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Nurturing Hope ANNUAL REPORT

2024

Table of contents 3 | CEO Message 4 | Our Mission 6 | Our Approach 7 | Our Outreach 8 | Our Impact 16 | Financial

Statements

18 | Integrity and

Accountability

2 | UNBOUND

A MESSAGE FROM THE PRESIDENT AND CEO

Building for a Better Future I feel the same way about Unbound. Another year has passed. My first full year in the role of president and CEO seemed to speed by. I reflect on Unbound’s year with the same awe I do my son’s. Much was accomplished over the year, as you will read about in this annual report. Beyond the stats and stories of impact, we continued to put in place new building blocks for an even better future.

A large portion of 2024 involved working with stakeholders across Unbound to develop our new strategic plan, Hope in Every Step: A Radical Journey to End Poverty. This plan outlines big goals over the plan period through 2030. We will increase the number of households we support to over 400,000 families in more than 500 communities in Africa, Asia and Latin America. We will expand our geographical reach by opening an additional program country where our presence is most needed. And we will measure the impact we achieve around five strategic pillars: Eliminate Poverty, Empower Women, Advance Education, Build Community and Promote Well-being of All Ages.

Our strategic planning process involved updating our mission, vision and core values.

While remaining true to our founders’ vision, we updated these foundational statements to more accurately reflect who we are today, what we do, and what we hope for the future. We also developed a new motivation

statement to articulate the role faith plays at Unbound, and a new promise statement to you, our sponsors, donors and volunteers, who make our work possible and to whom we are deeply grateful.

We are focused on growth and have invested in strengthening existing channels for acquiring sponsorships and donations, such as through our weekend appeals at Catholic parishes, and launching new ones, such as our ambassador program. Our growth is and will be supported by excellent financial stewardship and incredibly dedicated, skilled and experienced teams in the U.S. and across the world. With all of this, Unbound families — the mothers, fathers, youth, “THANK YOU FOR BEING elders and scholars — PART OF OUR COMMUNITY, remain at the heart of our MAKING HOPE AND decision making and guide the TRANSFORMATION POSSIBLE “why” behind all we are doing to FOR THE FAMILIES WE SERVE.” achieve growth.

At Unbound, like with my son, another great year has been added to the history books.

I believe in a future of exciting possibilities for Unbound. Undoubtedly, we will face uncertainties and challenges. Yet I am confident that those will be met with strong values, a community of support, capacity for resilience and lots of love. Thank you for being part of our community, making hope and transformation possible for the families we serve.

With gratitude,

Ashley Hufft

PRESIDENT AND CEO

3 | ANNUAL REPORT

Recently, I have been acutely aware of the passing of time. My son, Maxwell, just graduated from eighth grade. I am proud of all he has accomplished so far and the fine young man he is becoming. Although I am excited for what lies ahead for him in high school, I am anxious over the passing of time. Major life stages, now measured in semesters, sports seasons and teenage social events, pass in the blink of an eye.

4 | UNBOUND

A Mission Rooted in Love

Our work each day is shaped by strong values, a deep motivation and a steadfast promise. This guides our mission and belief that our vision can be reality.

Our Mission

Support families and communities worldwide on their self-directed paths out of poverty.

Our Vision

Build a world free from poverty where all people have access to resources, community support and the ability to make decisions that improve their lives and uphold human dignity.

Our Core Values

At Unbound, we are: RESPECTFUL. We recognize the God-given dignity and equality of all people and foster relationships based on mutual respect and understanding.

AUTHENTIC. We work with honesty, transparency, integrity and accountability.

INNOVATIVE. We advance groundbreaking ideas and methods, humbly listening to and learning from the marginalized and vulnerable and putting their needs first.

OPTIMISTIC. We believe in the transformative power of community and that, together, we will build a world where everyone can participate in society and reach their full potential.

Our Motivation

Grounded in faith Unbound was founded in 1981 by Catholic laypeople acting on Gospel values of love, compassion and justice, as well as principles of Catholic social teaching, including: DIGNITY OF THE HUMAN PERSON — recognizing dignity and God’s presence in each person.

SOLIDARITY — inviting people of goodwill to form relationships of mutual respect that are culturally diverse, empowering, and without religious or other prejudice.

COMMON GOOD — partnering with people of all faith traditions and backgrounds to create a worldwide community of compassion and service for the well-being of everyone, especially the marginalized and vulnerable.

SUBSIDIARITY (LOCAL DECISION MAKING) — ensuring that decisions are made by those most affected and that solutions come from those closest to a problem.

Our Promise

Unbound offers a practical way for sponsors, donors and volunteers to make a personal and direct impact as partners in our global community. Through walking with a child and family, youth, elder or community on their path out of poverty, our supporters have an opportunity to expand their worldviews and be part of creative solutions to poverty.

5 | ANNUAL REPORT

These values and principles shape our programs and the way we work with families and our broader community.

An Approach Built on Hope

As a global leader in the eradication of multidimensional poverty for almost 44 years, we’ve nurtured over 1 million children, youth, elders and families across three regions of the world on their paths to brighter futures.

Innovative Solutions to Poverty Our decentralized approach to development — which we describe as creating “Circles of Impact” — empowers people by giving them access to financial resources and community support networks that open doors for them so that they can begin making their own decisions with regard to exiting poverty, build solutions tailored to their unique circumstances and, eventually, drive change in their local communities.

Setting Goals With Poverty Stoplight

Achieving Goals With Direct Cash Transfers

Using a poverty self-assessment methodology called Poverty Stoplight, families identify what they need to work on to exit poverty, set personal goals and map out an action plan for achieving those goals.

Cash transfers give families the most flexibility in how and when they use their benefits. Funds are managed largely by the mothers, and families can target their resources toward small personal goals, build up their savings to support longer-term goals (such as making home improvements, meeting medical needs or paying school fees) and have a positive impact on the local economy.

• Over 250,000 households have used Poverty Stoplight to set personal goals to lead their families from poverty.

6 | UNBOUND

Since Poverty Stoplight implementation in 2020, families have logged 293,593 achievements (moving goals to “non-poverty” status) in such high-priority areas as housing, health and employment.

• 98% of participating households receive their sponsorship benefits via cash transfers into their bank or mobile money accounts, while 2% of beneficiaries receive assistance by other means due to lack of access to financial services or other circumstances.

Building Relationships and Support Networks that Drive Change Families form personal relationships — built on mutual trust, respect, care and love — with their sponsors via letter writing, with local Unbound staff and with each other through social support groups. Engagement in Unbound mothers groups and the Agents of Change platform builds their confidence, self-awareness and leadership capabilities, which motivates them to take action in their communities.

• 14,000 solidarity groups are active worldwide.

• Over 3,600 Agents of Change community improvement initiatives have been funded worldwide since 2017.

These statistics reflect data updated in June 2025.

Outreach in Action

2024 was the first full year Agents of Change was active in all countries where Unbound has a presence, and individual proposals were available online as a funding selection for donors. See Agents of Change proposals currently available for funding at Unbound.org/Proposals.

Your support in 2024 brought hope to individuals and families in our programs, empowering them to strive to reach their goals, realize their dreams and step into the roles of changemakers. Letters to your sponsored friend(s) encouraged them to believe in their potential as they sought a brighter future. Your support opened doors to education and strengthened small businesses. Your compassion gave them the determination and the ability to drive change in their communities and overcome unexpected hardships.

Our gratitude for your belief in the individuals and families we serve is immeasurable.

With your support, our outreach fueled impact across several key pathways.

Sponsorship

Agents of Change

In 2024, funding for the sponsorship program totaled $109.7 million and benefited over 261,000 individuals in their journeys to exit poverty.

In 2024, Unbound disbursed $469,320 to fund Agents of Change proposals, impacting an estimated 417,974 people in communities where the initiatives were implemented.

Sponsoring a child, youth or elder in Unbound’s programs gives individuals and families the ability to self-assess and prioritize goals that will have the greatest impact on their situations. Membership in small groups at the local level gives them access to activities and a supportive network of mentors and peers.

The longer they’re in the program, families build confidence, skills and knowledge that eventually ripples out to their communities and the greater society. Parent support groups — largely led by the mothers of sponsored children — learn how to craft proposals for Agents of Change grants. Once awarded, these grants fund small-scale local improvements for such needs as clean water access, classroom renovations and road construction.

Scholarship Program

The Unbound Scholarship Program gives individuals — no matter their age — access to education and resources, and the opportunity to follow their desired career paths.

As Unbound scholars, they engage in leadership training, professional development and community service, building skills for future employment.

Critical Needs Fund In 2024, Unbound sent $1.27 million to programs worldwide to support families recovering from a crisis.

Families living in poverty suffer disproportionately during setbacks caused by natural disasters, health emergencies, fires or loss of income. Essential support provided from Unbound’s Critical Needs Fund during a crisis can prevent impacted families from losing the ground they’ve gained and falling deeper into poverty.

7 | ANNUAL REPORT

In 2024, Unbound disbursed $4.06 million for scholarships and programs to support over 9,000 students in realizing their dreams of an education.

GLOBAL HIGHLIGHTS

Hope by the Numbers

Sponsors and donors made a positive impact in the lives of individuals and families in 2024, bringing us one step closer to our vision of a world free from poverty.

460 communities across 31 program sites in Africa, Asia and Latin America US HEADQUARTERS

261,094 children, youth and elders sponsored

MEXICO

$112.4 million in direct assistance to programs around the world 9,421 aspiring students awarded scholarships

DOMINICAN REPUBLIC

HONDURAS GUATEMALA

COSTA RICA

EL SALVADOR

COLOMBIA ECUADOR

$82.15 million in direct cash transfers to sponsored members’ accounts

8 | UNBOUND

711 community improvement initiatives completed with Agents of Change grants, impacting over an estimated 417,000 people Unbound will conclude its outreach in the Dominican Republic in 2025

PERU

BOLIVIA

172,500+ baseline and follow-up Poverty Stoplight surveys were completed, revealing that the most prioritized goals by families were “family savings," “income” and “housing resources,” while the most achieved goals were "health," "income" and "housing."

646,900 messages exchanged between sponsors and sponsored friends, including 76,430 video messages sent from sponsored friends to sponsors.

$137 million in total public support and revenue

13 Unbound Awareness Trips were hosted, giving sponsors and their sponsored friends the opportunity to meet face to face.

91% of Unbound small business support grants were awarded to women, totaling $177,417.

INDIA

PHILIPPINES

UGANDA

KENYA

RWANDA TANZANIA

9 | ANNUAL REPORT

MADAGASCAR

COMMUNITY LEVEL HIGHLIGHTS

Africa

Unbound serves over 43,500 sponsored friends throughout five countries in sub-Saharan Africa: Kenya, Madagascar, Rwanda, Tanzania and Uganda.

• 94% of families in Meru, Kenya, in 2024 reported having a better understanding of their poverty status after participating in self-assessments through Poverty Stoplight, while 79% reported they were actively working on or had completed their priority goals set after their assessments.

• 747 families in rural Rwanda whose livelihoods are dependent on agriculture received a supply of organic manure to address declining soil fertility caused by an over-reliance on chemical fertilizers and to promote sustainable farming practices.

Spotlight On: Kenya — Building Community Through Local Changemakers

10 | U N B O U N D

Using Unbound’s Agents of Change grants, parent support groups in Nairobi — largely led by the mothers of sponsored children — implemented more than 65 community improvement initiatives in 2024. Over 114,000 families — the largest group impacted by Agents of Change initiatives across all Unbound program sites that year — benefited from these initiatives, which frequently included improvements in community water access, education, road and bridge infrastructure, and health.

K E N YA

Mothers as Advocates for Their Families and Communities Growing up in the Maasai community (an ethnic group known for their distinct culture and traditions), Florah became an advocate for the education of girls and a fierce opponent of the cultural practice of girls marrying young.

But the mother of five lacked the resources and platform to effectively lead change in her community — until one of her children was sponsored.

Florah embraced every opportunity for parents in the program.

She became the chairwoman of her Unbound mothers group and has led multiple Agents of Change initiatives.

She took business training and now manages the books for the Unbound Nairobi Savings and Credit Cooperative, while mentoring other families on how to save to reach their goals.

Eventually she joined the board of the local primary school, and she works with the families of teen mothers to encourage them to find a way for their daughters to stay in school.

Though Florah’s passion for education was always within her, she credits Unbound for giving her a platform for her voice and for “holding her hand” as she stands up for education access and girls’ rights in her community.

“UNBOUND HAS GIVEN ME INFLUENCE, ESPECIALLY TO [FIGHT FOR THE] GIRL CHILD. I ALWAYS FEEL IF A GIRL IS EDUCATED, THE WHOLE COMMUNITY IS EDUCATED.” – Florah, mother leader, Nairobi

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

Florah remembers her father being electrocuted after touching a live wire and almost dying because he couldn’t read the warning signs that were posted. Afterward, he vowed that all his children would learn to read. As a result, the importance of education and a person’s right to it was deeply ingrained into Florah’s character.

COMMUNITY LEVEL HIGHLIGHTS

Asia

Unbound serves over 57,500 sponsored friends across India and the Philippines.

• A 2024 evaluation of the community service component of the Unbound Scholarship Program in Legazpi, Philippines, found that community service had a positive impact on both scholars’ personal and professional development.

• 85% of sponsored elders in Antipolo, Philippines, rated their sponsorship program activities as “very” or “extremely effective” in addressing their emotional, social and health-related needs.

• 15,600+ families in Telangana, India, benefited from Agents of Change initiatives in 2024; 43% of those were children and families benefitting from initiatives that improved schools and classrooms in their communities, making education more accessible.

Spotlight On: Philippines — Eliminating Poverty With Sustainable Career Opportunities

12 | U N B O U N D

Unbound launched its second overseas call center. The Unbound Experience Center under the Unbound Philippines Branch (UPB) office in Quezon City, Philippines, aims to create meaningful career opportunities in communities challenged by poverty while also providing world-class customer service to sponsors.

The nine-member team includes several Unbound alumni.

PHILIPPINES

Sustaining Dreams with Goal Setting Using the “My Goal” booklet given to Elvira and family after taking the Poverty Stoplight survey, the family was able to move the status of seven of their eight red indicators (extreme poverty) to green (no poverty). One of these newly green indicators was access to internet connection at home so that the children could keep up with their studies.

“We never believed before this time that [our] problems could be solved until Unbound came in and showed us the hope and way,” said Elvira, who uses the sponsorship funds strictly for her children’s school needs.

With her children’s educations ensured, Elvira focused on her business dreams. She became a member of a savings and loan assistance program made up of the parents and families of Unbound sponsored individuals. Through the cooperative, Elvira attended livelihood trainings.

She borrowed $535 from the cooperative to acquire a small space to open a variety store in her community where she

now sells condiments and dried goods. Every time Elvira can add entirely new stock — such as the soft drinks she recently began carrying — she celebrates the growth of her store, which is supporting most of her family’s basic needs.

With continuous saving and goal setting, Elvira is confident that her children will complete their education. She now dreams of adding medicines to her storefront to act as a small community pharmacy and of opening a second store in a more high-traffic area.

“IT IS IMPORTANT FOR US TO KNOW HOW TO SAVE MONEY AND HOW TO GROW IT. WITH THE HELP OF THIS COOPERATIVE, EVEN WITHOUT THE SUPPORT OF UNBOUND, WE WOULD HAVE THE SUPPORT SYSTEM FOR OUR FAMILIES.” – Elvira, mother and entrepreneur, Philippines

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

Elvira had two main goals for her family when two of her seven children were sponsored. First, she wanted to ensure that her children who were still in school could have the education they wanted and, second, she wanted to open a business that could sustain her family’s livelihood well into the future.

COMMUNITY LEVEL HIGHLIGHTS

Latin America

Unbound’s most extensive outreach has been in Latin America where the organization’s first programs were established in 1982 in Colombia and Honduras.

Today, the region is home to over 148,600 sponsored friends across 10 countries.

• 2,875 parents in Ecuador participated in “A Healthy Pocket,” a financial education program.

• 10 mothers groups (totaling 300 women) were formed in Lima, Peru, to empower women.

• 718 elders benefited from new activities and community partnerships formed to strengthen the sponsored elder program in Cuernavaca, Mexico.

• 91 families in Kuxtal, Mexico, received business training and financing for their small businesses; families got to participate in three different expos where they could share their entrepreneurial experiences with each other.

• 42,212 families in Guatemala took the Poverty Stoplight follow-up survey which showed over 57% had made improvements in at least one priority goal.

• 86% of elders in Bolivia had family members who received caregiver support training under a new elder pilot program focused on empowering caregivers.

• 97% of sponsored children in Antioquia, Colombia, successfully completed their school year thanks to academic reinforcement programs and study groups led by Unbound scholarship recipients, volunteers and interns with the purpose of keeping children in school longer.

Spotlight On: Costa Rica — Empowering Women Entrepreneurs

Spotlight On: El Salvador — Advancing Education Through A Culture of Learning

An inaugural cohort of 21 women entrepreneurs, all mothers of sponsored children, graduated with business training from the Technological Institute of Costa Rica thanks to a strategic partnership between the institution and Unbound Costa Rica’s entrepreneurship program. With financing support and guidance, 60% of small business owners participating in Unbound Costa Rica’s entrepreneurship program can expand their businesses to new markets and increase their incomes, effectively improving their livelihoods.

A scholarship conference was hosted in Santa Ana, El Salvador, in 2024 and was the first in-person scholarship conference for beneficiaries. Four scholars each from Unbound’s programs in El Salvador, Costa Rica, Guatemala and Honduras, along with scholarship program staff, attended the two-day conference where they participated in activities that expanded their worldviews, shared their experiences and connected with other young leaders.

Spotlight On: Colombia — Promoting Health and Well-being of Elders

In Honduras, 127 savings and credit cooperatives were legally and administratively strengthened. Over 4,400 mothers are active members and largely managing the cooperatives, which brought access to low-interest microloans for business capital or other needs to 17,780 families.

14 | U N B O U N D

A mothers group in Cali, Colombia, created a space to promote healthy aging. A total of 115 events took place, including recreational activities, games, raffles, physical and emotional health support workshops, and breakfasts where elders had the opportunity to gather and socialize. In this same community, 15 elders also received financial support for their small businesses, which had a positive impact on their livelihoods and well-being.

Spotlight On: Honduras — Eliminating Poverty Through Economic Empowerment

G U AT E M A L A

Finding Family in Sponsorship Unable to have children of their own, Jimmy and Yvonne Arreaga poured their hearts into their relationships with their adopted children first and, later, with their sponsored children. For 12 years, the Arreagas were a part of Maria’s life, first sponsoring her older brother Lisandro (now retired from the program), and later sponsoring Maria. Whatever needs Maria’s family had, the Arreagas were quick to support them and encourage the children in their education. The families exchanged letters regularly, and the Arreagas planned to visit Maria in Guatemala on an Unbound Awareness Trip.

But tragedy struck early 2024 when Yvonne passed away.

Jimmy wasn’t sure he could take the trip without his sweetheart by his side. But then he received a letter from Maria.

“Don’t cry,” Maria wrote. “Yvonne is in your heart — she is with us.”

Jimmy took the trip and knew he had made the right decision when Maria met him with tears rolling down her face.

“I took her [Yvonne] in my heart, and it was such a beautiful trip,” Jimmy said.

Carrying the memory of his wife, Jimmy found peace in his grief, half a world away, visiting with the family they both loved. In her bedroom, Maria also keeps Yvonne’s memory alive, in a photo of the Arreagas she safeguards.

“IT [SPONSORSHIP] KEEPS MY WIFE’S MEMORY, NOT ONLY IN ME, BUT IN THE FAMILY THAT WE’RE SUPPORTING.” — Jimmy Arreaga, sponsor from Texas

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

Relationships have always been at the heart of Unbound.

F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED DECEMBER 31, 2024

Statement of Activities Public support and revenue Sponsorships............................................................................... $116,973,580 Contributions.................................................................................... 14,937,612 Total Public Support........................................................... $131,911,192 Other Revenue.....................................................................................4,436,132 Unrealized Loss on Foreign Currency Exchanges............................(9,347) Unrealized Gain on Investments................................................... $702,036 Total Public Support and Revenue.....................................$137,040,013

Expenses Program Funding to Projects.......................................................................$112,441,960 Program Support Services.................................................................8,261,120 Total Program Expenses............................................................$120,703,080

(84.9%) (6.2%) (91.1%)

Fundraising........................................................................................$6,647,230 Administration......................................................................................5,091,187 Total Supporting Services..............................................................$11,738,417 Total Expenses .................................................................... $132,441,497

(5.0%) (3.9%) (8.9%) (100%)

Net asset increase. . ........................ $4,598,516*

16 | U N B O U N D

*Change in Net Assets from Operations Advance payments from donors received in 2024 for distribution in 2025.......................................................$531,342 Net additions/reductions to Management-Designated reserves and property and equipment......................................... $4,067,174 Total Change in Net Assets.................................................. $4,598,516

AS OF DECEMBER 31, 2024

Statement of Financial Position Assets Cash and Cash Equivalents...................................................... $14,788,302 Investments..................................................................................... 72,335,272 Receivables............................................................................................. 771,819 Other Assets.......................................................................................... 421,233 Property and Equipment, Net......................................................... 2,686,171 Total assets......................................................................... $91,002,797

Liabilities and net assets Accounts Payable.............................................................................. $431,732 Accrued Expenses and Deferred Revenue..................................... 721,787 Annuity Obligations............................................................................ 787,403 Total liabilities................................................................. $1,940,922

Net assets Without Donor Restrictions................................................... $54,598,289 With Donor Restrictions............................................................. 34,463,586 Total Net Assets.......................................................................... $89,061,875 Total liabilities and net assets................................... $91,002,797 Note: Each year the independent accounting firm of Forvis Mazars, LLP conducts an audit of Unbound’s financial statements and accounting practices in accordance with auditing standards generally accepted in the United States of America. A copy of this audit report is available upon request or online at www.unbound.org.

Where Your Money Goes Responsible, transparent financial management is a hallmark of Unbound. We make it our priority to ensure that the funds you entrust to us are used efficiently and effectively to benefit individuals, families and communities on their paths out of poverty.

In 2024, 91.1% of expenses were for program support, with over $112.4 million in direct support to our programs around the world.

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

Unbound is a 501(c)(3) nonprofit corporation, federal EIN: 43-1243999. Contributions are tax-deductible as allowed by law unless otherwise noted.

Working With Integrity and Accountability Governing Board The Unbound Governing Board — on behalf of sponsored individuals, their families, other program beneficiaries, sponsors and donors — monitors the integrity and accountability of the organization’s operations. The board defines the expected outcomes, and Unbound management produces verifiable data proving progress toward achieving those outcomes.

Emma Miller | chair/chief governing officer Lissa Haag | vice chair/deputy CGO Dennis Bernardo | director Taylor Buckley | director Grace Casaclang-Verzosa, M.D. | director Kirsten Evans | director Cindy Jones | director Lisa Phillip | director Franklin J. Popek | director

Abby Marie J. Rohr | director Preacher representative (non-voting) Father Cyrus Gallagher, OFM CAP. Ex officio members (non-voting) Scott Wasserman | CEO emeritus Ashley Hufft | president/CEO Martin Kraus | treasurer/CFO Jill Nelson | secretary/financial analysis manager

18 | U N B O U N D

Achieving Top Ratings Our commitment to excellent financial stewardship earns Unbound top ratings from independent charity evaluators.

Charity Watch: Our A+ was the top rating achieved in the child sponsorship category.

Charity Navigator: Our rating of four out of four stars means that donors can give with confidence.

Candid: Our Platinum Seal of Transparency is the highest level of recognition demonstrating transparency and accountability.

Great Nonprofits: Our top rating is based on reviews and ratings shared by individuals who have experience with Unbound.

BBB Wise Giving Alliance: Unbound meets all 20 rigorous standards for charity accountability.

“Our sponsors and donors look to Unbound to provide a safe, reliable, efficient way to help others in need. We embrace the responsibility of being good stewards of the money entrusted to us as we carry out our mission. We are so grateful to each of you for helping us on this journey to eradicate poverty.

The world needs you now as much as ever. Thank you!”

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

— Martin Kraus | chief financial officer

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UNBOUND

FORWARDING SERVICE REQUESTED

Stewardship That Makes a Difference The funds you entrust to Unbound are used efficiently and effectively to benefit individuals, families and communities on their paths out of poverty.

Thank you for partnering with us to offer hope in a hurting world.

Copyright 2025 Unbound. All rights reserved.

6/2025