Opportunity International Annual Report 2004

2004

A N N U A L R E P O R T

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O U R

V I S I O N

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VISION By 2010, Opportunity International will serve 2 million poor entrepreneurs a year.

By 2029, Opportunity International will serve 50 million poor entrepreneurs cumulatively.

Opportunity International has grown at a 36-percent compound annual rate over the last five years. If Opportunity grows at only 20-percent over the next eight years, and then 10-percent over the subsequent 16 years, 50 million families will work their way out of poverty.

The Opportunity mission is to provide opportunities for people in chronic poverty to transform their lives.

Our strategy is to create jobs, stimulate small businesses and strengthen communities among the poor.

Our method is to work through indigenous partner organizations that provide small business loans, training and counsel.

Opportunity International’s commitment is motivated by Jesus Christ’s call to serve the poor.

Our core values are respect, commitment to the poor, integrity and stewardship.

Statement of Intent Regarding Poverty and Women Opportunity International strives to reach the world’s poorest people through its microenterprise-development programs. Recognizing that the large majority of the world’s poorest people are women, and that they contribute decisively to the well-being of their families, Opportunity makes it a priority to support programs that serve the particular needs of women.

O PPORTUNITY I NTERNATIONAL [ VISION

SERVES WOMEN AND MEN OF ALL FAITHS AND NO FAITH .

T A B L E

O F

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OPPORTUNITY WORLDWIDE STATS OVERVIEW: OPPORTUNITY INNOVATION

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GLOBAL IMPACT LEVERAGE

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OPPORTUNITY LEADERSHIP

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SUPPORTING ORGANIZATIONS

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Pages 6-7 Pages 8-9

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FINANCIALS

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LET TER FROM BOARD CHAIRS & CEO

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C O N T E N T S

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Pages 11-16 Pages 17-18

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O P P O R T U N I T Y

I N T E R N A T I O N A L

Dear Friends, We are proud to present Opportunity International’s 2004 Annual Report. We applaud the 675,500 women and men who, throughout the year, began their journey from poverty to dignity with small business loans, training and other financial services. We are grateful to our supporters for contributing the capital to transform the lives of our clients and their families. And we thank God for blessing the efforts of our poor entrepreneurs, our donors, our volunteer board members and our worldwide staff.

We celebrate nearly 40-percent loan client growth in 2004. In our first 30 years, from 1971 to 2001, Opportunity provided a cumulative total of 1 million loans. In 2004 alone, we provided more than 1 million loans to hardworking poor entrepreneurs around the world. In addition to receiving loans, our clients have $25 million in savings deposits with Opportunity banks.

In 2004, we focused on the Philippines, Mexico and Africa. In the Philippines — where we were serving 419,000 clients by the end of 2004 — our bank for the poor in Manila and our regional partners offer branch offices throughout this island nation. Our start-up program in Mexico has made significant changes that have resulted in doubling the number of clients with a negligible portfolio at risk. And Africa continues to be a priority region where our programs are relieving poverty and suffering for nearly 88,000 poor entrepreneurs. Through HIV/AIDS education and the empowerment of women, our programs are reducing the spread of the virus that causes AIDS. Our commitment to paving the road from poverty to dignity is motivated by Jesus Christ’s call to serve the poor. With 3 billion of our sisters and brothers struggling to exist on $2 a day or less, we are intentional about serving the poorest of the poor. Our audacious vision is to fund 50 million entrepreneurs from 2004 to 2029. We have the experience, the proven methods and the passion. Thank you for entrusting your charitable gifts to Opportunity International and for joining us in this great mission.

T E R R Y WAT S O N

P O L LY M C C R E A

C H R I S C RA N E

Chair Board of Directors

Chair Board of Governors

President & Chief Executive Officer

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2004 Highlights Opportunity International looks very different today than it did five years ago. The combined staff members now total more than 5,000 employees worldwide. The combined assets of Opportunity programs now total more than $183 million.

Number of loan clients at year-end…………..………..………..………..………..……675,500 36-percent compound annual growth rate over the last five years Dollars loaned in 2004………………..………..………..………..………..………..….....$241.5 million More than five times the value loaned in 1999 Average loan size (excluding Eastern Europe)..…..………..………..………..………..……...............$132 Reaching lower levels of poverty Average first loan per group-loan member…..………..………..………..………..……....................$80 Continuing to reach the poorest of the entrepreneurial poor Loans made to women………....…....…………..………..………..………..………..……..............….87% The majority of the poorest of the working poor are women Number of staff employed worldwide..............…..………..………..………..………..……............5,401 4,000 of the 5,401 employees are loan officers Loan repayment rate.................................…..………..………..………..………..……............98% Maintained since 2000 The 41 member organizations of Opportunity International have united in their mission of transforming nations together. This ongoing commitment is evident in the improved loan portfolio quality, increase in clients and decrease in arrears rate. Through these collective efforts, the average 30-day arrears rate dropped to 2 percent. Our members have remained committed to Opportunity International’s triple bottom line of outreach, sustainability and transformation.

Opportunity International Worldwide Stats as of Year-end NUMBER OF CLIENTS

ARREARS OVER 30 DAYS

VALUE OF LOAN PORTFOLIO

700,000

6%

$150,000,000

600,000

5%

$120,000,000

500,000 4% $90,000,000

400,000 3% 300,000

$60,000,000 2%

200,000 $30,000,000

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02

03

04

$ 10,000,000

$130.0M

01

$87.7M

00

$63.9M

99

$43.6M

0%

$34.1M

04

$26.6M

675,588

03

2.0%

487,105

02

2.7%

397,489

01

3.1%

308,026

00

4.6%

233,386

99

5.0%

146,575

0

5.1%

1%

100,000

99

00

01

02

03

04

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I N T R O D U C T I O N

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Giving the poor a working chance “Opportunity International is opening doors to economic, social and spiritual transformation that were once closed to many of the world’s poorest people.”

–Hernando de Soto, Peruvian economist and one of Time magazine’s 100 Most Influential People of 2004

For more than three decades, Opportunity International has been opening doors of hope for the world’s poorest people. Such hope comes in the form of tangible improvements: clients can use their earnings to buy shelter, nutritious food, education for children and health care. Hope helps to transform the next generation. Through these doors of hope lies a better future for the poor and a much better and safer world for us all.

Opportunity International is a pioneer in a movement called microenterprise development, which works to overthrow the shackles of chronic poverty that restrain nearly half of the world’s population. Through microenterprise development, Opportunity International offers a workable solution to poverty by giving the poor a working chance. Rather than a handout, Opportunity International offers a hand up to a better life by providing people with the tools to build their own future.

Change starts with Opportunity International’s innovative group-lending structure: the Trust Bank. In Trust Banks, groups of 15 to 40 poor entrepreneurs receive microloans — sometimes as little as $50 each — to start or expand a small business, develop a steady income, provide for their families and create jobs for their neighbors. With their microloans, these entrepreneurs also receive training in basic business practices, as well as other financial services such as savings and insurance benefits. Because Trust Bank members guarantee each other’s loans, repayment rates are at 98 percent — a far better performance than typical commercial loans. Through Trust Banks, Opportunity International has helped shape a new truth for the development community: Poor people are a worthy credit risk.

Every day, hundreds of thousands of Opportunity International clients are building businesses of all kinds — directly improving millions of lives around the world. Through microenterprise development, hunger is being replaced with hope, despair with dignity, and poverty with opportunity.

Elsa Reyes (top) and her husband sell so much of her home-baked bread around their home in Honduras that they have hired their daughter as an employee. Moses Luwemba (above) works as a loan officer in rural Uganda to help poor entrepreneurs achieve economic and spiritual transformation.

For more information on Opportunity’s work visit www.opportunity.org

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I N N O V A T I O N

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New frontiers for poor families After more than 30 years of working with poor entrepreneurs, Opportunity International still strives to serve them in even better ways. In 2004, for example, Opportunity issued more than a million loans in a single year. Last year as well, two of our programs surpassed the 100,000-client mark.

A driving force behind much of our innovation is the initiative to move many of our programs from lending organizations to formal financial institutions.

Simply put, chartered banks can do more. They can leverage their assets to provide more loans. They can provide a safe place to save and offer other financial services that poor families need. Today, these banks in 10 countries are serving our clients in new ways: The Youth Apprenticeship Program helps Opportunity International clients mentor young people as they learn marketable skills.

For example, through the Orphans and Vulnerable Children project, Opportunity partners with Habitat for Humanity to work with older teens as they learn construction skills.

•SAVINGS ACCOUNTS: Secure, interest-bearing accounts allow poor families to save in small increments for emergencies or business expansion. Without the security of Opportunity International savings accounts, many women face the risk of their assets being seized if they are widowed — not to mention the danger of robbery. More than 39,000 poor families are benefiting from Opportunity savings accounts.

•INSURANCE: Through our banks, clients can take out life and health insurance even if they or a family member has AIDS. Without insurance, a small emergency pushes families into deeper poverty. Funeral expenses can then bankrupt a family, and the death of a wage earner can leave dependents hungry and homeless. More than 1.7 million Opportunity clients and their family members are insured through microinsurance programs.

“Opportunity International is a voice for the voiceless and power for the powerless.”

—Ambassador Mark Erwin

Loans have helped Maternidad Daliva (right) start six businesses in the Philippines.

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•ASSET LOANS: The new Asset Loan product, piloted in Ghana and funded by the Women’s Opportunity Fund, gives Trust Bank clients the ability to purchase the assets necessary to graduate from a group loan to a larger individual loan. It also helps clients save in a depreciating economy. As a result, clients feel more confident in their businesses and take on more leadership roles. These entrepreneurs are now able to offer employment to family members and neighbors — and, often for the first time, participate in critical decisions for their communities.

•SMART CARDS: In Malawi, a client’s thumbprint provides the key to a savings account, giving identity and security even to people who are unable to read. With smart cards, illiteracy is no longer a barrier to a secure identity — and a secure savings.

•YOUTH APPRENTICESHIP PROGRAM: In Uganda, Opportunity International is helping young people orphaned by AIDS — including older teens who are caring for their siblings — by training them in a marketable skill. The program matches needy young people with clients who have successful businesses. The clients train their apprentices, and when training is completed, the apprentices qualify for Opportunity International loans to start their own enterprises.

•STRATEGIC ALLIANCES: Emerging relationships are helping Opportunity International clients transform their lives in new ways. In 2004, Opportunity entered into a partnership with Habitat for Humanity in Uganda, as a way to care for orphans in a region devastated by HIV/AIDS. More recently, Opportunity has forged new alliances.

Through its partnership with Compassion International, Opportunity will provide loans and training to the parents of needy children. Hyperion Solutions Corp. has made a significant contribution to Opportunity in the form of information-technology software and services to help with financial and operational performance management.

Smart cards give poor people full access to banking services once closed to them, starting with a fingerprint to verify a client’s identity.

Successes TSKI, PHILIPPINES After forming TSKI as an Opportunity partner organization in 1986, Opportunity International worked diligently to help develop the systems necessary for rapid growth. That early work has since paid off in big ways. Through an expansion plan designed to replicate new branch offices quickly, TSKI has become the largest microfinance entity in the Philippines — and in the Opportunity International network of partner organizations. Recognized by the World Bank as an “A-rated” microfinance organization, TSKI was cited by the Philippines’ People Credit and Finance Corporation as the top microfinance institution in the nation.

Because of its reputation, TSKI has been able to grow remarkably by leveraging donations. By the end of 2004, TSKI was serving 122,832 loan clients with $7.35 million in loans outstanding throughout the Visayas region of the Philippines. TSKI plans to be serving nearly 200,000 by the end of 2005. Because TSKI is financially sustainable, every dollar given to the organization recycles and then multiplies through leveraging — the value of money donated to TSKI actually increases over time.

SINAPI ABA TRUST (“MUSTARD SEED”), GHANA Founded by Opportunity International in 1994 to provide credit and basic business training, Sinapi Aba Trust has become a player on a national scale, operating 16 branch offices in 10 regions across Ghana.

To better serve the need for financial services for the poor, Sinapi Aba Trust worked with Opportunity International to create a new financial institution licensed by the Bank of Ghana: Opportunity International—Sinapi Aba Savings and Loan Company Limited (OI-SASL).

OI-SASL is expanding services to the poor by offering savings accounts as well as loans. Today, Sinapi Aba Trust and its newly created Savings and Loan Company is the leading microfinance institution in Ghana, with a total client outreach of 53,029 as of December 2004, with $4.2 million in outstanding loans.

By adding traditional banking services to its microfinance offerings, Opportunity International is serving the poor of Ghana in new and innovative ways.

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G L O B A L

I M P A C T

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Current Opportunity International programs (27 countries) New program in 2004 (1 country) Support Partners — engaged in marketing and fundraising (5 countries)

LO A N C L I E N T S O N 1 2 - 3 1 - 0 4 675,588

D O L L A R S LO A N E D I N 2 0 0 4 $241,555,169

COUNTRY Africa Egypt Ghana Malawi Mozambique Uganda Zambia Zimbabwe

ACTIVE CLIENTS

DOLLARS LOANED

7,136 53,029 1,700 2004 start-up 10,959 4,674 10,252

$ 2,350,845 $ 10,872,426 $ 1,746,997

182 2,874 14,274 42,146 419,511

$ 236,145 $ 627,485 $ 1,037,830 $ 6,471,125 $ 70,915,928

Asia China East Timor India Indonesia Philippines

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$ $ $

3,289,070 1,319,098 1,199,011

COUNTRY ACTIVE CLIENTS Eastern Europe Albania 4,336 Bulgaria 2,363 Croatia 585 Macedonia 4,871 Montenegro 7,320 Poland 902 Romania 1,109 Russia 16,327 Serbia 2,523 Latin America Colombia Dominican Rep. Honduras Mexico Nicaragua Peru

21,063 4,027 7,472 513 31,844 3,778

DOLLARS LOANED $ $ $ $ $ $ $ $ $

12,222,555 6,833,741 1,199,978 10,398,259 31,541,485 1,996,130 3,449,660 40,790,812 6,936,425

$ $ $ $ $ $

3,614,592 2,014,700 2,300,109 190,517 17,329,492 906,899

Often, an Opportunity International loan helps many more people than just the client and her family. That’s certainly true for Marilyn Obdaniela and a whole community of artisans near her home in Tayabas, Philippines. In just four years, Marilyn has built her basketweaving business into an enterprise that employs 20 families, sells products throughout the Philippines and exports them to Europe. Some weavers work together in an open-air patio while others work from their homes. Each family produces about 100 baskets per week, often with husband and wife working together. Children can participate as well, Marilyn says, but only after school. In fact, Marilyn has committed to helping pay school fees for all of her employees’ children.

For more information on where Opportunity International serves, www.opportunity.org

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L E V E R A G E

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The Power of Leverage With a 98-percent loan repayment rate, money donated to Opportunity International is used over and over again to offer a better life to people who are often left behind by the traditional world of finance. Opportunity International funds are leveraged in remarkable ways that can never be expressed in a single year’s snapshot: •RECYCLED LOANS With an average loan cycle of six months, loan funds are used again and again to reach more clients.

•SUSTAINABILITY By charging interest at local market rates, our partners are able to cover the costs of operations, so loan portfolios are not depleted. Those Opportunity entities that provide microfinance services are operationally sustainable: Their revenues exceeded expenses by 7 percent in 2004. We continue to raise grant funding in order to grow at a rate far in excess of 7 percent.

•CLIENT SAVINGS Portions of clients’ interest-bearing savings are added to the loan portfolio, providing loans for more poor families, while the savers’ money is secure, earning interest and available on demand.

•PARTNER BORROWING Local Opportunity programs that have converted to banks borrow against their equity from local and international, socially motivated banks and funds, allowing for faster expansion.

•EQUITY INVESTMENTS Local programs that have been established as or converted to registered banks can sell equity shares, releasing more money for loans and operations.

Meeting in a tiny village in Honduras, the “God is My Light” Trust Bank build members’ business and lives (top). Glenda Salinas provides for her family by selling tortillas and tamales (above).

OPPORTUNITY GROWTH $300,000,000

ACTIVE CLIENTS 700,000 600,000

$250,000,000

500,000

$200,000,000

400,000 $150,000,000 300,000

Dollars Loaned

$100,000,000 200,000 $50,000,000

100,000 Funds Raised

$0

Fundraising & Admin. Costs

1999

10

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2000

2001

0 2002

2003

2004

1999

2000

2001

2002

2003

2004

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F I N A N C I A L S

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U.S. HIGHLIGHTS

Opportunity International REVENUE Private contributions Government grants Non-operating revenue Total* EXPENDITURES Program services Program equity ownership Fundraising and administration Total THIRD PARTY INVESTMENTS Equity & debt raised for Implementing Partners* Investments placed at Implementing Partners

2004

2003

$ 16,615,573 10,209,105 2,313,884

$ 13,120,378 8,635,505 -

$ 3,495,195 1,573,600 2,313,884

27% 18% NM

$ 29,138,562

$ 21,755,883

$ 7,382,679

34%

$ 10,918,071 10,294,889 5,868,183 $ 27,081,143

$ 10,681,757 3,208,425 3,854,671 $ 17,744,853

$

236,314 7,086,464 2,013,512 $ 9,336,290

2% 221% 52% 53%

$ 18,400,000

$ 10,300,000

$ 8,100,000

79%

(8,100,000)

79%

-

NM

$ 15,482,679

48%

(18,400,000)

(10,300,000)

Net

$

* Total raised for the poor Fundraising and G & A as a percentage of Total raised for the poor

$ 47,538,562

$32,055,883

13%

13%

TOTAL FUNDS RAISED FOR THE POOR (in millions) $50

-

$

-

25% 20%

$30

15% Non-operating

10%

Private Contributions $10

Government Grants Third Party Investments

$0 2003

2004

$

FUNDRAISING AND G&A RATIO

$40

$20

CHANGE

Total Revenue

5%

Total raised for the poor*

0% 2003

2004

Opportunity International raises funding for the poor from many sources, some traditional and some unique for non-profits. From traditional sources, Opportunity International receives charitable gifts and government grants, which it sends to the Opportunity International Implementing Partners in the form of grants, loans, and equity investments. A portion of these funds is also used for fundraising and administrative activities. In 2004, Opportunity International also received common stock of certain Implementing Partners which increased its ownership share. In addition to these sources of funds, Opportunity International raises equity and debt from third parties for Implementing Partners that is directly invested in these partners. The graph on the left above depicts the funds raised from the various sources. The graph on the right above presents the Opportunity International fundraising and G&A ratio when funds from the various sources are included in the calculation.

Unaudited. Complete audited financial statements by KPMG are available upon request.

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F I N A N C I A L S

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2 0 0 4 S TAT E M E N T O F A C T I V I T I E S

Opportunity International Support Partners* for the year-ended December 31, 2004 OI-US REVENUE Private contributions Government grants Non-operating revenue

$ 16,615,573 10,209,105 2,313,884

Total revenue EXPENDITURES Program services Grants for revolving loans Grants for partner lending operations and training Development of partner organizations Program equity ownership Total services to the poor

7,423,262 3,836,678 -

$

24,038,835 14,045,783 2,313,884

11,259,940

40,389,502 **

1,727,453

4,116,601

5,844,054

3,138,168 6,052,450 10,294,889 21,212,960

2,485,064 1,820,912 8,422,577

5,623,232 7,823,362 10,294,889 29,635,537

4,431,291 1,436,892

1,366,702 1,331,409

5,797,993 2,768,301

5,868,183

2,698,111

8,566,294 **

27,081,143

11,120,688

38,201,831

2,057,419 2,462,855

139,252 -

2,196,671 2,462,855

Total supporting services

Net Non-cash pledges for future distribution Net cash

$

Total

29,138,562

Supporting services Fundraising Management and general

Total expenditures

Overseas

$

(405,436)

$

139,252

$

(266,184)

GLOBAL REVENUE Private contributions

59%

6% 35%

Non-operating revenue Government grants

** Global supporting services ratio to revenue was 21%.

2004

*Support Partners raise funds in developed countries.

Unaudited. Complete audited financial statements by KPMG are available upon request.

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2 0 0 3 S TAT E M E N T O F A C T I V I T I E S

Opportunity International Support Partners* for the year-ended December 31, 2003 OI-US REVENUE Private contributions Government grants

$ 13,120,378 8,635,505

Total revenue EXPENDITURES Program services Grants for revolving loans Grants for partner lending operations and training Development of partner organizations Program equity ownership Total services to the poor Supporting services Fundraising Management and general Total supporting services Total expenditures Net Non-cash pledges for future distribution Net cash

$

Overseas

$

5,833,637 5,690,250

Total

$

18,954,015 14,325,755

21,755,883

11,523,887

33,279,770 **

1,891,232

3,392,461

5,283,693

4,522,812 4,267,713 3,208,425 13,890,182

3,577,150 2,060,894 9,030,505

8,099,962 6,328,607 3,208,425 22,920,687

2,638,041 1,216,630

1,408,246 1,049,215

4,046,287 2,265,845

3,854,671

2,457,461

6,312,132 **

17,744,853

11,487,966

29,232,819

4,011,030 3,965,665

35,921 -

4,046,951 3,965,665

45,365

$

35,921

$

81,286

GLOBAL REVENUE Private contributions

43% 57%

Government grants

** Global supporting services ratio to revenue was 19%.

2003

*Support Partners raise funds in developed countries.

Unaudited. Complete audited financial statements by KPMG are available upon request.

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F I N A N C I A L S

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S TAT E M E N T O F F I N A N C I A L P O S I T I O N

Opportunity International Support Partners* December 31, 2004

ASSETS Current Cash and demand deposits Receivables Other current assets Total current assets Long-Term Long-term investments - partners Long-term investments - other Property and equipment Cost Accumulated depreciation Net property and equipment Total long-term assets Total Assets LIABILITIES Current Short-term borrowings Accounts payable Other current liabilities Total current liabilities

$

OI-US

Overseas

Total

Total

5,952,858 4,331,141 4,623,080 14,907,079

$ 1,680,341 1,484,354 97,693 3,262,388

$ 7,633,199 5,815,495 4,720,773 18,169,467

$ 13,364,881 7,763,983 2,917,301 24,046,165

20,305,411 -

84,689 459,429

20,390,100 459,429

11,128,615 395,369

351,478 (295,884) 55,594 20,361,005 $ 35,268,084

315,292 (186,966) 128,326 672,444 $ 3,934,832

666,770 (482,850) 183,920 21,033,449 $ 39,202,916

780,780 (599,426) 181,354 11,705,338 $ 35,751,503

$

$

9,631 1,173,231 193,116 1,375,978

$ 2,142,131 2,656,435 193,116 4,991,682

$

74,800 236,952 311,752 3,927,456

54,600 54,600 1,430,578

129,400 236,952 366,352 5,358,034

793,300 7,717,939 8,511,239 14,714,772

18,711,032 12,629,596 31,340,628

900,678 1,603,576 2,504,254

19,611,710 14,233,172 33,844,882

9,915,456 11,121,275 21,036,731

$ 35,268,084

$ 3,934,832

$ 39,202,916

$ 35,751,503

Long-Term Long-term debt Deferred revenue Total long-term liabilities Total Liabilities NET ASSETS Unrestricted net assets Restricted net assets Total Net Assets Total Liabilities and Net Assets

2003

2,132,500 1,483,204 3,615,704

836,774 4,929,653 437,106 6,203,533

STATEMENT OF CASH FLOWS for the year ended December 31, 2004 OI-US Change in net assets Other operating activities Funds provided by operations Investing activities Financing activities Change in cash balances

$ 12,352,309 (9,498,884) 2,853,425 (9,247,254) 589,800 $ (5,804,029)

Overseas $

$

455,841 (356,861) 98,980 (78,291) 51,657 72,346

Total $ 12,808,150 (9,855,745) 2,952,405 (9,325,545) 641,457 $ (5,731,683)

2003 Total $ 7,191,211 4,269,898 11,461,109 (2,699,170) (622,737) $ 8,139,202

*Support Partners raise funds in developed countries.

Unaudited. Complete audited financial statements by KPMG are available upon request.

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I N C O M E S TAT E M E N T & B A L A N C E S H E E T

Opportunity International Implementing Partners* INCOME STATEMENT for the year ended December 31, 2004 Africa Income and Expenses Financial income $ 6,132,050 $ Financial expenses 216,441 Gross financial margin 5,915,609 Provision for loan losses 149,884 Net financial margin 5,765,725 Operating expenses 7,068,651 Net income $ (1,302,926) $

Asia

14,042,165 1,466,423 12,575,742 759,975 11,815,767 10,893,660 922,107

Eastern Europe Latin America

$ 19,976,052 1,614,202 18,361,850 1,198,851 17,162,999 13,087,036 $ 4,075,963

2003 Total

Total

$ 6,319,205 $ 46,469,472 72,775 3,369,841 6,246,430 43,099,631 507,305 2,616,015 5,739,125 40,483,616 6,138,709 37,188,056 $ (399,584) $ 3,295,560

$ 33,320,430 2,135,980 31,184,450 2,573,417 28,611,033 26,577,489 $ 2,033,544

BALANCE SHEET December 31, 2004 Africa

Asia

ASSETS Current Cash $ 2,139,853 $ 5,068,730 Interest bearing deposits 3,204,666 3,709,661 Net loan portfolio 8,909,336 27,103,934 Other current assets 551,686 2,757,598 Total current assets 14,805,541 38,639,923 Long-Term Fixed & other L-T assets 4,994,761 5,317,012 Total assets $19,800,302 $ 43,956,935

2003

Eastern Europe Latin America

$

Total

Total

4,793,598 6,965,406 80,268,475 6,322,690 98,350,169

$ 1,627,886 954,469 9,406,778 562,829 12,551,962

$ 13,630,067 14,834,202 125,688,523 10,194,803 164,347,595

$ 11,480,788 9,737,947 84,561,807 4,265,359 110,045,901

5,775,423 $ 104,125,592

2,979,438 $ 15,531,400

19,066,634 $183,414,229

12,862,540 $ 122,908,441

$

4,956,265 855,966 8,019,272 2,015,146 15,846,649

$ 1,030,898 962,872 30,914 55,347 2,080,031

$ 12,817,922 13,023,229 12,056,215 6,001,350 43,898,716

$ 10,306,103 9,435,332 5,179,059 2,977,705 27,898,199

LIABILITIES & NET ASSETS/EQUITY Current Short-term debt $ 1,942,034 $ Loan client deposits 161,440 Other client deposits 3,794,711 Other current liabilities 1,212,794 Total current liabilities 7,110,979

4,888,725 11,042,951 211,318 2,718,063 18,861,057

Long-Term Total L-T liabilities & debt 856,036 Total liabilities 7,967,015

9,748,273 28,609,330

31,718,568 47,565,217

3,484,158 5,564,189

45,807,035 89,705,751

23,911,907 51,810,106

Net Assets & Equity Total net assets & equity 11,833,287 15,347,605 Total liabilities & net assets $19,800,302 $ 43,956,935

56,560,375 $ 104,125,592

9,967,211 $ 15,531,400

93,708,478 $183,414,229

71,098,335 $ 122,908,441

*Implementing Partners oversee Opportunity programs in each country.

Unaudited. Complete audited financial statements by KPMG are available upon request.

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MANAGEMENT DISCUSSION & ANALYSIS OF FINANCIAL STATEMENTS Opportunity International Support Partners STATEMENT OF ACTIVITIES Opportunity International Support Partners had a strong year in 2004. Total revenue increased 21% from $33.3 million in 2003 to $40.4 million in 2004. Opportunity International-US accounted for the improved results with significantly higher private contributions, as well as non- operating revenue in the form of increased ownership shares at two Implementing Partners that were transferred to Opportunity International-US during the year.

Total expenditures rose 31% from $29.2 million in 2003 to $38.2 million in 2004. The largest increase was in Opportunity International-US program equity ownership, which rose $7.1 million due to significantly greater investments in our ownership partners. These investments principally provide Implementing Partners with funds for revolving loans to help the poor.Supporting services spending increased $2.3 million as a result of Opportunity International-US’ growth strategy implemented two years ago.

STATEMENT OF FINANCIAL POSITION Total assets grew by 10% in US dollars. Opportunity International-US’ cash balance decreased as a result of using $5.4 million held as restricted cash at the end of 2003 for an investment in the bank in Serbia during 2004. Opportunity International-UK’s receivables decreased, reflecting lower balances due from the U.K. government at the end of 2004. The continuing investments in those Opportunity International Implementing Partners that have converted to formal financial institutions more than offset the decrease in current assets. Holdings of these investments increased from $11.1 million at the end of 2003 to $20.4 million at the end of 2004.

Short-term borrowings rose, due to utilization of a bridge line of credit for conversion financing at several of the Implementing Partners. Also included was an increase in the current portion of long-term debt due in 2005. Deferred revenue fell as a result of using the restricted cash, as discussed above, and recognizing the related revenue. Opportunity International-US also refunded a portion of this cash to USAID and should be able to realize it in the future.

Opportunity International Implementing Partners As shown on the Income Statement, financial income and operating expenses both rose 40% in US dollars from 2003 to 2004.

Net income increased from $2.0 million in 2003 to $3.3 million in 2004. All of this surplus was reinvested in the microfinance partners. As a whole, Implementing Partners achieved 107.6% operational self-sufficiency in 2004. This helps us achieve our strategic goal of sustainability for all global programs.

Total assets increased from $122.9 million at the end of 2003 to $183.4 million at the end of 2004. Most of this increase occurred in the revolving loan portfolio, which rose to a net value of $125.7 million at the end of 2004. Liabilities grew to $89.7 million from $51.8 million. At the end of 2004 the Implementing Partners as a whole were leveraged almost 1:1.

NOTES TO FINANCIAL STATEMENTS FINANCIAL STATEMENT PRESENTATION The financial information included on the preceding pages was derived from the financial statements of independent organizations. The Support Partner statements reflect the results of operations, financial position and cash flow of the combination of the five independent partners in developed countries, without regard to ownership positions in certain Implementing Partners. The Implementing Partner statements present a combination of the results of operations and financial position of the 41 indigenous Implementing Partners, also without regard to ownership issues. These statements are unaudited. Audited statements for the partners are available upon request.

REGULATED MICROFINANCE INSTITUTIONS On December 31, 2004, the following Implementing Partner organizations were for-profit, regulated microfinance institutions: PShM in Albania; Opportunity International–Sinapi Aba Savings and Loan (OI-SASL) in Ghana; Moznosti in Macedonia; Opportunity International Bank Malawi (OIBM); Oportunidad Microfinanzas (OM) in Mexico (not regulated); Opportunity Bank Montenegro (OBM); Opportunity Microfinance Bank (OMB) in the Philippines; Opportunity Microfinance Romania (OMRO); Opportunity International Stock Savings Bank, Novi Sad, in Serbia; and Zambuko Trust Ltd. in Zimbabwe (not regulated). The only reason any of our organizations is for-profit is to achieve bank status, allowing us to provide many services, such as savings, that banks can offer to the poor. Local laws require banks to have a for-profit status. Profits are returned to the program and used to help the poor.

EQUITY OWNERSHIP IN AFFILIATES As referenced above, Opportunity International-US receives certain grants restricted for investment in microfinance institutions.

Investments are currently held in all institutions except Moznosti. These investments provide start-up costs and funds for the revolving loan program to assist the poor.

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BOARD OF DIRECTORS LAURA ALLEN Hinsdale, Ill.

EMORY GRIFFIN Glen Ellyn, Ill.

DIANA NEGROPONTE Washington, D.C.

STACEY BARSEMA Monte Sereno, Calif.

JAMES HAMILTON Laguna Beach, Calif.

DONALD PALMER Carmel, Ind.

BRADLEY BELL Wheaton, Ill.

CRAIG HAMMON Essex, Mass.

BETSY PERDUE Oak Park, Ill.

CHRISTOPHER CRANE San Diego, Calif.

DALE HANSON BOURKE Chevy Chase, Md.

JONATHAN RECKFORD Edina, Minn.

PETER DALEY Purcellville, Va.

JULIE HINDMARSH Baltimore, Md.

DAVID SIMMS Newtown Square, Pa.

KWABENA DARKO Kumasi, Ghana

RICHARD HOEFS Fitchburg, Wis.

HELEN SMITH Potomac, Md.

BRUCE DUNN Chicago, Ill.

SUSIE JOHNSON Washington, D.C.

NATHANIEL SUTTON Matteson, Ill.

MARK ERWIN Charlotte, N.C.

PETER KING Sydney, Australia

PETER THORRINGTON Palos Verdes Estates, Calif.

DAWN FELLER Hinsdale, Ill.

POLLY MCCREA, Vice Chair Long Lake, Minn.

MARY BETH VOGELZANG Montecito, Calif.

BETSY FLINT San Clemente, Calif.

JOHN MCKAY Tustin, Calif.

TERRY WATSON, Chair Piedmont, Calif.

THEODORE MOSER, Vice Chair Oakland, Calif.

BOARD OF ADVISORS DR. RAYMOND BAKKE, International Urban Associates DR. TONY CAMPOLO, Eastern University DORIS CHRISTOPHER, The Pampered Chef REV. THEODORE HESBURGH, C.S.C., University of Notre Dame AMBASSADOR SWANEE HUNT, Harvard University SENATOR JACK KEMP, Empower America LT. GENERAL CLAUDIA J. KENNEDY, U.S. Army (Retired) DR. MARTIN MARTY, University of Chicago THE HONORABLE FIDEL RAMOS, Former President, Republic of the Philippines DR. VINAY SAMUEL, The International Fellowship of Evangelical Mission Theologians SUSAN SAMUELI, President, Samueli Foundation AMBASSADOR CLAYTON YEUTTER, Of Counsel, Hogan & Hartson L.L.P. PAULA ZAHN, CNN

EXECUTIVE TEAM CHRISTOPHER A. CRANE, President & CEO SUSY CHESTON, Sr. Vice President for Policy BETH HOULE, Sr. Vice President, Marketing Strategy RICHARD C. JOHN, Sr. Vice President, Finance and Administration & CFO MARK LUTZ, Sr. Vice President, Marketing DENNIS RIPLEY, Sr. Vice President, Programs CONNIE STRYJAK, Vice President, Human Resources LINDA VALENTINE, Managing Director, Opportunity Loan Guarantee Fund I and General Counsel

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BOARD OF GOVERNORS

18

Philip Faraci, MD and Pamella Leiter-Faraci -

Ben and Susan Anderson-Ray - Atlanta, GA

David and Terri Fish - Monument, CO

Dan and Jeanie Ardell - Corona del Mar, CA

Vic and Karin Fontaine - Boca Raton, FL

Mike and Betty Bagdasarian - Santa Barbara, CA

Elizabeth Foster and Michael Walsh - Chicago, IL

Loida Nicolas Lewis - New York, NY

Clark and Tina Bain - Edina, MN

Cynthia Frost - Barrington, RI

Mark and Becky Linsz - Charlotte, NC

Stephen M. Barney - North Palm Beach, FL

Wade and Megan Galde - Tracy, CA

Karen and Ronnie Lott - Cupertino, CA

Warren Beach - Barrington, IL

Robert and Mary Ann Gammill - Little Rock, AR

Lester and Doris Loucks - York, PA

Bruce and Kim Bennett - Little Rock, AR

Benjamin Garrett - Flossmoor, IL

Amanda Low - Skillman, NJ

James Bergman - Laguna Beach, CA

Jill and Tim Geoffrion - Deephaven, MN

Edward F. and Barbara Lukes - Wolcott, CO

Erik Bethel - Carmel, CA

Penny and Bill George - Minneapolis, MN

Mark and Lise Lutz - Glen Ellyn, IL

Jim and Maryellen Betke - Oak Park, IL

Chris and Bonnie Gleeson - Newtown Square, PA

Michael and Amy Macari - Austin, TX

Ronald H. and Janet Birchall - Wheaton, IL

Judy and Greg Golz - River Forest, IL

Roberta Mann Benson - Wayzata, MN

Elaine D. Birdsong - Gray, GA

Terri and Rick Gunderson - Champlin, MN

Stewart J. Mart - Indianapolis, IN

Stacy and Matt Bogart - Edina, MN

William and Linda Gustafson - Santa Barbara, CA

William and Judy Maynard - Houston, TX

Michael Bontrager - Cochranville, PA

Robert and Martha Haley - Paradise Valley, AZ

Rev. David and Mrs. Sally McAlpin - Skillman, NJ

Richard L. Brackett - Wellington, FL

Julie Hall - Winnetka, IL

Mary Ann McGuire McComber and Donald McComber -

James L. Bramlett - Princeton, NJ

Bill and Mary Hall - San Clemente, CA

Tony and Beatrice Brobbey - New York, NY

Promod Haque - Saratoga, CA

Cole McCombs - Inverness, IL

Bill and Karen Brown - Eden Prairie, MN

James D. Hardee, Jr. - Wilmette, IL

Cyndi and David McCrane - Angwin, CA

Art and Manijeh Brueggeman - Laguna Hills, CA

Jan Long Harris and Paul Harris - River Forest, IL

Polly and Robert McCrea - Long Lake, MN

Scott Brueggeman - Chicago, IL

Peg and Ed Harshaw - Oxford, PA

Fred McDougal - Chicago, IL

Charlene Caldwell - San Diego, CA

Don Hayes - Tampa, FL

Michael and Katie McElroy - St. Louis Park, MN

Allan Camaisa - La Jolla, CA

Randy and Patty Haykin - Pleasanton, CA

Marc McIntosh - Minneapolis, MN

Michael Cardone III - Philadelphia, PA

Otis and Barbara Healy - Laguna Beach, CA

Nancy McIntosh - McLean, VA

Peter Carlson - Plymouth, MN

Paul and Lois Heiss - Mequon, WI

Bruce McLagan - Hinsdale, IL

Robert Carter - Bethesda, MD

Albert and Georgia Hensel - Alexandria, LA

Elizabeth McMeekin and Philip Moses -

Joanne Case - Wayzata, MN

Peter Herfurth - Wayzata, MN

Dabbs and Mary Cavin - Little Rock, AR

Dave and Lisa Hintermeister - Richfield, MN

Adrian and Jennifer Merryman - North Falmouth, MA

Susy Cheston and Artie Harris - Takoma Park, MD

Wendall Hirschfeld - Austin, TX

Don and Doris Meyer - Orchard Park, NY

Lavon and Dennis Chorba - Atlanta, GA

Byron and Pam Hoffman - Newport Beach, CA

Jeff and Karin Meyer - Hamburg, NY

Brian G. Clark - Mahwah, NJ

Elizabeth E. Hogue, Esq. - Burtonsville, MD

Ralph and Connie Meyer - Indianapolis, IN

Edward and Janet Clark - Rockville, MD

Harry and Jauneta Hosmer - La Mesa, CA

Lydia Miller - Chicago, IL

Tim and Tara Clark - Edina, MN

Beth Houle and David Pope - Oak Park, IL

Mike and Marilyn Modak - Califon, NJ

Ross Clemenger - Nanaimo, British Columbia

Bob and Elsie Huang - La Canada, CA

Ann and Fred Moore - Minneapolis, MN

Jodie and Dennis Clements - Seminole, FL

Nancy Hughes - Temecula, CA

Nicole Moore - Edina, MN

Douglas A. Cogswell - South Barrington, IL

Pat and Ben Jaffray - Wayzata, MN

Raouf Morcos - Florham Park, NJ

Anne Collins - Minneapolis, MN

Charles Jameson and Anne Coughlan - Wilmette, IL

James and Mary Morouse - Santa Barbara, CA

Miles and Nicole Cook - Atlanta, GA

Ted and Marietta Johns - San Diego, CA

Janet Morrow - Glenview, IL

Wendy and Jim Cox - Edina, MN

James and Corrie Johnson - Santa Ana, CA

Alan Nash - Houston, TX

Paul and Sheila Crone - Chesterfield, MO

Rebecca and Marshall Johnson - Alpharetta, GA

Hilton and Jean Neal - Oconomowoc, WI

Laurie and Tom Cunnington - Bloomfield Hills, MI

Louis and Susan Joseph - Brentwood, TN

Carol and Grant Nelson - Hudson, WI

Janice D. Dailey - Bloomfield Hills, MI

Deepak and Christina Kamra - Woodside, CA

Mike and Jane Newton - Philomath, OR

Judi and Dale Dawson - Little Rock, AR

Eugene and Mary-Lynn Kaulius - Scottsdale, AZ

Kathy Nyquist - Chicago, IL

Ted and Jackie DeGroot - Las Vegas, NV

Dr. David and Jennifer Kearns - Adairsville, GA

Richard and Joanne O'Donnell - Houston, TX

Suzanne and Steve Diamond - Carmel, CA

Robert Keller - Madison, WI

Merrill and Carol Oster - Scottsdale, AZ

Lyn Dickey - Northbrook, IL

Victoria Gifford-Kennedy - Boston, MA

Julie Oswald - Minneapolis, MN

Charlie and Diane Dokmo - Colorado Springs, CO

Steve and Kendra Khoshabe - Chicago, IL

Tom Oswald - Edina, MN

Keith and Amy Downey - Edina, MN

Owen King - New York, NY

Betsy Perdue - Oak Park, IL

Kathy Drake - Oakland, CA

Marge Klee - Covington, KY

Robert Perry - Houston, TX

Richard H. Driehaus - Chicago, IL

Pauline & Dietmar Kluth - Laguna Beach, CA

Sara Pfaff - Glencoe, IL

Lindsay Duff - Kerrville, TX

David and Janna Knight - Little Rock, AR

Jack and Sue Pollock - Bonita Springs, FL

James and Jeanie Duncan - Easton, MD

Ben and Andrea Knoll - Edina, MN

Roger and Sally Post - Monterrey, CA

Terry and Kathy Duryea - Los Gatos, CA

Terry Koch - Scottsdale, AZ

Karen Prudente - New York, NY

Carter and Ragan Dye - Carefree, AZ

Jodee Kozlak - Edina, MN

Diana and Bruce Rauner - Winnetka, IL

Dan and Polly Dyer - Germantown, MD

Timothy Krause - Cypress, CA

William Reichardt - East Syracuse, NY

Paul Eberly - Chicago, IL

Jonathan Lach - Westport, CT

Ross Robbins, Chicago, IL

Don and Ruth Ebinger - Fountain Hills, AZ

Russ and Linda Lair - Apache Junction, AZ

Mary Rodino and David Himelick - Oak Park, IL

Karol Emmerich - Edina, MN

Mary and Don Larson - Cohasset, MA

William F. Roeder, Jr. - Vienna, VA

David and Ann Everitt - Fort Collins, CO

Christian Lee - New York, NY

Roy and Ruth Rogers - Los Altos Hills, CA

Ann Field - La Jolla, CA

Rick and Anita Leggott - Edina, MN

Leah Taylor-Roy and Peter Roy - Cohasset, MA

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Highland Park, IL

Oakville, CA

Takoma Park, MD

ORGANIZATIONS Michele Ruby - San Jose, CA

Affinity VideoNet

International Foundation

Jeffrey Ryan - Hong Kong

AIDS Orphan Fund (National Christian Foundation)

Jandsford Trust

William and Stacy Ryan - Clarendon Hills, IL

All Stars Helping Kids

JP Morgan Chase Foundation

John Sage - Seattle, WA

Altria Group Inc.

JP Morgan Private Bank

The AMC Target

Karis Foundation

American Airlines

The Kearny Alliance

Aristos Group

The James & Agnes Kim Foundation Inc.

Author Author LLC

Paul and Terry Klaassen Family Foundation

Fred and Pamela Sasser - Park Ridge, IL Steve and Allison Schovee - Englewood, CO Barbara and Walter Scott - Northfield, IL Pauline Selby - Indianapolis, IN

Baillie Lumber Co. Inc.

Larson Foundation

Charles Shepard and Derry Moritz - Placitas, MN

Baillie Properties LP

Life Covenant Church

Kenneth and Barbara Sibley - Raleigh, NC

Bergman Family Foundation

MacAllister Machinery Co.

Vince Siciliano - San Diego, CA

BetterWorld Foundation

Ted & Roberta Mann Foundation

Kimberly Simms - Newtown Square, PA

The Bontrager Charitable Foundation Inc.

Mellon Financial Corporation

Tom and Darla Skelton - Raleigh, NC

Bradley-Turner Foundation Inc.

Memorial Drive Presbyterian Church

Gregory Slayton - Vienna, VA

The Brinson Foundation

Mennonite Foundation Inc.

Carrie Slease - Washington, DC

Warren Brown Family Foundation

Mercy Ventures

Drew and Meg Smith - St. Louis, MO

Cardone Foundation

The Moley Family Foundation

Cargill Value Investments

Kenneth & Harle Montgomery Foundation

Caterpillar Foundation

Mt. Zion United Church of Christ

Charitable Gift Fund

myCFO Foundation

Chester Foundation

National Christian Foundation

Bruce G. Smith - Falls Church, VA Charlie and Cathy Snyder - Edina, MN Richard N. Spalholz - Huntington, NY Angelo Spoto - Rockford, IL

Christ Presbyterian Church

New Faith Baptist Church

Morgan and Penny St. John - Los Angeles, CA

Church of the Holy Spirit

Orange County Community Foundtion

Lawrence and Mary Jane Stanley -

Citigroup Foundation

Oswald Family Foundation

Clemens Family Charitable Gifts

Otto Haas Charitable Trust

Steve and Emmy Stanley - Danville, IL

The Collins Family Foundation

Palmer Family Foundation Trust

Marcia and Dennis Starcher - La Jolla, CA

Earle M. Combs & Virginia Combs Foundation

Patella Fund

Kim and Andy Stephens - Hinsdale, IL

Community Foundation Silicon Valley

Rancho Bernardo Community Presbyterian Church

Scott and Beth Stephenson - Atlanta, GA

The Covenant Foundation

Rixey Street Foundation

Ann and Bill Stout - Champaign, IL

Crescent Porter Hale Foundation

Rockdale Foundation

Debley Foundation Inc.

SAJE Foundation

Denver Foundation’s Left Hand Fund

The Samueli Foundation

Discover Financial Services

Satrum Foundation

Doudera Family Foundation

Schwab Fund for Charitable Giving

Colorado Springs, CO

Malcolm Street - Fort Worth, TX John and Beatriz Struck - Old Greenwich, CT Verle Sutton - Deer Park, IL Lois and Bill Swanson - St. Helena, CA

The Richard H. Driehaus Foundation

Script International Outreach Foundation

Mark and Kimberly Thompson - Minnetonka, MN

Dynamic Design Corporation

SG Foundation

Rudolph and Myra Thomson - London, U.K.

The Fairwyn Fund

Smith Barney Charitable Trust Inc.

Charles Todd - Columbia, IL

Faith, Hope & Love Foundation

Gordon V. & Helen C. Smith Foundation

Mark and Terri Trabucco - Santa Barbara, CA

Fellowes Inc.

Southminster Presbyterian Church

Kadita and Priscilla Tshibaka - Ardsley, NY

First Data/Western Union Foundation

Southport Presbyterian Church

Linda and Chris Valentine - Hinsdale, IL

First Presbyterian Church of Chattanooga

Sarah Spencer Foundation

Richard Van der Molen - Oak Park, IL

First Presbyterian Church of Evanston

St. Andrew’s Presbyterian Church

Linda and Ken Vander Weele - Vienna, Austria

First Presbyterian Church of Houston

St. Augustine Episcopal Church

First Presbyterian Church of River Forest

Stewardship Foundation

Foundation for Christian Stewardship

Sutton Ford

Foundation for the Carolinas

Target Corporation

Fuller Foundation

John Templeton Foundation

Mark and Kathy Vaselkiv - Baltimore, MD Searl Vetter - Wassenaar, Netherlands Nancy and Harry Vincent - Hinsdale, IL Ken and Karen Volpert - St. David's, PA

The Gale Management Company L.L.C.

Robert & Margaret Thomas Foundation

Mary Sue and Peter Vorbrich - Minneapolis, MN

George Family Foundation

Peter & Elizabeth C. Tower Foundation

Carol Waitte - Los Gatos, CA

Global Impact

Mark Trabuco Investments

Kimberley P. Watson - Piedmont, CA

Grace Presbyterian Church

Tree of Life Foundation Trust

Hal Waughtal - Houston, TX

The Gracia Foundation

T. Rowe Price Associates Foundation Inc.

John and Jacque Weberg - Scottsdale, AZ

Greater Kansas City Community Foundation

W.B. & Sue T. Turner Foundation

Scott Weicht - Edina, MN

Griffin, Kubik, Stephens & Thompson Inc.

Tyndale House Publishers

Jeffrey Weisner - Washington, DC

Hardee Foundation

Union Church of Hinsdale

Laurence Whittemore - Greenwich, CT

Paul F. & Lois K. Heiss Family Foundation Inc.

United Methodist Church

Nelson G. & Vera C. Hicks Charitable Foundation

United Methodist Church of St. Helena

The Hildebrand Foundation

USAID

Hitachi Data Systems Corporation

Vanguard Charitable Endowment Program

The Hoglund Foundation

Dale & Edna May Walsh Foundation

Robert Wieczorowski - Washington, DC Ken and Peggy Williams - Irvine, CA Jay and Diane Wissink - Minnetonka, MN Janet and Philip Yancey - Evergreen, CO

HOPE Christian Community Foundation

Weberg Trust

Ruth and Jim Youngsman - Mt. Vernon, WA

James Huntington Foundation

David Weekley Family Foundation

Jerry and Ann Zamzow - Houston, TX

William H. Hurt Foundation

Westwood Endowment Inc.

Glenn and Emily Zimmerman - Atlanta, GA

Hyperion Solutions Corporation

The Zimmer Family Foundation

Mark and Sue Zorko - Hawthorn Woods, IL

Integrated Benefit

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“In Army Intelligence, we believe that people must have an investment in their society to create an orderly civil society. Economic deprivation and hunger lead to lack of education and illiteracy, which leads to powerlessness and despair and social chaos. Doors open for radical leadership ready to take advantage of people who can be told what to think, because they have not been taught how to think. Education is the defense of the bullied from the bullies. But it is apparent to me and to Opportunity International that the prerequisite for a child’s education is the parents’ ability

LT. GENERAL CLAUDIA J. KENNEDY

U.S. Army (Retired) Former Deputy Chief of Staff for Army Intelligence - Worldwide

2122 York Road Suite 340 Oak Brook, IL 60523 800.793.9455 www.opportunity.org

CREATIVE AND PRODUCTION, JOURNEY GROUP • PHOTOGRAPHS, RON LONDEN

to earn the money needed to send the child to school.”