2011 YEAR IN REVIEW Celebrating the Impact of Corporate Partnerships
MESSAGE FROM THE PRESIDENT
Ruben, age 10, with Rich Stearns, World Vision U.S. President, proudly displays produce from his family’s greenhouse in a World Vision-supported community in Bolivia.
W
e are pleased to present World Vision’s Year in Review, celebrating the impact of our corporate partnerships and what we’ve accomplished together in fiscal year 2011.
World Vision is humbled to be one of the largest and most respected humanitarian organizations in the world, tackling the root causes of poverty and injustice on a global scale. More than 60 years of experience and the quality of our work have earned the trust of hundreds of corporate partners, government agencies, nonprofit partners, and millions of individual donors, supporters, and volunteers worldwide. Thanks to our dedicated and passionate partners, World Vision continued to make significant strides in the past year toward breaking the cycle of poverty and providing relief and recovery for victims of disaster in the United States and around the globe. In spite of the challenging economy, World Vision U.S. grew its donor base and revenue in 2011. Our continued commitment to stewardship resulted in 86 percent of our operating expenses being used for programs that directly support children, families, and communities in need. We are proud to once again earn a 4 Star rating from Charity Navigator. As a former corporate CEO, I recognize the unique opportunity businesses have to make significant impacts on the work of nonprofits, and I understand the importance of choosing a nonprofit partner that is well-aligned with your objectives. It is a great honor to now lead an organization with the global footprint, expertise, established infrastructure, and capacity to enable compelling corporate partnerships that result in shared benefit. On behalf of World Vision and the children and families we serve together, thank you for engaging your employees, your customers, and your resources to make a sustainable impact on the lives of millions of people.
Richard Stearns joined World Vision U.S. as President in 1998 after an established career with several Fortune 500 companies. Since the beginning of his presidency, Stearns has built a strong leadership team focused on bringing corporate best practices to the nonprofit sector. Prior to coming to World Vision, he served as division president (1987-1995), and later as president and CEO (1995-1998) of Lenox, the American gift and tableware company. From 1977 to 1985, he held various roles with Parker Brothers Games, culminating in his appointment as president in 1984. Stearns holds a bachelor’s degree in neurobiology from Cornell University, and a master’s degree in business administration from the Wharton School at the University of Pennsylvania.
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2011 CORPORATE PARTNERSHIP HIGHLIGHTS EMPLOYEE & COMMUNITY ENGAGEMENT KIT BUILD EVENTS
PALLETS OF DONATED PRODUCT
World Vision’s hands-on philanthropic teambuilding program continued to grow in popularity. More than 30 companies including JPMorgan Chase, Salesforce, Johnson & Johnson, Target, Collective Brands, ProVia Door, Microsoft, McKesson, and Weyerhaeuser sponsored 90 events resulting in more than 31,000 supply kits to help people in need.
Thanks to the generosity of more than 300 companies, World Vision shipped nearly 30,000 pallets of donated top-quality goods, including medicine, educational materials, personal care supplies, clothing and shoes, building materials, and more to World Vision programs in 38 countries including the United States.
700
90
$290
million
29,596
WORLD VISION U.S. CORPORATE PARTNERS
REVENUE FROM GIFT-IN-KIND DONATIONS
More than 700 American and U.S.-based multi-national companies participated in World Vision’s work in 2011 through financial support, product donations, and the power of their people, their customers, and their brands.
In fiscal year 2011, gift-in-kind donations exceeded $290 million in booked value, but the tangible benefit to our programs was significantly greater.
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$11
million
FINANCIAL SUPPORT World Vision received over $11 million in financial support from more than 400 companies, including cash grants, cause-marketing proceeds, teambuilding activities, and workplace giving and matching gifts, which helped in community development work around the world.
Unless otherwise noted, results and data included in this report reflect World Vision U.S. activity in fiscal year 2011, October 1, 2010 through September 30, 2011.
“World Vision serves people in need irrespective of their political, religious, social, or ethnic leanings. It is important to JPMorgan Chase that we work with organizations that deliver quality services and products to the areas of greatest need in the world. They do an excellent job of that, and we are very proud of our partnership.� Michael Carren Vice President and Director of Employee Engagement and Volunteerism, Global Philanthropy JPMORGAN CHASE
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YOUR PARTNERSHIP HELPED MILLIONS IN 2011
4.1 million children
registered in child sponsorship programs worldwide were provided life-changing support like food, clean water, healthcare, and education.â€
100,000 metric tons of food supplies were deployed worldwide (the equivalent of 3,300 semi-truck loads).
2.1 million people in the United States
were assisted with disaster relief and recovery programs, access to basic necessities like clothing and shoes, personal care products, building materials, and educational supplies and programs.
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500,000 people in 10 African countries gained access to clean water through combined water, sanitation, and hygiene efforts, including the drilling of approximately 800 new wells.
10 million disaster survivors, refugees, and internally displaced people 2.7 million children
have benefited from the disbursement of 842,000 micro-loans totaling $492 million that created or sustained more than 1.5 million jobs in 38 countries.â€
were assisted following 75+ humanitarian emergencies to which WV responded.††Achievements made possible with the support of all
World Vision donors around the world. Achievements not marked with this symbol were made possible only with the support of World Vision donors in the U.S.
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CORPORATIONS WITH VISION World Vision is profoundly grateful for each one of our corporate partners. Here are a few examples of the significant impacts made through powerful and aligned collaboration.
Hasbro
WORLD VISION PARTNER SINCE 1998 Hasbro’s partnership with World Vision began with a simple phone call. In the aftermath of Hurricane Mitch in 1998, while we were making hundreds of outbound calls for funding and support, Hasbro reached out to us asking how they could help in the relief efforts.
MISSION MATCH » Hope for Children » Community Outreach
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HOW THEY ENGAGE » Financial Support » Product Donation » Cause-Marketing » Disaster Relief » Employee Engagement
Since then, Hasbro has become one of our most engaged corporate partners—a “go-to” regardless of the situation. Yes, they have donated millions of toys and games—supporting their mission and ours. But, they have also been in the field, working alongside our staff. They’ve provided cash grants enabling critical relief and development programs, fully engaged their employees, and even funded the purchase of trucks in Africa to help World Vision deliver in-kind donations to some of the most difficult-to-reach places. Since 2006, the Hasbro HIV/AIDS program with World Vision has helped the children of Zambia become empowered through basic education materials, classroom renovation, and the funding of teacher training programs. Hasbro’s relationship with World Vision enables both of us to live out our missions in ways we could not do as effectively on our own.
P&G
WORLD VISION PARTNER SINCE 2007 What began as a single, small-scale project in rural Malawi in 2007 has grown into a powerful, purposedriven partnership. P&G’s “Purifier of Water” packets are a low-cost, easy-to-implement solution for bringing health and hope to communities in immediate need of safe water. Together, P&G and World Vision have provided clean drinking water to an estimated 700,000 beneficiaries across 22 countries in Africa, Asia, and Latin America, ranging from children in schools, families living in conflict zones, communities in development, and people living with HIV and AIDS. Further, during times of emergencies, we have provided safe drinking water to communities stricken with deadly cholera outbreaks, devastating earthquakes, and historic flooding in some of the most remote corners of the globe. MISSION MATCH » Improving Health » Safe Drinking Water » Raising Awareness
HOW THEY ENGAGE » Financial Support » Product Innovation » Campaign Support
In 2011, World Vision joined P&G’s Children’s Safe Drinking Water Program Director Dr. Greg Allgood in Rwanda to celebrate the distribution of the program’s 3 billionth liter of safe water.
TOMS
WORLD VISION PARTNER SINCE 2009 “TOMS allows me to mix my two passions, business and philanthropy, and prove that they are no longer mutually exclusive.” – Blake Mycoskie, Founder & Chief Shoe Giver The start-up endeavor of an inspiring entrepreneur became a ground-breaking movement to provide shoes and improve the futures of millions of children. In 2009, World Vision became a ‘TOMS Giving Partner,’ helping the company to achieve its purpose by distributing thousands of shoes worldwide. In 2011, TOMS increased its giving to include World Vision programs in 14 countries, delivering hundreds of thousands of shoes to children in need, and fully covering the end-to-end shipping costs incurred. MISSION MATCH » Improving Health » Access to Education » Raising Awareness
HOW THEY ENGAGE » Financial Support » Product Donation » Kit Build Events » Volunteerism
TOMS’ truly cares about the children and families we serve. They ask hard questions, like we do, to ensure they are socially conscious in their philanthropic efforts.
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JPMorgan Chase
WORLD VISION PARTNER SINCE 2005 Moved by the tragic 2010 earthquake in Haiti, JPMorgan Chase wanted to give employees a tangible way to help. They hosted a World Vision kit build event where Chase teams gathered to assemble supply kits for survivors, and provided a $150,000 grant to help the Haitian people rebuild. That was just the beginning. In 2011, JPMorgan Chase engaged their employees and sponsored an unprecedented 41 ‘team-building events with a purpose,’ where their employees rolled up their sleeves to assemble nearly 21,000 supply kits for children in under-resourced communities and victims of natural disaster, and volunteered their time to deliver some of the kits to local children in need. MISSION MATCH » Community Outreach » Team-building » Raising Awareness
HOW THEY ENGAGE » Financial Support » Disaster Relief » Kit Build Events » Volunteerism
After the devastating Japan earthquake and tsunami early in the year, together we created a customized giving webpage, enabling their employees worldwide to support our relief efforts in Japan. Chase employees in 14 countries responded, and the company generously matched their gifts. JPMorgan Chase gave an additional three grants totaling $500,000 to support disaster relief efforts in Japan, the Philippines, and the U.S.
Pearson
WORLD VISION PARTNER SINCE 2004 In January 2010, the world was shocked by the devastating damage and loss as a result of the massive earthquake in Haiti. Deepening the breadth of our partnership, Pearson Foundation actively joined World Vision’s response and recovery efforts in Haiti with a $100,000 grant that funded 15 Early Childhood Development Learning Spaces. Each of these learning spaces is designed to provide a safe and appropriate psychosocial support center for children whose lives have been disrupted and traumatized by this disaster. Thanks to the commitment of Pearson Foundation, more than 1,100 children are participating in quality, non-formal early childhood education classes in a safe and protected environment. MISSION MATCH » Access to Education » Supporting Teachers
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HOW THEY ENGAGE » Financial Support » Product Donation » Cause-Marketing
In 2011, Pearson Education donated more than 40 semi-truckloads of educational materials. These donations included textbooks and workbooks, as well as teaching kits and other materials, which are positively impacting the lives of children. Pearson’s generosity has been instrumental in improved educational opportunities for countless children across the globe.
FROM THE NEWSROOM Excerpts from Fiscal 2011 World Vision Press Releases WASHINGTON D.C. July 15, 2011 Nearly 130 teens in World Vision’s Youth Empowerment Program (YEP) from across the nation visited their Congressional representatives this week, in culmination of a 20-week training program focused on equipping and empowering youth to identify and address the most difficult social issues within their communities. A valued World Vision partner, HILTON HHONORS sponsored the week’s Dinner Gala on Friday night at the Capital Hilton, a celebration featuring music, awards, and inspirational speakers. LAS VEGAS April 26, 2011 World Vision hosts its 11th Anniversary Celebration of the Crystal Vision Award Luncheon during the Kitchen & Bath Industry Show in Las Vegas today. The special event celebrates select industry leaders for their humanitarian efforts benefiting American families in need. World Vision, the international aid organization, awards its annual Crystal Vision Award to KOHLER CO. in recognition of their outstanding commitment to World Vision’s mission of serving children and families affected by poverty. PHOENIX March 15, 2011 Members of BEST WESTERN Rewards®, the company's global frequentstay program, can now contribute Rewards points to earthquake and tsunami relief efforts underway in Japan. Best Western Rewards members can go to www.bestwestern.com/japanrelief to make a donation of 4,000 points, equal to $15, or more to World Vision, Best Western's official charity partner. SAN FRANCISCO December 7, 2010 SALESFORCE.COM, in partnership with World Vision, will underwrite and host an HIV/AIDS Caregiver Kit build at the Dreamforce conference this week in San Francisco. More than 2,000 of the conference participants will take time Wednesday afternoon to fill kits with health and hygiene supplies that will be sent to volunteer caregivers in Africa to assist their work caring for those living with HIV and AIDS. The Dreamforce conference volunteerism activity seeks to give participants opportunities to make a difference in their community and across the globe. BASKING RIDGE, N.J. November 16, 2010 THE VERIZON FOUNDATION has awarded an additional $100,000 in grants to Food For The Poor and World Vision to assist ongoing relief efforts in Haiti in response to a cholera outbreak and in the aftermath of Hurricane Tomas and the 7.0 earthquake that hit the island earlier this year. TOPEKA November 4, 2010 PAYLESS SHOESOURCE teamed up with Airwalk, a leader in youth lifestyle footwear and apparel, to democratize a new shoe-giving program to help those in need with the launch of The Good Shoe Project. The Payless program, which will wrap up in Dec. 2011, makes available the exclusive Airwalk “Hope” shoe for $19.99 at Payless stores and Payless.com; for every pair sold, the retailer commits to give a free pair of kids’ shoes to a child in need in Central America through a new alliance with humanitarian organization World Vision. [UPDATE: The results are in—Payless will give 448,500 pairs to children in need through the program.] EL SEGUNDO October 11, 2010 When a doctor performs a check-up, she listens for a healthy heart. When the doctor specializes in healthy toys, she looks for those with heart that can inspire goodness. This year Dr. Toy chooses Hearts For Hearts Girls, a new doll line that spreads global warming of the heart to children from Appalachia to Asia, for her 2010 Best 100 Products list. Dr. Toy recognized the doll line’s big heart by additionally naming it one of the 10 Best Socially Responsible Products for 2010. To emphasize the importance of charitable acts and giving, PLAYMATES TOYS is donating a portion of each sale to World Vision. BOSTON October 7, 2010 Global education leader HOUGHTON MIFFLIN HARCOURT (HMH) today announced plans to donate three million books per year to countries throughout the world. The book donations will be aimed at supporting the educational goals of the U.S. and several developing countries across Africa and Asia to help to meet the needs of under-served students. The HMH Book Donation Program will encompass both responsive and proactive donations and will be supported by HMH’s partners in the project, World Vision, Sabre Foundation and First Book.
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2011 FINANCIAL HIGHLIGHTS » revenue sources
total net assets: $149
» operating expenses
53% private cash contributions 27% gifts-in-kind 19% public grants 1% other income, net
19%
» net assets (in millions)
86% programs 9% fundraising 5% management & genera l
$93 temporarily restricted $49 unrestricted $7 permanently restricted
World Vision’s objective for financial liquidity and reserves is to operate within a prudent $7 range of stability, while recognizing the imperative of $49 distributing maximum funds to $93 mission as quickly as possible. World Vision U.S. remains financially strong, with sufficient liquid assets to discharge ongoing commitments and other obligations. Most of our investments are held in secure money-market funds. Our investment strategy for long-term assets (primarily pensions, donor advised funds, and endowments) would generally be considered a conservative one.
9% 5%
1%
27%
» revenue and overhead trends (in millions)
86%
53%
In 2011, 86 percent of World Vision’s total operating expenses were used for programs that benefit children, families, and communities in need.
» r evenue sources (in millions)
2009 2010 2011
private cash contributions public grants (food and cash) gifts-in-kind other income, net
$456 $528 $556 344 241 199 413 251 291 11 21 12
total revenue
$1,224
$1,041
$1,058
» operating expenses (in millions) 2009 2010 2011 total program services fundraising management & general
$1,066 $851 $927 91 104 102 49 47 50
total operating expenses
$1,206
$1,002
$1,079
Total revenue in fiscal 2011 rose 2 percent to $1,058 million. Private cash donations, our most important measure of financial health, increased 5 percent in 2011 to $556 million. Adjusted for non-recurring donations for disaster relief (Haiti earthquake in fiscal 2010; Japan earthquake/tsunami and Horn of Africa drought in fiscal 2011), private cash donations grew at a healthy 9 percent rate in 2011. $1200 $1000
$957
$1,109
$1,224 $1,041
$1,058 Total revenue
$800 $600 $400 $200 $0
$138
$149
$140
$151
$152
Total overhead
2007
2008
2009
2010
2011
(fundraising, management, and general)
» overhead rate (percent of total revenue) Fundraising, management, and general expenses (sometimes called overhead) increased less than 1 percent during the year. Our overhead rate (overhead expenses as a percent of total revenue) improved slightly from 14.5 percent to 14.4 percent.
20%
»p rogram services (in millions) total program services: $927
international programs $829 domestic programs (U.S.) $92 public awareness and education $6
10
14.4%
10%
0%
13.5%
14.5%
14.4%
2010
2011
11.4%
2007
2008
2009
View our Consolidated Financial Statements online at worldvision.org/ar
“Personally, it’s been just a tremendous experience…the ability to work for a company that believes in giving back, that pushes it, that believes in being a responsible citizen, and then finding a partner that shares that value, and can actually make it work has been excellent.” Scott Welch Global Corporate Relations Manager COLUMBIA SPORTSWEAR 11
LOOKING AHEAD
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W
hile World Vision’s revenue has clearly been affected by the global economic storm, we are thankful that our donors continue to give faithfully. We are targeting revenue growth of 6-8% in fiscal 2012, expanding the number of children and families we help.
As we plan for the next two to three years, our focus includes the following key objectives: » Continue to improve the well-being of children in our sponsorship communities » Measure and report on the effectiveness of our work » Improve communication to current and prospective donors through new technology and improved processes Considering fiscal 2012 and beyond, the world’s economic outlook is more volatile than at perhaps any other time since World Vision was founded over 60 years ago, and this is reflected in the needs of people on a global scale. World Vision’s field staff report that community needs exceed our current fiscal resources and product donation supply by as much as ten times. For in-kind donations, we are especially in need of pharmaceuticals, medical supplies, hygiene products, educational resources, and rebuilding materials. Moving forward, our goal is to significantly increase collaboration with businesses whose objectives are aligned with ours. We are seeking socially responsible businesses who want to engage their employees, connect with their customers, give back to their communities, reach out to people affected by disaster, and participate in comprehensive and sustainable development that improves the lives and futures of our children and our world. We look forward to continued partnership with your company, employees, and stakeholders. Together, we will accomplish extraordinary results.
World Vision is a Christian humanitarian organization dedicated to working with children, families, and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. Working in nearly 100 countries around the world, World Vision serves all people, regardless of religion, race, ethnicity, or gender. World Vision, Inc. is a registered 501(c)(3) nonprofit organization.
2011 WORLD VISION UNITED STATES LEADERSHIP Rich Stearns Larry Probus Joan Mussa Julie Regnier Chris Glynn Kent Hill
President Chief Financial Officer and Sr. Vice President, Strategic Solutions Sr. Vice President, Mobilization Sr. Vice President, Human Resources Sr. Vice President, Transformational Engagement Sr. Vice President, International Programs
For more information, please contact your World Vision Representative. Or visit us online, in person, or contact us by phone: http://www.worldvision.org http://blog.worldvision.org http://www.facebook.com/worldvision World Vision Corporate Engagement 34834 Weyerhaeuser Way South Federal Way, WA 98001 800.642.1616
Š World Vision 2012 All rights reserved. No portion of this publication may be reproduced in any form without written permission. For further information about this publication or for additional copies, please contact corpdevmarketing@worldvision.org. Copy, design, and interior layout produced by the World Vision U.S. Corporate Engagement marketing department. All photos are the property of World Vision.