dāna asia · dāna asia helping invest equitably in asia 4 Social Business and Microfinance The...

dānaasiahelpinginvestequitablyinasia

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dāna(Pali,Sanskritdāna)isgenerosityorGiving.InotherAsiancultures,itisalsothepracticeofcultivatinggenerosity

AnnualReview2014


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TableofContents

CEO’sMessage 3

OperationalFocusandGovernance 7

WhereWeWork 8

KeyPrograms 9

CaseStudies 10

OurBoard 11

OurPartners 12


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CEO’sMessage

InearlyMayIwitnessedthegrouptrainingsessionsinpreparationforthereleaseofthefirst10loansforourgraduatesofthemicro-financeprogramatourLivestockTrainingCentrenearSiemReap.TheywillstartraisingchickensontheirownlandafterhavinggraduatedfromDanaAsia'ssponsoredtrainingprogram.Iwashumbledbythedeterminationofthese8womenand2men.Therealworldwillstillprovidecontinuingchallengesforthem,buttheywillnolongerscavengeforrubbish.Insteadtheywillbecomeentrepreneurswiththeirownbusinessestorun,withtheirfocusonmeetingtheirfamilyfinancialneeds.Ourresponsibilityistocontinuetoadvisethemingoodanimalhusbandryandtoprovidethemwithagoodmarketpricefortheirbirds.

OurMissionDanaAsia’smissionistocombinesocialbusinessandmicrofinancewitheducationandtrainingtoovercomepovertyinsomeofAsia’smostdisadvantaged

communities.Wewanttobechangemakerstohelptransformthephilanthropicparadigm.Wearecommittedtopartneringwithourdonorsandsocialinvestorstodevelopprojectsthatproducelong-termsustainablechangeforboththeindividualbeneficiariesandtheirfamilies,andtheirbroadercommunities.InordertofacilitatethisprocessinMarch2014weformedaformalalliancewithGrameenAustraliatowidenourimpactstillfurtherbyincludingAustraliandonorsinourserviceandprovidingthemwithtaxdeductibilityontheirdonations.

2013/14Achievements2013/14hasbeenayearofsignificantdevelopmentforDanaAsiaaswemovedforwardwithimplementationofsomekeyprojects.WehaveactivelypartneredwithourgenerousphilanthropiststoensurefundingofUS$2,270,000todriveinnovationforlong-termandsustainablepovertyeradicationinAsia.IndoingsowehavespentjustUS$164,000onourowncosts.Ourcostsareintentionallykepttoaminimum.Wewanttoensuremaximumfundsgotothecommunitieswherewework.Wecontinuouslystrivetowardsgreaterefficienciessowecaneradicatepovertyforeveronepersonandonecommunityatatime.


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SocialBusinessandMicrofinanceThemergingofsocialandcommunityneedforeconomicempowermentwithbusinessprinciplesunderpinsthedevelopmentofsocialbusinesses.Thesebusinessesaimtoovercomepovertythroughthegenerationofnewjobsforthepoorestpeoplewithallprofitsinvestedbackintothebusinesss

formaximumsocialbenefit.Microfinanceisanimportantelementinourdevelopmentmodeltoensurelong-termincomesecurityforbeneficiariesandtheirfamilies.Small,non-collateral,lowinterestloansprovidebeneficiarieswiththeopportunitytoapplytheskillslearntthroughparticipationinourprogramstosecuretheirincomethroughthedevelopmentoftheirownmicroandsmallbusinesses.TothisendDanaAsiahasoverseenthefoundingofanewmicro-financeInstitutioninthePhilippines.

EducationEducationunderpinsourphilosophyofchange,asitisthroughaccesstoeducationthatpeoplecangainthecapacitytochangetheirownlives.Familiessufferingfromdisadvantageandextremepovertyarepredominantlyhighly

motivatedtochangetheircircumstancesasamplydemonstratedbythedistancestheytravelandtheriskstheytaketoaccessincome.However,beingbornintoadifficultsituationresultsinalackofskillsandself-confidence,whichlimitstheirabilitytoaccessallbutthepoorestandmosthigh-risksourcesofemploymentsuchasscavenging,construction,fishingandfactoryworkofteninverypoorenvironmentsandatridiculouslylowwages.

EducationSnapshot

US$550,000offundingfor:

• SchoolConstruction,Furniture,

PlaygroundEquipmentand

MaintenanceProgramhas

providedqualityeducation

facilitiesformorethan1,200

students • EducationalProgramsand

Equipmenttosupportmore

than1,600students • 12UniversityScholarships • VocationalTrainingProgram

formorethan230students

SocialBusinessandMicrofinanceSnapshot

AutomechanicWorkshop&Training

Centre,Dhaka–US$1.15mcreating

employmentfor200disadvantaged

youthperyear ChickenTrainingCenter,Cambodia–

US$250,500tosupportupto55

beneficiariestoceasescavengingatthe

localdumpsite Microfinance&SocialBusinessHub,

Manila–US$180,000toprovideeducation,mentoringandmicrofinance

toupto1,200womenandtheirfamilies

overaninitial3years

IncomeGenerationProgram,Cambodia

–US$65,000formicrofinanceloansto

534membersincluding490femalesto

developsmallbusinessestosecuretheir

long-termincome


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Educationisthefirststepforallourbeneficiaries,astheyarerequiredtocompletehigh-qualitytrainingcoursesbeforetheyareabletoaccessincomethroughparticipationinoursocialbusinessandmicrofinanceprograms.However,werecognisethatinitialtrainingaloneisnotsufficienttoensurethelong-termsuccessofourbeneficiaries’activitiessoongoingmentoringisprovidedtoguidetheiractivitiestowardslong-termfinancialsecurity.ThisisakeypointofdifferentiationbetweenouractivitiesandthoseofmanyNGOs’whoseprioritiescontinuallychangeandprogramsareoftenlefttoflounder,asaretheirbeneficiaries,throughinadequatelong-termmanagement

Oureducationactivitiesnotonlysupportouradultbeneficiariestosecuretheirfuturesthroughthedevelopmentofstablelong-termincome,wealsosupportchildrenandyouth.Wefundeducationalsupportprograms,schoolconstruction,universityscholarshipsandvocationalskillstraining.Theseprogramsensurefamiliesmiredinpovertyreceivetheeducationandsupporttheyneedtofulfiltheirpotential.Wealsoensuretheyhaveaccesstoqualityfoodandmedicine.

OtherSupportProgramsGoodhealthisanotheressentialelementforbeneficiariestoensuretheyareabletoescapepoverty,aseffectiveworkisimpossibleforthemalnourished.Poorhealthatayoungagestuntsgrowthandintellectualcapacityandlimitstheabilitytogeneratestableregularincome.Asaresult,DanaAsiahasgrantedUS$100,000tosupportanumberofhealthprogramsincludingbothaMaternalCareProgramandanOutreachProgramprovidinghealthandcounsellingfordumpsitescavengers.

Inotherinitiatives,wehelpedayoungeconomicsstudentwithanurgentlyneededheartoperation.Andweprovidedanartificialeyetooneofourapprenticeswhohadlostoneeyeduetoanaccident.

Ourprojectsaimalwaystoprovideessentialguidancetowardsindependenceforbeneficiarieslivinginsomeofthemostpoverty-strickenanddeprivedcommunitiesinBangladesh,Cambodia,Laos,Myanmar,thePhilippinesandThailand.Integraltotheeffectivenessofouractivitiesisoursmallteamthatisdedicatedtoourmission.Theyhavewide-rangingexperienceindevelopingphilanthropicstrategiesthatincorporatedonorpassionswithgenuineneed.IthanktheteamfortheirpassionandcommitmenttotheworkofDanaAsiaoverthepastyear.


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TheYearAheadDanaAsiaisparticularlydelightedaboutthecollaborationwithGrameenAustralia,anditssupportinthedeliveryofground-breakingsocialbusinessandmicrofinanceprogramsthatareempoweringbeneficiariestochangetheirlivesandthelivesoftheirfamiliespermanently.GrameenisaNobelPrizewiningorganisationandthegloballeaderinthedevelopmentofsocialbusinessesandmicrofinanceprojectswithaspecificfocusoneducation,trainingandmentoring.Thecomingyearwillbeanotherexcitingoneasourkeyprojectsmoveintonewphasesthatwillexpandourreachintothemostneedycommunities,thereby

ensuringweareempoweringmorepovertystrickenanddisadvantagedcommunitieswiththeskillsandopportunitytosecureabrighterfuturewithoutpoverty.

DuncanPower(ExecutiveDirector)

SocialBusiness

48%

Microfinance25%

Health4%

Education23%

GrantMakingbyCategory

Bangladesh50%

Cambodia22%

Laos3%

Myanmar3%

Philippines8%

Thailand14%

GrantMakingbyCountry

KeyStatistics 2012/13 2013/14DanaAsiaCosts US$172,300 US$164,000FundsLeveragedtoProjects US$2,300,000 US$2,270,000LeverageRatio 13.4:1 13.8:1FundstoProjects 92.5% 92.8%BeneficiariesAssisted 5,600 5,450


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OperationalFocusandGovernanceInthedevelopmentanddeliveryofallourprograms,impactandsustainabilityareourprimaryfocustoensurelivesarechangedpermanently.Wecompletethoroughassessments,duediligenceandfinancialauditsonallprograms,includingsitevisits,discussionswithbeneficiariesandmeetingswithlocalimplementationpartners,toensuretheeffectiveapplicationofgrantfunds.

Corporategovernanceandrobustfinancialandadministrationsystemsunderpinallouractivitiestoensurewealignwiththelatestinternationalbest-practiceinitiatives.WeworkcloselywithregulatoryandNGOauthoritiesinourjurisdictionstoensurewealignwithallrequirements.AttimesDanaAsiahascashthatissurplustoitsoperationalrequirements.Atthecurrenttimethismoneyisinvestedinsavingsaccountswithaninternationallyrecognisedbank.MichelleSawyer(DirectorofOperations)

‘Thepoorthemselvescancreateapoverty-freeworld…allwehavetodoistofreethemfromthechainstheythatwehaveputaround

them’

ProfessorMuhammadYunus,NobelPeaceLaureateandFounderoftheGrameenBank


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WhereWeWork

Themostpoverty-strickenanddisadvantagedcommunitiesinthepoorestregionsandcommunitiesofSoutheastAsiaarethefocusofDanaAsia’swork.

Weformmeaningfulpartnershipswithourdonors,beneficiariesanddeliverypartnerstoensureallourprogramsarewelltargetedandhighlyeffective.

Ourmotivationistoimplementground-breakingprojectsthatprovidereal,long-termandsustainablesolutionstoovercomepoverty.

Projects

SocialBusinesses

Bangladesh• AutoMechanicTrainingCollegeand

Workshop,Dhaka

Cambodia• KhmerJapanChickenTrainingCentre,Siem

Reap

Philippines• MicrofinanceBusinessSchool,Manila

Microfinance

Cambodia• IncomeGenerationPrograms,SiemReap

Health

Cambodia• MaternalCareProgram,PhnomPenh

Education

Cambodia• KaliyanMith,SiemReap

• SreKandal,OddarMeanchey

Laos• BungKaew,Champasak

• UniversityScholarshipProgram

Myanmar• UYinLayKyaungMonasticSchool,Sagaing

Thailand• Children’sDevelopmentCentre,MaeSot

• FoundationforEducation&Development,Phuket

• MinmahawEducation&University

ScholarshipPrograms,MaeSot

• YouthConnect,MaeSot

KeyPrograms

DanaAsia’sMissionistoempowerpoorpeopletoclimboutofpovertythroughthedevelopmentofinnovativeandscalableprogramswithaparticularfocusonSocialBusinessprojectsandMicrofinanceinitiativesthatareunderpinnedbytheGrameenSevenPrinciplesofSocialBusiness.DanaAsia’spriorityistoworkwherearealdifferencecanbemadetothelivesofthoseingreatestneed.

OurKeyProjects

Microfinance&SocialBusinessHub,Manila• Hubprovidingeducationandongoingmentoringto

upto1,200ofthe‘poorestofthepoor’urbanslum

dwellers

• PotentialborrowersmustcompleteabusinesstrainingcoursedevelopedinconjunctionwithPwC

Manila,priortothereleaseofloanstoestablish

micro-businesses

• Leadingentrepreneurswillreceivesupporttowardsthedevelopmentof5-10socialbusinessesinPhase1

AutoMechanicCollegeandWorkshop,Dhaka• Developmentofatrainingcollegeforupto200studentsper

yearfromdeprivedandverypoorrural/urbanbackgrounds

• FocuswillbeonbestpracticetoensurequalitytrainingandhighWorkshopmargins

• WorkshopIncometopaystudentfeestoensurelongertemsustainability

PhnomdeiK.J.LivestockTrainingCentre,SiemReap• EstablishmentofaChickenFarmnearthelocaldumpsiteto

providealternativeincomeforupto80scavengersvia

comprehensivetrainingandhands-onexperience

• Flocksizeiscurrently2,000andwillreach10,000inthe

mediumtermatwhichpointtheCentrewillachievebreak-

even

• KhmerFree-RangeChickensrearedtobesoldasmeatandeggstosatisfyhighdemandfrommiddle/upperclassKhmers

• DevelopmentofhighqualitychickentasteandtexturehasresultedinstrongdemandfortheCentre’schickensand

eggs,ensuringpricesarewellaboveaveragelevels.


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CaseStudies

SAL(17yearsold)Ayounggirlwhohasbeenbadly

abusedbyherfatherandonlyoneeye

duetoanaccidentwhenshewas8

yearsold.ShefinishedGrade5andcan

onlyreadandwritealittle.Sheistheoldestchildwithsixbrothersand

sisters.

ThoySalandher40-year-oldmother

aretheprimaryincomeearners,asher

40-year-oldfatherlosthislegtoamine

inthewarandisanalcoholic.Dumpsite

scavengingonlygeneratesincomeof

200,000-300,000rielspermonth

(US$50-75).

SaljoinedtheCentreinApril2014when

itwasestablished,toescapethe

violenceofherfatherbyestablishing

herownincomegeneratingbusiness

rearingchickens.Salhasdemonstrated

continuedcommitmentand

determinationtolearnandapplyher

skillseffectivelytogrowherflockand

increaseherincome.

InJanuary2014theCentretookherto

thePhnomPenhEyeHospitaland

organisedanewartificialeyeforher.Withthefinancialassistancesecured

byDanaAsiashehasnowgonebackto

schoolpart-timeandalsoworkspart-

timeasanapprenticeattheCentre.

RagMakingSocialBusinessArinaivillageisapoorcommunityinthe

flood-pronelakesidecommunityof

TaytayineasternManila.Theareais

partoftheclothingfactorydistrict

wherehighvolumesofexcesstextilesaredisposed.Nearbycommunities

purchasesmallamountsofthese

remnantstorecycleintoragsthatare

usedascleaningragsinfactories,

buildingsandotherindustries.

25womenfromthecommunityhave

participatedintheMicrofinancePilot

Programin2012andusedtheirloansto

makeragsfromthefabricoff-cuts.The

womenearnapproximatelyUS$3.00

perdayfromragmakingbutrequire

US$5.00perdaytoprovidebasic

essentialsforthefamilies.

TheMicrofinanceandBusinessHubin

Manilahasidentifiedthecommunityas

onewiththepotentialtoexpandintoa

SocialBusiness.Thewomenwillreceive

educationandbusinessskillstraining,

andmicrofinanceloanstoestablisha

cooperativetopurchaseexcesstextiles

inbulkatalowerpricethereby

increasingthemarginonragsales.Over

themediumtermthewomenaimto

expandtheirproductionintochildren’s

apparelandotherhouseholditems.


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OurBoard

JulieWhiteWithmorethan30yearsexperienceinboththenot-for-profitandcorporatesectors–includingnineyearsastheHeadoftheMacquarieGroupFoundation–Juliehashelpedbuildnumerousbusinesscommunitypartnerships,basedonadetailedunderstandingoftheoftencompetingrequirementsofthetwosectors.JuliewastheinauguralChiefExecutiveofChiefExecutiveWomen,ChairoftheCoca-ColaFoundationandpreviouslyglobalheadoftheMacquarieBankFoundation.

PeterHuntOneoftheoriginalfoundersandChairofGreenhillAustralia,a

leadingAustraliancorporateadvisoryfirm.ChairoftheFairfaxFamilyOffice,ChairofSoTheyCan(EastAfricanCharity),atrusteeoftheAnindilyakwaIndigenousMiningTrustandadirectorandfounderofWomen’sCommunityShelters.

NasirHajiNasiristheManagingPartnerofamajorShippingCompanyinSouth-EastAsia.HewasborninKashmirIndia,butisnowbasedinSingaporeandisaSingaporeancitizen.Nasiralsohasinterestsinrestaurantsandmining.Nasirleadsafamilycharitytrustthatisrunning3SchoolsinaveryremoteareaofKashmir

ChrisBreachChrisisawell-recognisedpropertyprofessionalwithover35yearsexperience.ChriswasemployedbyMacquarieAssetServiceswithinMacquarieBankfor17yearsandwasresponsibleforacquisitionandmanagementoftheportfoliosofpropertiesin

thedifferentMacquarieTrusts.ChriswasthefoundingChairofCharitiesAidFoundation(CAF),andheldtheroleforover10years.CAFraisedandmanagedover$100millionforphilanthropicprojectsinAustraliaandAsia.


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OurPartners

GrameenAustraliaGrameenAustralia'svisionistohelpcommunitiesto

applybestpracticebusinessprinciplestohelpthe

pooroutofpovertyindevelopingcountries.The

organisation’smissionistopromoteanddelivermicrofinanceprogramsandsocial

businessesthroughbothdirectinvolvementandadvicetopartnersoncreativeprogram

delivery.GrameenAustraliaservicesinclude:1. DevelopingandOperatingMicrofinanceProgramsthatarecarefullygeared

towardsbenefitingthepoorestandmostdeprived.2. SocialBusinessAdvisoryServicebasedontheadvancedexperienceofstaff

andadvisorsbuiltupovermanyyears.

CambodianChildren’sFund Foundedin2004,CambodianChildren’sFundprovideslife-

changingeducation,nourishmentandhealingtovulnerable

childrenfromsomeofCambodia’smostdestitutecommunities.

OriginallyCCFfocusedonthehealthandwellbeingof45

children,howevertodaytheFundcaresfornearly2,000children

andtheirfamilies. TheFundofferseducation,healthcare,nutritionandsafesheltertochildrenandtheirfamiliesinneed.

Friends-InternationalWithheadquartersbasedinCambodia,Friends-International(FI)

hasbeenassistingmarginalisedchildren,youthandtheirfamiliesacrosstheworldsince1994.Todate,theorganisationhas

initiatedandsupportedprogramsinCambodia,Laos,Thailand,

Indonesia,Honduras,Mexico,MyanmarandEgypt.

Eachyear,theFIprogramsprovidedirectsupportto50,000

marginalisedchildrenandyoungpeople(particularlystreet

children/youth),offeringarangeofcomprehensiveservicesas

partofaholisticapproachtoassistingchildren(andtheirfamilies)toimprovetheirlives.

Throughlisteningtoandlearningfromyoungpeople,theorganisationdesigns

progressiveandstrategicprogramsaimedatprovidingmaximumassistancetothem.

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