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2 0 0 7 a n n u a l r e p o r t
gener ations of grow th
PADFPAN AMERICAN DEVELOPMENT FOUNDATION
CONTENTS
LOOKING BACK—MOVING FORWARD 45 Years, Three Generations
2 MESSAGES FROM OUR LEADERSHIP
4 LEAVING COCA FOR CACAO: Meet Miguel Daza Alternative Development and Areas for Municipal- Level Alternative Development in Colombia
6 OVERCOMING BARRIERS TO EDUCATION: Meet Ana Noemí González Ramos Manos Unidas por El Salvador
8 GROWING A BUSINESS: Meet Julio Contreras Internally Displaced Persons in Colombia
10 SMILING AGAIN: Meet Manolo Lora Our Border in the Dominican Republic and Haiti
12 LEARNING FROM THE LAND: Meet Limber Robles Santa Cruz Land Access Initiative in Bolivia
14 REINVENTING A RAINFOREST VILLAGE: Meet the Vela Family Sustainable Ecotourism Community in Peru
16 IMPACT 2007 A Map of Accomplishments
18 DRIVING CHANGE IN HAITI: Meet Paulette Payen Community-Driven Development in Haiti
20 OTHER PROGRAMS AT A GLANCE Disaster Management and Relief, In-Kind Donations, and Corporate Giving
22 OUR DONORS AND PARTNERS
25 BOARD OF TRUSTEES
26 STAFF
27 FINANCIAL STATEMENTS
32 HOW YOU CAN HELP
2007 was a year of extraordinary expansion for PADF:
Our efforts impacted an unprecedented 3.67 million people
in 22 countries.
Sustainable development is driven by the needs of
beneficiaries, like those you will meet on the following
pages. Over the past 12 months—and during our 45 years
of operation—we have worked alongside and served the
needs of millions of people. Through this work, both our
beneficiaries and staff members have been transformed, as
people and professionals.
In this Annual Report, find out more about our innovative
programs and the people who make them successful. Discover
how they cultivate opportunities like new jobs and social
investments. Witness the generations of growth that they
have initiated throughout Latin America and the Caribbean.
This Annual Report is dedicated to Miguel Daza, a PADF program beneficiary who lost his life in February 2008. Read Miguel’s inspiring story of personal growth and change on page 4.
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Looking Back—Moving Forward4 5 Y e A R s , T h R e e G e N e R AT I O N s
A SEMiNAL YEAr 1962
o An idea is born from JFK’s Alliance for Progress:
Aid indigenous people with small loans, training,
and technical assistance; and address poverty, social
injustice, and underdevelopment in Latin America
and the Caribbean.
o Deeply rooted in inter-American history and the
spirit of Pan Americanism, the PADF concept is
modeled on The Penny Foundation that delivered
microcredit to indigenous people in Guatemala.
o The idea catches the attention of the early
architects of the Alliance for Progress as an
innovative way of aiding disadvantaged people
through private sector involvement.
o The Organization of American States (OAS) and
private enterprise provide support to create PADF;
that same year also saw the establishment of:
ThE U.S. AGENCY FOr iNTErNATiONAL DEvELOPMENT
(USAiD)—To direct U.S. bilateral aid.
ThE PEACE COrPS—To provide volunteers for local
community development projects.
ThE iNTEr-AMEriCAN DEvELOPMENT BANK (iDB)—
To increase capital assistance for infrastructure
and industry.
SPrEADiNG ThE viSiON 1960s–1980s
o PADF pioneers modern microcredit lending
through the establishment of national development
foundations.
o The first foundation is created in the Dominican
republic during a time of civil strife and threats to
democracy in the mid-1960s.
o Microenterprise development programs are
replicated in other countries in the 1970s, and
further expanded in the Caribbean and Central
America to support civil society development and
private sector initiatives in the 1980s.
o Thirty-three national development foundations
are created throughout the hemisphere—most of
which continue to operate today.
o PADF becomes a model for establishing other
NGOs in Latin America and the Caribbean,
evolving into an inter-American mechanism
for strengthening civil society, empowering
communities, promoting corporate social
responsibility, and facilitating private contributions
for development and disaster assistance.
o The Foundation becomes a leader in providing
in-kind donations of medical-dental equipment,
tools for training, school buses, ambulances, and
other commodities to strengthen local nonprofits
and municipalities.
ExPANDiNG rOLES 1990s TO DATE
o PADF is increasingly called upon to work with civil
society and the private sector in countries experiencing
civil strife—haiti, Grenada, Guyana, and honduras, then
Nicaragua, El Salvador, Colombia, Bolivia, and other
countries undergoing democratic challenges.
o The intensity and frequency of natural disasters
increase; PADF becomes a specialized inter-
American group that works with corporate donors
and the Association of American Chambers of
Commerce in Latin America (AACCLA), and its
member Chambers (AmChams), to quickly provide
relief to victims and support disaster preparedness,
mitigation, and reconstruction.
o Programming is broadened into natural resource
conservation, rural and agricultural development,
disaster reconstruction, rapid employment creation
for refugee and displaced populations, conflict
mitigation and management, and civil society and
municipal strengthening.
o Through extensive work in haiti, PADF develops
unique expertise in this country’s challenges,
especially in natural resource management, job
creation, disaster reconstruction, strengthening
community groups, among others.
o in the 2000s, PADF supports the implementation
of Plan Colombia by aiding displaced persons, Afro-
Colombians, and other vulnerable groups including
former coca growers with employment alternatives,
technical training, and related services. This
becomes the Foundation’s largest program.
o Building on activities in haiti and Colombia,
PADF develops innovative cross-border programs
supporting strategies for moving conflictive border
regions to greater cooperation in support of inter-
American efforts.
o Programs are expanded to strengthen civil society,
promote community participation, and nurture
democratic values and practices in accordance with
the inter-American Democratic Charter, approved by
all OAS Member States on September 11, 2001.
o With growing remittances from U.S. immigrant
populations, PADF pioneers programs with hometown
associations and other groups to increase their
community remittances for school improvements,
enterprise development, and aiding victims of natural
disasters in their countries of origin.
o PADF broadens its work with corporate partners,
as well as donors of in-kind medical-dental
equipment and tools for training.
o The organization develops a strategic planning
process designed to guide a growing program rooted
in its intellectual and philosophical origins with a focus
on continued leadership in achieving concrete results.
2007 FOrWArD
o PADF’s vision endures after 45 years: To create
economic and social opportunities for the most
vulnerable and aid victims of humanitarian crises
and natural disasters through partnerships with
local civil society and the private sector. This vision
continues to define the role of PADF in the 21st
century.
o As the Foundation moves forward to its 50th
Anniversary in 2012, it builds upon a long history
of achievements in promoting “A hemisphere of
Opportunity for All,” as a proud affiliate of the
Organization of American States.
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3.67 million beneficiaries o
Twenty-two countries o
Two regional programs o
seven country programs o
strong corporate partnerships o
New jobs o
Improved infrastructure o
Technical assistance o
Training programs o
Access to medical services o
o Participation in decision-making
o Community group strengthening
o Improved market access
o school improvements
o Income generation
o Disaster mitigation
o Agricultural development
o healthier families
o safe havens from violence and abuse
o Improved relations across borders
FrOM ThE ChAirMAN OF ThE BOArD
in 1962, the organization of american states became the first international
organization to create a nongovernmental organization. the Pan american
development Foundation reflected the oas’s earliest interest in promoting
development of civil society, corporate social responsibility, and the private sector
as means of assisting disadvantaged people throughout latin america and the
caribbean. to this day, the Foundation reflects the spirit of inter-american solidarity
with the least fortunate citizens of the americas.
our missions go hand-in-hand: the oas works for democracy, justice, peace,
prosperity, and integral development throughout the hemisphere. We are a
multilateral forum for strengthening democracy, promoting human rights, and
confronting poverty, terrorism, illegal drugs, and corruption. PadF improves the lives
of those who do not have access to economic and social opportunities and have been
left behind in their societies. PadF implements innovative programs using resources
from international agencies, plus corporate and private donors and partnerships. in
addressing poverty, social justice, democracy, natural disasters, and humanitarian
crises, the Foundation is addressing the most critical challenges in our hemisphere.
PadF is growing in its expenditures and resources—and in the right locations, as
well. in the past year, PadF expanded its initiatives in colombia, a country which
has been strengthening its democracy by promoting investments for those most in
need such as displaced persons, afro-colombians, former coca growers, and other
vulnerable groups. the Foundation is a vital oas mechanism for efforts to stabilize
and support haitian development and encourage cross-border cooperation between
haiti and the dominican republic. it is strengthening civil society and community
participation in accordance with the inter-american democratic charter. thousands
of victims of natural disasters and humanitarian crises were benefited,
as PadF worked in 22 countries supporting oas initiatives and symbolizing our
concern for the poor majority.
the Foundation had its finest year ever in 2007, reaching more than three and a
half million beneficiaries, and i am pleased that PadF is growing so successfully.
as chairman, i congratulate our trustees, staff and partners on their achievements
and accomplishments—not only in the past year, but also over the past decades as
we advance toward our 50th anniversary in 2012.
While PadF rightly highlights its beneficiaries in this report, i also thank the many
supporters of the inter-american system, and the generous donors and friends of
PadF. their collective dedication and enthusiasm are remarkable, reflecting an
exceptional commitment to supporting oas programs and our efforts to bring
greater hope and opportunity to the least fortunate in our hemisphere.
José miguel insulza
secretary general, organization of american states
chairman, PadF board of trustees
FrOM ThE PrESiDENT & ExECUTivE DirECTOr
the Pan american development Foundation completed its 45th year of operation
in 2007; and we are pleased to report that we marked our largest year of growth in
expenditures and number of beneficiaries.
expenditures totaled approximately $46.3 million for the fiscal year, which ended
on september 30, 2007. With these funds, we served an estimated 3.67 million
beneficiaries through seven country programs, two regional programs, and several
corporate partnerships. our work touched many, many lives throughout 22 countries
in the caribbean and latin america.
as PadF celebrates our 45th year of creating “a hemisphere of opportunity for all,”
we are looking back at how far we have come—and looking forward to where we
are headed. the Foundation was created through a unique partnership between the
organization of american states and private enterprise with support from the inter-
american development bank and the U.s. agency for international development.
during the past four-and-a-half decades we have strengthened thousands of civil
society and community groups in the americas while pioneering new development
and disaster assistance initiatives that have enhanced prosperity for millions of
disadvantaged people.
our beneficiaries keep us focused. in keeping with our mission, we measure
successes through the eyes of those we serve, and strive to constantly improve
the programs and systems needed to support them. in the past year, beneficiaries
received training, obtained jobs, and generated more resources for their families.
they participated in democratic local decision-making, strengthened their community
groups, enhanced market access for their products, and improved their schools. and
they made their communities less vulnerable to disasters, improved their family’s
health through access to medical services, and received safe havens in situations of
violence or abuse from human trafficking.
looking ahead, our strategic Plan for the next five years calls for a continuation
of growth, diversification of funding support, and an expansion of the number of
beneficiaries served by our 50th anniversary.
We cannot recognize our extraordinary progress without saying thank you to PadF
donors, trustees, management, and staff, and especially to our civil society partners
in the hemisphere. thank you also to the U.s. and canadian governments, whose
agencies and bureaus support our efforts immensely. We are also grateful for
the strong support that we receive from the oas secretary general and assistant
secretary general. Without all of these supporters, our growth and success this past
year would not have been possible.
alexander F. Watson John a. sanbrailo
President, PadF board of trustees executive director, PadF
Like many young men in Colombia, Miguel Eugenio Daza
wanted to “get rich quick” by growing coca near his rural
home in Southern Bolívar in Colombia. “The pressures of this
illicit business only brought out the worst in me. I drank a
lot, wasted a lot of money, and neglected my family.”
When PADF-Colombia came to Miguel’s region to
implement the Alternative Development (AD) program,
and later the Areas for Municipal-Level Alternative
Development (ADAM) program, Miguel and a group of
locals were able to create a farmer’s association called
APROCASUR (Asociación de Productores de Cacao del
Sur de Bolívar) to develop alternative crops. Through
APROCASUR, former coca growers are empowered
with a new way to make a living.
The farmers now grow cacao, the main ingredient
in chocolate, earning enough money to support
their families. Association members harvest 40 to
50 kilograms of cacao a month. “Now, those who
called us fools for leaving the coca business want
to participate in the cacao business,” said Miguel.
This is, however, only part of the story.
APROCASUR’s work is neither easy nor risk
free. Miguel Daza was killed by an unknown illegal armed
group operating in his area in February 2008. Now, Miguel
is an eternal symbol of leadership and the desire to better
the lives of his family and community members. His death
is a tragic reminder of the cost of taking a stand in areas of
conflict in Colombia and elsewhere in the region. Despite this
loss, Miguel’s life has inspired our staff and those with whom
he worked by serving as an example of personal growth and
advocacy for social change.
PrOGr AM AT A GL ANCE
Alternative Development and Areas for Municipal-Level Development in Colombia
ChALLENGE: colombia produces
three-quarters of the world’s annual
cocaine yield. coca eradication efforts
have devastated much of the farming
economy. the resulting violence and
organized crime are defining issues for
the country.
SOLUTiON: Working through a team
of ngos and Usaid-funded efforts,
PadF trains ex-coca farmers in the
cultivation of new crops. PadF’s
colombia operation contributes seeds
and seedlings, sets up nurseries and
family plots, and provides technical
assistance and training to help the
families grow legal crops for food and
sale. these provide a steady income and
let people contribute to their country in
a meaningful, non-violent manner.
STAKEhOLDErS: Usaid/colombia,
Presidential agency for social action
and international cooperation (Acción
Social), other colombian governmental
institutions, associates in rural
development (ard), aProcasUr,
and PadF.
rESULTS: since 2000, the program
has created more than 5,000 jobs and
directly benefited thousands of families.
alternative crops include cocoa, palm
oil, and rubber. these products yield
stable returns and strong demand in
national and international markets,
providing sustainable agricultural
growth.
Working with PADF and our team in Magdalena Medio in Colombia
has been my life’s work. Miguel Daza showed me that it is possible
to draw upon the good within human beings in order to build better lives.
he taught me that, even though the rural people we work with never went
to school or college, they are valuable and intelligent, and have dreams
and fears; and they play a definitive role in rural development in the
regions where we work. Miguel’s example will always give great purpose
to my work with PADF.
—José Félix Montoya, PADF Regional Director, Magdalena Medio, Colombia
Meet Miguel Daza Leaving Coca for Cacao
C O LO M B I A
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4 5
Former coca grower Miguel Daza exemplifies the
successful transition from coca grower to cacao
farmer. By uniting with a group of locals to form
a farmer’s association, Miguel paved the way for
others to seek healthy, productive livelihoods as an
alternative to illicit business.
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Ana Noemí González Ramos is an award-winning student
whose rural school was recently improved by the unique
Manos Unidas partnership. Between 2004 and 2007, more
than 25,000 students have benefited through the program
from new infrastructure, school supplies, computer and
science labs, and vocational training.
Shy and quiet, Ana Noemí González Ramos has overcome
many barriers, like the death of her father and the consequent
departure of her mother to seek work in the U.S. to support
the family back home. Ana Noemí now lives with her
grandmother and siblings, and despite these challenges,
remains passionately devoted to school. In municipal
competitions, she’s won two first prizes for language and
literature.
By building a new classroom for their local school,
villagers in the rural area of Chapeltique, El Salvador and
their friends in a U.S. hometown association enabled
children to stay close to home in order to finish middle
school.
The classroom construction project in Ana
Noemí’s village was led by Manos Unidas por El
Salvador, a corporate social responsibility program
of Banco Agrícola, the Central American country’s
largest bank. Through a pioneering partnership
created by PADF, the bank, communities
like Chapeltique, and Salvadoran immigrant
associations in the United States collaborate to improve access
to and infrastructure for education.
Manos Unidas placed learning opportunities at Ana Noemí’s
doorstep, giving her access to middle-school teachers and
knowledge, and establishing a foundation for high school and
college. Before the classroom construction project, the closest
school that offered 8th and 9th grade was “…really far away,”
she says.“ During the rainy season, the rivers swell and prevent
us from crossing. Now, we can attend classes and study here.”
Meet Ana Noemíe L s A LV A D O R
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PrOGr AM AT A GL ANCE:
Manos Unidas por El Salvador
ChALLENGE: more than 35 percent of
salvadorans live below the poverty line,
lacking good education, particularly in
rural areas. crime, underemployment,
and income inequality are persistent.
given limited opportunities for
education and employment, pressure to
emigrate in search of those opportunities
is enormous.
SOLUTiON: Manos Unidas por El
Salvador was created by PadF and the
country’s largest bank, banco agrícola,
to support education throughout el
salvador. by matching funds contributed
by salvadoran “hometown association”
groups in the U.s., Manos Unidas
channels resources that create links
between salvadorans living abroad and
at home so they can work together to
achieve better schools and better lives.
STAKEhOLDErS: banco agrícola, the
salvadoran ministry of education, local
governments in el salvador, 39 U.s.-
based immigrant organizations, many
beneficiary communities throughout
el salvador, and PadF.
rESULTS: since its inception in 2004,
Manos Unidas has provided better
educational opportunities for more than
25,000 students through 50 education
projects with the salvadoran diaspora.
among other initiatives, PadF helped
equip 24 computer centers, expand or
remodel 16 schools, install 13 libraries,
and create four science labs.
Part of my spiritual and personal growth includes increasing my
level of awareness and knowledge of the problems and realities
faced by the communities and students like Ana Noemí. The most
rewarding part is seeing that one can be part of fulfilling the dreams of
others, working with them toward the resolution of their problems. each
smile and look of satisfaction from the kids and community members
makes me forget my fatigue, the dust, the bad roads, and the normal
snags in the process.
—engel Flores, PADF Field Coordinator, Manos Unidas por El Salvador
Overcoming Barriers to Education
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Julio Contreras had never left his hometown of Unguía,
on the Pacific Coast, until armed groups forced him out
in 1999. Today, he is executive Director of Alimentos
Procesados de Cartagena (ALIPROCAR), a small business
financed by UsAID and implemented by PADF.
A $50 micro-credit loan has turned into a great investment in
one family’s future in Colombia.
Like tens of thousands of people displaced by violence in
the country, Julio Contreras wandered homeless for years,
and ended up selling butifarras (meat-stuffed pastries) in
the streets in a tough section of Cartagena.
Then, through an innovative program that supports
the business aspirations of displaced and vulnerable
families, Julio and his wife Isalandia García and their
two daughters were given a micro-credit of $50 to
start a butifarras business of their own. That was
all Julio needed. With other families, he formed
ALIPROCAR, a work cooperative that produces and
promotes meat products—and an extraordinary
example of social change and realized dreams.
ALIPROCAR was developed primarily for Afro-
Colombians like Julio. Since its establishment in
2003, the cooperative has grown dramatically
with more financing from USAID and
Colombia’s Ministry of Industry and Commerce. Today,
ALIPROCAR posts $11,000 in monthly sales, and every one of
the more than 135 employees has their own home, says Julio
proudly. “They’re not huge houses, but they’re our houses—
and that’s what’s important.”
Meet Julio Contreras C O LO M B I A
8
PrOGr AM AT A GL ANCE
Internally Displaced Persons in Colombia
ChALLENGE: after 50 years of strife,
colombia faces the largest humanitarian
crisis in the hemisphere with up to eight
percent of the total population forcefully
displaced from their homes—a third of
them indigenous and afro-colombian
people. over 220,000 continue to be
displaced each year.
SOLUTiON: create partnerships to return,
resettle, and reintegrate displaced
families, and deliver resources at the
local level to support business ideas for
the economic and social development
of displaced and vulnerable families.
Projects include income generation,
shelter, medical support, community
integration, infrastructure development,
and education.
STAKEhOLDErS: Usaid, Presidential
agency for social action and
international cooperation (Acción
Social), various ministries of the
government of colombia, local ngos,
private donors, communities of
internally displaced persons (idPs),
and PadF.
rESULTS: to date, the program has
directly benefited more than 400,000
displaced individuals and created more
than 60,000 jobs. by 2010, over one
million displaced persons will benefit,
including afro-colombian, indigenous,
and other vulnerable groups.
Through this program, I have developed new abilities and built
very interesting relationships, both personally and professionally.
I met Julio Contreras as project manager for PADF, while developing the
program to reestablish displaced populations. It’s wonderful to contribute
to the development and growth of others, facilitating one grain of sand
that might improve their lives, and making their dreams a reality.
—Gloria Alicia Pinzón, Income Generation specialist, PADF-Colombia
Growing a Business
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Manolo Lora is one of a group of more than 100
beekeepers from Dajabón, santiago Rodríguez, and
Montecristi. Their regional Beekeepers Cooperative
is flourishing through a joint initiative of PADF,
UsAID, and a variety of stakeholders.
Two slipped disks and a lumbar hernia forced Manolo Lora
out of the fields of Dajabón, Dominican Republic, at age 50.
Although he still milks cows and supervises a ranch, making
a living is hard and opportunities are few. But thanks to a
boost from the innovative Our Border program, Manolo has
found work to complement his farm jobs—beekeeping.
Honey from the Dominican Republic and Haiti border
region won a gold medal in France in the 1950s, but the
industry was never developed. Then, PADF partnered
with several other stakeholders from the border
provinces and created the first-ever Beekeepers
Cooperative (Cooperativa de Apicultores y Servicios
Múltiples Salvador Ferrer) in the Dominican Republic.
Manolo had previous experience working with bees:
“I used to call myself a beekeeper, but with this
program, I’m really becoming one.”
The Our Border program (Fwontye Nou-
Nuestra Frontera in Creole and Spanish) found
additional partners who brought in more training,
equipment, and technical assistance. Now the
Beekeepers Cooperative has an office that also
serves as a store for honey and bee-related
products. They have increased productivity and are building
a regional honey processing plant. The program also provides
small grants to local NGOs to improve economic opportunities
and enhance local services. These grants also support cyber
cafes, fishing and goat-raising associations, local Red Cross
chapters, women’s groups, national park tours, and more.
“I’m glad they found us,” says Manolo. “We are thinking big
now. Thanks to PADF and Our Border, we can smile again.”
Meet Manolo Lora D O M I N I C A N R e P U B L I C A N D h A I T I B O R D e R R e G I O N
10
PrOGr AM AT A GL ANCE
Our Border in the Dominican Republic and haiti
ChALLENGE: the border between the dominican republic and haiti divides two countries with distinct languages, cultures, and economies. divisive issues along the border include poverty, healthcare, the environment, migration, labor, trade, and other areas that can generate conflict.
SOLUTiON: the our border program is working through local civil society organizations and with both nations’ governments to create economic opportunities, mitigate conflicts, and bridge opportunities for cooperation along the haitian-dominican border.
STAKEhOLDErS: Usaid, the beekeepers cooperative (Cooperativa de Apicultores y Servicios Múltiples Salvador Ferrer), the european Union, stanford Financial, the haitian Parliament, FUnglode, the Peace corps, the dominican border development agency, the dominican ministry of environment and natural resources, the inter-american institute for cooperation on agriculture (iica), the organization of american states (oas), the World bank, the canadian government, the UndP, the latin american Faculty of social sciences (Flacso), dozens of local ngos, other national and international organizations, and PadF.
rESULTS: PadF is working with 43 organi-zations along both sides of the border as well as with both national governments, creating social and economic oppor-tunities by strengthening civil society organizations, mitigating local conflicts, and creating “bridges” of cooperation throughout the region.
Working on the border is not easy. It’s a region where smuggling,
migration, extreme poverty, institutional weakness,
environmental degradation, and disaster vulnerability all create a lot of
tension. sometimes you fear even for your own safety. Finding someone
with such strong spirit and determination as Manolo makes you realize it’s
all worth it. We’ve become very good friends. I now stay in his place when
I’m in Dajabón. he and his wife Chicha say I’m like their own son!
—Cesáreo R. Guillermo, PADF Regional Director, Dominican Republic
Smiling Again
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After helping to lead his community in the Land
Access Initiative, Limber Robles was recently
elected Deputy Mayor of the district. Where
violent conflicts over land have been a way of
life, he has embraced the program’s goals of
leadership, peaceful conflict resolution, and
community development.
Limber Robles is a community leader of El Carmen, Bolivia—
one of the four rural communities where the Land Access
Initiative is bringing about positive changes.
When the Land Access Initiative first came to the village
of El Carmen in 2006, the program urgently needed trusted
leaders to embrace the effort, represent the community,
and champion the cause. Limber was director of the
local agricultural workers union, and he stepped up—
a natural leader and spokesperson.
Through the program, PADF has facilitated the
purchase of tons of black bonito bean seeds,
knapsack spraying equipment, and grain sowers
for farmers. An agriculture expert works with
the community to enhance harvest production
and maximize yield. Additionally, every week,
workshops led by program staff teach lessons in
peaceful conflict resolution, active non-violence,
and community organization and leadership.
Recently, the farmers of El Carmen
negotiated collectively rather than individually for the sale of
their crop through the Agricultural Farmers Association—a
great leap in community strengthening. In an area where
violent conflict has been a way of life for so long, an entire
town is uniting behind Limber Robles and other leaders to
make life better.
Meet Limber robles B O L I V I A
12
PrOGr AM AT A GL ANCE
santa Cruz Land Access in Bolivia
ChALLENGE: bolivia has some of the
poorest rural areas in latin america.
land distribution is highly uneven.
a Un study in 2005 showed that some
100 families own 25 million hectares,
while two million farmers work a total
of five million hectares. this contributes
to alarming levels of civil unrest
that exacerbate social and economic
problems.
SOLUTiON: to reduce potential for
violent conflict over land in santa
cruz, one of bolivia’s most vulnerable
regions, this program partners PadF,
through Usaid support, with a local
ngo and the bolivian government to
train communities in non-violent conflict
resolution, assist small-plot farmers, and
facilitate legal access to land through
technical assistance and support.
STAKEhOLDErS: Usaid, the Municipio
El Puente, Fundación de Desarrollo
Democrático Participación Ciudadana
(F-ddPc), the government of bolivia,
the local municipal farmers’ association
Federación Sindical de Campesinos
Agropecuarios del Municipio El Puente
(FscameP), and PadF.
rESULTS: more than 650 citizens in
four communities have been trained in
conflict resolution, and have received
legal assistance in claiming their own
land. the project delivers a replicable
and scaleable model and process for
land access solutions region-wide.
This project has helped me learn the legal processes for accessing
land. I have had the opportunity to experience first-hand
the farmers’ urgent needs. helping Limber helps me—personally,
professionally, and as a Bolivian who sees the urgency of working
with the poor, which is one of the greatest problems in my country.
—Maria eugenia Vera, PADF Project Coordinator, Bolivia
Learning from the Land
‘‘’’
13
ale
x t
ala
ver
aa
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ale
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ala
ver
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The Vela family is one of 60 families in san Rafael
who are creating an ecotourism haven among
some of the most biologically diverse forests in
the world. In their nature reserve, indigenous
species are protected, visitors are taught about
the rainforest, and the village is determined to
share its environmental and scenic beauty.
There was a time when the only way a family could survive in
parts of the Peruvian rainforest was to sell timber, plants, and
animals, and clear land for crops. But the Velas are learning that
you don’t have to destroy a forest
to make a living in it.
Pedro Vela and his family are
one of 60 families in San Rafael,
a small farming community
on the Amazon. With the help
of an innovative partnership,
the whole community has
organized itself in an effort
to become a sustainable
ecotourism destination.
Among other
responsibilities as a
community leader, Pedro is
responsible for a butterfly
greenhouse, where his son
Pedrito proudly shows visitors how to collect, identify, and
breed many types of butterflies. Pedro’s wife, Carmela
del Aguila, sells purses, hats, wallets, and handicrafts from
palm tree fibers.
San Rafael today offers visitors hikes and excursions, a
mushroom greenhouse, fish hatcheries, marketable crops,
local artisans, and traditional medicine and mystic healing
experiences guided by a master shaman. There are two large
guesthouses and easy access to other Amazon River attractions.
Meet the vela Family P e R U
14
PrOGr AM AT A GL ANCE
sustainable ecotourism Community in Peru
ChALLENGE: in the amazon,
deforestation is having a disastrous
effect on lives and livelihoods.
communities need income from
sustainable industry and commerce that
doesn’t destroy biodiversity and beauty.
rural sources of income are needed
in order to keep young people from
migrating elsewhere.
SOLUTiON: introduce ecotourism to small
villages along the amazon river and
generate new employment and income
for rural communities.
STAKEhOLDErS: the hampshire
Foundation, the village of san rafael,
Comité de Productores Agrarios de la
Provincia de Maynas (coPaPma),
the Instituto de Investigaciones del
Amazonas Peruano (research institute of
the Peruvian amazon), and PadF.
rESULTS: the entire community of some
400 people has learned how to manage
their own tourism projects and preserve
their forest. the program is now a model
for other villages along the amazon
river.
The beauty of our jobs is when we can experience how so much
work finally translates into real projects that benefit people
and improve lives. All those days in an office are worth it when you
can escape for a few days into the beauty of an ecotourism
community that is thriving because of the project you helped to
create and make a reality.
—Luisa Villegas, PADF Program Manager, south America
reinventing a rainforest village
‘‘’’
15
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16 17
Paulette Payen is an elementary school teacher at
the sister’s school in La Vallée, and a well-known
community leader. her energy and determination
towards community-driven development are helping
to bring improvements in areas like education,
health, and natural resource management. Today,
La Vallée has a new cyber center, radio station,
community market, and soil conservation program.
In community development, leaders come from all walks
of life. In La Vallée de Jacmel, located in the mountains of
southwestern Haiti, Paulette Payen went from teaching
elementary school to teaching a whole city about
community-driven development.
Paulette first heard about the program on the radio.
She was skeptical. “Generally, programs similar to this
one fail,” she says. “But I joined out of curiosity. ” The
program brings together all of the main civil society
groups in the village to form a council; and this
council is charged with reviewing local proposals
and funding them. In the end, community members
select the projects that make the most sense for
their communities.
Everyone knows Paulette in La Vallée—she
taught them and their children to read and
write—and everyone knows she never runs out
of ideas and energy. Today, she is secretary and
spokesperson of the executive committee that
represents more than a hundred community organizations.
At the forefront of all her efforts, she works tirelessly for group
participation and inclusion, effective management, and
democratic principles. She also supports women and young
people’s participation. “The most important result is that the
program has strengthened local community unity,” Paulette
says. “Our community can now hope for better days.”
Meet Paulette Payen h A I T I
18
PrOGr AM AT A GL ANCE
Community-Driven Development in haiti
ChALLENGE: haiti is the poorest country
in the Western hemisphere. in many
communities, basic infrastructure like
water, roads, electricity, and sanitation
is nonexistent or severely depleted,
reinforcing isolation and exclusion.
SOLUTiON: community-based
organizations identify social and
economic infrastructure and income-
generating activities. then, local
councils composed of these same
organizations (coProdePs) decide
priorities, review proposals, and
determine financing for projects that
are implemented and managed by
community organizations.
STAKEhOLDErS: the World bank,
representative Project development
councils (coProdePs), beneficiary
communities, Pl480 and various
government ministries of the republic
of haiti, and PadF.
rESULTS: the program promotes
decentralized governance and
strengthens local civil society, increasing
participation and transparency in
decision-making. it has provided grants
to more than 360 organizations in some
of haiti’s poorest areas. by getting the
community to work together toward
a common goal, community-driven
development can also promote peace
and reconciliation.
It was a big challenge for me to initiate something new. Two
years later, the effects are significant. Community organizations
are strengthened, various projects have been successfully managed, locals
can satisfy basic needs, and the community is unified. Now, different
villages can meet with each other and find solutions for their same
problems. Mme. Paulette Payen, with other community leaders,
is a pioneer of this success.
—Rose-Verlande Muzac, PADF Project Coordinator, haiti
Driving Change in haiti
‘‘’’
19
Fra
nç
ois
lo
Uis
Fra
nç
ois
lo
Uis
Fra
nç
ois
lo
Uis
Fra
nç
ois
lo
Uis
20 21
Disaster Management & relief
o Protecting lives and livelihoods and leveraging resources for victims of natural disasters throughout the caribbean and latin america.
o Facilitating rapid response to natural disasters through the disaster management emergency response Program (dmerP), an initiative that secures advanced funding from companies like chevron corporation, dmerP’s founding partner, in order to deploy immediate assistance when disasters strike.
o integrating the private sector into all phases of disaster management through the Usaid-sponsored disaster management alliance (dma) Project, which builds partnerships with the association of american chambers of commerce in latin america (aaccla) and companies such as bda global, royal caribbean cruises ltd, cargill/grupo alcon, general motors, and citigroup, among others.
Other Programs at a Glance
in-Kind Donations
o securing contributions of medical-dental supplies and tools for training, including hospital equipment, computers, and other technology items, as well as disaster recovery supplies, such as food, furniture, and shelter necessities.
o Utilizing PadF’s strong resource network in the United states and partnerships with the oas and local organizations in the affected countries to ensure that donations are received by those most in need.
Corporate Giving
o totaling nearly $2 million (not including in-kind) from corporate and individual donor contributions and impacting an estimated 44,200 people.
o improving literacy, engaging youth, and assisting communities with the citigroup Foundation in colombia, haiti, and the dominican republic.
o building and improving schools with banco agrícola in el salvador.
o improving education, renovating public space, and preserving natural resources with altria group inc. in brazil, Paraguay, Uruguay, and argentina.
o Providing rapid response to victims of natural disasters by motivating and mobilizing private-sector corporate social responsibility programs through the dmerP and dma initiatives.
o improving living conditions for children and youth in partnership with Fundacolombia in colombia.
ch
ris
tin
e h
err
idg
e
ka
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22 23
Partners
PUBLIC seCTOR AND MULTILATeRAL DONORs AND PARTNeRs
canadian embassy in the dominican republic
comisión Permanente de contingencias (coPeco) en honduras
european Union (eU)
government of bolivia9 departmental governments82 municipal governments instituto nacional de reforma
agraria—santa cruz (inra)
government of canada stabilization and reconstruction
mission (start)
government of colombiacajas de compensación Familiar
de colombiaFondo colombiano de
modernización y desarrollo tecnológico de las micro, Pequeñas y medianas empresas (FomiPyme)
ministry of culture ministry of commerce, industry,
and tourism ministry of Foreign relations ministry of education ministry of the interior and
Justiceministry for social Protection municipal governments
throughout colombia Pequeñas y medianas empresas
(FomiPyme)Presidential agency for social
PADF is grateful to its many donors and partner
organizations, without which we could not carry out
our work. We collaborate with hundreds of local groups,
dozens of local and national government agencies, and
many international partners. We cannot list them all
here, but we express our profound gratitude for their
support.
action and international cooperation (agencia Presidencial para la acción social y la cooperación internacional, acciÓn social)
government of the dominican republic
dirección general de desarrollo Fronterizo
dirección nacional de ganaderíadominican institute for agro-
forestry research (idiaF)national botanical garden national dominican institute for
hydraulic resources (indrhi) national Parliamentsecretaría de estado de economía,
Planificación y desarrollo (seePyd)
secretary for the environmentsecretary of state for external
relations (serex)
government of el salvador5 municipal governmentsministry of educationProtección civil
government of haiti15 commune governments in
artibonite7 commune governments in
Port-au-Princedepartment of civil Protection departmental committees for
civil Protection (southeast and north)
direction de l’administration Penitenciere (daP)
haitian embassy to the dominican republic
metropolitan service for solid Waste collection (smcrs)
ministry of economic affairs and Finances
ministry of the environmentministry of Public Works,
transport, and communicationministry of social affairs ministry of Justice national laboratory for
construction and Public Worksnational Parliamentnational Water commission
(cameP)
Pl-480/title iii management office
Parliamentary commission for the development of the border
Permanent secretary for risk and disaster management
Presidential commission for the management of the border development Fund
secretary of state for Public security
service d’entretien des equipements Urbains et ruraux (seeUr)
technical Unit for implementation (Ute)
Unit for training, research, and support for development
inter-american development bank (idb)
inter-american Foundation
inter-american institute for cooperation on agriculture (iica)
international monetary Fund (imF) civic and community relations Program
United nations development Program (UndP), haiti and colombia
Japanese international cooperation agency (Jica)
organization of american states (oas)
the World bank group
U.s. agency for international development
U.s. general services administration and defense reutilization and marketing offices
U.s. department of state, bureau of Population refugees and migration
U.s. Federal excess Property Program
CORPORATe DONORs AND PARTNeRs
aes electric company, el salvador
aerocasillas-aeropost
altria group, inc.
asociación colombiana de exportadores de Flores (asocolFlores)
associates in rural development
banco agrícola, s.a., el salvador
bda global
boulos investment group, haiti
british Petroleum
business social development (bsd)
cargill/grupo alcon
casals & associates, inc.
caterpillar, inc.
cemex, s.a.
chevron corporation
citigroup
danaher tools
Fertilizantes del norte, honduras
Fundación colombia para la educación y la oportunidad, colombia
general motors
grand strand regional medical center
graneros nacionales, s.a., honduras
greenberg traurig, llP
grupo lovable, honduras
karims group, honduras
kraft Foods, inc.
la geo, honduras
mission relief services
Pacific rim corporation, el salvador
Pci communications
rio garment, honduras
royal caribbean cruises ltd
shady grove adventist hospital
stanford Financial group
ban
co
ag
ríc
ola
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24 25
OFFICeRs
José Miguel Insulza, Chairmansecretary general, organization of
american states
albert r. ramdin, Vice Chairmanassistant secretary general,
organization of american states
ambassador alexander F. Watson, President
managing director, hills & company
carlos Mariño garcía, First Vice President
President, avantel, s.a.
ambassador James Michel, Second Vice President
senior counsel, dPk consulting
William D. gambrel, TreasurerPast President, bankboston, colombiaPast aaccla President
philippe r. armand, Secretarychairman & ceo, groupe dynamic,
s.a. (haiti)
BOARD MeMBeRs
alejandro aguirredeputy editor & Publisher, diario las
américas
kathleen c. barclayPresident of aacclaPrincipal, asesorías kcb, ltda.
Marilyn blanco-reyesmanaging director, legal and
government affairs—latin american and caribbean division, Federal express corporation
reginald boulos, M.D.chairman and ceo, boulos
investment group
Juan M. canahuatiPresident & ceo, grupo lovable
howard chasedirector, european government
affairs, british Petroleum europe
ambassador Jorge crespo velascoFormer ambassador of boliviaPast executive director, inter-
american development bank
enrique cuetoceo, lan airlines s.a.
Maston N. cunninghamPast PadF treasurerPast aaccla PresidentPast President, occidental Petroleum
in ecuador and Peru
Sam Del broccoPresident, Pci communications, inc.
pedro t. estevachairman & ceo, implementos y
maquinarias c por a (imca)
James FendellPresident, aerocasillas—aeropost
thomas galesvice President, latin america
division, caterpillar, inc.
Frank D. gómezPast PadF PresidentU.s. Foreign service officer (ret.)
Nadine hoganPresident, hogan and associates
ambassador Donna J. hrinakdirector, corporate & government
affairs—latin america, kraft Foods
eleanor Jonesmanaging director & consulting
Principal, environmental solutions ltd. (esl)
Whitney M. Maceacherndirector of social responsibility and
community relations, citigroup latin america & the caribbean
robert M. McgeePast PadF PresidentPresident, occidental international
corporation
Yolanda Mellon-Suarezchief of staff, stanford Financial
group
ali MoshiriPresident, chevron latin america
pablo gabriel obregón Santo Domingo
President of the board of directors, Fundación mario santo domingo
paul a. ramsey, ph.D.senior vice President, international
division, educational testing service
rodolfo SchildknechtPast President, banco agrícola
aaron S. Williamsvice President of international
business development, rti international
anita Winsor-edwardstrustee, William h. donner
Foundation
howard F. ZuckermanPast cFo, iusacell—
bell atlantic/mexico
ADVIsORY COMMITTee
Francisco aguirreco-Publisher, diario las américas
Frank aldrich
howard J. chasedirector, european government
affairs, bP europe
ruth espey-romeroPast PadF Presidentshareholder, greenberg-traurig llP
William D. gambrelPast President, bankboston, colombiaPast aaccla President
kenneth gordonchairman, caribbean
communications networks (trinidad and tobago)
Jack hellerPast PadF PresidentPartner, heller & rosenblatt
William kimberlynaztec, llc
guy a. lavigueur(canada)
antonio lópez de Silaneschairman & ceo, laboratorios
silanes (méxico)
robert MooreFormer counsel, international banana
association
Jeannie Mulfordessex house (U.k.)
roberto Murray MezaPresident, la constancia, s.a.
(el salvador)
l. ronald SchemanPast PadF President and executive
directorsenior advisor, kissinger mclarty
associates
r. Danny Williamschairman, ravers limited (Jamaica)
ambassador curtin Winsor, Jr.trustee, William h. donner
Foundation
OAs seCReTARIes GeNeRAL AND ChAIRMeN
José a. mora, 1962-1968galo Plaza, 1968-1975alejandro orfila, 1975-1984João clemente baena soares,
1984-1994césar gaviria 1994-2004miguel angel rodríguez, 2004luigi r. einaudi, acting, 2004José miguel insulza, 2005-present
BOARD PResIDeNTs
William sanders, 1962-1972t. graydon Upton, 1972-1977l. ronald scheman, 1977-1983r. i. Jervis Jones, 1983-1985leveo sanchez, 1985-1988J. John Jova, 1988-1990robert m. mcgee, 1990-1992george m. kroloff, 1992-1995Jorge ríos, 1995-1997Jack heller, 1997-2000alexander F. Watson, 2000-2002Francis d. gómez, 2002-2004ruth espey-romero, 2004-2006alexander F. Watson, 2006-Present
exeCUTIVe DIReCTORs
l. ronald scheman, 1962-1968sy rotter, 1968-1974norman goijberg, 1974-1977michael d. miller, 1977-1980edward marasciulo, 1980-1988marvin Weissman, 1988-1990Peter reitz, 1990-1997Frederick schieck (acting), 1997-1998sarah horsey-barr, 1998-1999robert moore (acting), 1999John sanbrailo 1999-present
Partners, CONTiNUED Board of Trustees OCTOBEr 1, 2006 – SEPTEMBEr 30, 2007
FOUNDATION DONORs AND PARTNeRs
brother’s brother Foundation
charles delmar Foundation
Fundación mario santo domingo
hampshire Foundation
shelby cullom davis Foundation
William h. donner Foundation
INTeRNATIONAL NGO PARTNeRs
19 salvadoran hometown associations in the U.s.
afrolatino development alliance (ada)
aid to artisans (ata)
bless the children, inc.
center for international Private enterprise (ciPe)
corporación andina de Fomento (caF)
Fundación natura
global impact
hope for a healthier humanity
international medical equipment collaborative (imec)
organización negra centroamericana—oneca
Pan american medical society of Washington, d.c.
Purdue University, haiti
red cross in honduras, el salvador, costa rica, dominican republic
seismic network and University of Puerto rico in mayaguez, haiti campus
United Way
World Wildlife Foundation (WWF)
ChAMBeRs OF COMMeRCe AND BUsINess AssOCIATIONs
american chamber of commerce in haiti, el salvador, honduras, and colombia
asociación nacional de industriales (andi), colombia
association of american chambers of commerce in latin america (aaccla)
asociación salvadoreña de ingenieros y arquitectos (asia), el salvador
asociación de hoteles y Proyectos turísticos del este, dominican republic
nassa group, haiti
NATIONAL AND LOCAL NGO PARTNeRs
PadF works with hundreds of ngo’s throughout the region. although they are too numerous to list here, we are indebted to all of them for their participation in our work in 2007.
INDIVIDUAL DONORsFrancisco aguirre
Philippe r. armand
kathleen c. barclay
geoffrey bible
virginia bocage
Juan m. canahuati
John coleman
maston cunningham
sam del brocco
arthur g. dohrman
andres estrada
James Fendell
björn Fischer
thomas gales
William d. gambrel
christine gillion
Francis d. gómez
donna J. hrinak
eleanor Jones
colen g. and laura elaine kennell
berny kreutz
Whitney m. maceachern
carlos mariño garcía
robert m. mcgee
yolanda mellon-suarez
James michel
Pablo gabriel obregón santo domingo
José Felix Palma
alfred P. Pavot
Paul a. ramsey
h. John schutze
alexander F. Watson
curtin Winsor, Jr.
anita Winsor-edwards
howard F. Zuckerman
26 27
Wa s h i n g to n , d c
John Sanbrailoexecutive director
amy coughenour betancourt deputy director
terrence brownsenior operations director
christine bognardirector, trustee relations and
development
Dale crowelldirector of communications
lynette lara Snyderdirector of human resources
Julieta varrongrants & contracts manager
William o’callaghandirector of Finance
Diego correadeputy director of Finance
Walter cortescontroller (until July 2007)
emily Saabcontroller (as of august 2007)
Sandra perezoffice manager
holly Flooddirector, south america Programs
Michelet Fontaineregional director, caribbean
Programs
christine herridgedirector, disaster management
pilar herauddirector, in-kind donations
Marc WachtenheimProgram director
corrie DrummondProgram manager, transnational
Programs
emily greenspanProgram manager
valeria Merino-Diranisenior civil society advisor
Maria luisa villegasProgram manager
Plus 13 additional staff
c a r i b b e a n
Haiti
John currellycountry director
amanda rodriguezdeputy director of operations
claude labossieredirector, Finance and
administration
arsel JeromeProject director, local governance
Frantz JosephPrograms director
alphonse NkunzimanaProject director, Protecting human
rights Project
erick DérycePrograms director
Frantz benoitProject director, ProdePPaP
Marcorel St-elienProject director, ProdeP
Plus 90 additional staff
Dominican Republic
Daniel o’Neilcountry director
Joseph Félixtechnical director, border Project
cesáreo guillermo velozregional director, dominican
republic
Plus 3 additional staff
s o U t h a m e r i c a
Colombia
John heardcountry director (until June 2007)
Max goldensohncountry director (as of may 2007)
William greenwooddeputy country director
patricia Manyaridirector of Finance
gilberto amayadeputy director for afro-colombian
and indigenous affairs and special Projects
gloria Nelly acostadirector, idP Program
ricardo amayadirector, alternative development
Program
héctor cortésdirector of administration
Fanny Jorgedirector of the department of
grants, contracts, and legal services
luis antonio ordóñezdirector of communications and
corporate relations
Plus 160 additional staff
Bolivia
cecilia DebonadonaProject director
María eugenia vera vargasProject director
Plus 8 additional staff
c e n t r a l a m e r i c a
El Salvador
reina de paniaguaProject director, manos Unidas por
el salvador
Plus 3 additional staff
Staff OCTOBEr 1, 2006 – SEPTEMBEr 30, 2007 Financial Statements FOr ThE YEAr ENDED SEPTEMBEr 30, 2007
to the board of Directors pan american Development Foundation Washington, D.c.
We have audited the accompanying balance sheet of Pan american development Foundation
(the Foundation) as of september 30, 2007, and the related statements of activities, functional
expenses and cash flows for the year then ended. these financial statements are the
responsibility of the Foundation’s management. our responsibility is to express an opinion
on these financial statements based on our audit. the prior year’s summarized comparative
information has been derived from the 2006 financial statements of the Foundation, which were
audited by other auditors whose report, dated december 12, 2006, expressed an unqualified
opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted in the United
states of america. those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
an audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. an audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit and the report of the other auditors provide a reasonable
basis for our opinion.
in our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the Pan american development Foundation as of september 30, 2007,
and the results of its operations and its cash flows for the year then ended in conformity with
accounting principles generally accepted in the United states of america.
mcgladrey & Pullen
certified Public accountants
vienna, virginia
may 19, 2008
28 29
Notes to the Financial Statements
Note 1. Nature of activities and Significant accounting policiesNature of activities: created in 1962 through a unique agreement between the organization of american states (oas) and the private sector, the Pan american development Foundation (the Foundation) is an independent, non-profit organization incorporated in Washington d.c., that creates public-private partnerships to assist the least advantaged people in latin america and the caribbean. the Foundation engages community-based groups, non-governmental organizations (ngos), municipal governments and the private sector in the process of implementing appropriate solutions for sustainable development. through these partnerships, the Foundation seeks to achieve excellence and lasting programmatic impact in creating economic opportunities; promoting social investments; strengthening communities and civil society; and responding to natural disasters. these activities are funded primarily through United states government contracts and non-federal grants and contributions.
a summary of the significant accounting policies of the Foundation follows:basis of accounting: the accompanying financial statements are presented in accordance with the accrual basis of accounting, whereby, revenue is recognized when earned and expenses are recognized when incurred.basis of presentation: the financial statement presentation follows the recommendation of the Financial accounting standards board in its statement of Financial accounting standards (sFas) no. 117, Financial Statements of Not-for-Profit Organizations. Under sFas no. 117, the Foundation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. there were no permanently restricted net assets at september 30, 2007.cash and cash equivalents: For purposes of the statement of cash flows, the Foundation considers all highly liquid instruments which have an original maturity of three months or less, to be cash and cash equivalents. Financial risk: the Foundation maintains its cash in bank accounts which, at times, may exceed federally insured limits. the Foundation has not experienced any losses on such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. at september 30, 2007, the Foundation maintained cash deposits totaling $6,847,952 in latin america and the caribbean, which are not insured and are subject to foreign currency fluctuation and potential bank failure. the Foundation periodically assesses the financial condition of the institutions and believes that the risk of any loss is minimal.
the Foundation invests in a professionally managed portfolio that contains money market funds and preferred securities. such investments are exposed to various risks such as market and credit. due to the level of risk associated with such investments and the level of uncertainty related to changes in the value of such investments, it is at least reasonably possible that changes in risks in the near term could materially affect investment balances and the amounts reported in the financial statements.Investments—Strategic Development Fund: the strategic development Fund consists of money market and preferred securities and is carried at
Financial Statements, CONTiNUED
BALANCe sheeTseptember 30, 2007(With Comparative Totals For 2006) 2007 2006
aSSetScash and cash equivalents $ 9,032,658 $ 6,978,738investments—strategic development Fund 722,226 869,590accounts and grants receivable 2,253,873 535,188advances to subcontractors 797,370 664,778Prepaid expenses and other assets 367,046 464,396Undesignated donated goods, net 1,002,506 228,791Property and equipment, net 166,107 180,748 $ 14,341,786 $ 9,922,229
lIabIlItIeS aND Net aSSetSliabilities accounts payable and accrued expenses $ 2,064,792 $ 832,991 refundable advances—non-federal 3,084,676 1,950,579 refundable advances—federal 5,275,048 4,053,260 10,424,516 6,836,830commitments and contingencies (notes 6 and 7)
net assets Unrestricted 2,384,304 2,414,071 temporarily restricted 1,532,966 671,328 3,917,270 3,085,399 $ 14,341,786 $ 9,922,229
sTATeMeNT OF ACTIVITIesYear ended september 30, 2007(With Comparative Totals For 2006) 2007 temporarily 2006 Unrestricted restricted total total
Support aND reveNuegrants $ 43,055,704 $ 1,125,627 $ 44,181,331 $ 33,602,561in-kind contributions — 2,498,138 2,498,138 3,896,590individual and corporate contributions 1,079,616 — 1,079,616 1,152,920subcontract revenue 262,697 12,000 274,697 838,318shipping reimbursables/subsidies — 122,100 122,100 142,127Program income 86,144 — 86,144 41,077other income 283,031 16,626 299,657 903,580net assets released from restrictions: satisfaction of program restrictions 2,912,853 (2,912,853) — — Total support and revenue 47,680,045 861,638 48,541,683 40,577,173
expeNSeSProgram services: creating economic opportunities 31,097,752 — 31,097,752 18,945,713 Promoting social Progress 5,609,826 — 5,609,826 4,596,619 strengthening communities and civil society 4,119,239 — 4,119,239 6,636,714 responding to natural disasters 1,643,236 — 1,643,236 6,117,934 Total program services 42,470,053 — 42,470,053 36,296,980supporting services: management and general 4,957,626 — 4,957,626 4,142,623 development 282,133 — 282,133 92,812 Total supporting services 5,239,759 — 5,239,759 4,235,435
Total expenses 47,709,812 — 47,709,812 40,532,415 Increase (decrease) in net assets (29,767) 861,638 831,871 44,758
net assets beginning 2,414,071 671,328 3,085,399 3,040,641 ending $ 2,384,304 $ 1,532,966 $ 3,917,270 $ 3,085,399
sTATeMeNT OF CAsh FLOWs Year ended september 30, 2007 (With Comparative Totals For 2006) 2007 2006
caSh FloWS FroM operatINg actIvItIeSchange in net assets $ 831,871 $ 44,758adjustments to reconcile change in net assets to net cash provided by operating activities: depreciation and amortization 67,635 72,914 allowance for obsolete donated goods 193,868 — donated goods (2,498,138) (3,896,590) loss on disposal of property and equipment — 33,816 changes in assets and liabilities: (increase) decrease in: accounts and grants receivable (1,718,685) 7,429 advances to subcontractors (132,592) 325,994 Prepaid expenses and other assets 97,350 253,895 Undesignated donated goods 1,530,555 4,195,980 increase (decrease) in: accounts payable and accrued expenses 1,231,801 (80,267) refundable advances 2,355,885 3,915,865 Net cash provided by operating activities 1,959,550 4,873,794
caSh FloWS FroM INveStINg actIvItIeSProceeds from sale of investments of 429,666 214,800
strategic development FundPurchases of investments of (282,302) (353,238)
strategic development FundPurchase of property and equipment (52,994) (66,870) Net cash provided by (used in)
investing activities 94,370 (205,308) Net increase in cash and
cash equivalents 2,053,920 4,668,486
caSh aND caSh equIvaleNtS beginning 6,978,738 2,310,252 ending $ 9,032,658 $ 6,978,738
SuppleMeNtal ScheDule oF NoNcaSh operatINg actIvItIeS
donated goods $ 2,498,138 $ 3,896,590
sTATeMeNT OF FUNCTIONAL exPeNsesYear ended september 30, 2007(With Comparative Totals For 2006) 2007 Program services supporting services creating Promoting strengthening responding total total economic social communities to natural Program management supporting total opportunities Progress and civil society disasters services and general development services total 2006 Pvo subproject expense $24,501,395 $2,104,602 $1,335,579 $1,063,713 $29,005,289 $— $— $— $29,005,289 $19,661,477salaries and benefits 4,352,060 452,326 1,164,087 429,648 6,398,121 2,650,192 142,082 2,792,274 9,190,395 8,881,845operations and material support 1,617,166 2,961,652 967,825 58,684 5,605,327 1,443,612 43,170 1,486,782 7,092,109 9,329,432travel and related expenses 506,851 7,687 197,417 63,436 775,391 242,250 42,522 284,772 1,060,163 724,087consultants and professional fees 65,341 3,226 335,732 15,511 419,810 490,115 54,359 544,474 964,284 1,076,884telephone 17,887 2,903 50,603 224 71,617 62,096 — 62,096 133,713 74,280shipping and related expenses 695 66,916 34,882 9,170 111,663 17,319 — 17,319 128,982 44,531Project vehicles and equipment 36,357 10,514 12,141 2,850 61,862 52,042 — 52,042 113,904 548,433conference and meetings — — 20,973 — 20,973 — — — 20,973 23,692other — — — — — — — — — 167,754 Total expenses $31,097,752 $5,609,826 $4,119,239 $1,643,236 $42,470,053 $4,957,626 $282,133 $5,239,759 $47,709,812 $40,532,415
exPeNses 2007
Creating Economic Opportunities 65.18%
Promoting Social Progress 11.76%
Responding to Natural Disasters 3.44%Strengthening
Communities and Civil Society 8.63%
Management and General 10.39%
Development 0.59%
sOURCes OF ReVeNUe 2007
Grants 91.465%
Individual and Corporate Contributions 7.370%
Shipping Reimbursements and Subsidies 0.252%
Subgrant Revenue 0.566%
Program Income 0.177%
Other Income 0.170%
30 31
Financial Statements, CONTiNUED
fair market value, as based upon quoted market prices, as of september 30, 2007. Unrealized gains and losses are included in other income in the accompanying statement of activities.advances to subcontractors: advances to subcontractors, in most cases, consist of amounts provided to subcontractors of $250,000 or more to execute project objectives within a three month period.receivables: receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. management determines the allowance for doubtful accounts by identifying troubled accounts and by using the historical experience applied to an aging of accounts. receivables are written off when deemed uncollectible. recoveries of receivables previously written off are recorded when received. there was no provision for doubtful accounts at september 30, 2007.undesignated donated goods: donated goods consist of donated health service equipment and tools inventory and are valued at fair market value at the date of donation. the inventory is capitalized until such time as it is distributed for its particular purpose, at which point it is expensed.property and equipment: Property and equipment are being depreciated using the double-declining method over estimated useful lives of three to five years, with no salvage value. expenditures for major repairs and improvements are capitalized; expenditures for minor repairs and maintenance costs are expensed when incurred. Upon the retirement or disposal of assets, the cost and accumulated depreciation are eliminated from the respective accounts and the resulting gain or loss is included in revenue or expenses. the cost and accumulated depreciation at september 30, 2007, was $658,826 and $492,719, respectively.classification of net assets: the net assets of the Foundation are reported as follows:
•Unrestrictednetassetsrepresenttheportionofexpendablefundsthatare available for support of the Foundation’s operations.
•Temporarilyrestrictednetassetsarerestrictedbygrantorsforspecificpurposes.
Support and revenue recognition: the Foundation has grants with U.s. government agencies and foreign governments in exchange for services. support and revenue from the grants, which is recognized as costs are incurred on the basis of direct costs plus allowable indirect costs. grant awards received but not yet expended for the purpose of the grant are reflected as refundable advances in the accompanying balance sheet.
the Foundation reports contributions as temporarily restricted support if they are received with donor or grantor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.
Financial contributions to support the shipping of health supplies and tools and equipment are recorded as shipping reimbursements/subsidies in the accompanying statement of activities.
the Foundation reports contributions of health supplies and tools as temporarily restricted support when received as these goods are received
with donor stipulations that limit their use. When the goods are designated by the Foundation to a potential recipient, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.Functional allocation of expenses: the Foundation charges salaries to various programs and supporting services based upon the actual amount of time worked in each area. Fringe benefits and indirect costs are allocated to various programs based on total direct salaries and total direct costs, respectively. transactions in foreign currencies: the Foundation has field offices in various foreign countries which transact business using the local currency of the country in which the field office is located. management of the Foundation has determined that the functional currency, as well as the reporting currency of the Foundation and each of the field offices is the U.s. dollar. accordingly, gains and losses from changes in exchange rates between the functional currency, or the U.s. dollar, and the currency in which the transaction is denominated are recorded as foreign currency transaction gains or losses, as appropriate.Income taxes: the Foundation is generally exempt from federal income tax under the provisions of section 501(c)(3) of the internal revenue code. income, which is not related to exempt purposes, less applicable deductions, is subject to federal and state corporate income taxes. the Foundation had no unrelated business income tax liability for the year ended september 30, 2007, since the Foundation did not have significant unrelated business income.estimates: the preparation of the financial statements requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. actual results could differ from those estimates.prior year information: the financial statements include certain prior year summarized comparative information in total but not by net asset class. such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United states of america. accordingly, such information should be read in conjunction with the Foundation’s financial statements for the year ended september 30, 2006, from which the summarized information was derived.upcoming accounting pronouncements: in July 2006, the Financial accounting standards board (“Fasb”) issued interpretation no. 48, Accounting for Uncertainty in Income Taxes (“Fin 48”). Fin 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken by a filer in the filer’s tax return. Fin 48 will become effective for the fiscal years beginning after december 15, 2007. the Foundation has not yet determined the impact of the adoption of Fin 48 on its financial statements.
Note 2. Strategic Development Fund Investmentsthe fair market value of investments in the strategic development Fund as of september 30, 2007, consists of the following:
the strategic development Fund earned investment income of $50,100 during the year ended september 30, 2007.
Note 3. undesignated Donated goodsUndesignated donated goods consist of the following inventory on hand as of september 30, 2007:
Note 4. temporarily restricted Net assetstemporarily restricted net assets at september 30, 2007, are available for the following programs:
Note 5. employee retirement plansthe Foundation maintains a defined contribution retirement savings plan for all qualified employees who have met certain length of service requirements. the Foundation makes contributions in an amount which equals 10% of all full-time permanent employees’ base salaries. these contributions are immediately vested. Upon termination, death, or retirement, employees are entitled to the current value of the contributions in their accounts. retirement savings plan expense totaled $166,718 for the year ended september 30, 2007, and is included in salaries and benefits in the accompanying statement of functional expenses.
Note 6. commitments and contingenciesprovisional indirect cost rates: billings under cost-reimbursable government grants are calculated using provisional rates that permit recovery of indirect costs. these rates are subject to audit on an annual basis by the Foundation’s cognizant agency. the audit results in the negotiation and determination of the final indirect cost rates which may create a liability for indirect cost recovery billed in excess of the actual rates or may allow for additional billings for unbilled indirect costs.
the Foundation has instructed its independent auditors to audit the costs related to U.s. government funds for the year ended september 30, 2007, in accordance with circular a-133 issued by the U.s. office of management and budget (omb). Usaid has yet to audit the rate for the year ended september 30, 2007. management believes that matters arising from Usaid’s review of the independent auditor’s report for 2007 will not have a material effect on the financial position of the Foundation.operating lease: the Foundation has a ten year, non-cancelable operating lease with the organization for american states (see note 8) for office space which commenced on april 1, 2004. during 2005, an amendment was made
to incorporate additional space. the lease was again modified in 2006 to account for cPi increases in the Washington d.c. area.
the future minimum payments due under this lease are as follows:
rent expense for the year ended september 30, 2007, was $291,345.Federal awards: the Foundation participates in a number of federally assisted grant programs, which are subject to financial and compliance audits by the federal agencies or their representatives. as such, there exists a contingent liability for potential questioned costs that may result from such an audit. management does not anticipate any significant adjustments as a result of such an audit.
Note 7. concentrations of credit riskMajor federal grantor: during 2007, the Foundation earned grant revenue of $38,131,302 through direct grants and pass-through grants from the U.s. government. the U.s. government grant funding was predominantly from the United states agency for international development (Usaid). revenue earned from Usaid represented approximately 78% of the total revenue recognized by the Foundation for the year ended september 30, 2007.Foreign operations: the Foundation has field offices in various developing countries, namely colombia, haiti, dominican republic, venezuela, el salvador and bolivia, which work with Usaid and World bank representatives and with corporate donors, local groups and ngos on various programs for the purpose of providing assistance to persons displaced by violence, vocational training for low-income people, agro forestry programs to promote soil conservation and reforestation, providing medical equipment and supplies to health care facilities throughout the regions, providing tools for vocational training addressing the most critical needs of disaster victims and to better prepare them for future natural disasters. the future results of these programs could be adversely affected by a number of potential factors such as currency devaluations or changes in the political climate.
Note 8. related party transactionsthe Foundation, while separate from the organization of american states (oas), has a working agreement with oas (approved by the oas general assembly) under which the Foundation received during the year ended september 30, 2007, a grant of $132,500, consisting of $99,375 for general support and $33,125 in temporarily restricted support. in addition, under the agreement, the Permanent council of the oas appoints a representative to the Foundation’s executive committee and two of the 30 trustees of the Foundation are officials of the oas general secretariat.
Preferred securities $ 625,000 money funds (Ubs cash Fund) 97,226 $ 722,226
tools and equipment $ 1,253,374 allowance for obsolete inventory (250,868) $ 1,002,506
balance balance september 30, september 30, 2006 additions releases 2007
Promoting social Progress $195,367 $2,853,234 $1,979,897 $1,068,704strengthening communities
and civil society 220,527 636,439 653,215 203,751creating economic opportunities 215,202 110,276 180,913 144,565responding to natural disasters 40,232 174,542 98,828 115,946 $671,328 $3,774,491 $2,912,853 $1,532,966
years ending september 30, 2008 $ 261,5272009 261,5272010 261,5272011 261,5272012 261,5272013 and 2014 370,496 $ 1,678,131
32
Your Donations Make a DifferenceFrom individual donations to corporate partnerships, a range
of contribution sources enhances PadF’s ability to reach
those most in need of support. government and multilateral
donors, foundations, private companies, and people like
you are all necessary to facilitate our work throughout the
hemisphere.
We Are an ideal Mechanism for Social responsibility ProgramsPadF provides an excellent mechanism and innovative
models through which corporations and foundations can
address critical development and disaster management
needs throughout latin america and the caribbean. With
transparent management, proven methodology, and essential
relationships that facilitate and mobilize contributions
effectively, PadF’s corporate social responsibility options
maximize your company’s impact and visibility.
We Welcome the Opportunity to Partner With You if you represent a corporation that is interested in making
social investments in latin american or caribbean countries,
PadF wants to partner with you. We will show you how
to maximize the impact of your resources—both for your
corporation and local beneficiaries.
if you are a foundation or an international agency, PadF
can help you further your hemispheric objectives through
innovative community-based programs.
For more information, please call PadF’s development office
at (202) 458-3969 or e-mail [email protected].
Your Contributions are Tax-DeductiblePadF is a registered 501(c)(3) organization. contributions
made to PadF are tax-deductible under U.s. law.
applicability of these laws can vary, so donors are
encouraged to seek tax advice. in other countries, tax laws
should be consulted concerning the deductibility of a gift.
how You Can help
Ways to Give to PADF:
online Donations donate online at www.padf.org
check and Money order send to: PadF, 1889 F street nW, 2nd Floor,
Washington, dc 20006.
planned giving bequests can be made to PadF through a donor’s will
or living trust. Please contact us for more information.
other Donations donations of stock, appreciated real estate, property,
insurance, or trusts can be made to PadF in support of
its programs. Please contact us for more information.
For more information, please contact: the Pan american development Foundation
1889 F street nW, 2nd Floor
Washington, dc 20006
Phone: 202-458-3969
email: [email protected]
Our visionA Hemisphere of Opportunity for All
Our MissionThe Pan American Development Foundation empowers disadvantaged people and communities in Latin America and the Caribbean to achieve sustainable economic and social progress, strengthen their communities and civil society, and prepare for and respond to natural disasters and other humanitarian crises, thereby advancing the principles of the Organization of American States.
Our valuesWe are committed to…ResULTs—sustainable, concrete outcomes appropriate for the local context
INNOVATION—creativity, entrepreneurship, and willingness to take calculated risks to achieve high levels of success
eMPOWeRMeNT—valuing local capacity and knowledge and respecting all stakeholders in the development process
exCeLLeNCe—striving for the highest standards of performance in everything we do
TeAMWORK—leadership, open and effective communication, personal and professional growth, and respect for others
ACCOUNTABILITY—transparency, integrity, and responsibility in our operations and all our interactions
INTeR-AMeRICAN COOPeRATION—identification with the principles of cooperation and solidarity of the Organization of American States
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1889 F STREET NW, 2ND FLOOR
WAShINgTON, DC 20006
TEL 202-458-3969
FAx 202-458-6316
WWW.PADF.ORg
A proud affiliate of the Organization of American states
PADFPAN AMERICAN DEVELOPMENT FOUNDATION
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