2012 Esperanza International Annual Report
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Transcript of 2012 Esperanza International Annual Report
2012 Annual Report Dominican Republic and
Hai� Opera�ons
ESPERANZA INTERNATIONAL
FAITHFUL SUPPORT
F or ten years, Vicky and I dreamed of allevia�ng poverty in the Dominican Republic. Eight-
een years ago, that dream became a reality. Since Esperanza’s founding, you have walked
with us through �mes of trial and adversity as well as �mes of blessing and abundance. We
could not have traveled this journey without you. We are ecsta�c to share that 2012 brought
great growth to Esperanza and new opportunity to the amazing women and men whom we
serve.
In 2012, Esperanza proudly served over 17,620 associates with loans and savings services!
Moreover, for the first �me in our history, Esperanza’s ac�ve loan por7olio surpassed $3 mil-
lion (USD)! Over the last eighteen years, our Dominican and Hai�an brothers and sisters have
now invested over $38 million (USD) into their own businesses, transforming genera�ons of
lives in the process.
As an organiza�on commi>ed to providing “more than just a loan,” we are proud to report
that our associates saved over $538,000 (USD) in their personal accounts during 2012 and that
over 157,000 family members benefited from complementary services like dental care and
clean water training. These crucial “plus” services complement our core microfinance services
and enable associates and their families to fight the grips of poverty with greater success.
As you read this report, we hope that our associates and our loving God emerge as the heroes.
However, please know that none of the feats listed in these pages could have been accom-
plished without your support and prayer! We remain commi>ed to serving the poorest of the
poor—especially those marginalized by ethnicity, geographic loca�on, and disease—and your
part in this mission is cri�cal.
On behalf of our associates and staff, please accept our deepest gra�tude for your faithful in-
vestment in their dreams. We delight in imagining what God will do as we walk alongside one
another in 2013!
With sincere apprecia�on,
David Valle Carlos Pimentel
Co-Founder & CEO President
2 | Esperanza Annual Report 2012
Esperanza Annual Report 2012 | 3
OUR VALUES
Demonstra�ng the uncondi�onal love of God to all those we serve;
Honoring the worth, dignity and poten�al of every person;
Developing the whole person: body, mind, and spirit;
Strengthening the family;
Fostering a sense of community wherever we serve;
Learning from all those with whom we serve as we endeavor to teach truth;
Stewarding the earth as God's crea�on, intended for the good of all people;
Achieving excellence in all we do;
Pursuing integrity over image;
Enabling every person to have the opportunity to become all that God intends.
The mission of Esperanza
Interna!onal is to free chil-
dren and their families
from poverty through ini!-
a!ves that generate in-
come, educa!on, and
health—restoring self-
worth and dignity to those
who have lost hope.
WHERE WE SERVE
WHO WE SERVE
The Marginalized Poor
4 | Esperanza Annual Report 2012
98%
Mostly Women
11% male
89% female
Percentage of
Dominican &
Hai!an Esperanza
associates with a
high school degree
16% 25% Percentage of
Esperanza
Hai!an
associates
who are illiterate
42% Percentage of Do-
minican families
living on $259 a
month (Esperanza’s
focus)
of women
repay on-�me 98% Women are more likely to repay a
loan on !me, and invest their earn-
ings back into their businesses and
families.
Mostly Women
11% male
89% female
Elene first heard of Esperanza six years ago.
She was struggling to make ends meet, and
found herself disheartened by the seemingly
endless ba>le to take care of her three chil-
dren and a budding
business as a single
mother.
Upon taking out her
first loan with Es-
peranza for $200
(USD) Elena almost
immediately felt a
difference in her life.
She invested the capi-
tal into a buy-and-sell
coconut business and hit the ground running.
Elena could finally buy larger quan��es of
coconuts and enjoy bulk discounts.
Elene’s entrepre-
neurial spirit and
hard work have
provided a posi-
!ve example for
her community.
Esperanza Annual Report 2012 | 5
Since that first loan, Elena has taken out an
addi�onal nine loans with Esperanza—one of
them being so she could improve the integrity
and condi�on of her home. Her largest loan
was for $1,100 (USD)!
Elene’s entrepreneurial spirit and hard work
have provided a posi�ve example for her
community—they see how her hard work has
allowed her to purchase both her own home
and a vehicle to transport coconuts.
Elene says she has always believed in God,
but that upon the death of her husband and
her �me with Esperanza, she has become a
stronger believer: “I’ve realized that all I have
is because God has helped me.”
"A CHANGE IN PERSPECTIVE”
TRANSFORMATIONAL
6 | Esperanza Annual Report 2012
LOAN PRODUCTS
Bank of Esperanza Loans:
Esperanza’s core loan product is a group loan. Five people
stand in solidarity with one another, agreeing to cross-
guarantee each other’s loans. Each group of five is part of a larger “Bank of Esperanza,” which aver-
ages five groups of five people. Banks meet on a biweekly basis to repay their loans together, save
together, encourage one another, and receive training, advice, and prayer support.
Individual Loans:
ANer proving creditworthiness via mul�ple successful group
loan cycles, some associates qualify for a larger loan. Other as-
sociates with a credit history or guarantor can begin with an
individual loan. Most individual loan recipients choose to remain ac�ve members in their Bank of
Esperanza.
Housing Loans:
After proving credit worthiness via multiple loan cycles, or by
finding a guarantor, some associates take out home improve-
ment loans to improve the safety and comfort of their homes. These loans cover concrete floors,
new roofs, sanitation systems, hurricane proof structures, and more.
Water Project Loans:
Local churches purchase professional-grade water filtration
systems with Esperanza loan capital. Loans are repaid with
profits from the sale of water. The churches sell drinking water at affordable prices, provide water
hygiene education and also offer their communities free, clean (non potable) water for washing,
cooking, and bathing.
School Loans:
In partnership with Edify, Esperanza provides loan capital to
private Christian schools to expand their education capacity
by training school teachers and principals in management and providing seminars on Christian edu-
cation. These loans enable thousands of children to receive a healthy and quality educa�on that
they would not otherwise have access to.
Average Loan: $277 USD (D.R.)
$181 USD (Hai!)
Average Loan: $929 USD (D.R.)
$288 USD (Hai!)
Average Loan: $1,042 USD (D.R.)
Average Loan: $11,165 USD (D.R.)
Average Loan: $17,538 USD (D.R.)
Esperanza Annual Report 2012 | 7
PROGRESS TO DATE
GROSS PORTFOLIO SNAPSHOT
YEAR-END GROSS PORTFOLIO
DEC. 31, 2012: $3.01 MILLION
ANNUAL DOLLARS LENT
2012 TOTAL: $6.22 MILLION
(In thousands of USD)
TOTAL: $2.95 MILLION
An exchange rate of 35.5 Dominican Pesos (DOP), and 42.4 Hai�an Gourdes (HTG) to 1USD has been used for all con-
versions.
DEC. 31, 2012: LOANS OUTSTANDING DEC. 31, 2012: DOLLARS OUTSTANDING
TOTAL: 11,704 LOANS
MICROFINANCE DOMINICAN
REPUBLIC
8 | Esperanza Annual Report 2012
20
12
Hig
hli
gh
ts
20
12
Im
pa
ct
78,600 family members
impacted through
Esperanza MF
services
SAVED
by 14,299 (a)
associates
(a) Unique number of associates served includes people holding loans from previous years in addi�on to people receiv-
ing one or more new loans during 2012.
Note: An exchange rate of 39.5 Dominican pesos (DOP) to 1 USD has been used for all conversions.
20% Growth in
number of associates
30% Growth in
net loan porHolio
98% Loans repaid
$5.5 million placed in the
hands of associates,
with an average loan
size of $339,
& disbursed to women
89% of the !me
16,290 Loans extended
$467,833
expansion into Haiti and helped start the
“Esperanza y Vida” (Hope and Life) program,
which uses micro-
finance and special-
ized complementary
services to improve
the lives of those in-
fected with or affect-
ed by HIV or AIDS.
Helen’s devotion has
helped lead Es-
peranza’s continued
growth in the D.R.
and Haiti. She is deeply loved by those with
whom she has worked. We are proud to
honor Helen in this report for her significant
contributions to the work of Esperanza!
Esperanza Annual Report 2012 | 9
Esperanza has undoubtedly been made
stronger by the servant leadership of branch
manager, Helen Calcaño.
Her journey with Esperanza first began ten
years ago when her mother joined a Bank of
Esperanza. Seeing her mother empowered
and growing closer to Christ as a result of her
involvement with her lending community
compelled Helen to join the Esperanza family,
but as a member of the staff.
Her dedication as a loan officer and micro-
credit manager assistant earned her a promo-
tion to Branch Manager of the San Pedro de
Macorís office. The San Pedro office is not
just a normal office—it boasts Esperanza’s
largest loan portfolio!
While in San Pedro, Helen oversaw the begin-
ning stages of Esperanza’s
Seeing her
mother empow-
ered and grow-
ing closer to
Christ com-
pelled Helen to
join the Es-
peranza family.”
“DEVOTED SERVANT LEADERSHIP”
10 | Esperanza Annual Report 2012
(a) Unique number of associates served includes people holding loans from previous years in addi�on to people
receiving one or more new loans during 2012.
Note: An exchange rate of 42.2 Hai�an Gourds (HTG) to 1 USD has been used for all conversions.
MICROFINANCE HAITI
20
12
Hig
hli
gh
ts
73% Growth in
number of associates
55% Growth in
net loan porHolio
98% Loans repaid
$711,792 placed in the
hands of associates,
with an average loan
size of $183,
& disbursed to women
85% of the !me
9,892 Loans extended
20
12
Im
pa
ct
18,200 family members
impacted through
Esperanza MF
services SAVED
by 3,321 (a)
associates
$470,705
A married mother of three, Benjamen has
been working hard to make ends meet for
over 20 years in a
ravaged Haiti.
In the past, Ben-
jamen would bor-
row money from
family members to
buy and sell small
household items.
In dire �mes she
was forced to bor-
row from local loan
sharks, who
charged her exorbitantly high interest rates.
Then four years ago, Benjamen took out a
loan with Esperanza, and her life changed.
“What I love most
about Esperanza
is that they teach
us the way of life,
and I have
learned to discov-
er fundamental
truths.”
Esperanza Annual Report 2012 | 11
Now on her ninth loan, she is the president
of her Bank of Esperanza, named “Rayon
D’Ami�er” meaning “Ray of Friendship.”
With Esperanza she has learned responsi-
bility and financial discipline, but Benjamen
says, “What I love most about Esperanza is
that they teach us a way of life; I have
learned to discover fundamental truths.”
Recently, she was able to make the transi-
tion from mobile street vendor to the
proud owner of a small grocery store,
which she operates from her home!
Thankful for her Bank of Esperanza and her
loan officer, Benjamen is also grateful for
the joy Esperanza has brought to her life,
even in the midst of difficulty.
“IN THE MIDST OF DIFFICULTY”
Business Training - "Doing Business God’s Way" builds the associate’s capacity to establish and
manage a business with integrity and biblically-based values.
Associates served: 3,228 (D.R.) and 1,968 (Haiti)
Preventive Health Training - Associates receive training on HIV/AIDS issues, hygiene, drinking
water management, nutrition, cholera, dengue, and other general preventive healthcare topics.
Associates served: 22,585 (D.R.)
Vocational Training – Technical and vocational training workshops teach associates new tech-
niques and skills, or introduce new products or services to build their existing businesses and increase
their chances of success.
Associates served: 190 (D.R.)
Literacy Training - Offered in partnership with local churches, these courses enable associates to
develop the ability to read, write and perform basic math.
Associates benefitted: 107 (D.R.) and 486 (Haiti)
Cervical Cancer Prevention – Free preventive exams are offered to every female associate to
help detect and prevent cervical cancer. These tests are administered by medical professionals in the
associate’s communities.
Associates served: 1,549 (D.R.) and 928 (Haiti)
Local Church Partnership – Local church leaders support partnership by attending bank meet-
ings, leading devotionals, and supporting associates through prayer and counsel. These partnerships
are crucial to building program credibility and sustaining transformational change.
Associates served: 1,926 (D.R.)
‘God Provides’ Educational Videos - Promotes a biblical understanding of everyday chal-
lenges and encourages trust in God’s provision. Follow-up discussions promote formation and applica-
tion of biblical values. This program is offered in partnership with Crown Financial and HOPE Interna-
tional.
Associates served: 11,570 (D.R.)
Dental Care “Sonrisas de Esperanza” (Smiles of Hope) - Preventive dental educa-
tion and treatment is provided to associates and their families. This program is conducted in partner-
ship with Smiles for Life and members of the Crown Council.
Beneficiaries served: 1,670 (D.R.)
12 | Esperanza Annual Report 2012
MICROFINANCE SERVICES PLUS
Esperanza Annual Report 2012 | 13
Confident and well-known in her community
in Santo Domingo Norte, Maria is an entre-
preneur at heart.
When she first heard
about Esperanza four
years ago--with its busi-
ness training, voca�onal
courses, and health pro-
grams--she began to un-
derstand what the slogan
“more than just a loan”
meant.
Now on her ninth business loan worth $375
(USD), Maria has vastly increased her in-
come and improved her living condi�ons .
Voca�onal courses such as bracelet-making
have given Maria new skills to
“MORE THAN JUST A LOAN”
differen�ate her business and add unique
products to her small convenience
store. Preven�ve health services like PAP
exams and quality dental care have helped
her maintain her own health, enabling her
to provide more for her family. Lastly, ac-
cess to a savings account has empowered
Maria to accumulate savings and for the first
�me in her life, plan for her future.
Almost every part of Maria’s life has been
touched by Esperanza, and she enthusias�-
cally tells us that “God is good.”
Maria is eager to pass on the great oppor-
tunity and hope she has found to her 80-
year old widowed mother, and is proud to
be able to offer a better life for her children.
Almost every
part of
Maria’s life
has been
touched by
Esperanza.
14 | Esperanza Annual Report 2012
LEADERSHIP
Dominican Republic Management
Jenny Aquino
Interim Branch Manager, West Santo Domingo
Helen Calcaño
Region Manager, North
Astia Calderon
Interim Branch Manager, Samaná
Pedro Castillo
Coordinator, Complementary Services
Patricia Gonzalez
Coordinator, Communica�ons & Resources
Beirut Guzman
Branch Manager, Hato Mayor
Yakaira Montas
Region Manager, East
Daniel Peniche
Supervisor San�ago Branch
Celida Perez
Branch Manager, San Pedro de Macorís
Marilenni de los Santos
Branch Manager, North Santo Domingo
Ruth Solano
Branch Manager, El Seibo
Greyli Torre
Supervisor Puerto Plata Branch
Audilin Ubiera
Branch Manager, La Romana
Hai! Management
Joel Jean-Louis
Manager, Administra�on & Finance David Saint-Hilaire
Manager, Credit Opera�ons
Senior Team
Andres Barreto
Manager, IT
Inmaculada Bonilla
Manager, Finance
Pedro Lacen
Manager, Microfinance
Services
David Valle
CEO
Carlos Pimentel
President
Alexandra Nuñez
VP, Public Affairs & Caribbean
Investments
Luis Sena
Director, Spiritual Integra�on
Rafael Sena
Director, Administra�on
Kayla Villnow
Director, Community
Investments
Esperanza Annual Report 2012 | 15
2012 BOARD OF DIRECTORS
Esperanza would like to extend a warm welcome to our newest Board members, Dan Devine
and Rick Logsdon, who joined our team in December 2012.
We would also like to extend our deepest gra�tude to Nancy Cahill, Brian Holman, and Omar
Minaya for their seventeen years of service to our Associates, staff, and so many more!
David Valle
Co-Founder & CEO
Victoria Valle
Co-Founder
Carlos Pimentel
President
Steve Brookshire
Chairman
Nancy Cahill
Member
Peter Greer
Member
Joe Leininger
Member
Omar Minaya
Member
Brian Holman
Member
OUR PARTNERS
Esperanza benefits from many strong and capable partnerships, including:
16 | Esperanza Annual Report 2012
To ensure the success of each loan product,
Esperanza frequently supplements our micro-
finance services with additional programs and
resources provided through partnerships.
One such example is our work with AMO.
The AMO Program offers Esperanza funded
schools a rich Christian curriculum, based on
biblical principles that instruct children and
adolescents with a comprehensive and nour-
ishing education.
AMO’s curriculum instructs a child to use rea-
son and analy�cal thinking alongside the
Word of God, and provides a forma�ve expe-
rience through which students can develop
strong Chris�an character.
Chris�an principles of self-governance,
stewardship and service are woven through-
out coursework and structure.
Children are taught to
reason with biblical prin-
ciples, generate crea�ve
new ideas, make person-
al decisions and solve
problems God's way. All
of this compounds to
build a strong Chris�an
worldview.
Similar to Esperanza, the
AMO program u�lizes
both parents and teachers so as to support
stronger levels of change and transforma�on
in the child’s heart, and in their communi�es
at large.
Esperanza
had four
AMO train-
ings, im-
pac!ng 145
par!cipants.
Esperanza Annual Report 2012 | 17
“TRANSFORMATION THROUGH PARTNERSHIP”
18| Esperanza Annual Report 2012
TO OUR GENEROUS INVESTORS—
Robert Abreu
Michelle Adler
Michael and Marie Anderson
Angry O>er, Inc.
Anonymous (8)
Christopher AXg
Tim Autry
Aven Founda�on
Joe and Barbara Baer
Ramona Bass
David Beam
Gary Beck
William Bedford
Bellevue School District
William C. Bethea
Chris Biddle
Bill & Melinda Gates Founda�on
Stephen and Anne Bisese, MD
Casey Blake
Melissa Bloom
BNBuilders
Wayde Bodden
Joan Bomstead
David Bondo
Will Bradley
Marla Brandt
Meredith Brann
Stephen Bray and Diane Dakin
Madeline Bridgman
The Brooks Aus�n Company
Michael and Susan Brookshire
Brumberger Founda�on Inc.
Lew Brunhaver
Richard Brunhaver
Garry Bruton, Ph.D.
Michael Bryant
Cary Bryson
Woodford and Pamela Burne>e
Christopher Burrow
Janis Burrow
Douglas Burton
Business Owners Ins�tute LLC
Maria Bus�llo
James Butler
Brian Buwalda
C.T.S. Technical Services, Inc
J.R. Caia�
Thomas Campion
Paul Cavaliere
Claire Cavender
William and Kristyn Cervin
John and Marian Chase
Benjamin Cherington
Richard Syril Chessman
Tom Chew
The Chiapas Project
Jeriann Ching Seto
Esther Chou
Samuel Chu
The Church of Jesus Christ
Code Family Founda�on
Glen Cogswell
Keith Colburn
Gene Colin
Boeing Company
Mike Conley
Emily Content
Terry and Pam Cook
Copiers Northwest
Cornerstone Advisors, Inc.
Costco Wholesale
MM Coucher
John R. Cowe>
Allan R. Criss
Richard Cruz
Gary and Dawn Cunningham
Kara and David Cunningham
Mark Mennella and Jody Cunningham
Cure of ARS R. C. Church
Jill Dardick
Alvin and Kimberly Davis
Leo A. Davis
Mark Davis
Ashley Davison
Eileen Demeloitz
David Devine
Nicholas Devlin
Virginia Distanislao
Paul Doherty
Andrew and Theresa Dolson
Drive Solu�ons Inc.
Sco> Drum
Greg and Becky Duda
Steve Dworkin
Bill Eaton
Edify
William and Crissy B. Emmons
Chris and Elizabeth Engstrom
Michael Ens
David Wolfe Enterprises, Inc.
Jus�n Ersch
Ron Fairly
Barbara Falck
Ashley Fatjo
Shawnna Fatjo
Eric Fishbein
Mary Beth Fitzgerald
J.K. Fitzmaurice
The Hersh Founda�on
Tulsa Community Founda�on
Gregory P. Fuller
Phil Galante
Andrzej Gandecki
Alejandro Garcia
Michael B. Garcia
Julian Geiger
James and Laurie Geisz
Elizabeth Gollin
Patricia Gonzalez
Bill and Vanessa Gough
Rick and Linda Graf
Kent Grimes
Lynn Grimes
RJ Grogan
Dave Grosby
Meredith Guehlstorf
Michael F. Halloran
Patrick Halloran
Allen Hammer
LeAnn Kite Hampton
Stan and Mary Harrelson
Patrick Harrington
Dave Ha>eberg
Rebecca Hayes
Dave Henderson
Sco> Henderson
Sam O. Henry III
Hercules Technology Growth Capital
Brent and Cari Hermanson
Hope Interna�onal
Joel Huff
Hugo Boss Fashions Inc.
Elwood Hullinger
James and Martha R. Hunt
William L. Jackson
Bertha Jamison
Richard and Janet Stoner
Jim Jergens
Troy Johnson
Jeffory Jolin
JPW Tournament
Trent Kamman
Fehmi Karahan
Patricia Keath
Craig Keith
Brad Kelley
James and Dolores Kemmerer
Lawrence Kemp
Tom Kemp
Jeremiah Keohane
Don and Ann Kerkes
Daniel Kieffer
Michael Kranz
Ma>hew D. Krieger
KSM Group, LLC.
Ma> Lambert
Peter Lamy
Philip Lane
Jennifer J. Langen
Steve and Cary Larson
Law Offices of Nick Nemeth, PLLC
Kathleen Lee
Legacy Trading, LLC
The Leininger Family Founda�on
Esperanza Annual Report 2012 | 19
John C. Lewis
Liberty Mutual Founda�on Match
Chien Fu Lin
Richard Logsdon
Emilio Lopez
Paul Lord
Brian Lowe
Johah and Jesse Lowey
Texas Realty Capital LP
Diana Maas
Charles Maguire
Mariners Care
Ma>hew Marston
Debra McCarthy
Bruce McCaw
Don McDerme>
Richard McFarland
McLean Bible Church
Rita Mead
Rick and Reva Meadows
Alan Medina
Community Founda�on of Greater Memphis
MicrosoN Giving
Christy Miller
David and Desiree Miller
Omar and Rachel Minaya
Mission Fish
Lynn Mitchell
MLB Players Trust For Children
Richard and Carol Moehring
Michael and Mary Monks
Dori Monson
Doris E Morales
Moritz Interests, Ltd.
Doris Morris
Ma> and Bri>any Moyer
Ellie Musgrave
Eric Nadel
Ash Narayan
Na�onal Chris�an Founda�on Houston
Natural Gas Partners Founda�on
Edward Naumes
John Nelson
Newman Center Catholic Community at UCSD
A R Norber
Northeastern University
Alexandra Nunez
Oak Hills Church
Teresa Oechsli
Julie Olden
David and Jane O>
Gary W. Owen
Michael and Emily Paasche
Pace Company of Virginia
Phyllis Pak
Phillip and Peggy Parro>
The Patricia H. Snyder Family Founda�on
Aaron Patsch
Michael and Karen Peregrin
Craig Peterson
Margaret Phillips
Ashley Pillitu
Pinnacle Founda�on
J. Blake Pogue
Jeff Pollack
Cameron and Dawn Pollock
Rick Philipovich
Roderick Polston
Ma>hew Powell
Eric Pra>
Don Randall
Reilly Family Founda�on
Tamra A. Reinertsen
Cecile Renna
Resource Land Holdings LLC
Root Sports Northwest
Jason and Julie Runnels
Russell Investments
Sco> Ryan
SAP America
Dave Schmidt
Karen Schwartz
Sean Byrne Company
The Sea>le Founda�on
Ma> Segrest
Billy Sepich
Guido Serra
Dennis Shaughnessy
Gregory and Anna Shaw
Joshua Shoemaker
Sholar Founda�on
James and Sara Singleton
James L. Smith Jr.
Daniel C. and Chris�ne D. Smith
Mercedes Snider
Sorensen Farms, Inc.
Linda M. Sorensen
Jim and Toni Sorenson
Sparta Asset Management LLC
St. Norbert College
Adam Stacey
David T. Stafford
Gary T. Staub
Kris�n Staub
Morgan Staub
Pat Staub
Reed Staub
Stephen M. Sander Founda�on Inc.
Jon P. Stephenson
Steven A. and Alexandra M. Cohen Fdn. Inc.
Kenneth and Heather Stoner DDS
Michael Stoner
Gerald H. Stool
Steven and Susan Strachan
Charles Strauzer
Sco> & Stringfellow
Scot and Donna Studebaker
Mike and Sandra Stull
Virginia Tavilla
Andrew Taylor
David - Renton Taylor
Travis Tennill
Texas Chris�an University
The Horwitz Family Memorial Founda�on
Ricardo Tiburcio
John Tobin
David Toner
Junior Torres
Dennis A. Toy
Toys For Kids
Richard and Sherilee Trubi>
Tucson Electric Power Co.
Philip D. Valle
Barbara Valle-Proscia
Cristen Vaughan
Jack and Anne>e Vaughn
Israel and Krista Vela
Gene Villigan
Kayla M. Villnow
Voila Founda�on
Kyle Wagner
Kelly Walker
Glenn Ward
Ka�e Waters
Ken Webb
Brian and Tracy Webster
Bryan Weeks
Ben B. West
Gregg Westerbeck
Laurence M. Westreich
Jeffrey Wieland
Susan Wilkie
Phil and Debbie Williams
Susan and Bryan Williamson
Wilshire Bap�st Church
Laura Wolf
Peter Woodfork
Michael Worthing
—THANK YOU
20 | Esperanza Annual Report 2012
D.R. MICROFINANCE
Asociación Esperanza Internacional, Inc.
Microfinance Services
STATEMENT OF INCOME AND EXPENSES
For fiscal year ended December 31, 2012 2012 2011 2012 2011
(In DOP) (In USD) (a)
INCOME
Interest and commissions 36,100,037 31,034,832 913,925 816,706
Value of loans recovered 1,005,118 930,063 25,446 24,475
Other 1,873,610 2,494,374 47,433 65,641
TOTAL INCOME FROM OPERATIONS RD$38,978,765 RD$34,459,269 $986,804 $906,823
EXPENSES
Salaries and benefits 22,907,016 28,336,667 579,924 745,702
Fuel and vehicles 5,861,536 8,362,269 148,393 220,060
Rent and u�li�es 2,732,988 4,665,870 69,190 122,786
Telephone and communica�ons 1,581,076 1,609,485 40,027 42,355
General and administra�ve 21,002,915 5,542,888 531,719 145,865
Interest and commissions 4,351,557 3,553,739 110,166 93,519
Deprecia�on 2,690,642 1,679,712 68,118 44,203
Provision, uncollectable loans 2,402,233 2,221,345 60,816 58,456
TOTAL EXPENSES RD$63,529,963 RD$55,971,977 $1,608,353 $1,472,947
NET INCOME FROM OPERATIONS (RD$24,551,198) (RD$21,512,708) ($621,549) ($566,124)
Cash contribu�ons RD$50,068,710 RD$32,672,887 1,267,562 859,813
NET INCOME RD$25,517,512 RD$11,160,179 $646,013 $293,689
BALANCE SHEET As of December 31, 2012 2012 2011 2012 2011
ASSETS
Cash 7,231,760 5,438,535 183,083 143,119
Loans receivable, net 107,675,989 82,918,366 2,725,974 2,182,062
Accounts receivable 29,941,964 28,861,999 758,024 759,526
Prepaid expenses 1,805,065 863,853 45,698 22,733
Furniture and equipment, net 11,038,805 8,411,164 279,463 221,346
Other assets 1,185,180 1,211,591 30,005 31,884
TOTAL ASSETS RD$158,878,761 RD$127,705,508 $4,022,247 $3,360,671
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable 7,864,221 18,386,915 199,094 483,866
Accounts payable - KIVA 6,114,963 6,926,653 154,809 182,280
Accrued expenses (b) 60,492 715,501 1,531 18,829
Deferred liabili�es 596,250 307,119 15,095 8,082
Long-term debt 39,182,320 21,826,316 991,957 574,377
TOTAL LIABILITIES RD$53,818,246 RD$48,162,504 $1,362,487 $1,267,434
EQUITY
Retained earnings 105,060,516 79,543,004 2,659,760 2,093,237
TOTAL EQUITY RD$105,060,516 RD$79,543,004 $2,659,760 $2,093,237
TOTAL LIABILITIES AND EQUITY RD$158,878,763 RD$127,705,508 4,022,247 3,360,671
(a) Dominican pesos were converted into USD at a rate of 39.5:1 for 2012 and at a rate of 38:1 for 2011.
Esperanza Annual Report 2012 | 21
D.R. PLUS SERVICES Asociación Esperanza Internacional, Inc.
Plus Services
STATEMENT OF INCOME AND EXPENSES
For fiscal year ended December 31, 2012 2012 2011 2012 2011
(In DOP) (In USD) (a)
INCOME
Visitor program fees 2,438,186 2,271,100 61,726 59,766
Health insurance premiums 1,861,365 1,715,886 47,123 45,155
Other revenue 569,902 578,197 14,428 15,216
TOTAL INCOME FROM OPERATIONS RD$4,869,453 RD$4,565,183 $123,277 $120,136
EXPENSES
Salaries and benefits 7,214,356 7,599,263 182,642 199,981
Rent and u�li�es 867,736 83,333 21,968 2,193
Other general and administra�ve 3,265,408 4,824,720 82,669 126,966
Direct program expenses 14,048,957 2,027,258 355,670 53,349
Interest and commissions 165,069 212,310 4,179 5,587
Deprecia�on (b)
0 639,242 0 16,822
Hai� 2012 earthquake aid (c)
0 28,275,791 0 744,100
TOTAL EXPENSES RD$25,561,526 RD$43,661,917 $647,127 $1,148,998
NET INCOME FROM OPERATIONS (RD$20,692,073) (RD$39,096,734) ($523,850) ($1,028,861)
Cash contribu�ons 11,955,474 15,242,849 302,670 401,128
Hai� 2012 earthquake aid (d) 0 28,106,236 0 739,638
NET INCOME (RD$8,736,599) RD$4,252,351 ($221,180) $111,904
BALANCE SHEET
As of December 31, 2012 2012 2011 2012 2011
ASSETS
Cash 1,338,715 2,920,920 33,892 76,866
Loans receivable, net (e)
0 117,602 0 3,095
Accounts receivable 2,931,963 13,659,211 74,227 359,453
Other assets 305,520 503,961 7,735 13,262
TOTAL ASSETS RD$4,576,197 RD$17,201,694 $115,853 $452,676
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable 26,635,173 25,654,863 674,308 675,128
Deferred liabili�es (f)
0 4,579,208 0 120,505
Long-term debt 0 290,000 0 7,632
TOTAL LIABILITIES RD$26,635,173 RD$30,524,071 $674,308 $803,265
EQUITY
Capitalized dona�ons 17,086,719 17,086,719 432,575 449,651
Retained earnings (RD$39,145,694) (RD$30,409,096) ($991,030) ($800,239)
TOTAL EQUITY (RD$22,058,976) (RD$13,322,377) ($558,455) ($350,589)
TOTAL LIABILITIES AND EQUITY RD$4,576,198 RD$17,201,694 $115,853 $452,676
(a) Dominican pesos were converted into USD at a rate of 39.5:1 for 2012 and at a rate of 38:1 for 2011.
(b) In 2012 we did not have any deprecia�on since all the fixed asset were transferred to the microcredit por7olio.
(c) In 2012 we did not have any expenses as all the expenses for Hai� aid occurred in 2011.
(d) In 2012 we did not have any income since all aid for the Hai� earthquake was received in 2011.
(e) In 2012 we did not have any net loans receivable since the credit por7olio was se>led at year-end 2011.
(f) All deferred liability groups and programs were closed at the end of 2011.
22| Esperanza Annual Report 2012
HAITI MICROFINANCE SERVICES
Esperanza Interna!onal Hai!
Credit-led Program
STATEMENTS OF INCOME AND EXPENSES
For calendar year ended December 31 2012 (b)
2012 2011 2012 2011
(In HTG) (In HTG) (In USD) (a)
(In USD) (a)
INCOME
Interest and commissions 4,235,407 2,350,955 99,892 58,774
Value of loans recovered 134,900 586,376 3,182 14,659
Other 534,673 508,709 12,610 12,718
TOTAL INCOME FROM OPERATIONS HTG $4,904,980 HTG $3,446,040 $115,683 $86,151
EXPENSES
Salaries and benefits 2,288,323 4,393,226 53,970 109,831
General and administra�ve 4,145,521 2,816,191 97,772 70,405
Deprecia�on and amor�za�on 572,074 551,959 13,492 13,799
Provision for uncollectable loans 395,306 246,163 9,323 6,154
TOTAL EXPENSES HTG $7,401,223 HTG $8,007,539 $174,557 $200,188
NET INCOME FROM OPERATIONS ( HTG $2,496,243) ( HTG $4,561,499) ($58,874) ($114,037)
Plus Services expenses (e)
( 606,085) ( 428,437) ( 14,294) ( 10,711)
Cash contribu�ons 498,496 2,894,339 11,757 72,358
NET INCOME ( HTG 2,603,832) (HTG 2,095,597) ($61,411) ($52,390)
BALANCE SHEETS
As of December 31, 2012 2012 2011 2012 2011
(In HTG) (In HTG) (In USD) (a)
(In USD) (a)
ASSETS
Cash 1,657,237 984,012 39,086 24,600
Loans receivable, net 8,630,139 5,556,913 203,541 138,923
Accounts receivable 5,837,863 9,966,979 137,685 249,174
Furniture and equipment, net 1,286,132 1,709,068 30,333 42,727
TOTAL ASSETS HTG $17,411,372 HTG 18,216,972 $410,646 $455,424
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable 42,042 853,340 992 21,334
Accounts payable - KIVA 3,811,814 1,202,284 89,901 30,057
TOTAL LIABILITIES HTG $3,853,856 HTG 2,055,624 $90,893 $51,391
EQUITY
Donated equity 35,370,139 34,871,643 834,201 871,791
Retained earnings -21,812,623 -18,710,295 -514,449 -467,757
TOTAL EQUITY HTG $13,557,516 HTG 16,161,348 $319,753 $404,034
TOTAL LIABILITIES AND EQUITY HTG $17,411,372 HTG $18,216,972 $410,646 $455,424
(a) Hai�an Gourdes were converted into USD at a rate of 42.4:1 for 2012 and at a rate of 40:1 for 2011.
(b) The official fiscal year-end for Hai� is September 30. These financials have been adjusted to reflect
calendar years 2011 and 2012.
Esperanza Annual Report 2012 | 23
HAITI SCA SERVICES
Esperanza Interna!onal Hai!
Savings-led Program
STATEMENTS OF INCOME AND EXPENSES
For calendar year ended December 31, 2012
2012 2012
(In HTG) (In USD) (a)
INCOME
Cash contribu�ons 9,550,324 226,311
TOTAL INCOME HTG 9,550,324 $226,311
EXPENSES
Salaries and benefits 2,904,226 68,821
Training programs 1,124,281 26,642
Office and equipment 941,187 22,303
Transporta�on and travel 794,341 18,823
Water and nutri�on pro-
grams 166,690
3,950
Other general and adminis-
tra�ve 564,899
13,386
TOTAL EXPENSES HTG 6,495,624 $153,925
NET INCOME HTG 3,054,700 $72,386
(a) Hai�an Gourdes were converted into USD at a rate of 42.4:1 for 2012.
UNITED STATES
Esperanza Interna�onal Founda�on
13219 NE 20th Street, Suite 208
Bellevue, WA 98005
Tel.: (425) 451-4359
Fax: (425) 451-4360
DALLAS REGIONAL
Esperanza Interna�onal
2929 Canton Street
Dallas, TX 75226
DOMINICAN REPUBLIC
Esperanza Internacional
Frank Felix Miranda #1
Naco, Santo Domingo
Tel.: (809) 450-0333
Fax: (809) 221-7962
HAITI
Esperanza Interna�onal
Rue La Croix #46
Trou-du-Nord, Nord-Est Dept.
Tel.: 011-509-3718-3493
Photos provided by Lisa Glasgow, Rick Meadows, Dicks and Nanton Produc�ons and Esperanza staff.
© 2012 Esperanza Interna�onal Founda�on
CONTACT INFO
Website: www.esperanza.org
Email: [email protected]