2012 Esperanza International Annual Report

2012 Annual Report Dominican Republic and

Hai� Opera�ons

ESPERANZA INTERNATIONAL

FAITHFUL SUPPORT

F or ten years, Vicky and I dreamed of allevia�ng poverty in the Dominican Republic. Eight-

een years ago, that dream became a reality. Since Esperanza’s founding, you have walked

with us through �mes of trial and adversity as well as �mes of blessing and abundance. We

could not have traveled this journey without you. We are ecsta�c to share that 2012 brought

great growth to Esperanza and new opportunity to the amazing women and men whom we

serve.

In 2012, Esperanza proudly served over 17,620 associates with loans and savings services!

Moreover, for the first �me in our history, Esperanza’s ac�ve loan por7olio surpassed $3 mil-

lion (USD)! Over the last eighteen years, our Dominican and Hai�an brothers and sisters have

now invested over $38 million (USD) into their own businesses, transforming genera�ons of

lives in the process.

As an organiza�on commi>ed to providing “more than just a loan,” we are proud to report

that our associates saved over $538,000 (USD) in their personal accounts during 2012 and that

over 157,000 family members benefited from complementary services like dental care and

clean water training. These crucial “plus” services complement our core microfinance services

and enable associates and their families to fight the grips of poverty with greater success.

As you read this report, we hope that our associates and our loving God emerge as the heroes.

However, please know that none of the feats listed in these pages could have been accom-

plished without your support and prayer! We remain commi>ed to serving the poorest of the

poor—especially those marginalized by ethnicity, geographic loca�on, and disease—and your

part in this mission is cri�cal.

On behalf of our associates and staff, please accept our deepest gra�tude for your faithful in-

vestment in their dreams. We delight in imagining what God will do as we walk alongside one

another in 2013!

With sincere apprecia�on,

David Valle Carlos Pimentel

Co-Founder & CEO President

2 | Esperanza Annual Report 2012

Esperanza Annual Report 2012 | 3

OUR VALUES

Demonstra�ng the uncondi�onal love of God to all those we serve;

Honoring the worth, dignity and poten�al of every person;

Developing the whole person: body, mind, and spirit;

Strengthening the family;

Fostering a sense of community wherever we serve;

Learning from all those with whom we serve as we endeavor to teach truth;

Stewarding the earth as God's crea�on, intended for the good of all people;

Achieving excellence in all we do;

Pursuing integrity over image;

Enabling every person to have the opportunity to become all that God intends.

The mission of Esperanza

Interna!onal is to free chil-

dren and their families

from poverty through ini!-

a!ves that generate in-

come, educa!on, and

health—restoring self-

worth and dignity to those

who have lost hope.

WHERE WE SERVE

WHO WE SERVE

The Marginalized Poor


98%

Mostly Women

11% male

89% female

Percentage of

Dominican &

Hai!an Esperanza

associates with a

high school degree

16% 25% Percentage of

Esperanza

Hai!an

associates

who are illiterate

42% Percentage of Do-

minican families

living on $259 a

month (Esperanza’s

focus)

of women

repay on-�me 98% Women are more likely to repay a

loan on !me, and invest their earn-

ings back into their businesses and

families.

Mostly Women

11% male

89% female

Elene first heard of Esperanza six years ago.

She was struggling to make ends meet, and

found herself disheartened by the seemingly

endless ba>le to take care of her three chil-

dren and a budding

business as a single

mother.

Upon taking out her

first loan with Es-

peranza for $200

(USD) Elena almost

immediately felt a

difference in her life.

She invested the capi-

tal into a buy-and-sell

coconut business and hit the ground running.

Elena could finally buy larger quan��es of

coconuts and enjoy bulk discounts.

Elene’s entrepre-

neurial spirit and

hard work have

provided a posi-

!ve example for

her community.


Since that first loan, Elena has taken out an

addi�onal nine loans with Esperanza—one of

them being so she could improve the integrity

and condi�on of her home. Her largest loan

was for $1,100 (USD)!

Elene’s entrepreneurial spirit and hard work

have provided a posi�ve example for her

community—they see how her hard work has

allowed her to purchase both her own home

and a vehicle to transport coconuts.

Elene says she has always believed in God,

but that upon the death of her husband and

her �me with Esperanza, she has become a

stronger believer: “I’ve realized that all I have

is because God has helped me.”

"A CHANGE IN PERSPECTIVE”

TRANSFORMATIONAL


LOAN PRODUCTS

Bank of Esperanza Loans:

Esperanza’s core loan product is a group loan. Five people

stand in solidarity with one another, agreeing to cross-

guarantee each other’s loans. Each group of five is part of a larger “Bank of Esperanza,” which aver-

ages five groups of five people. Banks meet on a biweekly basis to repay their loans together, save

together, encourage one another, and receive training, advice, and prayer support.

Individual Loans:

ANer proving creditworthiness via mul�ple successful group

loan cycles, some associates qualify for a larger loan. Other as-

sociates with a credit history or guarantor can begin with an

individual loan. Most individual loan recipients choose to remain ac�ve members in their Bank of

Esperanza.

Housing Loans:

After proving credit worthiness via multiple loan cycles, or by

finding a guarantor, some associates take out home improve-

ment loans to improve the safety and comfort of their homes. These loans cover concrete floors,

new roofs, sanitation systems, hurricane proof structures, and more.

Water Project Loans:

Local churches purchase professional-grade water filtration

systems with Esperanza loan capital. Loans are repaid with

profits from the sale of water. The churches sell drinking water at affordable prices, provide water

hygiene education and also offer their communities free, clean (non potable) water for washing,

cooking, and bathing.

School Loans:

In partnership with Edify, Esperanza provides loan capital to

private Christian schools to expand their education capacity

by training school teachers and principals in management and providing seminars on Christian edu-

cation. These loans enable thousands of children to receive a healthy and quality educa�on that

they would not otherwise have access to.

Average Loan: $277 USD (D.R.)

$181 USD (Hai!)

Average Loan: $929 USD (D.R.)

$288 USD (Hai!)

Average Loan: $1,042 USD (D.R.)




PROGRESS TO DATE

GROSS PORTFOLIO SNAPSHOT

YEAR-END GROSS PORTFOLIO

DEC. 31, 2012: $3.01 MILLION

ANNUAL DOLLARS LENT

2012 TOTAL: $6.22 MILLION

(In thousands of USD)

TOTAL: $2.95 MILLION

An exchange rate of 35.5 Dominican Pesos (DOP), and 42.4 Hai�an Gourdes (HTG) to 1USD has been used for all con-

versions.

DEC. 31, 2012: LOANS OUTSTANDING DEC. 31, 2012: DOLLARS OUTSTANDING

TOTAL: 11,704 LOANS

MICROFINANCE DOMINICAN

REPUBLIC


20

12

Hig

hli

gh

ts

20

12

Im

pa

ct

78,600 family members

impacted through

Esperanza MF

services

SAVED

by 14,299 (a)

associates

(a) Unique number of associates served includes people holding loans from previous years in addi�on to people receiv-

ing one or more new loans during 2012.

Note: An exchange rate of 39.5 Dominican pesos (DOP) to 1 USD has been used for all conversions.

20% Growth in

number of associates

30% Growth in

net loan porHolio

98% Loans repaid

$5.5 million placed in the

hands of associates,

with an average loan

size of $339,

& disbursed to women

89% of the !me

16,290 Loans extended

$467,833

expansion into Haiti and helped start the

“Esperanza y Vida” (Hope and Life) program,

which uses micro-

finance and special-

ized complementary

services to improve

the lives of those in-

fected with or affect-

ed by HIV or AIDS.

Helen’s devotion has

helped lead Es-

peranza’s continued

growth in the D.R.

and Haiti. She is deeply loved by those with

whom she has worked. We are proud to

honor Helen in this report for her significant

contributions to the work of Esperanza!


Esperanza has undoubtedly been made

stronger by the servant leadership of branch

manager, Helen Calcaño.

Her journey with Esperanza first began ten

years ago when her mother joined a Bank of

Esperanza. Seeing her mother empowered

and growing closer to Christ as a result of her

involvement with her lending community

compelled Helen to join the Esperanza family,

but as a member of the staff.

Her dedication as a loan officer and micro-

credit manager assistant earned her a promo-

tion to Branch Manager of the San Pedro de

Macorís office. The San Pedro office is not

just a normal office—it boasts Esperanza’s

largest loan portfolio!

While in San Pedro, Helen oversaw the begin-

ning stages of Esperanza’s

Seeing her

mother empow-

ered and grow-

ing closer to

Christ com-

pelled Helen to

join the Es-

peranza family.”

“DEVOTED SERVANT LEADERSHIP”


(a) Unique number of associates served includes people holding loans from previous years in addi�on to people

receiving one or more new loans during 2012.

Note: An exchange rate of 42.2 Hai�an Gourds (HTG) to 1 USD has been used for all conversions.

MICROFINANCE HAITI

20

12

Hig

hli

gh

ts

73% Growth in

number of associates

55% Growth in

net loan porHolio

98% Loans repaid

$711,792 placed in the

hands of associates,

with an average loan

size of $183,

& disbursed to women

85% of the !me

9,892 Loans extended

20

12

Im

pa

ct

18,200 family members

impacted through

Esperanza MF

services SAVED

by 3,321 (a)

associates

$470,705

A married mother of three, Benjamen has

been working hard to make ends meet for

over 20 years in a

ravaged Haiti.

In the past, Ben-

jamen would bor-

row money from

family members to

buy and sell small

household items.

In dire �mes she

was forced to bor-

row from local loan

sharks, who

charged her exorbitantly high interest rates.

Then four years ago, Benjamen took out a

loan with Esperanza, and her life changed.

“What I love most

about Esperanza

is that they teach

us the way of life,

and I have

learned to discov-

er fundamental

truths.”


Now on her ninth loan, she is the president

of her Bank of Esperanza, named “Rayon

D’Ami�er” meaning “Ray of Friendship.”

With Esperanza she has learned responsi-

bility and financial discipline, but Benjamen

says, “What I love most about Esperanza is

that they teach us a way of life; I have

learned to discover fundamental truths.”

Recently, she was able to make the transi-

tion from mobile street vendor to the

proud owner of a small grocery store,

which she operates from her home!

Thankful for her Bank of Esperanza and her

loan officer, Benjamen is also grateful for

the joy Esperanza has brought to her life,

even in the midst of difficulty.

“IN THE MIDST OF DIFFICULTY”

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

manage a business with integrity and biblically-based values.

Associates served: 3,228 (D.R.) and 1,968 (Haiti)

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

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

Associates served: 22,585 (D.R.)

Vocational Training – Technical and vocational training workshops teach associates new tech-

niques and skills, or introduce new products or services to build their existing businesses and increase

their chances of success.

Associates served: 190 (D.R.)

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

develop the ability to read, write and perform basic math.

Associates benefitted: 107 (D.R.) and 486 (Haiti)

Cervical Cancer Prevention – Free preventive exams are offered to every female associate to

help detect and prevent cervical cancer. These tests are administered by medical professionals in the

associate’s communities.

Associates served: 1,549 (D.R.) and 928 (Haiti)

Local Church Partnership – Local church leaders support partnership by attending bank meet-

ings, leading devotionals, and supporting associates through prayer and counsel. These partnerships

are crucial to building program credibility and sustaining transformational change.


‘God Provides’ Educational Videos - Promotes a biblical understanding of everyday chal-

lenges and encourages trust in God’s provision. Follow-up discussions promote formation and applica-

tion of biblical values. This program is offered in partnership with Crown Financial and HOPE Interna-

tional.


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

tion and treatment is provided to associates and their families. This program is conducted in partner-

ship with Smiles for Life and members of the Crown Council.

Beneficiaries served: 1,670 (D.R.)


MICROFINANCE SERVICES PLUS


Confident and well-known in her community

in Santo Domingo Norte, Maria is an entre-

preneur at heart.

When she first heard

about Esperanza four

years ago--with its busi-

ness training, voca�onal

courses, and health pro-

grams--she began to un-

derstand what the slogan

“more than just a loan”

meant.

Now on her ninth business loan worth $375

(USD), Maria has vastly increased her in-

come and improved her living condi�ons .

Voca�onal courses such as bracelet-making

have given Maria new skills to

“MORE THAN JUST A LOAN”

differen�ate her business and add unique

products to her small convenience

store. Preven�ve health services like PAP

exams and quality dental care have helped

her maintain her own health, enabling her

to provide more for her family. Lastly, ac-

cess to a savings account has empowered

Maria to accumulate savings and for the first

�me in her life, plan for her future.

Almost every part of Maria’s life has been

touched by Esperanza, and she enthusias�-

cally tells us that “God is good.”

Maria is eager to pass on the great oppor-

tunity and hope she has found to her 80-

year old widowed mother, and is proud to

be able to offer a better life for her children.

Almost every

part of

Maria’s life

has been

touched by

Esperanza.


LEADERSHIP

Dominican Republic Management

Jenny Aquino

Interim Branch Manager, West Santo Domingo

Helen Calcaño

Region Manager, North

Astia Calderon

Interim Branch Manager, Samaná

Pedro Castillo

Coordinator, Complementary Services

Patricia Gonzalez

Coordinator, Communica�ons & Resources

Beirut Guzman

Branch Manager, Hato Mayor

Yakaira Montas

Region Manager, East

Daniel Peniche

Supervisor San�ago Branch

Celida Perez

Branch Manager, San Pedro de Macorís

Marilenni de los Santos

Branch Manager, North Santo Domingo

Ruth Solano

Branch Manager, El Seibo

Greyli Torre

Supervisor Puerto Plata Branch

Audilin Ubiera

Branch Manager, La Romana

Hai! Management

Joel Jean-Louis

Manager, Administra�on & Finance David Saint-Hilaire

Manager, Credit Opera�ons

Senior Team

Andres Barreto

Manager, IT

Inmaculada Bonilla

Manager, Finance

Pedro Lacen

Manager, Microfinance

Services

David Valle

CEO

Carlos Pimentel

President

Alexandra Nuñez

VP, Public Affairs & Caribbean

Investments

Luis Sena

Director, Spiritual Integra�on

Rafael Sena

Director, Administra�on

Kayla Villnow

Director, Community

Investments


2012 BOARD OF DIRECTORS

Esperanza would like to extend a warm welcome to our newest Board members, Dan Devine

and Rick Logsdon, who joined our team in December 2012.

We would also like to extend our deepest gra�tude to Nancy Cahill, Brian Holman, and Omar

Minaya for their seventeen years of service to our Associates, staff, and so many more!

David Valle

Co-Founder & CEO

Victoria Valle

Co-Founder

Carlos Pimentel

President

Steve Brookshire

Chairman

Nancy Cahill

Member

Peter Greer

Member

Joe Leininger

Member

Omar Minaya

Member

Brian Holman

Member

OUR PARTNERS

Esperanza benefits from many strong and capable partnerships, including:


To ensure the success of each loan product,

Esperanza frequently supplements our micro-

finance services with additional programs and

resources provided through partnerships.

One such example is our work with AMO.

The AMO Program offers Esperanza funded

schools a rich Christian curriculum, based on

biblical principles that instruct children and

adolescents with a comprehensive and nour-

ishing education.

AMO’s curriculum instructs a child to use rea-

son and analy�cal thinking alongside the

Word of God, and provides a forma�ve expe-

rience through which students can develop

strong Chris�an character.

Chris�an principles of self-governance,

stewardship and service are woven through-

out coursework and structure.

Children are taught to

reason with biblical prin-

ciples, generate crea�ve

new ideas, make person-

al decisions and solve

problems God's way. All

of this compounds to

build a strong Chris�an

worldview.

Similar to Esperanza, the

AMO program u�lizes

both parents and teachers so as to support

stronger levels of change and transforma�on

in the child’s heart, and in their communi�es

at large.

Esperanza

had four

AMO train-

ings, im-

pac!ng 145

par!cipants.


“TRANSFORMATION THROUGH PARTNERSHIP”

18| Esperanza Annual Report 2012

TO OUR GENEROUS INVESTORS—

Robert Abreu

Michelle Adler

Michael and Marie Anderson

Angry O>er, Inc.

Anonymous (8)

Christopher AXg

Tim Autry

Aven Founda�on

Joe and Barbara Baer

Ramona Bass

David Beam

Gary Beck

William Bedford

Bellevue School District

William C. Bethea

Chris Biddle

Bill & Melinda Gates Founda�on

Stephen and Anne Bisese, MD

Casey Blake

Melissa Bloom

BNBuilders

Wayde Bodden

Joan Bomstead

David Bondo

Will Bradley

Marla Brandt

Meredith Brann

Stephen Bray and Diane Dakin

Madeline Bridgman

The Brooks Aus�n Company

Michael and Susan Brookshire

Brumberger Founda�on Inc.

Lew Brunhaver

Richard Brunhaver

Garry Bruton, Ph.D.

Michael Bryant

Cary Bryson

Woodford and Pamela Burne>e

Christopher Burrow

Janis Burrow

Douglas Burton

Business Owners Ins�tute LLC

Maria Bus�llo

James Butler

Brian Buwalda

C.T.S. Technical Services, Inc

J.R. Caia�

Thomas Campion

Paul Cavaliere

Claire Cavender

William and Kristyn Cervin

John and Marian Chase

Benjamin Cherington

Richard Syril Chessman

Tom Chew

The Chiapas Project

Jeriann Ching Seto

Esther Chou

Samuel Chu

The Church of Jesus Christ

Code Family Founda�on

Glen Cogswell

Keith Colburn

Gene Colin

Boeing Company

Mike Conley

Emily Content

Terry and Pam Cook

Copiers Northwest

Cornerstone Advisors, Inc.

Costco Wholesale

MM Coucher

John R. Cowe>

Allan R. Criss

Richard Cruz

Gary and Dawn Cunningham

Kara and David Cunningham

Mark Mennella and Jody Cunningham

Cure of ARS R. C. Church

Jill Dardick

Alvin and Kimberly Davis

Leo A. Davis

Mark Davis

Ashley Davison

Eileen Demeloitz

David Devine

Nicholas Devlin

Virginia Distanislao

Paul Doherty

Andrew and Theresa Dolson

Drive Solu�ons Inc.

Sco> Drum

Greg and Becky Duda

Steve Dworkin

Bill Eaton

Edify

William and Crissy B. Emmons

Chris and Elizabeth Engstrom

Michael Ens

David Wolfe Enterprises, Inc.

Jus�n Ersch

Ron Fairly

Barbara Falck

Ashley Fatjo

Shawnna Fatjo

Eric Fishbein

Mary Beth Fitzgerald

J.K. Fitzmaurice

The Hersh Founda�on

Tulsa Community Founda�on

Gregory P. Fuller

Phil Galante

Andrzej Gandecki

Alejandro Garcia

Michael B. Garcia

Julian Geiger

James and Laurie Geisz

Elizabeth Gollin

Patricia Gonzalez

Bill and Vanessa Gough

Rick and Linda Graf

Kent Grimes

Lynn Grimes

RJ Grogan

Dave Grosby

Meredith Guehlstorf

Michael F. Halloran

Patrick Halloran

Allen Hammer

LeAnn Kite Hampton

Stan and Mary Harrelson

Patrick Harrington

Dave Ha>eberg

Rebecca Hayes

Dave Henderson

Sco> Henderson

Sam O. Henry III

Hercules Technology Growth Capital

Brent and Cari Hermanson

Hope Interna�onal

Joel Huff

Hugo Boss Fashions Inc.

Elwood Hullinger

James and Martha R. Hunt

William L. Jackson

Bertha Jamison

Richard and Janet Stoner

Jim Jergens

Troy Johnson

Jeffory Jolin

JPW Tournament

Trent Kamman

Fehmi Karahan

Patricia Keath

Craig Keith

Brad Kelley

James and Dolores Kemmerer

Lawrence Kemp

Tom Kemp

Jeremiah Keohane

Don and Ann Kerkes

Daniel Kieffer

Michael Kranz

Ma>hew D. Krieger

KSM Group, LLC.

Ma> Lambert

Peter Lamy

Philip Lane

Jennifer J. Langen

Steve and Cary Larson

Law Offices of Nick Nemeth, PLLC

Kathleen Lee

Legacy Trading, LLC

The Leininger Family Founda�on


John C. Lewis

Liberty Mutual Founda�on Match

Chien Fu Lin

Richard Logsdon

Emilio Lopez

Paul Lord

Brian Lowe

Johah and Jesse Lowey

Texas Realty Capital LP

Diana Maas

Charles Maguire

Mariners Care

Ma>hew Marston

Debra McCarthy

Bruce McCaw

Don McDerme>

Richard McFarland

McLean Bible Church

Rita Mead

Rick and Reva Meadows

Alan Medina

Community Founda�on of Greater Memphis

MicrosoN Giving

Christy Miller

David and Desiree Miller

Omar and Rachel Minaya

Mission Fish

Lynn Mitchell

MLB Players Trust For Children

Richard and Carol Moehring

Michael and Mary Monks

Dori Monson

Doris E Morales

Moritz Interests, Ltd.

Doris Morris

Ma> and Bri>any Moyer

Ellie Musgrave

Eric Nadel

Ash Narayan

Na�onal Chris�an Founda�on Houston

Natural Gas Partners Founda�on

Edward Naumes

John Nelson

Newman Center Catholic Community at UCSD

A R Norber

Northeastern University

Alexandra Nunez

Oak Hills Church

Teresa Oechsli

Julie Olden

David and Jane O>

Gary W. Owen

Michael and Emily Paasche

Pace Company of Virginia

Phyllis Pak

Phillip and Peggy Parro>

The Patricia H. Snyder Family Founda�on

Aaron Patsch

Michael and Karen Peregrin

Craig Peterson

Margaret Phillips

Ashley Pillitu

Pinnacle Founda�on

J. Blake Pogue

Jeff Pollack

Cameron and Dawn Pollock

Rick Philipovich

Roderick Polston

Ma>hew Powell

Eric Pra>

Don Randall

Reilly Family Founda�on

Tamra A. Reinertsen

Cecile Renna

Resource Land Holdings LLC

Root Sports Northwest

Jason and Julie Runnels

Russell Investments

Sco> Ryan

SAP America

Dave Schmidt

Karen Schwartz

Sean Byrne Company

The Sea>le Founda�on

Ma> Segrest

Billy Sepich

Guido Serra

Dennis Shaughnessy

Gregory and Anna Shaw

Joshua Shoemaker

Sholar Founda�on

James and Sara Singleton

James L. Smith Jr.

Daniel C. and Chris�ne D. Smith

Mercedes Snider

Sorensen Farms, Inc.

Linda M. Sorensen

Jim and Toni Sorenson

Sparta Asset Management LLC

St. Norbert College

Adam Stacey

David T. Stafford

Gary T. Staub

Kris�n Staub

Morgan Staub

Pat Staub

Reed Staub

Stephen M. Sander Founda�on Inc.

Jon P. Stephenson

Steven A. and Alexandra M. Cohen Fdn. Inc.

Kenneth and Heather Stoner DDS

Michael Stoner

Gerald H. Stool

Steven and Susan Strachan

Charles Strauzer

Sco> & Stringfellow

Scot and Donna Studebaker

Mike and Sandra Stull

Virginia Tavilla

Andrew Taylor

David - Renton Taylor

Travis Tennill

Texas Chris�an University

The Horwitz Family Memorial Founda�on

Ricardo Tiburcio

John Tobin

David Toner

Junior Torres

Dennis A. Toy

Toys For Kids

Richard and Sherilee Trubi>

Tucson Electric Power Co.

Philip D. Valle

Barbara Valle-Proscia

Cristen Vaughan

Jack and Anne>e Vaughn

Israel and Krista Vela

Gene Villigan

Kayla M. Villnow

Voila Founda�on

Kyle Wagner

Kelly Walker

Glenn Ward

Ka�e Waters

Ken Webb

Brian and Tracy Webster

Bryan Weeks

Ben B. West

Gregg Westerbeck

Laurence M. Westreich

Jeffrey Wieland

Susan Wilkie

Phil and Debbie Williams

Susan and Bryan Williamson

Wilshire Bap�st Church

Laura Wolf

Peter Woodfork

Michael Worthing

—THANK YOU


D.R. MICROFINANCE

Asociación Esperanza Internacional, Inc.

Microfinance Services

STATEMENT OF INCOME AND EXPENSES

For fiscal year ended December 31, 2012 2012 2011 2012 2011

(In DOP) (In USD) (a)

INCOME

Interest and commissions 36,100,037 31,034,832 913,925 816,706

Value of loans recovered 1,005,118 930,063 25,446 24,475

Other 1,873,610 2,494,374 47,433 65,641

TOTAL INCOME FROM OPERATIONS RD$38,978,765 RD$34,459,269 $986,804 $906,823

EXPENSES

Salaries and benefits 22,907,016 28,336,667 579,924 745,702

Fuel and vehicles 5,861,536 8,362,269 148,393 220,060

Rent and u�li�es 2,732,988 4,665,870 69,190 122,786

Telephone and communica�ons 1,581,076 1,609,485 40,027 42,355

General and administra�ve 21,002,915 5,542,888 531,719 145,865


Deprecia�on 2,690,642 1,679,712 68,118 44,203

Provision, uncollectable loans 2,402,233 2,221,345 60,816 58,456

TOTAL EXPENSES RD$63,529,963 RD$55,971,977 $1,608,353 $1,472,947

NET INCOME FROM OPERATIONS (RD$24,551,198) (RD$21,512,708) ($621,549) ($566,124)

Cash contribu�ons RD$50,068,710 RD$32,672,887 1,267,562 859,813

NET INCOME RD$25,517,512 RD$11,160,179 $646,013 $293,689

BALANCE SHEET As of December 31, 2012 2012 2011 2012 2011

ASSETS

Cash 7,231,760 5,438,535 183,083 143,119

Loans receivable, net 107,675,989 82,918,366 2,725,974 2,182,062

Accounts receivable 29,941,964 28,861,999 758,024 759,526

Prepaid expenses 1,805,065 863,853 45,698 22,733

Furniture and equipment, net 11,038,805 8,411,164 279,463 221,346

Other assets 1,185,180 1,211,591 30,005 31,884

TOTAL ASSETS RD$158,878,761 RD$127,705,508 $4,022,247 $3,360,671

LIABILITIES AND EQUITY

LIABILITIES

Accounts payable 7,864,221 18,386,915 199,094 483,866

Accounts payable - KIVA 6,114,963 6,926,653 154,809 182,280

Accrued expenses (b) 60,492 715,501 1,531 18,829

Deferred liabili�es 596,250 307,119 15,095 8,082

Long-term debt 39,182,320 21,826,316 991,957 574,377

TOTAL LIABILITIES RD$53,818,246 RD$48,162,504 $1,362,487 $1,267,434

EQUITY

Retained earnings 105,060,516 79,543,004 2,659,760 2,093,237

TOTAL EQUITY RD$105,060,516 RD$79,543,004 $2,659,760 $2,093,237

TOTAL LIABILITIES AND EQUITY RD$158,878,763 RD$127,705,508 4,022,247 3,360,671

(a) Dominican pesos were converted into USD at a rate of 39.5:1 for 2012 and at a rate of 38:1 for 2011.


D.R. PLUS SERVICES Asociación Esperanza Internacional, Inc.

Plus Services

STATEMENT OF INCOME AND EXPENSES

For fiscal year ended December 31, 2012 2012 2011 2012 2011

(In DOP) (In USD) (a)

INCOME

Visitor program fees 2,438,186 2,271,100 61,726 59,766

Health insurance premiums 1,861,365 1,715,886 47,123 45,155

Other revenue 569,902 578,197 14,428 15,216

TOTAL INCOME FROM OPERATIONS RD$4,869,453 RD$4,565,183 $123,277 $120,136

EXPENSES


Rent and u�li�es 867,736 83,333 21,968 2,193

Other general and administra�ve 3,265,408 4,824,720 82,669 126,966

Direct program expenses 14,048,957 2,027,258 355,670 53,349

Interest and commissions 165,069 212,310 4,179 5,587

Deprecia�on (b)

0 639,242 0 16,822

Hai� 2012 earthquake aid (c)

0 28,275,791 0 744,100

TOTAL EXPENSES RD$25,561,526 RD$43,661,917 $647,127 $1,148,998

NET INCOME FROM OPERATIONS (RD$20,692,073) (RD$39,096,734) ($523,850) ($1,028,861)

Cash contribu�ons 11,955,474 15,242,849 302,670 401,128

Hai� 2012 earthquake aid (d) 0 28,106,236 0 739,638

NET INCOME (RD$8,736,599) RD$4,252,351 ($221,180) $111,904

BALANCE SHEET

As of December 31, 2012 2012 2011 2012 2011

ASSETS

Cash 1,338,715 2,920,920 33,892 76,866

Loans receivable, net (e)

0 117,602 0 3,095


Other assets 305,520 503,961 7,735 13,262

TOTAL ASSETS RD$4,576,197 RD$17,201,694 $115,853 $452,676


LIABILITIES

Accounts payable 26,635,173 25,654,863 674,308 675,128

Deferred liabili�es (f)

0 4,579,208 0 120,505

Long-term debt 0 290,000 0 7,632

TOTAL LIABILITIES RD$26,635,173 RD$30,524,071 $674,308 $803,265

EQUITY

Capitalized dona�ons 17,086,719 17,086,719 432,575 449,651

Retained earnings (RD$39,145,694) (RD$30,409,096) ($991,030) ($800,239)

TOTAL EQUITY (RD$22,058,976) (RD$13,322,377) ($558,455) ($350,589)

TOTAL LIABILITIES AND EQUITY RD$4,576,198 RD$17,201,694 $115,853 $452,676

(a) Dominican pesos were converted into USD at a rate of 39.5:1 for 2012 and at a rate of 38:1 for 2011.

(b) In 2012 we did not have any deprecia�on since all the fixed asset were transferred to the microcredit por7olio.

(c) In 2012 we did not have any expenses as all the expenses for Hai� aid occurred in 2011.

(d) In 2012 we did not have any income since all aid for the Hai� earthquake was received in 2011.

(e) In 2012 we did not have any net loans receivable since the credit por7olio was se>led at year-end 2011.

(f) All deferred liability groups and programs were closed at the end of 2011.

22| Esperanza Annual Report 2012

HAITI MICROFINANCE SERVICES

Esperanza Interna!onal Hai!

Credit-led Program

STATEMENTS OF INCOME AND EXPENSES

For calendar year ended December 31 2012 (b)

2012 2011 2012 2011

(In HTG) (In HTG) (In USD) (a)

(In USD) (a)

INCOME


Value of loans recovered 134,900 586,376 3,182 14,659

Other 534,673 508,709 12,610 12,718

TOTAL INCOME FROM OPERATIONS HTG $4,904,980 HTG $3,446,040 $115,683 $86,151

EXPENSES


General and administra�ve 4,145,521 2,816,191 97,772 70,405

Deprecia�on and amor�za�on 572,074 551,959 13,492 13,799

Provision for uncollectable loans 395,306 246,163 9,323 6,154

TOTAL EXPENSES HTG $7,401,223 HTG $8,007,539 $174,557 $200,188

NET INCOME FROM OPERATIONS ( HTG $2,496,243) ( HTG $4,561,499) ($58,874) ($114,037)

Plus Services expenses (e)

( 606,085) ( 428,437) ( 14,294) ( 10,711)

Cash contribu�ons 498,496 2,894,339 11,757 72,358

NET INCOME ( HTG 2,603,832) (HTG 2,095,597) ($61,411) ($52,390)

BALANCE SHEETS

As of December 31, 2012 2012 2011 2012 2011

(In HTG) (In HTG) (In USD) (a)

(In USD) (a)

ASSETS

Cash 1,657,237 984,012 39,086 24,600

Loans receivable, net 8,630,139 5,556,913 203,541 138,923


Furniture and equipment, net 1,286,132 1,709,068 30,333 42,727

TOTAL ASSETS HTG $17,411,372 HTG 18,216,972 $410,646 $455,424


LIABILITIES

Accounts payable 42,042 853,340 992 21,334

Accounts payable - KIVA 3,811,814 1,202,284 89,901 30,057

TOTAL LIABILITIES HTG $3,853,856 HTG 2,055,624 $90,893 $51,391

EQUITY

Donated equity 35,370,139 34,871,643 834,201 871,791

Retained earnings -21,812,623 -18,710,295 -514,449 -467,757

TOTAL EQUITY HTG $13,557,516 HTG 16,161,348 $319,753 $404,034

TOTAL LIABILITIES AND EQUITY HTG $17,411,372 HTG $18,216,972 $410,646 $455,424

(a) Hai�an Gourdes were converted into USD at a rate of 42.4:1 for 2012 and at a rate of 40:1 for 2011.

(b) The official fiscal year-end for Hai� is September 30. These financials have been adjusted to reflect

calendar years 2011 and 2012.


HAITI SCA SERVICES

Esperanza Interna!onal Hai!

Savings-led Program

STATEMENTS OF INCOME AND EXPENSES

For calendar year ended December 31, 2012

2012 2012

(In HTG) (In USD) (a)

INCOME

Cash contribu�ons 9,550,324 226,311

TOTAL INCOME HTG 9,550,324 $226,311

EXPENSES

Salaries and benefits 2,904,226 68,821

Training programs 1,124,281 26,642

Office and equipment 941,187 22,303

Transporta�on and travel 794,341 18,823

Water and nutri�on pro-

grams 166,690

3,950

Other general and adminis-

tra�ve 564,899

13,386

TOTAL EXPENSES HTG 6,495,624 $153,925

NET INCOME HTG 3,054,700 $72,386

(a) Hai�an Gourdes were converted into USD at a rate of 42.4:1 for 2012.

UNITED STATES

Esperanza Interna�onal Founda�on

13219 NE 20th Street, Suite 208

Bellevue, WA 98005

Tel.: (425) 451-4359

Fax: (425) 451-4360

DALLAS REGIONAL

Esperanza Interna�onal

2929 Canton Street

Dallas, TX 75226

DOMINICAN REPUBLIC

Esperanza Internacional

Frank Felix Miranda #1

Naco, Santo Domingo

Tel.: (809) 450-0333

Fax: (809) 221-7962

HAITI

Esperanza Interna�onal

Rue La Croix #46

Trou-du-Nord, Nord-Est Dept.

Tel.: 011-509-3718-3493

Photos provided by Lisa Glasgow, Rick Meadows, Dicks and Nanton Produc�ons and Esperanza staff.

© 2012 Esperanza Interna�onal Founda�on

CONTACT INFO

Website: www.esperanza.org

Email: [email protected]

2012 Esperanza International Annual Report

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