Letters From the CEO & CFO

Letter from the CEO, Jake Harriman

Dear Friends,

I’m writing this letter from seat 23D on a flight bound for Kenya. I’ve spent the past month in the U.S. planning out 2012 and beyond with Nuru’s dedicated and talented staff, and now I can’t wait to return to our project in Kenya to catch up on the progress that our Kenyan staff has made in empowering the hard-working farmers of Kuria with sustainable solutions to end extreme poverty in their communities. But before touching down in Nairobi I want to reflect back on the year prior and set the stage for the content you’ll find in this Annual Report.

We began the year working with 537 families and ended with more than 1,400 families enrolled in Nuru’s Agriculture Program.

2010 was a year of explosive growth for Nuru. We began the year working with 537 families and ended with more than 1,400 families enrolled in Nuru’s Agriculture Program. Even with this explosive growth, new farmers’ crop yields increased by 250% on average. This increase is absolutely transformational to a family who can now feed their children and sell the surplus to earn disposable income for the first time. For those farmers who live far from any town and don’t have access to local markets, we launched an agribusiness run by our Kenyan staff that offers to purchase our farmers’ excess maize at accessible locations and at a fair market price. That maize is then resold to local markets at a profit with all revenues invested back into the Agriculture Program to pay for the next season’s loan inputs.

Also in 2010 our Community Economic Development Program laid the foundation for mobile banking services that will allow farmers to save their increased income and plan for their families’ future. Our Healthcare Program trained and deployed Nuru Community Health Workers (CHWs) to provide basic disease prevention and affordable health and hygiene products to the extreme poor living in remote, rural areas. The Water & Sanitation Program increased access to clean water for over 1,755 community members via two new deep wells and created a new Water, Sanitation, and Hygiene (WASH) framework aimed at increasing sustainability and buy-in for clean water and sanitation. Lastly, our Education Program continued to iterate on its approach to increasing child literacy. We used the design thinking process to produce a new prototype: a Learning/Drop-In Center that also serves as a hub for outreach to public schools. This well-researched model will provide alternative education programs and a menu of low-cost, proven initiatives for public schools to implement themselves.

As you know, Nuru is all about true sustainability. We create financial sustainability by embedding revenue models into our five programs. In 2010, those models produced over $315,835 in program-sourced revenue! This moved us closer towards our goal of financial independence for the entire project before our U.S. staff’s exit. As important as financial sustainability is, true sustainability also requires leadership sustainability. Our Leadership Program is a comprehensive process and curriculum that identifies, screens, trains and equips service-minded leaders from the community to scale Nuru’s model. After 9 months of research and design we began testing our prototype in February 2011.

2010 was also a year of explosive financial growth. More selfless donors are catching the vision of our sustainable, scalable model and are excited by the measurable, life-changing results we’ve accomplished thus far. Their contributions and yours have allowed us to exponentially increase our impact, and we rely on your continued support as we aggressively scale our programs into neighboring communities and additional countries trapped in the cycle of extreme poverty. Because of you, we are empowering more and more people with the choice to lift themselves out of extreme poverty… permanently.

Stay in the fight,

Jake Signature

Jake Harriman
Chief Executive Officer
Nuru International

Letter from the CFO, Kari Hanson

2010 was our second full year of operations in Kenya and with it came many financial changes throughout our organization as a whole. Our donors continued to astound us with their generous support by doubling their donations over the prior year. This increase has further strengthened our commitment to always work with integrity and honesty and to be good stewards of the money donated toward our cause. To that end, we stepped up our financial controls and implemented a few new systems in 2010:


Our donors continued to astound us with their generous support by doubling their donations over
the prior year.
  • We hired a reputable accounting firm from Chicago, Knutte and Associates, to audit our accounting information and prepare our Form 990s (which are always available to the public on our website).
  • We officially separated Nuru’s Kenyan organization from the U.S. organization to increase accountability and pave the way for a smooth exit when U.S. personnel are no longer needed in the project. Our goal is that each international project becomes a completely independent and community-owned operating unit. Even after U.S. personnel have exited, we will continue to track and monitor the ongoing impact created by our program dollars.
  • We sent a U.S.-based accountant to Kenya for several months to refine the Kenyan accounting system and develop protocols for importing current financial information. With this solid financial data from the project we will be able to assess the sustainability and scalability of the programs and measure the direct impact of every donor dollar.
  • Despite a poor economic and fundraising environment in 2010, we ended the year with positive net income due to increased funding and the implementation of a tight budget. Budget revisions for the year included prioritizing Kenya expenses over domestic expenses.

After a year of developing tighter financial controls and increased accountability, we are ready for a year of sound program growth. We will continue to strive for complete transparency in all that we do.

Thank you for joining us in the fight against extreme poverty!

Kari Signature

Kari L. Hanson
Chief Financial Officer
Nuru International

Program Area Updates

Agriculture

The Agriculture Program scaled to four more sub-locations increasing the number of farmers in Nuru’s programs to 1,400. 18 more field officers joined the team, and their hard work resulted in both a continued exponential increase in maize yields for new farmers and a strong repayment rate. A granary was built to purchase excess grain from Nuru farmers to be resold at a small profit with all revenues invested back into the program.

Community Economic Development

The CED program’s microloan portfolio grew almost 149%. 114 loans were issued with an average loan size of US$183 and a year-end repayment rate of 97.6%. Even though savings services were extended to two new sub-locations, the program only attracted about 50 new members. Consequently, Nuru staff designed a new savings service to increase farmer outreach; it will launch in 2011 with the goal of reaching 50% of Nuru farmers. The CED program also deployed Mifos as its first cloud-based management information system (MIS) and piloted mobile banking services through Safaricom’s mobile money transfer service, MPESA. These technologies will play an important role in streamlining operations and providing financial resources to the poorest rural communities.

Water & Sanitation

The water and sanitation program shifted its strategy from drilling deep wells to stimulating demand for clean water solutions and improving hygiene and sanitation at a household level. Staff attended low-cost latrine training provided by partner organization CAWST and are developing a menu of affordable, incremental improvements that prevent disease. WatSan staff prototyped and sold innovative handwashing stations and clean water storage units constructed from locally available materials, impacting hundreds of community members.

Healthcare

44 Nuru members completed both the official Community Health Worker (CHW) training program mandated by the Kenyan Ministry of Health as well as supplemental Nuru Healthcare trainings. With a focus on the diseases and problems closely linked to under-5 mortality, each CHW is responsible for providing preventative healthcare education and access to health commodities to approximately 25 households. The Commodities Sales System serves as a catalyst to increase the adoption of good health behaviors by selling soap, PUR, WaterGuard, Moringa Leaf, Sprinkles, and LLITNs (bednets) to the 3,429 individuals living in areas encompassed by our CHWs.

Education

The Education Program continued to iterate on its approach to increasing child literacy in the community by using the design thinking process. They’ve produced a new prototype: a Learning/Drop-In Center that also serves as a hub for outreach to public schools. This well-researched model will provide alternative education programs and a menu of low-cost, proven initiatives the Nuru Education team implements in partnership with local schools. The Kenyan Ministry of Education approved this plan, outreach programs have been launched and the drop-in program design process is being finalized in preparation for implementation.

Maps & Statistics

 
2010
2009
2008
Nuru Farmers
1,400
537
0
Total Impacted
7,000
2,685
0
Maize Harvested (metric tonnes)
2,125
910
0
CED Loan Portfolio (USD)
13,350
8,392
0
CED Loans Issued
114
77
0
Overall Sustainability Ratio
52%
0%
0%

Highlights

  • The number of Nuru farmers almost triples
  • New farmers experience 250% increase from pre-Nuru maize harvests
  • Granary built to house surplus maize purchased from Nuru farmers
  • Two deep wells drilled providing clean water access to 1,755 people
  • 44 Community Health Workers (CHWs) trained to diagnose common diseases and sell health commodities
  • Kenyan staff infrastructure developed for aggressive scaling to neighboring communities
2010 Kuria Map
 
2010
2009
2008
Nuru Farmers
1,400
537
0
Total Impacted
7,000
2,685
0
Maize Harvested (metric tonnes)
2,125
910
0
CED Loan Portfolio (USD)
13,350
8,392
0
CED Loans Issued
114
77
0
Overall Sustainability Ratio
52%
0%
0%

Highlights

  • Farmers experience 300%+ increase in maize yields
  • 4 deep wells drilled at local primary schools providing clean water access to 2,000+
  • 400 families trained in financial planning
  • 1,000 subsidized bednets are sold and community members trained on proper use
  • Local healthcare facility improved to offer 24-hour care
  • First third-party evaluation conducted
  • 2,000+ community members trained in basic clean water and disease prevention techniques
2009 Kuria Map
 
2010
2009
2008
Nuru Farmers
1,400
537
0
Total Impacted
7,000
2,685
0
Maize Harvested (metric tonnes)
2,125
910
0
CED Loan Portfolio (USD)
13,350
8,392
0
CED Loans Issued
114
77
0
Overall Sustainability Ratio
52%
0%
0%

Highlights

  • Nuru International arrives in Kuria, Kenya
  • Local leaders identified and Community Development Committee formed
  • Initial baseline and need finding analysis conducted
  • Local farmers form groups and are trained in effective planting and harvest techniques
  • Partnerships formed with top NGOs
  • Preparations made for first agriculture loans
2008 Kuria Map

Stories From Nuru Members

Nuru equips the poor with tools and knowledge to lead their communities out of extreme poverty.
Here are stories of two Nuru Members whose lives have been changed forever.

Elias' Story
Margaret's Story

* If you have trouble watching these videos, go to Elias’ Story or Margaret’s Story.

By the Numbers

Nuru International US Profit and Loss 2010

Audit performed by Knutte & Associates, P.C.
* All Figures in U.S. Dollars

Public Support and Revenues

Donations & Grants
3,114,404
Gifts in Kind
262,061
Special Events
16,610
Other Fundraising
7,073
Realized Gain on Investments
25,569
Interest
521
Total Revenue
3,426,238
USA Revenues Graph

Expense Summary

Program Expenses
International Programs
1,294,484
Awareness Programs
336,900
Total Program Expenses
1,631,384
Fundraising Expenses
291,109
Management and Administrative
197,075
Total Functional Expenses+
2,119,568
Loss on Investments
884
Loss on Disposal of Fixed Assets
990
Total Functional Expenses and Losses
2,121,442
USA Expenses Graph
 

Functional Expense Breakdown

Accounting
8,913
Books and Subscriptions
4,612
Contract Services
107,322
Facilities and Equipment
18,859
Foundation Team Expense
1,326
Insurance
28,166
IT & Website
6,514
Licenses and Fees
14,027
Nuru Kenya Grant
551,389
Payroll and Benfits
1,166,496
Rent
18,245
Supplies & Printing
45,132
Telecommunications
19,572
Travel
128,995
Total Expenses
2,119,568
 

Current Assets

Cash
755,189
Grants Receivable
502,567
Prepaid Expenses
36,101
Total Current Assets
1,293,857
Fixed Assets
43,604
Long Term Grants Receivable and Deposits
235,708
Total Assets
1,573,169
Current Liabilities
70,092
Net Assets
Unrestricted
1,118,169
Temporarily Restricted
384,908
Total Net Assets
1,503,077
Total Liabilities and Net Assets
1,573,169
Change in Net Assets
1,304,796
Beginning Net Assets
198,281
Ending Net Assets
1,503,077
 

Nuru International Kenya Profit and Loss 2010

Prepared by Morris Chubb, U.S.-based accountant
* All Figures in U.S. Dollars

Public Support and Revenues

Donations & Grants
531,995
Gifts in Kind
19,389
Program Revenue
315,835
Interest
1,388
Total Revenue
868,607
Kenya Revenues Graph

Expense Summary

Program Expenses
Healthcare Program
26,478
Water & Sanitation
69,915
Education Program
22,124
Community Economic Dev.
24,582
Agriculture Program
417,642
Total Program Expenses
560,741
Management and Administrative
54,922
Total Functional Expenses+
615,664
Kenya Expenses Graph
 

Functional Expense Breakdown

Books and Subscriptions
1,048
Contract Services
68,715
Cost of Goods from Program Revenues
276,927
Facilities and Equipment
12,281
Foundation Team Expenses
608
Insurance
295
Payroll and Benfits
67,698
Other Program Expenses
105,115
Supplies & Printing
27,502
Telecommunications
13,346
Training
17,336
Travel
24,794
Total Expenses
615,664
 

Current Assets

Cash
150,595
Program Loans Receivable
73,512
Program Inventories
22,224
Total Current Assets
246,331
Fixed Assets
184,865
Total Assets
431,196
Current Liabilities
20,882
Net Assets
Unrestricted
410,314
Total Net Assets
410,314
Total Liabilities and Net Assets
431,196
Change in Net Assets
252,943
Beginning Net Assets
157,371
Ending Net Assets
410,314
 

Commitment to Fiscal Responsibility

It’s important to us that the money you give goes directly to the extreme poor.
Here are a few of the ways that we cut costs to make your donations go further.

We Take Local Transportation or Walk
We Work from Home Offices
We Use Donated or Free Equipment, Software and Services
We Partner with Volunteers

We Take Local Transportation
or Walk

Many organizations working in Africa spend tens of thousands of dollars on Land Rovers and professional drivers to get around. That’s not our style. Instead, we travel like Kenyans by walking or taking local transportation like motorcycle taxis (usually less than $1 per ride).

We Work from Home Offices

We smile whenever anyone asks to meet at our U.S. office – because we don’t have one. We work out of our homes and connect online using free video conferencing software like Skype. Of course, our staff would love to work together in the same building, but we also love saving money by working virtually.

We Use Donated or Free Equipment, Software and Services

We have partnerships with computer re-sellers, software distributors, printers, law firms, and a half dozen other businesses to procure great equipment, software and services for free or at highly discounted rates. Thank you to all of our partners who fight extreme poverty by allowing us to do more for less.

We Partner with Volunteers

The fight to end extreme poverty requires all of us to play our part. In 2010, Nuru was privileged to partner with over 170 of the most talented, passionate, selfless volunteers on the planet. Thank you for your amazing contributions – we couldn’t have made it this far without you.

Nuru International is a BBB Accredited CharityKnutte & Associates, P.C.

John G. Hancox, MD, Board Chairman

Don Faul

Andrew R. Cogar, Esq.

Trey Dunham, PhD

Jake Harriman, CEO