2012 Annual Report

For the

Children We Serve

Our Vision: A World Where Every Child has a Loving and Secure Home

ANNUAL REPORT 2012

“Religion that God our Father accepts

as pure and faultless is this:

to look after orphans and widows in their distress...” – James 1:27

Kedir — Ethiopia Kedir lives with his mother and two siblings in Silti, Ethiopia. In 2012, 13 student-athletes from Oregon State University traveled with Holt International to build homes for struggling families in this rural community. Kedir’s family received one of these homes. As part of Holt’s family strengthening program in Ethiopia, Kedir received support to attend school, and his mother, Zahra, has improved her family’s once bleak financial situation. “Holt International’s program has taught me how to use my assets,” says Zahra. “It has blessed my family. I am grateful for all that I have learned and for my new home.”

*Moriah — Southeast Asia Moriah needs a family. An adorable little girl, Moriah responds well to positive reinforcement and thrives on adult attention. She will flourish in the right home.

While generally healthy since coming into care in 2010, Moriah has significant vision impairment and has a malformed left foot. The majority of children coming home to families last year had a moderate to major special need. Moriah represents one of the many children in Holt’s care who are waiting for families right now.

*Jonathan — China Jonathan came into Mrs. Wu's care unable to speak due to his disability.

Because Mrs. Wu didn’t know what Jonathan liked to eat, she took him to the store every day. “Mrs. Wu always encourages Jonathan when he doesn’t understand something,” says his social worker. “Jonathan is more outgoing now than he ever has been. Mrs. Wu gives him confidence.” When Mrs. Wu learned that

H olt I nt e r n at i on a l / A n nu a l R e p or t 2012

Jonathan liked music, she encouraged his hobby and bought him a radio. “He smiles more and more every day,” says his social worker. Holt International honors loving foster mothers like Mrs. Wu.

*Names changed

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TOP LEFT: In the Philippines, Holt International partners with Kaisahang Buhay Foundation (KBF), providing holistic support for single mothers and their babies.

TOP RIGHT: Liz and Jason Barnette adopted their daughter, Hannah, from Korea. Hanna came home to the Barnettes with a cleft lip and palate. The majority of children coming home to families in the United States today have some form of special need.

BELOW: Holt President and CEO Phil Littleton holds a child in Holt-supported foster care in Thailand.

Embracing the Future for the Children We Serve I recently returned from a trip to southeast Asia and Korea. From Thailand to the Philippines to our historical work in Korea, Holt is making a difference. This trip left me with a greater appreciation of Holt’s extensive services and the partners around the world who have helped us along the way. Many of the plans and ideas articulated in Holt’s 10-year strategic plan, drafted last year and approved by the board of directors, are already in full force in many of the countries Holt serves, providing hope for children and families through adoption and sponsorship services and family strengthening efforts.

Before we say goodbye entirely to the year 2012, I think it’s important that we take a quick look back at the many successes of our organization, and give thanks to God for the blessings of 2012.

Late last year, the Council on Accreditation renewed Holt’s Hague accreditation, allowing us to process intercountry adoptions in Hague countries through 2017.

In another major victory for adoption, Congress made permanent the Adoption Tax Credit – helping to clear the way for many families to adopt, and for children to have loving families of their own. In 2012, 524 children came home to families through Holt. Sixty-six percent of those children had a moderate to major special need.

The year 2012 offered Holt many opportunities to expand our services to children in areas other than adoption. In May, Holt hosted 12 international staff and partners from eight countries for our 2012 spring institute. Our primary goal was to give our local and overseas staff a greater understanding of our child sponsorship program, and provide them with an opportunity to work together on how we can better serve children through this already successful program.

Our 2012 annual report reflects Holt’s achievements and finances. Each number and statistic represents the life of a child whose life has been changed, or a family brought back from the brink of despair and poverty.

Thanking God for the successes of 2012, we move on to 2013, full of hope and aspirations for the future of Holt International and our commitment to the world’s most vulnerable children.

Blessings,

Phillip Littleton | President and CEO

Our Work | Highlights from 2012 Last year, Holt and our partners provided 77,822 children with life-changing services Family Strengthening and Preservation Through Holt’s family strengthening and preservation programs, struggling families gain the tools and resources they need to independently support their children. Although support varies depending on the needs of the family, Holt’s ultimate goal is always to help families achieve both self-reliance and lasting stability. To that end, families receive not just emergency aid, but the funds and resources needed to start a small business or training in an income-generating trade. Through these efforts and allied with our partners overseas, Holt helps families stay together, and children grow healthy and strong.

Last year, Holt signed an agreement with the Ministry of Civil Affairs to bring an additional 200 children and their families into Holt’s family preservation program in China. While in Vietnam, Holt expanded support for day care programs to the south – easing the burden on struggling parents, and providing many more children with a safe space to learn and play.

Family Reunification Before pursuing adoption, our partners overseas first strive to determine whether children can return to their birth families. Many homeless children have living parents or relatives whose lack of resources, not lack of love, compelled them to relinquish their child. With a little assistance, however, many families can continue caring for their children. Sometimes,

H olt I nt e r n at i on a l / A n nu a l R e p o r t 2012

all a struggling parent needs is a temporary respite from caring for their child while they work to get back on their feet. At the Holt Sahathai Foundation in Thailand, children may stay in temporary foster care while waiting to reunite with their birth parents. During this time, these children may maintain regular contact with their parents – smoothing their transition once their parents are ready for them to come home.

Foster Care When a child enters our care overseas, Holt immediately goes to work finding a permanent, loving home for that child.

But during the time children are in care, Holt strives to ensure they receive the loving, personal attention they need.

Through the years, Holt has in many countries introduced model foster care and group home programs. In foster families, children are far more likely to reach critical developmental milestones, and develop healthy emotional attachments. In 2012, Holt raised $12,025 to help families in Thailand and the Philippines recover from monsoon flooding. The funds helped over 60 foster families to repair homes devastated by the floods, ensuring a safe environment for the many children in Holt foster care in Thailand and the Philippines.

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Nutrition Nutritional support is an essential component of Holt programs overseas. In many countries, Holt provides livestock as a nutrient-rich food source for families in our programs. When children are separated from families is often when they become most vulnerable to malnutrition. At Holt, we strive to do everything we can to optimize the health and nutrition of children in our care. Last year, Holt entered into an exciting partnership with the adoption nutrition organization SPOON Foundation. Together, Holt and SPOON are working to develop a nutrition screening system for children at two pilot sites: the Holt Fontana Village in Haiti, and Holt’s partner organizations in India. In the coming years, Holt will expand the screening system throughout the countries we serve – ensuring all children in care receive the vital nutrition they need to grow and thrive.

Medical Care All children in the care of our partners overseas receive vaccinations and other routine medical care. Many children in Holt programs are not, however, in the direct care of our partners – but rather, in the care of their birth families. For these children, Holt takes a different approach. In Ethiopia, for example, Holt employs local outreach workers to educate families on health and sanitation issues. Families learn vital skills to prevent illness and to keep their children healthy and strong. As our work has expanded in Ethiopia over the last few years, Holt has made an even broader effort to strengthen rural healthcare services. Here, in one of the most impoverished regions, Holt has joined the community in building a full maternal-child hospital. In December 2012, Holt completed the internal structure of the hospital – leaving just one final construction phase. Once complete, the Shinshicho Mother & Child Health Center will offer acute, quality care for a region of 250,000 people – serving many families and children who would never otherwise receive treatment.

Education

in Cambodia, from grade eight to university level. The program provides tuition and accommodation support, as well as career orientation and counseling for children from impoverished communities. Last year in India, Holt’s partner agency received a significant grant from Moneygram to provide school uniforms, books and supplies for 300 underprivileged girls.

The grant helps to support a broader educational sponsorship program Holt helped develop in Bangalore, India in 2008.

Children in the program are primarily girls who would likely otherwise be engaged in domestic work.

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Holt’s educational support programs include everything from sponsorship for children to parenting classes and vocational training for parents. In September 2012, Holt took over an educational sponsorship program for 79 outstanding students

Children are a gift from the Lord;

they are a reward from him. – Psalm 127:3

Programs for Children with Special Needs Children who are older, have special needs or are part of sibling groups often wait longer for families. Holt has for many years made extra effort to find loving homes for these children, and supported in-country programs that help them develop to their fullest potential. Until recently, children with special needs in Mongolia would be sent to mental institutions after a certain age. Today, as a result of Holt’s support and advocacy efforts, many of those children now live either with families in the U.S., or continue to remain in care centers where they have lived – receiving the same nurturing support as all other children. In the U.S. this past year, Holt launched another successful fundraising campaign for the Special Needs Adoption Fund (SNAF), which helps families afford the cost to adopt children with special needs. Last year’s SNAF campaign raised over $160,000 – helping to bring home many children who might not have another opportunity to join a family.

Post Adoption Services Holt offers a range of services to address the continuing needs of adoptees, adoptive parents and birth parents – from counseling for families and assistance with birth searches to heritage tours and adoptee camps. Holt Adoptee Camps provide a particularly unique experience for adoptees, as they are the only camps of their kind designed specifically to foster H olt I nt e r n at i on a l / A n nu a l R e p o r t 2012

healthy adoptee identities. In 2012, Holt for the first time offered a special overnight camp for children traveling on the China family tour. After a great response from participants, Holt now plans to make overnight camp a regular part of the China tour. Throughout the year, Holt’s Post Adoption Services department presented four well-attended webinars discussing various post-adoption topics, and also conducted a detailed survey of adult adoptees that has helped to improve Holt’s birth search assistance services.

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International Adoption Since our founding in 1956, Holt has placed more than 40,000 children with families in the U.S. In recent years, however, several factors have caused a gradual decline in international adoption. As economies continue to grow in countries overseas, more families are able to earn a stable income – causing fewer children to be abandoned or relinquished. At the same time, more families are adopting children domestically in countries where, for orphaned and abandoned children, international adoption was once the primary path to a permanent, loving family. While we celebrate these developments, other changes are not so positive – creating barriers between families hoping to adopt, and the children who need them.

Despite these challenges, Holt continues to have success finding families for children. In 2012, Holt found families for hundreds of children who are older or have special needs – including over 200 children from China alone. While in Korea, despite significant changes to adoption laws, Holt placed more children with adoptive families in 2012 than anticipated at the beginning of the year.

Domestic Adoption Circumstances sometimes make it impossible to reunite children with their birth families. For these children, we first try to place them with loving families in their birth country. Giving children the opportunity to grow up in their birth country and culture is central to an ethical system of adoption, and we have long promoted it in the countries where we work.

Because of recurring social stigmas, however, domestic – or in-country – adoption has been slow to develop. But as cultures grow and change, many more children have in recent years found loving families in their home countries. Holt continues to advocate for both domestic and international adoption in the countries where we work. Last December in the Philippines, Holt helped develop a pilot project to expedite the movement of children out of institutional care, and into loving adoptive families. Over the coming years, we hope to expand the project from two pilot sites to more orphanages in the Philippines.

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Statement of financial position

A Partnership for the Children

December 31, 2012 (with Comparative Totals for December 31, 2011)

ASSETS

The partnership between Holt and its supporters changes children’s lives.

We at

Cash & Cash Equivalents Receivables, net

2012

2011

$2,494,203

$1,830,565

1,127,463

1,295,266

Holt recognize that we serve as the hands and

Prepaid Expenses & Supplies

439,954

541,633

feet of very caring and generous people. We strive to use our financial resources effectively

Prepaid Support - Holt Children's Services, Korea

1,189,422

1,778,416

and efficiently, and maintain an open and

Investments

6,740,210

6,059,136

transparent relationship with our donors.

Promise to give, restricted, net of discount

302,228

529,582

1,369,273

1,449,404

$13,662,753

$13,484,002

$641,293

$746,028

Holt

undergoes an annual audit performed by an independent accounting firm.

The following

charts are based upon the report of Moss Adams. A complete audit report is available and gladly provided upon request. The downloadable version is also available on our website at holtinternational.org

Land, Building & Equipment, Net of Accumulated Depreciation Total Assets

LIABILITIES Accounts Payable & Accrued Expenses International Program Support Payable

551,080

711,039

3,733,280

4,553,974

Deferred Transportation Fees

52,200

79,260

Deferred Revenue - Other

28,868

30,250

Deferred Compensation

124,808

102,157

Annuity Obligation

240,470

255,133

5,371,999

6,477,841

Undesignated Net Assets

2,105,806

1,439,690

Deferred Adoption Fee Revenue

Our Vision A world where every child has a loving and secure home.

Total Liabilities

Our Mission

NET ASSETS

Holt International is a Christian organization committed to expressing God’s compassion for children. While always upholding the highest ethical standards, we: • Find

and

support

permanent,

loving

families for children who are orphaned,

Unrestricted Net Assets: Board Designated Endowment

1,830,181

1,646,302

Temporarily Restricted Net Assets

1,395,327

953,709

Permanently Restricted Net Assets

2,959,440

2,966,460

8,290,754

7,006,161

$13,662,753

$13,484,002

Total Net Assets

H olt I nt e r n at i on a l / A n nu a l R e p o r t 2012

abandoned or at serious risk of separation from their family • Provide services to ensure that children will grow and develop to their fullest potential

Total Liabilities & Net Assets

2012 expenses 11.5%

• Lead the global community in advocating

14.8%

on behalf of the world’s most vulnerable children

73.7%

Program Services Fundraising Management & General

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Hague Accredited

COUNCIL ON ACCREDITATION FOUNDED 1977

Statement of activities

For the year ended December 31, 2012 (with Comparative Totals for the year ended December 31, 2011) 2012

2011

Unrestricted

Temporarily Restricted

Permanently Restricted

Total

Total

Sponsorship Contributions

$ 541,487

$10,216,757

-

$10,758,244

$9,739,594

Other Contributions

1,189,194

1,822,805

87,075

3,099,074

3,435,705

-

190

905

1,095

168,649

-

187,956

-

187,956

89,863

8,669,257

-

-

8,669,257

9,767,829

128,230

-

-

128,230

123,020

61,396

32,019

-

93,415

102,141

REVENUES & OTHER SUPPORT Public Support:

Promises to give Grants Received: Other Revenues: Adoption Fees Transportation Fees Investment, Principally Interest, Net of Investment Fees of $31,088 in 2012 and $29,516 in 2011 Tour Charges

488,935

-

-

488,935

315,957

Adoptee Services

185,936

-

-

185,936

172,355

Publication Sales, Net of Expenses of $30,913 in 2012 and $37,687 in 2011

3,973

-

-

3,973

3,561

Other Revenue

6,604

-

-

6,604

62,815

(1,764)

-

-

(1,764)

100

Gains: Gain (Loss) on Sale of Assets Net Unrealized/Realized Gain/ (Loss) on Investments

413,174

188,370

-

601,544

(387,401)

12,101,479

(12,006,479)

(95,000)

-

-

23,787,901

441,618

(7,020)

24,222,499

23,594,188

U.S. Program

6,326,268

-

-

6,326,268

6,837,255

International Program

2,448,267

-

-

2,448,267

2,164,691

2,780,045

-

-

2,780,045

2,922,770

5,348,942

-

-

5,348,942

5,664,996

16,903,522

-

-

16,903,522

17,589,712

Net Assets Released from Restrictions Total Revenues & Other Support

EXPENSES Program Services:

International Program Support: Holt Children's Services - Korea Other Total Program Services Supporting Services: 2,641,275

-

-

2,641,275

2,369,636

3,393,109

-

-

3,393,109

4,312,237

6,034,384

-

-

6,034,384

6,681,873

22,937,906

-

-

22,937,906

24,271,585

849,995

441,618

(7,020)

1,284,593

(677,397)

3,085,992

953,709

2,966,460

7,006,161

7,683,558

$3,935,987

$ 1,395,327

$2,959,440

Total Supporting Services Total Expenses

CHANGE IN NET ASSETS Net Assets, Beginning of Year Net Assets, End of Year

$8,290,754

$7,006,161

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Management & General Fundraising

For the Children Harry and Bertha Holt's Legacy of Love In the mid-1950s, Harry and Bertha Holt saw a film about Amerasian children in Korean orphanages who were desperately in need of help. Harry and Bertha sent money and clothes, but that didn’t feel like enough. Then they came to an inspired realization – those children needed families.

Harry and Bertha decided to adopt eight Korean children, but soon learned it would be impossible…unless they could get both Houses of Congress to pass a special law. “Then that’s what we’ll do,” Bertha said, and she moved ahead on faith.

The Holts’ adoption was revolutionary. Their example showed that a family’s love can transcend the barriers of race and nationality. At a time when adoption was regarded as something to be kept secret, they adopted children who were obviously not their birth children. Through their deep Christian faith and fierce determination, they showed the world that adoption is a banner of love, not a badge of shame.

Word spread and inspired people across the nation. Many inquired as to how they, too, could adopt. Only five months after he brought their eight children home, Harry headed back to Korea to help other children have families. Holt was officially incorporated in 1956, financed almost entirely by Harry and Bertha’s personal funds.

H olt I nt e r n at i on a l / A n nu a l R e p o r t 2012

When Harry passed away in 1964, many thought the Holt agency would simply fold up. But Bertha said, "This work was always God’s work. If He wants it to continue, it will." Her strength and faith persevered, and Holt continued to grow and meet the needs of an increasing number of homeless children.

Bertha worked tirelessly on behalf of children in need until her death at age 96. She was affectionately known as "Grandma Holt" to adoptive families and to the thousands of children around the world whose lives she changed.

Today, Holt International is proud to continue finding families for children. Holt is the largest international adoption agency, having united more than 40,000 children with adoptive families in the United States. We offer our families unrivaled stability, an extensive knowledge bank, a highly successful track record, and proven skills in international relations.

Most of all, Holt always has and always will be driven by what is best for the children. By upholding Harry and Bertha’s ethics, up-front and honest practices, and ongoing support to adoptive families and children, we look forward to finding many more homes for children who need them.

In Bertha’s words, “All children are beautiful when they’re loved.”

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In 1956, Harry Holt met Dr. David Kim (far right, center) in Korea. Together, they pioneered the modern era of international adoption. Today, David remains a cherished member of Holt’s staff • When Harry and Bertha Holt’s daughter, Molly (right), a nurse, traveled to Korea in 1956 to care for children with special needs, she never left.

She remains in Korea to this day. Harry and Bertha Holt’s legacy has lived on through the longtime support of dedicated staff and caretakers like David and Molly.

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P.O. Box 2880 | Eugene, OR 97402 | www.holtinternational.org