ANNUAL REPORT 2022
2 • UNBOUND
Moving forward with gratitude
A message from our chief financial officer
The hearts of all of us at Unbound are filled with appreciation for each of our sponsors, donors and other benefactors. At a challenging time for our world, your loyalty and generosity have made a difference for the better in the lives of the individuals and families participating in our programs.
Once again, we’re able to go out and be with families, to hear their stories and witness their resilience in the face of even greater obstacles as they emerge from the isolation of the past few years. We see how vital your support continues to be and how grateful they are for it. Thank you for your commitment to walk with them as they confront new challenges.
We face a future filled with unknowns, but one thing you can be sure of is that Unbound will continue to make wise use of the funds you entrust to us. This report — expanded and with greater detail than before — offers evidence of our stewardship. Just as importantly, it serves as a testament to the effectiveness of your generous support.
At a time when the world seems, in some ways, less connected, your support of the families in the Unbound program is an expression of faith in our common humanity and the essential goodness of people. We hope you find joy in knowing that.
May God bless you.
Gratefully, Martin Kraus CHIEF FINANCIAL OFFICER
3 • ANNUAL REPORT
SOLIDARITY IN ACTION
Unbound sponsors and donors make an impact in the lives of individuals and families in poverty in four main ways.
CHILD AND ELDER SPONSORSHIP
Relationships are at the heart of Unbound. Sponsorship means a child, youth or elder never walks alone as they navigate their journey out of poverty. They have financial resources to meet basic needs and support their development goals, plus encouragement, community and hope.
SCHOLARSHIP PROGRAM
The Unbound Scholarship Program invests in brighter futures for students in the developing world. Scholars achieve an education while developing leadership skills and a heart for service that benefit them in their future careers and in their communities.
4 • UNBOUND
AGENTS OF CHANGE
Families join forces with their communities to drive change on a larger scale via the Agents of Change platform. With grants starting at just $500, they lead initiatives to improve their children’s schools, local water supplies, town infrastructure and more.
CRITICAL NEEDS FUND
No one can predict a crisis, but people living in poverty suffer disproportionately during such setbacks. The Critical Needs Fund provides essential support during health emergencies, loss of shelter or income, and natural disasters.
5 • ANNUAL REPORT
YOUR IMPACT IS GLOBAL
UNBOUND COUNTRIES AS OF 2022
*Includes Nicaragua, where Unbound funded sponsorships up until December 2022.
YOUR IMPACT IS LOCAL
11,965 small groups empower parents to build strong support networks.
GUATEMALA DOMINICAN REPUBLIC EL SALVADOR ECUADOR BOLIVIA TANZANIA HONDURAS PERU COSTA RICA MEXICO RWANDA INDIA COLOMBIA NICARAGUA UGANDA
CHILE KENYA MADAGASCAR 6 • UNBOUND
US HEADQUARTERS
430 communities in Africa, Asia and Latin America with Unbound programs
268,723 sponsored children, youth and elders
723,488 letters exchanged between sponsors and sponsored friends
PHILIPPINES
$115 million in direct assistance to our programs around the world
$3.7 million in scholarships awarded to 8,839 scholars
701 staff leaders driving local solutions are former Unbound beneficiaries.
$117,205 in Agents of Change grants funded community improvement initiatives.
7 • ANNUAL REPORT
YOUR IMPACT IS PERSONAL
FAMILIES RECEIVE ONE-TO-ONE SUPPORT
Local support is customized to each family’s unique, specific needs. Social workers make home visits to explore the progress families are making toward their goals.
FAMILIES SET THEIR GOALS
Families are the ones most qualified to overcome their unique challenges, so they determine how to best use sponsorship funds to achieve their goals.
FAMILIES HAVE FLEXIBILITY WITH CASH TRANSFERS
Cash transfers promote dignity and create greater economic stability for families by giving them the power to decide how and when to use their support. Benefits were disbursed in the form of cash transfers to 98% of all families.
FAMILIES ADDRESS IMMEDIATE NEEDS
Since 2021, Unbound’s Critical Needs Fund has provided $1.7 million in relief to families experiencing unexpected setbacks from health crises, natural disasters, loss of income and more. In 2022 alone, $654,813 in Critical Needs funds were disbursed to families.
8 • UNBOUND
YOUR IMPACT IS LIFE-CHANGING
EDUCATIONAL ACCESS AND ATTAINMENT
Children in Unbound’s sponsorship program are required to set and pursue educational goals on the basis that expanded access to education reduces global poverty. Past evaluations found that 75% of sponsored children reach or exceed national averages for educational attainment.
SELF-SUFFICIENCY AND EMPOWERMENT
Unbound sent $226,412 to 245 entrepreneurs in 2022 to support small businesses through our Small Business Accelerator grants. Likewise, Unbound parents globally have created 159 cooperatives, totaling well over $3 million in assets and empowering members to take control of their livelihoods.
RELATIONSHIPS AND COMMUNITY BUILDING
Through parent support groups, a culture of “parents helping parents” is encouraged. Members learn they can depend on one another during difficult times. Fellowship found within support groups for elders helps banish feelings of loneliness and underappreciation in that vulnerable population.
9 • ANNUAL REPORT
10 • UNBOUND
IN THEIR WORDS
Members of the Unbound community around the world share what sponsorship means to them.
“Some people assume it's normal to wake up every day and go to school or to get a meal. [It] is not easy, but Unbound made it possible for me, for me to get where I am. … I've gotten an education that will help me and the community and other people in general. … To [my sponsor] Margaret … thank you so much for making me who I am since I was young until now.”
Moses | sponsored youth KENYA
“We love that families are empowered to use their sponsorship donations in ways that best help them. We also love that women are encouraged to develop ways to support their families and are helped by other women through their mothers groups to succeed.”
Paul and Carol | sponsors MICHIGAN"The opportunity to sponsor came at a very difficult time in my life. It has had a very healing impact on me. I loved the letters and photos. I have always kept a picture of her [my sponsored friend] on my refrigerator. Thank you so much!”
Cheryl | sponsor KANSAS
11 • ANNUAL REPORT
DID YOU KNOW?
TRANSFORMING LIVES WITHOUT LIMITS
Sponsorship is a relationship that tells a sponsored friend, “I believe in you” — four words that can and do transform lives, and there’s no limit to how many lives you can touch. Nearly 15% of Unbound sponsors choose to sponsor more than one friend at a time.
EMPLOYER MATCHING MULTIPLIES IMPACT
More than 23,000 employers match their employees’ gifts to Unbound each year. Through employer matching, supporters help students in our scholarship program achieve educational goals and create brighter futures for themselves and their families. Learn more at Unbound.org/WorkplaceGiving.
PLANNED GIVING DRIVES LASTING CHANGE
Unbound offers resources to help supporters explore gift planning. Whether the gift is through an estate, stocks, bonds or some other form of planned giving, one person’s legacy can become someone else’s path out of poverty. Learn more at Unbound.org/PlannedGiving.
SHARING UNBOUND WITH OTHERS
The connections we create walking with the poor and marginalized transform lives. There are many ways you can share our mission. Explore volunteer opportunities. Bring the world to students through Global Classmates, or work with us to develop a workplace partnership with a global impact. Follow Unbound on social media.
/sponsorachild @unboundorg
@unboundorg /unbound-org
12 • UNBOUND
13 • ANNUAL REPORT
*Change in Net Assets from
PUBLIC SUPPORT AND REVENUE Sponsorships ...............................................................................$120,685,654 Contributions 16,876,412 Total Public Support .......................................................... $137,562,066 Other Revenue 1,808,576 Unrealized Loss on Foreign Currency Exchanges .......................... (2,206) Unrealized Gain on Investments $(5,091,136) Total Public Support and Revenue ................................... $134,277,300 EXPENSES Program Funding to Projects ........................................................................ $115,210,711 (84.6%) Program Support Services 9,323,829 (6.8%) Total Program Expenses ................................................... $124,534,540 (91.4%) Fundraising $6,562,518 (4.8%) Administration .................................................................................. $5,145,104 (3.8%) Total Supporting Services $11,707,622 (8.6%) Total Expenses ................................................................... $136,242,162 (100%) Net asset increase .......................... $(1,964,862)*
Advance payments from donors received in 2022 for distribution in 2023 .................................................... $448,233 Net additions/reductions to Management-Designated reserves and property and equipment $(1,516,629) Total Change in Net Assets................................................ $(1,964,862)
OF ACTIVITIES For the Year Ended December 31, 2022 14 • UNBOUND
Operations
FINANCIAL STATEMENTS STATEMENT
Where your money goes
Responsible, transparent financial management is a hallmark of Unbound. We make it our priority to ensure that the funds you entrust to us are used efficiently and effectively to benefit individuals and families on their paths out of poverty.
In 2022, 91.4% of our expenses were for program support, with more than $115 million in direct assistance to our programs around the world.
STATEMENT OF FINANCIAL POSITION
Note: Each year the independent accounting firm of FORVIS conducts an audit of Unbound’s financial statements and accounting practices in accordance with auditing standards generally accepted in the United States of America. A copy of this audit report is available upon request or online at www.unbound.org
Unbound is a 501(c)(3) nonprofit corporation, federal EIN: 43-1243999. Contributions are tax-deductible as allowed by law unless otherwise noted.
ASSETS Cash and Cash Equivalents........................................................ $14,428,463 Investments 64,737,170 Receivables ............................................................................................ 526,895 Other Assets .......................................................................................... 747,087 Property and Equipment, Net 2,945,554 Total assets .......................................................................... $83,385,169 LIABILITIES AND NET ASSETS Accounts Payable $302,828 Accrued Expenses and Deferred Revenue .................................. 1,263,320 Annuity Obligations 608,610 Total liabilities ................................................................. $2,174,758 NET ASSETS Without Donor Restrictions ........................................................ $47,421,461 With Donor Restrictions ............................................................... 33,788,950 Total Net Assets $81,210,411 Total liabilities and net asset s.................................... $83,385,169
of December 31, 2022 15 • ANNUAL REPORT
As
OUR MISSION
OUR CORE VALUES
THEOLOGICAL BASE — Unbound is grounded in the Gospel call to serve the poor.
DIGNITY OF THE PERSON — We recognize the Godgiven dignity of each person.
INTEGRITY AND ACCOUNTABILITY — Honesty and transparency are necessary to operate an efficient and effective organization.
RESPECTFUL RELATIONSHIPS — Building relationships of mutual respect between sponsors and sponsored persons is central to Unbound’s mission.
GOVERNING BOARD
On behalf of sponsored individuals, their families and sponsors, the Unbound Governing Board monitors the integrity and accountability of the organization's operations. The board defines the outcomes expected, and management produces verifiable data proving progress toward the expected outcomes.
Emma Miller | chair/chief governing officer
Cindy Jones | vice chair/deputy CGO
Joe Barker | director
Dennis Bernardo | director
Lissa Haag | director
Susan Johnson | director
Board roster as of June 9, 2023
Lisa Phillip | director
Abby Marie J. Rohr | director
Ex Officio Members (non-voting)
Scott Wasserman | Unbound president and CEO
Martin Kraus | treasurer, Unbound CFO
William Hansen | secretary, Unbound VP of finance
Unbound's mission is to walk with the poor and marginalized of the world.
16 • UNBOUND
17 • ANNUAL REPORT
18 • UNBOUND
THE WORLD IS BETTER BECAUSE OF YOU
Once again, we thank you for your generous support of Unbound. Because of you, people in Unbound programs around the world are doing amazing things:
• Families are creating new livelihoods and revitalizing communities.
• Scholarship students are reaching their God-given potential.
• Elders are finding purpose and companionship.
• Children are gaining hope for the future.
• Families affected by emergencies are recovering more quickly.
Thank you for helping make all these things possible through your willingness to extend your blessings to others. Because you have chosen to give of yourself and share your financial resources with the Unbound community, the world has become a little kinder, a little more loving and a better place to be.
19 • ANNUAL REPORT
UNBOUND EARNS TOP MARKS FROM CHARITY EVALUATORS
“We should be at our best for the poor because they deserve it” was a refrain of Unbound’s late co-founder Bob Hentzen, who believed that the world’s marginalized people possess the capabilities and fortitude to create their own paths out of poverty when afforded the right opportunities and support.
That belief is part of what informs and inspires Unbound’s continuing commitment to excellent financial stewardship, earning the organization top ratings from independent charity evaluators.
®
Copyright 2023 Unbound. All rights reserved.
