Annual Report 2008 - Physicians for Peace

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IT means THE WORLD. ANNUAL REPORT 2008

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It Means the World - Physicians for Peace

Transcript of Annual Report 2008 - Physicians for Peace

IT m e a n s THE WORLD.

A N N U A L R E P O RT 2 0 0 8

Yesterday, 24,000 children, mothers, brothers, aunts, fathers, sisters, uncles and other beloved family members died because they didn’t have basic medical care.

Today, you are learning how we’re trying to change that. For more than 20 years, Physicians for Peace has seen this desperate need and is working to

strengthen the world’s healthcare systems through long-term, sustainable, medical education and training that can be used long after we’ve left a location.

It’s simple. We do more than provide medical education and clinical care.

We become friends. We promote hope. We protect futures.

See how we accomplished all this in the past year. And help us continue to do this important work.

IT m e a n s THE WORLD.

THROUGH YOU, WE BRING COMPASSION TO THOSE WHO MAY KNOW ONLY FEAR.WE BRING HOPE TO EYES FILLED WITH SORROW.

WE BRING A FUTURE TO CHILDREN WHO DESERVE TO GROW UP HEALTHY AND HAPPY.

P H Y S I C I A N S f o r P E A C E

Against the backdrop of difficult economic times, Physicians for Peace continues to thrive and meet the needs of those who struggle in poverty and whose access to even the most basic health care is sparse or nonexistent. While it has not been without its challenges, we have stayed the course, focusing on our mission, the extraordinary volunteers who give life to our mission, and the countless tens of thousands of people whose lives have been touched by the work we do.

What has sustained us in this particularly difficult environment has been the fact that in early 2008, we began a very rigorous strategic planning process and restructuring that buoyed us through these turbulent times. We were well positioned to weather the storm and emerge even stronger and more resilient.

For those longtime observers of Physicians for Peace, you will note that we changed our fiscal year to now coincide with the calendar year. So the financial statements included here are the first we’ve reported on a January 1 - December 31 basis. As you study the

financials, you will note that we remain committed to the uncompromising stewardship of our precious donor gifts. In fact, we have now earned five consecutive annual four-star ratings from Charity Navigator, validating that we exceed industry standards for fiscal management, actually placing us in the top 4-5% of all evaluated charities. We expect that trend to continue. We also expect to continue

our ability to contain our administrative costs while ensuring 90% or more of our cash and material gifts go directly to our field operations.

In 2007, we launched the Charles E. Horton Humanitarian Award for Global Health, with Professor Jeff Sachs, noted world leader in poverty reduction. In 2008, that award went to Senator Bill Frist, a cardiologist who has devoted both his public and private life to improving health care for children in the developing world.

Also in 2008, we explored a great deal of new territory both geographically and programmatically. India, Liberia, Libya, Sri Lanka, Vietnam, Mali, Senegal, Malawi, and others are now part of our portfolio, approaching 60 countries served. Our Walking Free and Seeing Clearly programs have expanded significantly as have our child and maternal health initiatives. We are particularly enthused that our Central American Pediatric Burn Consortium, founded by Physicians for Peace in 2006, has prospered to the point that today, it is an independent organization governed by its own membership.

Our emphasis on collaborative partnerships has continued to demonstrate their value. For example, our Partnership for Eritrea, created by Physicians for Peace, The George Washington University, and the Eritrean Minister of Health, has been joined by Columbia University and Yale University to bring post graduate medical education to a nation determined to bring its health care system into the 21st century with the help of Physicians for Peace.

We would certainly encourage you to take advantage of our growing emphasis and reliance on our important social networking and electronic communications. Our Web site (physiciansforpeace.org) is a portal to a wealth of information, access to our blogs, and almost unlimited information via YouTube, Twitter, Facebook, MySpace and other sites.

None of our efforts would be remotely possible without our selfless volunteers and our generous donors. Physicians for Peace gets no U.S. government money and relies almost exclusively on the kindness of individual donors. In this economy, as most charities have discovered, 2008 gifts are down considerably and projections for 2009 are equally pessimistic. But through prudent planning and careful financial management, we are cautiously optimistic that we will continue to maintain the level of our field operations without cutting services to those who need it most.

We are eternally grateful to our many friends

and supporters and thank you for what you have

done on our behalf. It truly means the world to us.

And to those who need us.

— Brigadier General Ron Sconyers (USAF, Ret.), President and Chief Executive Officer, Physicians for Peace

DEAR FRIENDS OF Physicians for Peace,

January 11 - 18, 2008San Salvador, El SalvadorBurn Care Surgery

January 11 - 19, 2008Santiago, Dominican RepublicBurn Care Nurse Education

January 11 - 19, 2008Santiago, Dominican RepublicBurn Care Rehabilitation Fact Find

January 14 - 21, 2008Asmara, EritreaEVMS Student Exchange

January 14 - 18, 2008Santiago and Santo Domingo,

Dominican Republic Walking Free

January 14 - 19, 2008San Salvador, El SalvadorBurn Care Nurse Education

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Phys

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P H Y S I C I A N S f o r P E A C E

“ ”If you heal someone, you help one person.

If you teach someone to heal, you help many.Dr. Charles E. Horton Sr. Founder, Physicians for Peace

Partners for aBetter TomorrowThe mission of Physicians for Peace would not be achievable without the many partners with whom we have become involved throughout our history. Following is a list of some of the corporations, foundations, academic institutions and others that have supported Physicians for Peace:

AT Home CareChesapeake General HospitalColumbia Earth InstituteEastern Virginia Medical SchoolEYE SeeFamily Health InternationalThe George Washington University

Medical CenterHanger Prosthetics

and Orthotics, Inc.Lions Clubs InternationalMedtronicMylan Pharmaceuticals New Eyes for the NeedyOld Dominion UniversityProject HopeUniversidad Católica Santo DomingoVirginia Commonwealth University

School of Medicine

Physicians for Peace was founded in 1989, dedicated

to the ideal that health care in the developing

world can best be improved by providing training

and education to medical professionals in those

countries. When we send one volunteer medical

professional overseas, that person might train

10 of his or her in-country peers, who will later

heal thousands or tens of thousands of patients

in the world’s most underserved populations.

By focusing on long-term, sustainable, replicable

medical education and training, we send teams of

medical volunteers — including physicians, dentists,

nurses, physical therapists, physician assistants and

other health care professionals — to places where

their teaching and healing skills are needed most.

WHERE WE BEGAN. And What Drives Us to Continue.What Distinguishes Physicians for Peace?

Our PurposePhysicians for Peace provides medical education and training, clinical care, and donates medical supplies to developing countries with unmet needs and scarce resources. Our programs ensure lasting change in our host countries.

In 2008, Physicians for Peace completed 56 missions involving 208 volunteers, and traveled to 17 countries, including a first-time fact-finding visit to Vietnam.

Sustainability and ReplicabilityHost countries invite Physicians for Peace to initiate our medical programs, which they then sustain and replicate.

Many developing nations use our Burn Care program as a model for improving the outcome of burn victims, and our newly established Burn Consortium serves as a clearinghouse for training and education throughout Central America and the Caribbean.

Medical DiplomacyThrough our medical education programs, alliances are forged, health care burdens are eased, and ongoing friendships are established among medical professionals in the United States and their peers in the developing world.

Residency programs in pediatrics and surgery were launched in 2008 through The Partnership for Eritrea, comprising the first-ever postgraduate training programs in this African country.

International RelevancyPhysicians for Peace fully embraces the United Nation’s Millennium Development Goals to meet the needs of the world’s poorest by 2015.

In 2008, Physicians for Peace programs received nearly $1 million in donated medical services by health care providers, and we sent more than $9 million in medical supplies globally to support our programs.

Equity to AllPhysicians for Peace ascribes to no religious or political affiliations, showing compassion and respect to member of all nations.

Since its inception, Physicians for Peace has made hundreds of trips to more than 50 countries in Africa, Asia, the Caribbean, Central America, Eastern Europe, and the Middle East, changing the lives of countless thousands of people along the way.

January 16 - 23, 2008Guatemala City, GuatemalaWalking Free

January 17 - 31, 2008Dhaka, BangladeshClinical Care

February 26 - 28, 2008Santiago, ChileBurn Care

February 11 - 22, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Psychiatry

February 1 - 8, 2008Asmara, EritreaENT

February 22 - March 8, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Faculty Development

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TABLE OF CONTENTS

Message from our President & CEO 2

Introduction to Physicians for Peace 3

Our Programs 4 - 7

2008 Financial Statements 8 - 9

Board of Trustees 10

Medical Operations Committee and Staff 11

Ways to Give 12

SPECIAL THANKS TO:

Charles Sefton Parr ........................................................designer

Ellen McBride ................................................................copywriter

Stephen M. Katz ...................................................photographer

P H Y S I C I A N S f o r P E A C EFebruary 29 - March 10, 2008Ho Chi Minh, VietnamFact Find

March 1 - 5, 2008Guatemala City, GuatemalaBurn Care Nurse Education and Burn

Care Surgery

March 22 - April 5, 2008Asmara, EritreaFoot and Ankle Surgery

March 24 - April 14, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Community Medicine and PICU

March 28 - April 7, 2008Kaduna, NigeriaVVF

March 5 - 8, 2008Panama City, PanamaBurn Care Fact Find

The Burn Care Program helps developing nations by providing burn surgery

education, burn nursing education, and the development of burn clinics.

Volunteers also provide didactic training in burn reconstructive surgery and

teach medical personnel the latest in treatment methodologies, including burn

garment education. This innovative training teaches local seamstresses to sew

burn compression garments, which greatly reduce scarring and skin contractures

during healing, at a cost of about 1/100th of the same treatment garments in the

U.S. Through the Burn Care Program, Physicians for Peace has improved the

health and well-being of thousands of burn victims around the world.

BURN CARE PROGRAM

h Reducing scars on the outside…and the inside.

Throughout much of the world, amputee victims of land mines, earthquakes,

motor vehicle accidents, industrial and agricultural accidents, birth defects,

disease, and war receive little or no medical treatment. Physicians for Peace

designed the Walking Free Program to help those who are suffering by

establishing sustainable prosthetic and rehabilitation centers in developing

nations. Efforts include prosthetic and orthotic production, clinical and academic

education programs, direct patient care, surgical and medical management, and

public education.

The Walking Free Program has had much success conducting dozens of

research, education, and training missions. Additionally, we have helped more

than ten thousand patients with prosthetic and orthotic needs, providing millions

of dollars in prosthetic and orthotic in-kind contributions, including rehabilitation

and surgical supplies and equipment.

WALKING FREE PROGRAM

h To some, freedom is as simple as walking.

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P H Y S I C I A N S f o r P E A C EMarch 6 - 19, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Pediatric Critical Care

March 9 - 16, 2008Guatemala City, GuatemalaDental Care

March 11 - 23, 2008Asmara, EritreaPartnership for Eritrea Faculty Rotation

/ Pediatrics

April 15 - May 10, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / GI and Nutrition

April 24 - 29, 2008Santo Domingo, Dominican RepublicWalking Free

April 30 - May 10, 2008Ramallah, West BankDiabetes Clinic and Cleft Surgery

The Physicians for Peace Dental Care Program works to enhance dental

faculty techniques, student skills, public dental clinic services, and preventive

education for indigent patients. Through direct patient care, the dental team

performs extractions and treats cavities and decay, as well as acute pulp

and acute occlusive diseases. They also give instruction in oral hygiene,

dietary counseling, cavity prevention, and oral cancer screenings. In addition

to patient care, the team provides lectures for the country’s local dentists,

bringing them updated techniques. The Dental Care Program has visited

Peru, Dominican Republic, Guatemala, Nicaragua, Philippines, and Vietnam.

DENTAL CARE PROGRAM

h A healthy mouth can lead to a healthy future.

Physicians for Peace conducts medical/surgical missions to address the

immediate clinical care needs of local populations where access to medical care

is limited or non-existent. While delivering hands-on patient care, our volunteers

also partner with local medical staff and teach and demonstrate new techniques

and procedures in areas where concepts like continuing medical education are

unknown. Our specialized surgery volunteer medical teams include cardiology, cleft

lip and cleft palate, plastic surgery, and limb reconstruction.

SPECIALIZED SURGICAL MISSIONS

h Creating a healthier future with care and education.

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P H Y S I C I A N S f o r P E A C EMay 10 - 17, 2008Diybarkir, TurkeyWalking Free

May 2 - 10, 2008Guatemala City, GuatemalaWalking Free

June 13 - 17, 2008Santiago, Dominican RepublicBurn Care Rehabilitation Training

June 18 - 22, 2008San José, Costa RicaBurn Care Rehabilitation Training

June 19 - 28, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Radiology

June 30 - July 4, 2008Kaduna, NigeriaVVF

Eritrea, a country with 4.9 million people, currently has just five pediatricians

and seven surgeons who serve the entire population. After declaring

independence from Ethiopia after three decades of war, a noticeable casualty of

the struggle has been the health care system, as most physicians fled for safety.

The Partnership for Eritrea is an innovative collaboration between Physicians

for Peace, The George Washington University Medical Center and the State of

Eritrea Ministry of Health. In existence for two years, the Partnership has developed

and implemented a graduate medical education program at the Orotta School

of Medicine in Eritrea’s capital, Asmara. Residency programs in pediatrics and

surgery were launched in January 2008, comprising the first-ever postgraduate

training programs in Eritrea. The first class of eight pediatric residents is

scheduled to graduate from the program December 2009. The Partnership

for Eritrea has also launched its OB/GYN Residency Program in collaboration

with Columbia University Department of Obstetrics and Gynecology, which will

ultimately decrease maternal and infant mortality as it trains physicians to give

the best possible perinatal care.

THE PARTNERSHIP FOR ERITREA

h Working together, we can better help those in need.

In the developing world, faced with a dire crisis in health care, the access to

vision care and treatment is often a low priority. Yet in most cases, a standard

vision exam and prescription glasses are all that is needed for a patient to see

clearly, often for the first time in his or her life. The Philippines is a perfect

example of a country facing this situation. Spread over 7,000 plus islands,

access to decent medical care is almost non-existent for a large percentage of

the population. When care is available, people may have to travel hundreds of

miles to receive it.

The Seeing Clearly Program created the first eyeglass bank in the Philippines

in 2004, and an optometry clinic in 2006. Through the program and facilities,

medical professionals are trained to use sophisticated equipment to determine

the prescription strength of donated eyeglasses and to provide comprehensive

eye exams to patients, who then receive either appropriate medical treatment

or a pair of prescription glasses.

SEEING CLEARLY PROGRAM

h We focus on vision care and offer the gift of sight.

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P H Y S I C I A N S f o r P E A C EJuly 14 - 20, 2008Manila, PhilippinesClinical Care

July 14 - 20, 2008Manila, PhilippinesWalking Free

August 10 - 16, 2008Moca, Dominican RepublicCleft Lip and Cleft Palate Surgery

August 10 - 16, 2008Santiago, Dominican RepublicBurn Care Rehabilitation Training

August 8 - 26, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Cardiology

August 8 - 30, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / GI

Physicians for Peace has partnered with volunteers to create an educational

training class focusing on midwives. Most often midwives are the primary

maternal health care providers in many of the countries where we work. The goal

of providing training for new or improved practices and techniques will result in

many mothers’ and babies’ lives saved. The Physicians for Peace volunteers teach

about issues dealing with abnormal labor, postpartum hemorrhage, eclampsia,

and basic neonatal life support.

Midwifery Program

The Resource Mothers Program, modeled on a Virginia-based initiative to

improve the health of expectant and new mothers and their babies, empowers

women in deprived and underserved neighborhoods in the developing world

to serve as mentors to pregnant

adolescents, helping them to

have safe pregnancies and

healthy babies. The program

was launched in November 2005

in Santo Domingo, Dominican

Republic, as “Madres Tutelares”

and has seen the births of

hundreds of healthy newborns.

Resource Mothers ProgramVVF and RVF (vesicovaginal fistula and rectovaginal fistula) are serious

complications of childbirth, where prolonged labor results in serious tissue

damage. The condition occurs more often in developing countries where women

become pregnant at a very young age. Their small pelvic size and lack of access

to proper medical care during childbirth results in the type of obstructed and

prolonged labor that causes VVF. Living with the effects of this condition can be

devastating; women are often shunned by their husbands, ostracized by their

families, and live as social outcasts with no way to support themselves.

Physicians for Peace VVF missions are designed to assist local hospitals with all

aspects of care for victims of this condition, from performing reconstructive surgeries,

to stocking hospital supply rooms, to providing job training to women during their

post-op recovery period so they can leave the hospital with hope for a new life.

VVF Surgery

Often saving the life of a newborn child is as simple as knowing what to

do. Prenatal and Neonatal Advanced Life Saving certification and training

for health care professionals is crucial in the developing world in order

to reduce infant mortality.

Physicians for Peace has sent

teaching missions to India,

covering a wide range of

pediatric techniques, from basic

hygiene and infection control

to IV therapy, developmental

care, and much more. This type

of knowledge can empower

one nurse to save countless

infant lives, as well as pass the

learning on to others.

Prenatal and Neonatal Advanced Life Saving Training

PALS/NALS Training

EVERY STORY IS FILLED WITH HEARTACHE AND HOPE. THROUGH THESE SPECIAL MATERNAL AND CHILD HEALTH PROGRAMS, PHYSICIANS FOR PEACE IS WORKING TO CREATE A MORE HEALTHFUL, HOPEFUL WORLD.

MATERNAL AND CHILD HEALTH PROGRAMS

h Every minute, another woman dies in childbirth. And every baby who lives grows up without a mother.

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P H Y S I C I A N S f o r P E A C E

Western East Asian European Near South Program Total Management Total Hemisphere African Pacific and Eurasian Eastern Asian Service Program and Supporting Expenses Affairs Affairs Affairs Affairs Affairs Affairs Support Expenses Fundraising General Services Total

In-kind donations $6,651,246 $1,969,583 $590,149 $ — $ — $300 $ — $9,211,278 $ — $ — $ — $9,211,278Donated services 227,875 558,230 37,078 15,232 74,720 63,290 — 976,425 — — — 976,425Salaries — — — — — — 188,065 188,065 264,565 261,014 525,579 713,644Travel 126,034 170,194 43,195 7,321 10,846 5,313 5,888 368,791 10,144 3,637 13,781 382,572Professional consultant 3,609 266,914 — — — — 56,850 327,373 42,582 590 43,172 370,545Strategic plan development — — — — — — 71,542 71,542 71,542 35,771 107,313 178,855Special events — — — — — — — — 143,244 — 143,244 143,244Office expenses 7,926 40,187 10,749 — — 110 10,765 69,737 3,335 47,921 51,256 120,993Fringe benefits and payroll taxes — 5,042 — — — 34,493 39,535 36,355 45,093 81,448 120,983Uncollectible pledge expense — — — — — — — — 110,000 — 110,000 110,000Fundraising tools — — — — — — — — 109,679 — 109,679 109,679Government relations — — — — — — — — 90,909 — 90,909 90,909Office rent — — — — — — 60,992 60,992 10,528 11,497 22,025 83,017Postage/freight 4,111 19,351 7,754 77 80 135 35,373 66,881 304 3,526 3,830 70,711Contract labor 52,312 9,000 — — — (576) 60,736 291 8,117 8,408 69,144Investment expense — — — — — — — — — 58,700 58,700 58,700Collateral materials — — — — — — — — 54,435 — 54,435 54,435Payroll taxes — — — — — — 14,387 14,387 19,904 19,883 39,787 54,174Mission support 3,200 469 — — — — 22,100 25,769 7,908 — 7,908 33,677Warehouse rent/utilities — — — — — — 31,624 31,624 — — — 31,624General insurance — — — — — — 14,715 14,715 — 9,522 9,522 24,237Professional fees — — — — — — — — — 22,280 22,280 22,280Depreciation expense — — — — — — — — — 19,954 19,954 19,954Equipment lease — — — — — — — — — 19,900 19,900 19,900Trustee expense — — — — — — — — — 17,498 17,498 17,498Public relations — — — — — — — — 16,061 — 16,061 16,061Warehouse support — — 195 — — — 9,841 10,036 — — — 10,036Education 750 3,500 — — — — 2,933 7,183 307 2,211 2,518 9,701Repairs and maintenance — — — — — — — — — 7,603 7,603 7,603Advertising/promotions — — — — — — — — 5,475 246 5,721 5,721Direct mail appeal — — — — — — — — 4,568 — 4,568 4,568Dues and subscriptions — — — — — — 45 45 — 3,788 3,788 3,833Medical supplies 846 982 — — — 347 221 2,396 — — — 2,396In-Kind other 1,321 115 707 — — — — 2,143 — — — 2,143Gifts and flowers 343 141 — — — — — 484 106 1,225 1,331 1,815Taxes and licenses — — — — — — 258 258 — — — 258

$7,079,573 $3,034,708 $698,827 $22,630 $85,646 $69,495 $559,516 $11,550,395 $1,002,242 $599,976 $1,602,218 $13,152,613

Year Ended December 31, 2008

STATEMENT OF h Functional Expenses

September 5 - 21, 2008Asmara, EritreaFoot and Ankle Surgery

September 21 - 28, 2008Tegucigalpa, HondurasPlastic Surgery

September 22 - October 4, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Community Medicine

September 24 - October 1, 2008Santiago and Santo Domingo,

Dominican RepublicWalking Free

September 29 - October 3, 2008San Pedro Sula, HondurasBurn Care Fact Find

October 10 - 24, 2008Asmara, EritreaMulti Specialty

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P H Y S I C I A N S f o r P E A C E

CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $(2,791,711) Adjustments to reconcile to cash from operating activities: Depreciation 19,954 Net realized and unrealized gains on investments 3,226,438 Reinvested interest and dividends (364,124) Uncollectible pledge expense 110,000 Change in: Contributions receivable (37,407) Interest receivable 1,184 Inventory (1,468,112) Security deposits (5,845) Accounts payable and accrued expenses 74,433 Net cash from operating activities (1,235,190)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of furniture and equipment (7,679) Proceeds from sale of investments 7,454,223 Purchase of investments (5,989,674) Net cash from investing activities 1,456,870

Net change in cash and cash equivalents 221,680

Cash and cash equivalents - beginning of year 645,154

Cash and cash equivalents - end of year $866,834

Year Ended December 31, 2008

STATEMENT OF h Cash Flow

Year Ended December 31, 2008

STATEMENT OF h Financial Position

Year Ended December 31, 2008

STATEMENT OF h Activities

Year Ended December 31, 2008

STATEMENT OF h Changes in Net Assets

Temporarily Permanently Unrestricted Restricted Restricted Total

Net assets - December 31, 2007 $13,061,110 $994,947 $260,000 $14,316,057Change in net assets (2,398,680) (393,031) — (2,791,711)

Net assets - December 31, 2008 $10,662,430 $601,916 $260,000 $11,524,346

Temporarily Permanently Unrestricted Restricted Restricted Total

PUBLIC SUPPORT, REVENUE, AND OTHER INCOME In-kind contributions - supplies $10,679,390 $ — $ — $10,679,390 Contributions 891,441 381,464 — 1,272,905 In-kind contributions - services and other 987,269 — — 987,269 Investment income 367,907 — — 367,907 Special events revenue 279,869 — — 279,869 Realized and unrealized investment gains (losses) (3,226,438) — — (3,226,438) Net assets released from restrictions 774,495 (774,495) — —Total public support, revenue and other income 10,753,933 (393,031) — 10,360,902

EXPENSES Program Services Western Hemisphere Affairs 7,079,573 — — 7,079,573 African Affairs 3,034,708 — — 3,034,708 East Asian Pacific Affairs 698,827 — — 698,827 Program service support 559,516 — — 559,516 Near Eastern Affairs 85,646 — — 85,646 South Asian Affairs 69,495 — — 69,495 European and Eurasian Affairs 22,630 — — 22,630 Total program services 11,550,395 — — 11,550,395

Supporting Services Fundraising 1,002,242 — — 1,002,242 Management and General 599,976 — — 599,976 Total supporting services 1,602,218 — — 1,602,218

Total Expenses 13,152,613 — — 13,152,613

Change in net assets $(2,398,680) $(393,031) $ — $(2,791,711)

ASSETSCurrent assets Cash and cash equivalents $866,834 Contribution receivable 25,769 Interest receivable 21,498 Inventory 3,465,911 Total current assets 4,380,012

Furniture and equipment - net 32,367Investments 7,157,653Contributions receivable 61,758Deposits 7,172

$11,638,962

LIABILITIES AND NET ASSETSLiabilities Accounts payable and accrued expenses $114,616

Net Assets Unrestricted 3,764,777 Unrestricted - board designated 6,897,653 Temporarily restricted 601,916 Permanently restricted 260,000 Total current assets 11,524,346

$11,638,962

October 4 - 12, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Faculty Development

October 4 - 19, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Nephrology

October 7 - 24, 2008Asmara, EritreaPartnership for Eritrea Surgical Faculty

Rotation / Pharmacology

November 1 - 15, 2008Asmara, EritreaPartnership for Eritrea Surgical Faculty

Rotation / Vascular surgery

November 1 - 8, 2008Santiago, Dominican RepublicClinical Care - Pediatric Urology

November 3 - 9, 2008Amman, JordanWalking Free

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P H Y S I C I A N S f o r P E A C E

Executive Committee

CHAIRMANEdward A. Heidt, Jr.

President and CEOThe PENROD CompanyVirginia Beach, VA

FIRST VICE CHAIRMAN AND CHIEF MEDICAL OFFICEREdward H. Karotkin, M.D.

Co-Chair, Physicians for Peace Medical Operations Committee

Professor of PediatricsEastern Virginia Medical SchoolDivision of Neonatal-Perinatal MedicineChildren’s Hospital of The King’s

DaughtersNorfolk, VA

SECOND VICE CHAIRMANDonald S. Buckley, M.H.A., Ph.D., LFACHE

Co-Chair, Physicians for Peace Medical Operations Committee

Chesapeake, VA

TREASURERHarold J. Bernsen, RADM, USN (Ret.)

Virginia Beach, VA

SECRETARYEdward L. Lilly, M.D., F.A.C.P.

Chairman, Physicians for Peace Governance Committee

Norfolk, VA

MEMBER-AT-LARGE1 Juan M. Montero, II, M.D., F.A.C.S.

Chesapeake, VA

MEMBER-AT-LARGE1 Nancy H. Nusbaum

Norfolk, VA

Trustees

2 Richard AustinKPMG LLPNorfolk, VA

Bernard M. Barrett, Jr., M.D., F.A.C.S.

Clinical Professor of SurgeryBaylor College of MedicineHouston, TX

2 John R. BroderickPresidentOld Dominion UniversityNorfolk, VA

Bonnie P. BryantIrvington, VA

Anthony A. Caldamone, M.D., F.A.C.S.Director, Urology Residency ProgramThe Warren Alpert Medical School of

Brown UniversityChief of Pediatric UrologyHasbro Children’s HospitalProvidence, RI

2 Kathleen M. Casey, M.D., F.A.C.S.Director, Operation Giving BackAmerican College of SurgeonsChicago, IL

Catherine C. ColganVirginia Beach, VA

J. Morgan DavisPresident and CEOTowne Financial Services GroupVirginia Beach, VA

David M. Delpierre, J.D.Chair of Mergers, Acquisitions &

Strategic AlliancesKaufman & CanolesNorfolk, VA

Thomas J. Gampper, M.D. Vice ChairDepartment of Plastic SurgeryUniversity of Virginia School of MedicineCharlottesville, VA

Allan Irving Goldberg, M.D.Executive Director, Scientific AffairsMerck and Co., Inc.North Wales, PA

2 Doris S. Greiner, RN, Ph.D.Associate Professor of NursingDepartment of Family, Community &

Mental Health SystemsUniversity of Virginia School of NursingCharlottesville, VA

2 Atul Grover, M.D., Ph.D. Chief Advocacy OfficerAssociation of American Medical

CollegesWashington, DC

2 Charles E. Horton Jr., M.D., F.A.C.S.Children’s Surgical Specialty GroupChildren’s Hospital of The King’s

DaughtersNorfolk, VA

1 E. Ralph HostetterNorth East, MD

Jayne T. KeithNew York, NY

Raymond F. Morgan, M.D., F.A.C.S.ChairDepartment of Plastic and Maxillofacial

Surgery University of Virginia Medical School Charlottesville, VA

1 Eid B. Mustafa, M.D., F.A.C.S.Plastic Surgery CenterWichita Falls, TX

2 Charles E. PennMedia/Community Relations ManagerDominion Resources Services, Inc.Norfolk, VA

Willcox Ruffin, Jr., M.D., F.A.C.S.Norfolk, VA

1 Warren E. Sachs, D.D.S.Drs. Lefcoe, Weinstein, Sachs, Schiff &

AssociatesVirginia Beach, VA

2 Hemang H. Shah, M.D.Tidewater Neurologist and Sleep

SpecialistsPortsmouth, VA

Kevin L. Smith, M.D., F.A.C.S.Charlotte Plastic Surgery Charlotte, NC

Hon. Barclay C. WinnNorfolk City CouncilChief Executive OfficerWinn Nursery of VA, Inc.Norfolk, VA

Honorary Trustees

† Frank Batten Chairman & CEO (ret.)Landmark CommunicationsNorfolk, VA

Amb. Edward P. Djerejian Director, James A. Baker, III Institute for

Public PolicyRice University Houston, TX

Joseph E. Murray, M.D., F.A.C.S., F.R.C.S.Nobel Laureate Professor of Surgery EmeritusHarvard Medical SchoolWellesley Hills, MA

Trustees Emeritus

Max C. Chapman Jr. ChairmanGardner Capital Management Corp.New York, NY

Benjamin G. Cottrell VPresidentCottrell Contracting CorporationChesapeake, VA

Jo Ann Davis Chapel Hill, NC

Robert H. Dennis II, M.D., F.A.C.S.Washington, DC

John F. HusseyPresidentThe Communications AllianceCharleston, SC

Donald R. Laub, M.D., F.A.C.S.Redwood City, CA

R. Barrett Noone, M.D., F.A.C.S. Executive DirectorThe American Board of Plastic SurgeryBryn Mawr, PA

Adelia E. Robertson, R.N. (Pat)Virginia Beach, VA

Jane W. Smith Easton, MD

Robert T. TaylorPresidentBob and Margo Taylor FoundationPresidentTaylor Real Estate, Inc.Norfolk, VA

Ex-Officio

Namik K. Baran, M.D.Chairman, Physicians for Peace

International Board of GovernorsAnkara, Turkey

Nancy R. HusseyChairman, Physicians for Peace Gifts-In-

Kind CommitteeCharleston, SC

January 2008 – October 2009

COMMITTED TO CREATING A BETTER WORLD: h Physicians for Peace Board of Trustees

* Executive Committee

The members of the Physicians for Peace Board of Trustees share a passionate commitment to the development of world peace and international goodwill through quality medical education and care. We are deeply indebted to this devoted group of volunteers for their unselfish dedication.

1 Until October 3, 2009 2 New Trustee, effective October 3, 2009 † Deceased

November 4 - 15, 2008Nagpur, IndiaNALS/PALS Nurse Education

November 7 - 22, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation / Community Medicine and PICU

December 13 - 19, 2008San Jose, Costa RicaBurn Care Nurse Education

December 14 - 19, 2008San Jose, Costa RicaBurn Care Psych Assessment

December 17 - 20, 2008Port au Prince, HaitiSeeing Clearly

December 29 - January 16, 2009Asmara, EritreaPartnership for Eritrea Surgical Faculty

Rotation

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P H Y S I C I A N S f o r P E A C E

Co-Chair and Chief Medical OfficerEdward Karotkin, M.D.

Virginia Beach, VA

Co-ChairDonald S. Buckley, M.H.A., Ph.D.,

LFACHEChesapeake, VA

Frances Butterfoss, Ph.D., M.S.Ed., R.N.Yorktown, VA

Anthony Caldamone, M.D., M.S., F.A.C.S., F.A.A.P.Providence, RI

Lisa Casanova, M.D.Newport News, VA

Raouf Gharbo, .DO., F.A.A.P.M. & R., F.A.A.E.M.Newport News VA

Allan Goldberg, M.D.North Wales, PA

Charles E. Horton Jr., M.D.Norfolk, VA

Jason Houser, J.D.Newport News, Virginia

1 Nancy Hussey Charleston, SC

John Knight, M.P.H.Portsmouth, VA

1 Caroline Martin, R.N., M.H.A.Suffolk, VA

1 LaVern MorrisNorfolk, Virginia

Edward Oldfield, III, M.D.Norfolk, VA

Pinar PolatNorfolk, VA

John Robb, C.P.O.Newport News, VA

Diane Strout, R.N., B.S.N., C.N.O.R., R.N.F.A.Chesapeake, VA

Administration

Ronald T. Sconyers, BG, (USAF, Ret.)President and Chief Executive Officer

Jane FogeExecutive Assistant to the President and

CEO and Office Manager

Marketing and Development

Shannon D.S. Kane Senior Director, Development &

Communications

Sharon D. GabrielDevelopment Officer

Laurie D. HarrisonDevelopment Officer, Event Planning

Samuel W. HillDevelopment Officer

Katherine Cohee TaylorCommunications & Marketing Officer

Marlowe D’OrianoMarketing Manager

Financial and Human Resources

Shelly A. FlinnDirector, Financial Management

Cheryl M. WearingDevelopment and Human Resources

Manager

Medical Operations

Mary M. Kwasniewski Senior Director, Global Health Programs

Susan Carroll Palmer, CAEDirector, Global Health Programs and

Volunteer Development

Kenneth R. Hudson Manager, Gifts in Kind

Eboni N. WashingtonCoordinator, Global Health Programs and

Technology Management

International Representatives

Lyne Abanilla Director, The Philippines

Ramón López, M.D.Director, The Americas

Haile Mezghebe, M.D.Director, Post Graduate Medical Education, Eritrea

MAKING IT HAPPEN: h Physicians for PeaceMedical Operations Committee

The Physicians for Peace Medical Operations Committee is comprised of a broad spectrum of professionals lending their expertise to the oversight of our medical programs, our missions and our volunteers. We thank them for the insight and guidance they provide in carrying out our most important activities. They are truly the heart and soul of our organization.

1 Until September 30, 2009

SUCCESSFULLY IMPROVING LIVES: h Physicians for Peace Staff

In their role as coordinators and managers of our medical programs and missions, the Physicians for Peace staff are crucial to our success worldwide. Their talents add immeasurably to our effectiveness and their enthusiasm speaks volumes about the rewards of working for a humanitarian organization. We wholeheartedly thank them.

December 5 - 28, 2008Asmara, EritreaPartnership for Eritrea Pediatric

Faculty Rotation

December 7 - 13, 2008Tegucigalpa, HondurasBurn Care Nurse Education

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P H Y S I C I A N S f o r P E A C E

WAYS TO GIVE h How You Can Mean the World to Someone in Need

For five consecutive years, Charity Navigator, the nation’s premier charity evaluator, has awarded Physicians for Peace a four-star rating - their highest honor. Ranking in the top 5% of nearly 5,000 rated charities, Physicians for Peace has again shown our supporters that our organization is truly worthy of their ongoing trust and commitment. We invite you to contribute to our healing work. With your help – and only with your help – we will continue to bring healing and increase access to quality health care throughout the developing world.

1 Donate online at www.physiciansforpeace.org

2 Mail your donation (Payable to: Physicians for Peace) to: Physicians for Peace229 West Bute Street, Suite 200Norfolk, VA 23510

3 Host a Party – Gather your friends and family and host a party for Physicians for Peace. Wine and cheese, dinner, cocktails, an international-themed affair -– put your style into it, invite your friends, have fun -– funds collected can then be turned over to Physicians for Peace to help combat the global health crisis.

4 Become a Partner for Peace – Join Partners for Peace, a monthly giving program to support the vital missions of Physicians for Peace. Levels starting at as little as $15 a month can mean a world of difference to those we serve. Visit us on the Web at www.physiciansforpeace.org.

5 Matched Gifts – Many companies offer programs that match your contribution to non-profit organizations. Check with your company to see if it is a “Matching Gift Company”; your $1 can turn into $2 with a simple form.

6 Give in Tribute – Make a special, personal contribution by donating in honor of a loved one or in celebration of a special occasion.

7 Leave a Legacy – Planned gifts made as bequests, annuities, or trusts allow you to support the worldwide efforts of Physicians for Peace while enjoying favorable tax considerations or lifetime income.

8 Stock Donations – If you have shares of stock that you would like to donate, please call 757.625.7569 and ask for our Financial & Resource Management Director.

9 Gifts-In-Kind – Donations of medical supplies and equipment are greatly valued. To make a donation, please call 757.625.7569 and ask for our Gifts-in-Kind Coordinator.

All donations are absolutely and completely confidential. Physicians for Peace will not sell or trade your personal information

to any other entity in existence without your written permission. If you have any questions, please contact the Development Department

at 757.625.7569 or e-mail [email protected].

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P H Y S I C I A N S f o r P E A C E

Through you, we bring

compassion to those who may know only fear.

When you offer your help, it means a mother can live to raise her baby. It means a father can walk into the arms of his family. It means a boy can chew without pain.It means a grandmother can see her grandchild smile. It means a nurse can teach others in her country life-saving lessons. It means a child can grow up in a more peaceful country.

IT m e a n s THE WORLD.Plea se . He lp u s h e l p o ther s .

We bring hope to eyes filled with sorrow.

We bring a

future to children who deserve to grow up healthy and happy.

w w w . p h y s i c i a n s f o r p e a c e . o r g

w w w . p h y s i c i a n s f o r p e a c e . o r g

physicians for peace229 West Bute Street, Suite 200

Norfolk, VA 23510

ph: 757.625.7569fx: 757.625.7680

em: [email protected]

All photos © 2009 by Stephen M. Katz for Physicians for Peace

“ ”our mission

Through education and training, we work to increase the medical capability of underserved nations, thereby improving lives, and serve as an inspiration and model

for better relations among nations to empower people to develop to their full potential.