2012 YEAR IN REVIEW Celebrating the Impact of Corporate Partnerships
RICHARD STEARNS • PRESIDENT, WORLD VISION U.S. Prior to becoming the president of World Vision U.S. in 1998, Rich had a corporate career that spanned a variety of industries, including serving as CEO for Parker Brothers Games and Lenox. He holds a bachelor’s degree in neurobiology from Cornell University and an MBA from the Wharton School at the University of Pennsylvania. Driven by a passion to raise awareness for poverty and justice issues, Rich is a prolific writer and speaker who has appeared on CNN, Fox, ABC, and PBS; written for the Wall Street Journal, The Washington Post, the Huffington Post, and other media outlets; and authored two books, the award-winning The Hole in Our Gospel and the forthcoming Unfinished. Rich and his wife, Reneé, live in Washington state and have five children.
MESSAGE FROM THE PRESIDENT
“This is the best thing we’ve done as a company. We didn’t just talk about it. We actually did something.”
– Kate Longenecker, Vice President of Human Resources Xanterra Parks & Resorts
As a former corporate CEO, I understand the complex pressures on businesses. One of the growing pressures is that of consumers and workers who expect businesses to give back, to be socially responsible, and to demonstrate with openness and transparency that they care about more than their bottom lines. As the president of World Vision U.S., I now have the privilege of seeing hundreds of American companies do just that by partnering with World Vision. Xanterra Parks & Resorts is one of those companies. Looking for tangible ways to help fulfill their mission and commitment to communities, Xanterra came to World Vision. They chose a two-pronged approach, making an impact both locally and across the globe. On the home front, Xanterra invested in World Vision’s SchoolTools program, a hands-on experience where employees assembled and helped distribute more than 2,000 school supply backpacks to grateful schoolchildren in low-income neighborhoods within their local communities. Abroad, they contributed funding to a World Vision water project in Uganda. Thanks to Xanterra, more than 1,000 children and their families now have access to clean water and have hope for healthier futures. It is no small thing—in fact, it’s a great big thing. When businesses partner with nonprofit organizations like World Vision, the world changes for the better. That’s why I am so grateful for those who stepped up in fiscal year 2012. In spite of a continued tough economy, these companies found a way to make it happen. This report includes the stories of a few of our valued partners who together with World Vision literally changed lives—the lives of communities in need and those of their own employees. On behalf of World Vision and the children and families we serve together, thank you for engaging your employees, your customers, and your resources to help make a sustainable impact for millions of children and families.
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Your support helped impact the lives of millions of people in 2012 ... 955,000 people
gained access to clean water in 10 African countries through combined water, sanitation, and hygiene efforts, including the drilling of approximately 1,200 new wells.
4.2 million children
registered in child sponsorship programs worldwide were provided life-changing support like food, clean water, healthcare, and education.†
2.2 million Americans
were assisted with disaster relief and recovery programs, access to basic necessities like clothing and shoes, personal care products, building materials, and educational supplies and programs.
2.4 million children
benefited from the disbursement of 806,575 microloans totaling $607 million that created or sustained more than 1.5 million jobs in 35 countries.†
10 million disaster survivors, refugees, and internally displaced people were assisted following 87 humanitarian emergencies to which WV responded.†
† Achievements made possible with the support of all World Vision donors around the world. Achievements not marked with this symbol were made possible with the support of World Vision donors in the U.S.
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2012 CORPORATE PARTNERSHIP HIGHLIGHTS
500 102 25,383 $9.2
million
$259
million 4
WORLD VISION U.S. CORPORATE PARTNERS More than 500 American and U.S.-based multinational companies participated in World Vision’s work in 2012 through financial support, product donations, and the power of their people, their customers, and their brands.
EMPLOYEE & COMMUNITY ENGAGEMENT KIT BUILD EVENTS World Vision’s hands-on philanthropic team-building program continued to grow in popularity. More than 36 companies including Johnson & Johnson, JPMorgan Chase, McKesson, PGT Industries, Procter & Gamble, Salesforce.com, and Weyerhaeuser sponsored 102 events resulting in more than 52,000 supply kits to help people in need.
PALLETS OF DONATED PRODUCT Thanks to the generosity of more than 300 companies, World Vision shipped over 25,000 pallets of donated top-quality goods, including medicine, educational materials, personal care supplies, clothing and shoes, building materials, and more to World Vision programs in 40 countries including the United States.
FINANCIAL SUPPORT World Vision received over $9.2M in financial support from more than 200 companies, including cash grants, cause-marketing proceeds, team-building activities, and workplace giving and matching gifts, which helped in relief, development, and advocacy work around the world.
REVENUE FROM GIFT-IN-KIND DONATIONS In fiscal year 2012, gift-in-kind donations exceeded $259 million in booked value, but the tangible benefit to our programs was significantly greater.
Unless otherwise noted, results and data included in this report reflect World Vision U.S. activity in fiscal year 2012, October 1, 2011 through September 30, 2012.
“It’s important to have a true partner like World Vision who understands our business in a way that will make the
greatest impact for children. For over 14 years, our partnership has helped to bring the joy of play through our toys and games and sparkle of hope through our grant support to help AIDS orphans in Zambia, in addition to assisting children and families impacted by disasters like Superstorm Sandy or the earthquake in Haiti.” Karen Davis Vice President of Community Relations Hasbro, Inc.
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World Vision is profoundly grateful for each one of our corporate partners. Here are a few examples of the significant impacts made through powerful and aligned collaboration ... 6
WORLD VISION PARTNER SINCE 2000 MISSION MATCH
HOW THEY ENGAGE
• Social Responsibility
• Product Donations
• Hope for Children
• Financial Support • Disaster Relief • Supply Chain Innovation
For Columbia Sportswear, partnership with World Vision has been a successful business solution. It started with a phone call to World Vision about a shipment of counterfeit backpacks. Rather than destroying the goods, Columbia worked with World Vision to determine a solution for de-branding and distributing them outside Columbia’s global markets, allowing good to come from a bad situation. Greatly impacted by photos of children who received the repurposed backpacks, Columbia responded with immediate interest in World Vision’s product donation program. Over the years, this trusted partner has positively impacted hundreds of thousands of people in need. In 2012 alone, Columbia donated nearly 100 pallets of warm jackets, shoes, blankets, and other desperately needed items. Excess fabric from manufacturing plants was enthusiastically received
by World Vision international field programs and used to make uniforms. In addition to paying the freight for product shipments, Columbia’s subsidiary labels Mountain Hardwear, Montrail, and Sorel, as well as some of their international locations, have also donated fabric, clothing, and shoes. A committed partner in every respect, Columbia has been of great help to World Vision in many disaster relief efforts, most recently offering muchneeded shoes for survivors of Hurricane Sandy.
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WORLD VISION PARTNER SINCE 2004 MISSION MATCH
HOW THEY ENGAGE
• Clean Water and Sanitation
• Financial Support
• Passion for Education • Raising Awareness
Coca-Cola India’s internationally recognized Support My SchoolTM Campaign is a dynamic collaboration of corporate and nonprofit partners including NDTV (New Delhi Television Limited) and UNHabitat (the United Nations Human Settlements Program). Its purpose is to raise awareness and funds for the revitalization of schools in rural and semi-urban India with an emphasis on access to clean water and proper sanitation, especially for the benefit of young girls who often drop out of school due to the lack of adequate toilet facilities. Combined with the provision of access to resources like play facilities, rainwater harvesting systems, and libraries, these efforts create school environments where children can thrive. In 2012, World Vision was selected as the implementation partner for this project. With a nearly 60-year history in India, World Vision’s
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existing capacity, focus on education, and established relationships with local government are key assets in achieving the goals of this unique initiative. In June, the Support My SchoolTM Campaign reached its Phase 1 goal of 100 schools, touching the lives of over 43,000 children. Already in several schools, the improvements have contributed to reduced absenteeism and dropout rates, especially for girls. And in one campaign school, enrollment has already jumped by nearly 40 percent. Phase 2, launched in August, aims to reach an additional 250 schools and impact thousands more children. “We are honored to be in this partnership with like-minded partners from civil society, private sector, and concerned citizens of the world. Together with partners, Support My SchoolTM is working towards developing healthy and active schools in India, one school, and one student, at a time.” — Deepak Jolly, Vice President of Public Affairs and Communications, Coca-Cola India
WORLD VISION PARTNER SINCE 2005 MISSION MATCH
HOW THEY ENGAGE
• Community and Global Outreach
• Product Donations • Kit Build Events
• Commitment to Quality Healthcare • Teambuilding
For Midmark—a family-owned business that became a mid-sized corporation—“because we care” is not only a tagline, it’s a culture. The company’s commitment goes far beyond excellence in the healthcare industry: Midmark’s founder had a vision that the company would be a leader in caring for their community. As the company has gone global, so has the vision, and Midmark and World Vision have partnered together to bring greater health to communities in need. In 2005, Midmark began donating refurbished medical equipment from its product trade-in program to World Vision for use in parts of the world where medical equipment is not easily accessible. Later, Midmark began donating other types of greatly needed medical products. In 2011, Midmark engaged their line managers in a “teambuilding event with a purpose,” where they rolled up their sleeves to assemble kits of medical supplies
for caregivers of HIV and AIDS patients in Africa. The event’s success led to a “round-the-clock” kit build that provided Midmark teammates on all shifts the opportunity to participate in assembling more supply kits. In 2012, Midmark’s Community Relations Manager visited World Vision programs in Tanzania to see firsthand the work being done, the impact of their donations, and the great need for partnership. Reaching out to do even more, Midmark plans to continue its support of World Vision through additional kit build events and other opportunities in the future.
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WORLD VISION PARTNER SINCE 2008
Together, Intel and World Vision are providing educational technology, curriculum, and training that are making the future brighter for children in Africa. This collaboration was recognized as a “Best Partnership” finalist in the U.S. Chamber of Commerce 2012 Corporate Citizenship Awards. Intel’s Education Service Corps (IESC)—a group of high-achieving employees selected for their technical and training abilities, cross-cultural fluency, and passion for education—is working with World Vision to set up computer labs and train teachers to improve student learning through technology. Since 2011, four projects have been completed in Zambia, Senegal, Rwanda, and Tanzania. Building on the initial engagements in these four countries, World Vision and Intel will continue their collaboration in 2013 to further develop tools
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MISSION MATCH
HOW THEY ENGAGE
• Access to Education
• Employee Engagement
• Hope for Children
• Technical Expertise
• Raising Awareness
• Product Donations
• Supporting Teachers
• Financial Support • Kit Build Events
and apply lessons learned for scalability of future projects, with an aim to deploy the IESC program in several more communities in the nearly 100 countries in which World Vision serves. Sharing the same goal of improving education in the poorest communities worldwide, this partnership leverages Intel’s expertise, scale, and passionate employees together with World Vision’s global footprint and its ability to engage with local communities and education leaders.
WORLD VISION PARTNER SINCE 2011 MISSION MATCH
HOW THEY ENGAGE
• Community Outreach
• Employee Giving
• Culture of Giving Back • Disaster Response • Employee Engagement • Kit Build Events • Financial Support • Product Donations • Volunteerism When devastating tornadoes hit Alabama in 2011, Weyerhaeuser, a company with a strong culture of giving back, wanted to help. Working with World Vision, they quickly engaged their employees to raise money for Hygiene Kits—emergency response kits filled with basic supplies for disaster survivors. Employee support was overwhelming, and they swiftly exceeded their goal. After seeing the impact of this act of compassion, the team at Weyerhaeuser was determined to do more. Fluff pulp—the absorbent material in disposable diapers—is one of Weyerhaeuser’s many and varied products, and diapers are a high-need item in World Vision’s U.S. programs. Upon learning of the need, Weyerhaeuser launched “Operation Diaper Drive.” Rallying their employees in nearly 50 locations nationwide, the company again surpassed their goal, collecting 412,000 diapers, $12,000 in cash, and the joy and energy of a workforce united for a cause.
Since then, Weyerhaeuser has funded and hosted additional World Vision Kit Build Events, assembling SchoolTools backpacks and more Hygiene Kits, this time for those impacted by Hurricane Sandy. Weyerhaeuser employee groups have also volunteered at World Vision’s Seattle/ Tacoma product warehouse. The World Vision and Weyerhaeuser partnership is a win-win, providing tangible opportunities to give back, as well as help and hope to hundreds of children and families across the United States.
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“At TOMS, we look to partner with responsible organizations that have a sustainable impact in disadvantaged communities.
World Vision’s long-term commitment to building a better future and helping communities overcome poverty is the kind of work TOMS is passionate about supporting. We are honored that TOMS Shoes can strengthen the work that World Vision is doing.” Sebastian Fries Chief Giving Officer TOMS
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FROM THE NEWSROOM: EXCERPTS FROM 2012 PRESS RELEASES SEATTLE (May 25, 2012)—At the national Kitchen and Bath Industry Show in Chicago, World Vision honored KOHLER CO. for the third time as its Crystal Vision Award winner. Since 1996, Kohler has partnered with World Vision domestically, donating plumbing products for distribution to families in need. A leader in kitchen and bath design and technology, Kohler was World Vision’s first corporate donor of kitchen and bath products, and accepted the inaugural award 11 years ago. DALLAS (November 2, 2012) —JPMORGAN CHASE employees gathered at World Vision’s North Dallas warehouse to lend a hand in Hurricane Sandy disaster response. Attendees sent support and encouragement by assembling and filling kits with emergency food packets and basic hygiene supplies for children and families affected by this week’s disaster on the East Coast—the fifth-largest storm in U.S. history. SEATTLE (September 26, 2012)—At the 2012 Clinton Global Initiative, President Clinton highlighted a new partnership between World Vision and the PROCTER & GAMBLE (P&G) Children’s Safe Drinking Water Program to provide clean drinking water to 2.3 million people impacted by the drought and famine in West Africa. World Vision will respond using P&G water purification packets—a powder technology that removes contaminants from water while killing viruses and bacteria. HOUSTON (March 18-21, 2012)—At the 2012 Microsoft Convergence Conference, MICROSOFT featured World Vision as one of their partners for the new developing software, Microsoft Dynamics AX, a supply chain solution. World Vision has successfully implemented Dynamics AX in Mongolia and Senegal, and is expected to expand to many other remote locations. The software will allow World Vision to continue running its supply chain efficiently, even when working in the farthest reaches of the globe. WASHINGTON, D.C. (August 9, 2012)—World Vision is pleased to announce its partnership with SIX FLAGS AMERICA for a “Back to School Supply Drive” that will benefit at-risk students. The supply drive goal is to fill a coaster car full of school supplies which will be given to World Vision on August 16, National Roller Coaster Day, for distribution to teachers and students in need. Supporters who donate new school supplies will receive 50 percent off a one-day general adult admission ticket. NAIVASHA, KENYA (October 2, 2012)—MoneyGram announced today that employees in Kenya are personally distributing school supplies to students in need as part of its Back-to-School campaign, which features a $100,000 donation in support of education. Through the Back-to-School campaign, MONEYGRAM is working with World Vision to provide new school supplies to 10,000 children in more than a dozen countries across Africa, Asia, Eastern Europe, and Latin America.
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2012 FINANCIAL HIGHLIGHTS REVENUE SOURCES (in millions)
2010 2011
2012
private cash contributions public grants (food and cash) gifts-in-kind other income, net
$528 $556 241 199 251 291 21 12
$567 175 259 18
$1,041 $1,058
$1,019
OPER ATING EXPENSES (in millions) 2010 2011
2012
total program services fundraising management & general
$902 107 53
total revenue
total operating expenses
REVENUE SOURCES
56% private cash contributions 25% gifts-in-kind 17% public grants 2% other income, net
$851 $927 104 102 47 50
$1,002 $1,079 $1,062
OPER ATING EXPENSES
85% programs 10% fundraising 5% management & general
17%
10% 2%
25%
5% 56% 85%
In 2012, 85 percent of World Vision’s total operating expenses were used for programs that benefit children, families, and communities in need.
NET ASSETS (in millions)
total net assets: $109
World Vision’s objective for financial liquidity and reserves is to operate in a prudent range of stability, $7 $43 while recognizing the imperative of distributing maximum funds to mission as quickly as possible. $59 World Vision U.S. remains financially strong, with sufficient liquid assets to discharge ongoing ministry commitments and other obligations. Most of our short-term investments are held in liquid marketable securities. Our investment strategy for long-term assets (primarily pensions, donor advised funds, and endowments) would generally be considered a conservative one.
REVENUE AND OVERHEAD TRENDS (in millions)
While 2012 was a challenging financial year for World Vision, we give thanks for donations that exceeded $1 billion and ministry impact that grew solidly. Total revenue in fiscal 2012 declined 4% to $1,019 million. Private cash donations, our most important measure of financial health, grew 2% in 2012 to $567 million. In addition to a difficult economic environment, cash donations in the past year were affected by the absence of a major disaster relief event (with Hurricane Sandy striking after the end of our fiscal year). Importantly, donations to World Vision’s core child sponsorship program rose 3%, and cash funding to the local communities of our sponsored children increased 10%. $1200 $1000
PROGR AM SERVICES (in millions)
$59 temporarily restricted $43 unrestricted $7 permanently restricted
$1,224 $1,109
$1,041
$1,058
$1,019
Total revenue
$800 $600
total program services: $902
$400 $200 $0
international programs domestic programs (U.S.) public awareness and education
$813 84 5
$149
$140
$151
$152
$160
2008
2009
2010
2011
2012
Total overhead (fundraising, management,
and general)
OVERHEAD R ATE (percent of total revenue)
Fundraising, management, and general expenses (sometimes called overhead) rose 5% in 2012. Our overhead rate (overhead expenses as a percent of total revenue) increased from 14.4% to 15.7%. 20% 10%
13.5%
11.4%
14.5%
14.4%
2010
2011
15.7%
0% 2008
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2009
2012
View our complete Consolidated Financial Statements online at worldvision.org/ar
“World Vision is a business solution
and an excellent partner in any situation on the ground. We can trust that World Vision will get the product to people in need. And they have passed the scrutiny of our legal team—a high endorsement to be sure.” Scott Welch Global Corporate Relations Manager Columbia Sportswear
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What if ... Early results from the first quarter of World Vision’s fiscal year 2013 indicate a two-fold increase in corporate funding. This is both humbling and exhilarating, and a trend we hope continues throughout the remaining three quarters. What if it does? How many more children and families living in poverty would be given the gift of life and hope? How many more Americans would feel the joy that comes from making a real and lasting difference in someone’s life? There is a Maori proverb, “Ko taku rourou, Ko tau rourou, Ka ora te tangata,” which translates “With my resources and your resources, everyone will benefit.” Working with donors and partners, we’ve found this proverb’s simple message to be a profound truth. Individuals, businesses, governments, communities—working together and sharing their resources—create a powerful win-win. Whatever your business needs are, we welcome the opportunity to learn more—about your business, your objectives, and your own desires to make an impact on your communities and our world. With our resources and your resources, everyone can benefit. What if together, we took it to the next level in 2013? How could we help your business? Whose lives could we change? Let’s find out.
CHRIS GLYNN SR. VICE PRESIDENT • WORLD VISION U.S.
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World Vision is a Christian humanitarian organization dedicated to working with children, families, and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. World Vision serves all people, regardless of religion, race, ethnicity, or gender. World Vision, Inc. is a registered 501(c)(3) nonprofit organization.
2012 WORLD VISION UNITED STATES LEADERSHIP Rich Stearns Larry Probus Joan Mussa Julie Regnier Chris Glynn Kent Hill
President Chief Financial Officer and Sr. Vice President, Strategic Solutions Sr. Vice President, Mobilization Sr. Vice President, Human Resources Sr. Vice President, Transformational Engagement Sr. Vice President, International Programs
For more information, please contact your World Vision representative. Or visit us online, in person, or contact us by phone: www.worldvision.org blog.worldvision.org www.facebook.com/worldvision World Vision Corporate Engagement P.O. Box 9716 34834 Weyerhaeuser Way S. Federal Way, WA 98063-9716 1.866.850.HOPE
© 2013 World Vision, Inc. All rights reserved. No portion of this publication may be reproduced in any form without written permission. For further information about this publication or for additional copies, please contact temarketing@worldvision.org. Copy, design, and interior layout produced by the World Vision U.S. Transformational Engagement marketing department. All photos are the property of World Vision or used with permission.