2013 Esperanza International Annual Report

Dominican Republic and Haiti

2013 Annual Report

INTERNATIONAL

ESPERANZA

UNITED STATES Esperanza International Foundation 13219 NE 20th Street, Suite 208 Bellevue, WA 98005 Tel.: (425) 451-4359 Fax: (425) 451-4360

DALLAS REGIONAL Esperanza International 2929 Canton Street Dallas, TX 75226

DOMINICAN REPUBLIC Asociación Esperanza Internacional Frank Felix Miranda #1 Naco, Santo Domingo Tel.: (809) 450-0333 Fax: (809) 221-7962

HAITI Esperanza International Rue La Croix #46 Trou-du-Nord, Nord-Est Dept. Tel.: 011-509-3718-3493

CONTACT INFO Website: www.esperanza.org Email: [email protected] Photos provided by Jordan Smith, Brianna Leever, Solidarios, Dicks and Nanton Productions and Esperanza staff. © 2013 Esperanza International Foundation

5 Faithˑful Letter from Dave Valle

7 Missˑion Where we serve & our values

9 Visˑion Where we are going

10 Proˑmise Our commitments to associates

13 Relˑeˑvant The loans we offer

16 Intˑeˑgratˑed A holistic approach to poverty alleviation

14 Aˑchieveˑment Progress in the D.R. and Haiti

Leadˑerˑship Esperanza’s senior leadership

6

Reˑcogˑniˑtion Standing apart from others

18 Solˑiˑdarˑiˑty Valued partners

20

22 Perˑforˑmance Our work by the numbers

26 Grateˑful An honor roll of giving

2 | Esperanza Annual Report 2013

With great thankfulness, David Valle Co-Founder & CEO

I am thrilled to share that 2013 was one of the most successful and promising years Esperanza has seen! And still, it is humbling to realize how this was made possible only through faithfulness—God’s faithfulness to continue blessing the work of Esperanza; the faithfulness of our associates to put the welfare of their hearts and families in Esperanza’s hands; the faithfulness of our employees and volunteers who continue to serve the poor with passion; and the faithfulness of you, our investors, who give so generously, pouring opportunity and blessing into the dreams of the most vulnerable.

In 2013, Esperanza placed an all-time high $6.9 million in the hands of entrepreneurs on the island of Hispaniola— 20% more than 2012. Growth was largely driven by increases in our school loan portfolio and Bank of Esperanza small group loan portfolio. A record number 22,769 loans were extended, and 106,000 lives were touched through a combination of our microfinance and complementary services. Additionally, microfinance revenue grew by 29% in the Dominican Republic and 3% in Haiti. Alongside a best-of-practice partnership network, Esperanza remains committed to serving the

poorest of the poor in the Dominican Republic and Haiti, especially those marginalized by remote geographic location, refugee status, or diseases such as HIV and AIDS.

I hope you enjoy reading this year’s annual report, and that you find as much joy as I did in seeing what has been accomplished in 2013. Esperanza is grateful for the faithful contributions of our partners and investors, as well as the wise leadership of our Board of Directors. The dedication and perseverance of our team and the incredible stories of our associates’ transformation continue to inspire us to provide more opportunities to those in great need.

On behalf of each of the 106,000 individuals Esperanza reached in 2013, please accept my sincere appreciation for your generous support of our mission in the DR and Haiti! We look forward to another great year of growth, transformation, and hope.

Dear friends,

faithˑful (adj.) steady in allegiance or affection; loyal; constant

Esperanza Annual Report 2013 | 5

Peter Greer President & CEO, HOPE International

Rick Logsdon Senior Counsel, Texas Instruments Incorporated Joe Leininger Partner, Resource Land Holdings

Carlos Pimentel President, Esperanza International

David Valle Co-Founder & CEO, Esperanza International

Victoria Valle Co-Founder, Esperanza International

Steve Brookshire Board Chairman Principal, Pegasus Ablon

Tiger Dawson Managing Director & Co-founder, Edify Dan Devine Member

Bo

ard

of

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ors

Andres Barreto Manager, IT

Inmaculada Bonilla Manager, Finance

Pedro Lacen Manager, MF Services

David Valle CEO

Carlos Pimentel President

Alexandra Nuñez VP, International Operations

Luis Sena Director, Spiritual Integration

Rafael Sena Director, Administration

Kayla Villnow Director, Community Investments

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Jenny Aquino Interim Branch Manager, West Santo Domingo

Helen Calcaño Regional Manager, North

Astia Calderon Interim Branch Manager, Samaná

Pedro Castillo Complementary Services Manager

Patricia Gonzalez Communications & Resources Coordinator

Beirut Guzman Branch Manager, Hato Mayor

Yakaira Montas Regional Manager, East

Daniel Peniche Supervisor, Santiago

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Team

Audilin Ubiera Branch Manager, La Romana

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

David Saint-Hilaire MF Operations Manager

Haiti

Manag

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leadˑerˑship (noun) an act or instance of leading; guidance



Demonstrating the unconditional love of God

to all those we serve;

Honoring the worth, dignity, and potential 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 creation,

intended for the good of all people;

Achieving excellence in all we do;

Pursuing integrity over image; and

Enabling every person to have the

opportunity to become all that God intends.

To free children and their families from poverty through initiatives that generate income, education, and health—restoring self-worth and dignity to those who have lost hope.

VA

LUES

(noun) an important goal accompanied by strong conviction

missˑion

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visˑion (noun) a vivid, imaginative conception or anticipation

Featuring Esperanza’s Chairman of the Board


Over the past three years, Esperanza has experienced new levels of growth and change. The Board of Directors is more engaged than ever, internal reporting is being fine-tuned, and most importantly, Esperanza’s

credit-led services are reaching more of the poor than ever before! Mr. Brookshire’s service as a board member began in 2010, though he unofficially served as one of Esperanza’s strongest ambassadors for several years prior. A combination of an ingenious finance mind and a servant heart makes Steve the kind of man any nonprofit would love to have on its board. As Chairman, Steve immediately began to define a vision for Esperanza that continues to inspire and motivate each of its employees to this day. Steve believes that in this Board’s lifetime, Esperanza can build a middle class in the Dominican Republic. As Steve sees it, the math behind this vision is simple. In the Dominican Republic there are approximately 10 million citizens; in order to grow a significant middle class, Esperanza would want its microfinance and complementary services to reach at least 2.5

million people (a quarter of the population). Esperanza has already touched the lives of 250,000 people, meaning that if it could scale by ten times, it could touch a significant percent of the Dominican Republic’s population. Increasing by this increment however, requires investment in infrastructure, human capital, and the loan portfolio. As Esperanza prepares for ensuing growth, Steve has helped coach leadership and staff alike on how to manage healthy tensions and change. As a result, the entire Esperanza team has worked together to make enormous gains in establishing stronger policies and procedures, improving staff training and development, decentralizing decision-making to empower mid-level management, and focusing more on the quality of its programs, and less on quantity. The future is bright, and few can see it more clearly than Mr. Brookshire. As Steve says, “People want to dream, and they want to be a part of something bigger than themselves. In Esperanza’s work I see God—and that’s where I want to be.” Esperanza is thankful for Steve’s tireless dedication to the poor, and for his wise leadership and guidance as our Chairman of the Board.


proˑmise (noun) a declaration that something will be done

Esperanza International believes that the road to sustainable transformation happens when multiple needs of the poor are concurrently addressed. As Esperanza board member and HOPE International president Peter Greer says, “Poverty in many parts of the world is far worse than most Americans understand, but despite the significant depth and breadth of poverty, the situation is not hopeless. Employment and economic development, not handouts, are the most effective and lasting ways of addressing physical and spiritual poverty.” Esperanza uses a development model that aims to empower the poor through five focus areas: business training, financial services, education and vocational training, preventive health services, and spiritual discipleship. These programs work together to attack the physical and spiritual brokenness that poverty causes in an impoverished individual’s heart and mind, with the goal of renewing their sense of purpose, dignity, and ability.

Sustainable

transformation

of families and

communities

Microfinance

Services

Preventive

Health Services

Spiritual

Discipleship

Education &

Vocational

Training

Business Training

Picture + Quote from Associate impacted with EI`s MF Plus

services (Health or Vocational)


Keeping Our Promise Esperanza commits to its associates (borrowers) to provide microfinance and complementary services that are not only on-time and continuous, but also relevant. What does this mean? It means that our loan officers work closely with both our associates and our management team to craft loan products that help meet real needs and empower change in their communities. Esperanza associates use their loans for a variety of businesses. Their ingenuity and entrepreneurship are truly humbling. Our associates work in the countryside, the suburbs, and the cities; they wake up early and go to bed late; they sell their merchandise from their front porches, the side of the road, fixed storefronts, and by walking the streets of their neighborhoods. Some of the most common businesses are colmados (corner convenience stores), small cafeterias, produce stands, clothing stores, beauty salons, and tailor shops. Because 87% of associates are female, many target fellow women as customers—because, who knows what a girl wants better than another woman? Pictured here are associates and their daughters showing us that cute accessories, a go-to pair of shoes, and new hairdos are in demand no matter where you are. Turn the page to read more about each of the relevant and life-changing loan products Esperanza offers its assoc-iates.



Manuel Alvarez, a 76-year-old associate in Batey Salado, El Seybo, shares his thoughts on the

solidarity group paradigm that Esperanza uses. “Look at my fingers. They are not all the same

length because some are taller than others. Together they make up a hand, which can do

many more things than just one finger could do. Yes, there are tall fingers, but the shorter

ones can do something the taller ones cannot. All of these fingers work together and form a

hand, which can accomplish incredible things. That is how I think of the group model.”



relˑeˑvant (adj.) connected with the matter in hand; pertinent

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Banco de Esperanza (BDE) Loans: The bread and butter of Esperanza’s portfolio, the group loan product is the foundation of the entire organization. In a Banco de Esperanza, groups of five women or men stand in solidarity with one another, agreeing to cross-guarantee each other’s loans. Groups of five come together to make up the larger entity, known as the “Banco de Esperanza,” on average a group of 20 people. A Banco de Esperanza meets on a biweekly basis to repay their loans together, save together, encourage one another, and receive training, advice, and prayer support.

School Loans: In partnership with Edify, Esperanza provides loan capital to private Christian schools to expand and improve their facilities, while Edify provides training to school administrators and teachers. These loans enable thousands of children to receive a quality education that they would not otherwise be able to access.

Water Project Loans: Local churches purchase professional-grade water filtration systems with Esperanza loan capital. Loans are repaid with profits from the sales 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.

Housing Loans: After proving credit worthiness via multiple loan cycles and receiving a nomination from their BDE, associates can apply for home improvement loans to improve the safety and comfort of their homes. These loans typically cover concrete floors, new roofs, sanitation systems, cement block walls, and more.

Individual Loans: After proving creditworthiness via multiple successful group loan cycles, some associates qualify for a larger business loan. Other associates with a credit history or guarantor can begin with an individual loan. Most individual loan recipients choose to remain active members in their Bank of Esperanza communities even when they qualify for an individual loan.

Average Loan: $957 (D.R.) $716 (Haiti)

Average Loan: $947 (D.R.)

Average Loan: $14,802 (D.R.)

Average Loan: $4,352 (D.R.)

Average Loan: $271 (D.R.) $187 (Haiti)

An exchange rate of 42.69 Dominican Pesos (DOP), and 42.73 Haitian Gourdes (HTG) to 1USD has been used for all conversions.


aˑchieveˑment (noun) something accomplished by superior ability, special effort, or great courage

GROSS PORTFOLIO SNAPSHOT

DEC. 31, 2013: LOANS OUTSTANDING

TOTAL: 12,130 LOANS TOTAL: $3.3 MILLION

DEC. 31, 2013: DOLLARS OUTSTANDING

PROGRESS TO DATE

ANNUAL DOLLARS LENT YEAR-END PORTFOLIO

2013: $6.9 MILLION 2013: $3.3 MILLION


(noun) something accomplished by superior ability, special effort, or great courage

2013

D.R

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Growth in year-end gross loan portfolio 21%

15,822 Unique associates served (1)

484k Year-end savings balance of our associates

(1) Number of associates holding loans includes people holding loans from previous years in addition to people receiving one or more new loans during 2013.

2013

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23k Number of total loans extended

$304 Average size of a loan

Dollars placed in the hands of entrepreneurs $6.9m

106k Number of lives touched by Esperanza programs

16% Growth in year-end gross loan portfolio

3,586 Unique associates served (1)

2013

Haiti

Hig

hlig

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92k Year-end savings balance of our associates

Business Training - The "Doing Business God’s Way" series builds the associate’s capacity to establish and

manage a business with integrity and Biblically-based values.

Trainings administered: 3,587 (D.R.) and 763 (Haiti)

Preventive Health Training - Associates receive training on HIV/AIDS, hygiene, drinking water

management, nutrition, cholera, dengue, and other preventive healthcare topics.

Training workshops held: 1,748 (D.R.)

Vocational Training - Technical and vocational training workshops teach associates new techniques and

skills, or introduce new products or services to build their existing businesses and increase their chances of success.

Associates served: 671 (D.R.) and 73 (Haiti)

Literacy Training - Offered in partnership with local churches, these courses enable associates to develop the

ability to read, write, and perform basic math functions.

Associates benefitted: 118 (D.R.) and 250 (Haiti)

Cervical Cancer Prevention - Preventive exams are offered to every female associate to help detect and

prevent cervical cancer. These tests are administered by medical professionals in the associates’ communities.

Associates attended: 1,590 (D.R.) and 695 (Haiti)

Local Church Partnership - Local church leaders attend bank meetings, lead devotionals, and support

associates through prayer and counsel. These partnerships are crucial to building program credibility and sustaining transformational change in the local community.

BDE/Church Partnerships: 217 (D.R.)

‘God Provides’ Educational Videos - Promotes a Biblical understanding of everyday challenges and

encourages trust in God’s provision. Follow-up discussions promote formation and application of Biblical values. This program is offered in partnership with Crown Financial and HOPE International.

Video Showings: 720 (D.R.)

Dental Care “Sonrisas de Esperanza” (Smiles of Hope) - Preventive dental education and

treatment is provided to associates and their families. This program is conducted in partnership with Smiles for Life and members of the Crown Council.

Beneficiaries attended: 1,913 (D.R.)


intˑeˑgratˑed (adj.) combining separate elements so as to provide a

harmonious, interrelated whole


Esperanza associate Angela Acosta comes from a past of heartache. Despite a battle with cancer and few physical possessions, this hardworking woman shares how Esperanza’s model inspired her to focus on the needs of others. “I like to spend my spare time with the most poor—to show them love and affection.” She continues with a smile, “There are many children and elderly who need us to offer them a hand. This is what I really like to do. I don’t like to sit here in my house during my spare time. I prefer to go out and help the poor.” She explains her travels to the bateys, “They are the poorest. There’s not so much poverty [in my neighborhood], but there sure is in the bateys. I like to find ten people who don’t have anything to eat and bring it to them. I sit down with the elders. When they don’t have coffee, I bring it to them.”

ASSOCIATE NAME: Ramona Rodríguez

BUSINESS: Video arcade and Internet café

LOCATION: Villa Mella, Santo Domingo

DATE OF 1ST LOAN WITH ESPERANZA: Dec. 28, 2010

AMOUNT OF CURRENT LOAN: 20,000 DP ($476 USD)

PROFILE: A dreamer with concrete expansion plans and innate business sense.

GOAL FOR HER FUTURE: Build an addition to her house to relocate the internet café, and establish a clothing and accessories shop, to “appeal to her fellow women.”

PERSONAL STATEMENT: “Esperanza has been a key to my success – I never would have been able to buy expensive items [for my business] like televisions or computers without additional capital. I am also so thankful for my family and the ability to provide for their well being and education.”


reˑcogˑniˑtion (verb) the acknowledgment of achievement, service, merit.

In 2013, a few special women made waves both nationally and internationally. Highlighted below are Esperanza associates Sixta Polanco and Ramona Rodriguez; both women were recognized for their outstanding achievements and nominated as winners of the 2013 Citi Micro-entrepreneurship Awards. Citi Bank nominated a group of 221 women and men for these awards, with the winners representing a pool of over 400,000 borrowers from 14 different microfinance institutions in the Dominican Republic! On the following page is Esperanza associate Brigida Rodriguez, who stars in the newly released documentary Esperanza. Through hard work, faith, and perseverance, each of these amazing women now provides strong examples of hope and opportunity to their families and communities. We celebrate and recognize them for all they do!

ASSOCIATE NAME: Sixta Polanco

BUSINESS: Clothing and home appliance shop

LOCATION: Sosua, Puerto Plata

DATE OF 1ST LOAN WITH ESPERANZA: Oct. 20, 2012

AMOUNT OF CURRENT LOAN: 15,000 DP ($357 USD)

PROFILE: A 38-year-old mother of three known as a proactive dynamic woman with a positive outlook.

GOAL FOR HER FUTURE: Expand her business to a full-fledged department store, concentrating on adding a children’s department next.

PERSONAL STATEMENT: “I know that if I continue to save for what I want, access to banking services and my entrepreneurial attitude are all the tools I need to accomplish my goals.”


ESPERANZA FILM WINS EMMY AWARD

As more Americans hear about Esperanza and its humble yet inspiring story, increasingly amazing opportunities continue to present themselves. In November of 2013, the short film “Esperanza,” produced by Celebrity Films out of Florida, won an Emmy for Best Topical Documentary! The film highlights Esperanza CEO Dave Valle and what inspired him and wife Vicky to found Esperanza. It also tells the stories of three strong, hard-working, and inspiring women who represent the transformation that Esperanza believes is possible for every woman, man, and child it serves.

BRIGIDA—A REAL-LIFE MOVIE STAR

Featured in this Emmy-winning documentary is Brigida Rodriguez, an entrepreneur since 2004. In 2008, Brigida took out her first loan with Esperanza for 8,000 pesos (approx. $200 USD) and bought a stove and basic kitchen appliances to build a small business making lunches for local construction workers. Brigida quickly realized she could sell more lunches if she had a way to distribute them throughout the area. So with her savings and another Esperanza loan, she bought a small car and again increased her customer base and income. In recent years, Brigida added dessert to her menu and started making vanilla cakes to distribute to "colmados" (convenience stores) in her community. These cakes are featured in the documentary, and have won over the hearts and stomachs of many! Brigida is continually motivated by her love for her family, and faithfully allocates part of her income towards medications for her 70-year-old mother. She also saves because her only son, Ariel, will graduate from high school shortly and she hopes to pay for his college education. "Education is the best investment one can make as a mother," Brigida explains. Despite her numerous daily obligations, it is rare to see Brigida without her distinctive ear-splitting smile. She exudes happiness and confidence when she speaks, and inspires all who know her.

solˑiˑdarˑiˑty


(noun) union or fellowship arising from common responsibilities

and interests

Twenty women sit in a small house animatedly chatting despite the sweltering, late-morning heat. It’s ten o’clock in the morning, and a Banco de Esperanza loan repayment meeting is about to start. Through the humidity a female voice shouts out the words, “Let’s begin!” As the room quiets, she launches into the verbal commitment that begins and concludes every Banco de Esperanza meeting. The president leads her group members in their collective promise to:

“Uphold the values of the Bank of Esperanza. Practice solidarity and conduct ourselves with respect and trust.

Work and persevere for the well being of our families, our neighbors, and the country.”

As the president recites each verse, the women repeat and chorus out each line in proud unison. These statements are now ingrained in their memories; commitments not to be forgotten.

This verbal commitment is repeated by the Esperanza associates two times during the course of each repayment meeting to reinforce the collaborative mindset the bank must use in order to successfully repay all of their loans in full. It is designed to empower associates to work as a unit, to encourage them to trust each other, and to remind them that by partnering together they can accomplish lasting transformation.


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Just like our associates, Esperanza benefits from many strong and capable partnerships, including:

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perˑforˑmance (noun) the execution or accomplishment of work, acts, or feats

22 |

STATEMENTS OF INCOME AND EXPENSES

For fiscal year ended December 31, 2013 2012 2013 2012

(In DOP) (In USD) (a)

INCOME

Interest and commissions RD$46,622,649 RD$36,100,037 $1,092,121 $913,925

Value of loans recovered 808,630 1,005,118 18,942 25,446

Other income 2,966,123 1,873,610 69,481 47,433

TOTAL INCOME FROM OPERATIONS RD$50,397,402 RD$38,978,765 $1,180,543 $986,804

EXPENSES

Salaries and benefits 22,725,771 22,907,016 532,344 579,924

Fuel and vehicles 5,919,689 5,861,536 138,667 148,393

Rent and utilities 1,965,598 2,732,988 46,044 69,190

Telephone and communications 820,483 1,581,076 19,220 40,027

General and administrative (b) 28,754,784 21,002,915 673,572 531,719

Interest and commissions 3,971,503 4,351,557 93,031 110,166

Depreciation 3,025,057 2,690,642 70,861 68,118

Provision for uncollectable loans 3,397,599 2,402,233 79,588 60,816

TOTAL EXPENSES RD$70,580,484 RD$63,529,963 $1,653,326 $1,608,353

NET INCOME FROM OPERATIONS (RD$20,183,083) (RD$24,551,198) ($472,782) ($621,549)

Cash contributions 34,216,102 50,068,710 801,502 1,267,562

NET INCOME RD$14,033,019 RD$25,517,512 $328,719 $646,013

BALANCE SHEETS

As of December 31, 2013 2012 2013 2012


ASSETS

Cash RD$15,196,752 RD$7,231,760 $355,979 $183,083

Loans receivable, net 129,488,634 107,675,989 3,033,231 2,725,974

Accounts receivable 3,889,467 3,871,530 91,110 98,013

Accounts receivable, internal (c) 31,227,665 26,070,434 731,498 660,011

Prepaid expenses 1,568,130 1,805,065 36,733 45,698

Furniture and equipment, net 10,901,180 11,038,805 255,357 279,463

Other assets 1,691,849 1,185,180 39,631 30,005

TOTAL ASSETS RD$193,963,677 RD$158,878,763 $4,543,539 $4,022,247

LIABILITIES AND EQUITY

LIABILITIES

Accounts payable 8,369,206 7,864,221 196,046 199,094

Accounts payable - KIVA 8,636,959 6,114,963 202,318 154,809

Accrued expenses 4,796 60,492 112 1,531

Deferred liabilities 0 596,250 0 15,095

Long-term debt 57,859,182 39,182,320 1,355,333 991,957

TOTAL LIABILITIES RD$74,870,143 RD$53,818,246 $1,753,810 $1,362,487

EQUITY

Retained earnings 119,093,534 105,060,516 2,789,729 2,659,760

TOTAL EQUITY RD$119,093,534 RD$105,060,516 $2,789,729 $2,659,760

TOTAL LIABILITIES AND EQUITY RD$193,963,677 RD$158,878,762 $4,543,539 $4,022,247

(a) Converted Dominican pesos into USD at a rate of 42.7 for 2013 and at a rate of 39.5 for 2012.

(b) Includes Central Service Office expense allocation to Microfinance.

(c) Running internal accounts receivable balance between DR microfinance, DR plus services, and Haiti microfinance operations.


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For fiscal year ended December 31, 2013 2012 2013 2012


INCOME

Visitor program fees RD$2,829,256 RD$2,438,186 $66,274 $61,726

Health insurance premiums 2,459,110 1,861,365 57,604 47,123

Other revenue 452,601 569,902 10,602 14,428

TOTAL INCOME FROM OPERATIONS RD$5,740,967 RD$4,869,453 $134,480 $123,277

EXPENSES


General and administrative (b) 9,613,196 4,911,866 225,186 124,351

Direct program expenses 14,909,789 14,048,957 349,257 355,670

Visitor expenses (c) 7,131,697 0 167,058 0

Depreciation 0 0 0 0

Haiti earthquake aid 0 0 0 0

TOTAL EXPENSES RD$36,184,538 RD$27,515,978 $847,612 $696,607

NET INCOME FROM OPERATIONS (RD$30,443,571) (RD$22,646,525) ($713,131) ($573,330)

Cash contributions 24,170,288 11,955,474 566,181 302,670

Haiti earthquake aid 0 0 0 0

NET INCOME (RD$6,273,283) (RD$10,691,051) ($146,950) ($270,660)

BALANCE SHEETS

As of December 31, 2013 2012 2013 2012


ASSETS

Cash RD$1,091,100 RD$1,338,715 $25,559 $33,892

Loans receivable, net 0 0 0 0

Accounts receivable 2,089,423 2,931,963 48,944 74,227

Other assets 884,500 305,520 20,719 7,735

TOTAL ASSETS RD$4,065,023 RD$4,576,198 $95,222 $115,853


LIABILITIES

Accounts payable 2,970,908 564,739 69,593 14,297

Accounts payable-internal (d) 31,227,665 26,070,434 731,498 660,011

Other liabilities 36,566 0 857 0

TOTAL LIABILITIES RD$34,235,139 RD$26,635,173 $801,948 $674,308

EQUITY

Donated equity 17,203,314 17,086,719 402,982 432,575

Retained earnings (47,373,430) (39,145,694) (1,109,708) (991,030)

TOTAL EQUITY (RD$30,170,116) (RD$22,058,975) ($706,726) ($558,455)

TOTAL LIABILITIES AND EQUITY RD$4,065,023 RD$4,576,198 $95,222 $115,853

(a) Converted Dominican pesos into USD at a rate of 42.7 for 2013 and at a rate of 39.5 for 2012.

(b) Includes Central Office expense allocation and G&A expenses of the Communications and Resources Department

(c) Began tracking visitor-related trip expenses on the income statement in 2013 (previously tracked on the balance sheet via project accounting methodology).

(d) Running internal accounts payable balance between DR microfinance and DR plus services.

24| Esperanza Annual Report 2013

HAITI MICROFINANCE SERVICES

Esperanza International Haiti


For calendar year ended December 31, (a) 2013 2012 2013 2012

(In HTG) (In USD) (b)

INCOME

Interest and commissions HTG 4,487,512 HTG 4,235,407 $105,011 $99,892

Value of loans recovered 0 134,900 0 3,182

Other income 577,598 534,673 13,516 12,610

TOTAL INCOME FROM OPERATIONS HTG 5,065,111 HTG 4,904,980 $118,528 $115,683

EXPENSES


General and administrative 6,329,828 4,143,062 148,123 97,714

Depreciation 843,322 572,074 19,734 13,492

Provision for uncollectable loans 590,986 395,306 13,830 9,323

TOTAL EXPENSES HTG 10,793,214 HTG 7,401,224 $252,570 $174,557

NET INCOME FROM OPERATIONS (HTG 5,728,103) (HTG 2,496,243) ($134,042) ($58,874)

Complementary Services expenses (1,306,610) (606,085) (30,576) (14,294)

Cash contributions 2,791,421 498,496 65,321 11,757

NET INCOME (HTG 4,243,292) (HTG 2,603,832) ($99,296) ($61,411)

BALANCE SHEETS

As of December 31, 2013 2012 2013 2012

(In HTG) (In USD) (a)

ASSETS

Cash HTG 1,235,484 HTG 1,657,237 $28,911 $39,086

Loans receivable, net 9,833,180 8,630,140 230,104 203,541

Accounts receivable 533,537 809,652 12,485 19,096

Accounts receivable - internal (c) 0 4,595,221 0 108,378

Furniture and equipment, net 1,370,177 1,286,132 32,063 30,333

Other Assets 264,489 432,991 6,189 10,212

TOTAL ASSETS HTG 13,236,867 HTG 17,411,372 $309,753 $410,646


LIABILITIES

Accounts payable 20,088 42,042 470 992

Accounts payable - KIVA 3,622,011 3,811,814 84,758 89,901

Accounts payable - internal (c) 53,179 0 1,244 0

TOTAL LIABILITIES HTG 3,695,279 HTG 3,853,856 $86,472 $90,893

EQUITY

Donated equity 10,740,508 35,370,139 251,336 834,201

Retained earnings (1,198,920) (21,812,623) (28,056) (514,449)

TOTAL EQUITY HTG 9,541,588 HTG 13,557,516 $223,281 $319,753

TOTAL LIABILITIES AND EQUITY HTG 13,236,867 HTG 17,411,372 $309,753 $410,646

(a) The official fiscal year-end for Haiti is September 30. These financials have been adjusted to reflect a calendar year 2012 and 2013.

(b) Converted Haitian gourdes into USD at a rate of 42.7 for 2013 and at a rate of 42.4 for 2012.

(c) Running internal accounts payable/receivable balance between DR microfinance and Haiti microfinance operations.


A TRIBUTE "To live is Christ and to die is gain"- Philippians 1:21

On September 18, 2013 Esperanza lost a beloved member of its family. Célida Perez, the San Pedro de Macorís Branch Manager, passed away with her husband, two children and loved ones by her side. She was a peaceful and strong woman with unshakeable convictions who dedicated 16 years of her life to Esperanza, taking its Christ-centered microfinance services to some of the hardest-to-reach communities in the Dominican Republic. It was with great sorrow that Esperanza bid farewell to such a special woman, but her memory and contributions to our organization live on every day in each of the thousands of lives she touched. We ask you to join us in keeping her family in prayer, and we dedicate this report to all that Célida achieved in her sixteen years of loving service to our associates.

CELIDA PEREZ April 20, 1966 - September 18, 2013

grateˑful (adj.) warmly or deeply appreciative of kindness or

Mynor Alvarado The Chiapas Project Linda and Rick Graf

Gerald Anderson The Church of Jesus Christ Martin Greenfield

Janice Anderson Arang and Joseph Cistulli Deetta Greenwalt

Anonymous Code Family Foundation Inc. Stokes Auction Group

Amin and Camellia Arjomand Carl Cole Robert Guntor

AT&T Gene Colin Dinesh Gupta

Aven Foundation Skyler Colman Kathryn M. Hagerty

Nancy A. Bagranoff Antonio Comella Michael F. Halloran

Indar Bally Comerica Charitable Trust LeAnn Kite Hampton and Jeff Hampton

Rohit Bansal Emily Content Bill Harminson

Billan Barkhurst Costco Wholesale Stan and Mary Harrelson

Barnabas Foundation Michele Cox David and Colleen Hayes

Marcy S. Bernstein Crazy Hearts Hercules Technology Growth Capital

William C. Bethea Plum Creek Joanna Herrera

Lindsay and George Billingsley Mark Mennella and Jody Cunningham Toni Hill

Emily and Barrett Bisignano Mark Dahl Adam Hitch

Eric Black Alvin and Kimberly Davis Hope International

Patricia Borrelli Leslie and Tiger Dawson Jake Hornstein

Laura Brandenberg Kevin Deering Pat Housel

Stephen Bray David DePoister Howie and Libby Houserman

The Brooks Austin Company Danielle Devenuti Crystal Hoyt

Gail and Stephen Brookshire Devine Family Foundation, Inc. Joel Huff

Michael and Susan Brookshire Discovery Church Inc. Hugo Boss Fashions Inc.

Genniva and Banks Bruce AJ Dominguez Lindsay Hunt

Dr. and Mrs. Garry Bruton Drive Solutions Inc. Marc S. Jacobson, MD

Diane Burbick Scott Drum Theartic Jacson

Bucky Burgess Bukekile Dube William and Janice Jennings II

Maria Bustillo Edify Elizabeth Jensen

Marisa Bustillo Justin Ersch Michael Johnston

James Butler Johan and Kristen Eveland Jeffory Jolin

Brian Buwalda Teresa K. Evered Ted Karkus

C.T.S. Technical Services, Inc. Elmar Fink Mary Keller

Tim R. Callahan First Presbyterian Church of Houston James and Dolores Kemmerer

Chris J. Camera Trent Frank Lawrence Kemp

Thomas Campion Rebecca B. Fritze Stephen Kepics

Ronald Capon Paul Frueh Daniel Kieffer

Philippa Y. Carey Pamela B. Fuhr Frank Kiernan

Karen Carlson Alejandro Garcia Paul and Virginia M. Konrad

Jennifer Cartolano Michael B. Garcia Howard J. Kraft

Casey Family Foundation Russell E. Ginn Matthew D. Krieger

Erin Cash and Rhett Butler Glazer's Wholesale Drug Co., Inc. KSM Group, LLC

Kristyn and William Cervin Louis W. Gleckel MD Carrie Landheer

Chicago Cubs Charities Google Barry G. Lawson

John and Marian Chase Marie Grabo


benefits received; thankful

James Lee F. James Neil Jr. Soap Hope

Kathleen Lee Newman Ctr, Catholic Community at UCSD Linda M. Sorensen

The Leininger Family Foundation Rick Norber Judson Stafford

Liberty Mutual Foundation Match Northeastern University Steelhead Partners, LLC

Mindy and Richard Logsdon Alexandra Nunez Stephen M. Sander Foundation Inc.

Gaye Lynn Loufek Julie Olden Taylor Stevens

Brian Lowe David and Jane Ott Charles Strauzer

Peyton Luckett Jesse Ottele Sandra and Mike Stull

Luke 12:48 Foundation Gary W. Owen Javier Tapia

Rufus W. Lumry Peggy and Phillip Parrott Tracy A. Tester

Shane Manciagli The Patricia H. Snyder Family Foundation Texas Christian University

Valerie Maniscalco Iris Paul The Flanagan Family Fund

Mariners Care Ron Perkins The Horwitz Family Memorial Fdn.

Diane Marshall John Peters Don Thomas

Chris Martin Philip Peters Joseph Tillman

Harry and Giselle Matthews Pinnacle Foundation David Toner

Jim McCaffrey Jon Pino Dennis A. Toy

Jordan McCall Prestonwood Baptist Church Katherine Trevey

Debra McCarthy Juan Ramirez Trinity Baptist Church

Linda McEwen Don Randall True North Family Fdn.

Michael McGorry Vanessa Randolph Truist

Dave Heaverlo and Peggy McNutt Razoo Foundation United Way

Reva and Rick Meadows Reilly Family Foundation David and Vicky Valle

Kathy Meyer Resource Land Holdings LLC Philip D. Valle

Microsoft Giving Allen Retiro Roy A Vandiver

Christy Miller Grant E. Rissler Lucia Veloz

Matthew Miller Tammy S. Robbins Valaria Vendrzyk

Stewart Miller Derek Roetzel Gene Villigan

Rachel and Omar Minaya Michael Rogers Kayla M. Villnow

Daniel Miner Arthur and Kathleen Ronan Jr. Don Wallace

Lynn Mitchell Root Sports Northwest Bryan Weeks

Ron Mitori SAP America Beverly S Werner

James W. Monks Matt and Katie Schiltz Hudson White

Moritz Interests, Ltd. Judith Schrempf-Stirling Jeffrey Wieland

James Morris Schwab Charitable Fund Susan Wilkie

Charlie Mosher The Seattle Foundation Wilshire Baptist Church

Elizabeth Mulligan SeeYourImpact.org Paul Wilson

Steven Murray Sholar Foundation Cheryl Wood-Lopez

Ellie Musgrave Silver Creek Capital Management, LLC Michael Worthing

Eric Nadel James and Sara Singleton Richard and Nancy Wright

Nick Nanton Smiles for Life Foundation Tyler Yarnell

Ash Narayan Jim Smith Brittany York

National Christian Fdn. Houston Mercedes Snider Yichi Zhang


2013 Esperanza International Annual Report

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Transcript of 2013 Esperanza International Annual Report