 Turner Road Bandra, Mumbai 400 050 India Phone +91-22-6675-2991-3

Sinapi Aba Trust lives the parable of the mustard seed, proving that great things can come from the tiniest actions.

“My husband is happy to see my business growing, exclaims Akosua Ghana with a big smile and a hearty chuckle. Akosua has been a client of Sinapi Aba Trust (SAT), a Grameen Foundation partner, for nearly one year, and has seen her business grow dramatically during that time.

“When I joined Sinapi Aba, my business was very small, then someone told me about SAT,” explains Akosua, who lives in the city of Kumasi, in central Ghana. Before joining SAT, she sold small pastries door to door, but since borrowing from SAT, Akosua was able to purchase a small kiosk in a residential area to sell smoked fish, tomatoes, eggplants, groundnuts, dried pepper and other staples. She has seen her family’s income increase dramatically since. The kiosk now does over 50 cedi (about US $50) in sales per day, generating a daily profit of about 10 cedi. The largest non-profit financial institution in Ghana, SAT provides more than 50,000 women like Akosua with access to loans and savings services. SAT’s name is a play on the local word for mustard seed —“sinapi.” SAT lives the parable of the mustard seed, proving that great things can come from the tiniest actions...just like Akosua’s business.

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