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Annual Report
2016
yellowcollection
Esperanza International
Esperanza International PO Box 140807
Dallas, TX 75214
Restoring Hope + Dignity in the
Dominican Republic
Mission, Method, Motivation A Letter from Dave Valle Board of DirectorsWho We Serve Where We Serve Loan ProductsHolistic Services Income StatementAssociate Story Where We Are Headed
234678
10 111314
Contents
Temply Annual Report 2015 Designed By Temply 13
Mission: To free families from poverty and share the hope of Christ Method: We offer holistic, Christ-centered financial and complimentary services that equip families to flourish Motivation: We seek to glorify God by loving our neighbors in word and deed
Mission, Method, Motivation
"But the fruit of the Spirit is love, joy, peace, forbearance, kindness, goodness, faithfulness, gentleness and self-control. Against such things there is no law." Galatians 5:22-23
13 Temply Annual Report 2015 Designed By Temply
It is my pleasure to share with you Esperanza’s story for 2016! After 20 years of serving the most vulnerable in the Dominican Republic and Haiti, we continue to look for ways in which we can improve and develop excellence in every area of our organization. We are thankful for the Lord’s blessings as we do so.
Throughout the year, we focused on deepening relationships with our Associates by ensuring the loan products we offer are ones they want, need and desire. We understand the importance of listening to those we serve. We want to make sure that what we offer and how we offer it, meets Associates’ needs to develop their businesses, their families and their future. We have seen this with our churches partnerships for water purification projects, as some churches now desire loans for bakeries and other businesses that serve their communities.
In 2016, we migrated our loan portfolio to a new cloud based core banking platform, a huge undertaking. The entire team was a part of this successful process and transition.
Now with the strength of our internal banking operations, we have a greater ability to perform at a higher level of efficiency, flexibility and transparency.
We remain passionate about Esperanza’s mission to serve those in need physically, financially and spiritually. We could not do it without you and all of the faithful supporters who have given so generously over the years! We hope you enjoy reading about Esperanza’s impact in 2016 and know that you have a part in it!
“For the generous man shall prosper; he who refreshes others shall himself be refreshed.” Proverbs 11:25
May God’s grace and peace refresh your life in 2017! The best is yet to come!
A Letter from Dave Valle
Dear Partners of Esperanza,
13Temply Annual Report 2015 Designed By Temply
Board of Directors
Alex Nuñez Executive Director,
Esperanza International
Cheryl Hunter Emeritus Mentor, C-12
Steve Brookshire Chairman of the Board
Principal, Pegasus Ablon
Daniel Devine Founder, Compass Knowledge Group
Smita Donthamsetty Director of Monitoring and
Evaluation, Chalmers Center
Rick Logsdon Senior Counsel,
Texas Instruments, Inc.
David Wasik Vice President of Operations,
HOPE International
Peter Greer President & CEO,
HOPE International
Dave Valle CEO & Co-Founder,
Esperanza International
13 Temply Annual Report 2015 Designed By Temply
"Esperanza is hope! It truly is...Not all banks keep women in mind, to help the
country, to help society. It is the woman who runs the house, the one who's always
with the kids... And [Esperanza is] a way for women to be able to work and to take
care of their families."
- Amelia Herrera Esperanza Associate, La Virgen, Santo Domingo Norte
57%
1,422
Dominicans
13Temply Annual Report 2015 Designed By Temply
Associates We serve the poorest of the poor throughout the Dominican Republic. Our Associates earn between $2-$4 a day and are entrepreneurs seeking opportunities to lift themselves out of poverty.
43%Haitians
# of Single Moms
Who We Serve
85% Women
15% Men
13 Temply Annual Report 2015 Designed By Temply
Where We Serve
grocery store
Associate Businesses...
Number of Associates Served per Branch Office
Dominican Republic Puerto Plata
Samaná
Hato Mayor
El Seibo
La RomanaSan Pedro de Macorís
Santo Domingo
Santo Domingo del Norte Los Alcarrizos
Corner store bread distribution agriculturebutcher shop fruit store bakery beauty salon
cake shoppoultry breeding household products
fish shopwork shop jewelry
shoe store retail
Temply Annual Report 2015 Designed By Temply 13
ACTIVE ASSOCIATES
6 ,736AVER AGE LOAN SIZE
$350.36(USD)
Loan Products
beauty salon
retail
$70,843,210TOTA L A MOU N T DISBU RSED HISTOR ICA L LY (USD)
R EPAYMENT R ATE
98%TOTAL LOANS DISBURSED
229,006
13 Temply Annual Report 2015 Designed By Temply
26Water Loans
Average School Loan
$1,644,971 (USD) Disbursed Historically to School Partnerships
$9,128
59School Loans
$14,099Average Water Loan
113Housing Loans
$949Housing Loans
Average Size
Loan Products (continued)
$655,307Water Projects
Disbursed Historically
Temply Annual Report 2015 Designed By Temply 13
Holistic Services
Vocational Trainings
48
1,012
426
1,611
4,639
............................................................
. ............ ............................
....................................................................
........................................................
...............................................
Cervical Cancer Screenings
"God Provides"
Health Trainings
Business Trainings
Dental Patients Served through Smiles for Life ........................................
1,203
Video Showings
Income Statement
2016 2015 2016 2015
Cash RD$33,052,526 RD$38,328,633 $718,065 $852,126Loansreceivable,net 98,636,509 117,411,741 $2,142,874 $2,610,310Accountsreceivable 5,612,079 3,801,043 $121,922 $84,505Prepaidexpenses 3,652,611 506,334 $79,353 $11,257Furnitureandequipment,net 8,471,429 8,853,174 $184,041 $196,825Otherassets 2,298,901 2,247,634 $49,944 $49,970TOTALASSETS RD$151,724,056 RD$171,148,560 $3,296,199 $3,804,992
Accountspayable 18,130,472 3,820,350 393,884 84,934Accountspayable-KIVA 3,150,922 6,017,443 68,454 133,780Accruedexpenses 4,649,829 0 101,017 0Long-termdebt 16,355,299 41,921,444 355,318 932,002TOTALLIABILITIES RD$42,286,522 RD$51,759,238 $918,673 $1,150,717
Retainedearnings 109,437,534 119,389,322 2,377,526 2,654,276TOTALEQUITY RD$109,437,534 RD$119,389,322 $2,377,526 $2,654,276
RD$151,724,056 RD$171,148,560 $3,296,199 $3,804,992
ASSETS
LIABILITIESANDEQUITYLIABILITIES
EQUITY
TOTALLIABILITIESANDEQUITY
(a)ConvertedDominicanpesosintoUSDatarateof46.03for2016andatarateof44.98for2015
BALANCESHEETSAsofDecember31,
2016 2015 2016 2015
Interestandcommissions RD$46,262,912 RD$63,996,689 $1,005,060 $1,422,781Valueofloansrecovered 2,644,004 1,853,728 $57,441 $41,212Otherincome 2,834,230 3,472,828 $61,574 $77,208TOTALINCOMEFROMOPERATIONS RD$51,741,146 RD$69,323,244 $1,124,074 $1,541,202
Salariesandbenefits 22,578,984 23,970,594 490,528 532,917Fuelandvehicles 2,330,546 2,592,017 50,631 57,626Rentandutilities 1,953,801 1,800,262 42,446 40,024Telephoneandcommunications 1,113,354 1,507,010 24,188 33,504Generalandadministrative 31,747,811 23,789,569 689,720 528,892Interestandcommissions 3,655,027 4,921,131 79,405 109,407Depreciation 2,611,181 2,292,272 56,728 50,962Provisionforuncollectableloans 6,631,589 11,751,000 144,071 261,249TOTALEXPENSES RD$72,622,292 RD$72,623,855 $1,577,717 $1,614,581
(RD$20,881,146) (RD$3,300,610) ($453,642) ($73,380)Donations 10,928,784 19,499,734 237,427 433,520
(RD$9,952,362) RD$16,199,123 ($216,215) $360,141
NETINCOMEFROMOPERATIONS
NETINCOME
STATEMENTSOFINCOMEANDEXPENSESForfiscalyearendedDecember31,
INCOME
EXPENSES
13Temply Annual Report 2015 Designed By Temply
2016 2015 2016 2015
INCOMEHealthinsurancepremiums RD$2,276,272 RD$2,962,558 $49,452 $65,864Visitorprogramfees 2,103,260 1,508,603 $45,693 $33,539Visitorintermediaryfunds(b) 2,353,928 3,318,338 $51,139 $73,774Otherrevenue 44,319 556,474 $963 $12,372TOTALINCOMEFROMOPERATIONS RD$6,777,779 RD$8,345,973 $147,247 $185,549
EXPENSESSalariesandbenefits 3,839,100 3,750,601 83,404 83,384Generalandadministrative(c) 3,260,128 3,401,409 70,826 75,620Directprogramexpenses 7,885,285 10,900,834 171,308 242,348Visitorexpenses 2,386,607 3,318,337 51,849 73,774TOTALEXPENSES RD$17,371,120 RD$21,371,182 $377,387 $475,126
NETINCOMEFROMOPERATIONS (RD$10,593,341) (RD$13,025,210) ($230,140) ($289,578)Donations 10,835,347 14,516,757 235,398 322,738
NETINCOME RD$242,006 RD$1,491,548 $5,258 $33,160
STATEMENTSOFINCOMEANDEXPENSESForfiscalyearendedDecember31,
2016 2015 2016 2015
Cash RD$3,851,733 RD$5,664,920 $83,679 $125,943Accountsreceivable 2,682,678 2,517,869 $58,281 $55,978Otherassets 0 1,481,915 $0 $32,946TOTALASSETS RD$6,534,411 RD$9,664,704 $141,960 $214,867
Payablesandotherliabilities 3,001,436 6,373,735 65,206 141,702TOTALLIABILITIES RD$3,001,436 RD$6,373,735 $65,206 $141,702
Retainedearnings 3,532,975 3,290,969 76,754 73,165TOTALEQUITY RD$3,532,975 RD$3,290,969 $76,754 $73,165
RD$6,534,411 RD$9,664,704 $141,960 $214,867
LIABILITIES
EQUITY
TOTALLIABILITIESANDEQUITY
(b)Paymentsreceivedfromvisitorstocovertheirexpenseswhileincountry(c)IncludesCentralOfficeexpenseallocationandG&AexpensesoftheCommunicationsandResourcesDepartment
(a)ConvertedDominicanpesosintoUSDatarateof46.03for2016andatarateof44.98for2015
LIABILITIESANDEQUITY
BALANCESHEETSAsofDecember31,
ASSETS
13 Temply Annual Report 2015 Designed By Temply
Gladys Escalante, most people refer to her as Sandra,
“I don’t like to feel defeated. I like to move forward. I don't like for people to
have to support me.
has been an Esperanza Associate since 2005. She is a single mother of seven children as well as the guardian of her grandchild. Sandra manages her home and sends her children to school all while running a small business selling empanadas in her local community of San Pedro.
Financial, Family, and Emotional Struggle Sandra started off her empanada business with many struggles. Financially, she was materially poor, having little to spare day by day. “It was bad. It was very bad” Sandra said as she described the state of her financial situation. Though initially her husband helped supply income to the family, he eventually left Sandra leaving her to sell empanadas in her home and in the streets on her own. Every penny went to covering food and the children's school fees and uniforms. It is very important to Sandra that her children earn a quality education and so that always came first.
Sandra expressed that the combination of her financial situation and struggle maintaining a household with little money left her feeling very bad about herself. Her house suffered, she struggled, and much of her hope was lost. That is, until Sandra found Esperanza.
Hope Restored, Business Flourishing We asked Sandra what gave her the ability to keep fighting and moving forward while feeling such despair. She responded, “I don’t like to feel defeated. I like to move forward. I don’t like for people to have to support me. I like to work.”
Sandra founded a Banco de Esperanza (BDE) believing that the opportunity to join a Microfinance Institution meant investment in the future growth of her business and of those in her community. Upon starting her first lending group in 2005, Sandra was responsible for gathering women for bi-weekly meetings, collecting and counting their payments, and preparing for meeting discussions. She developed disciplines in organization and responsibility and was motivated to complete her tasks with excellence.
Sandra’s first loan with Esperanza was 1,000 pesos ($22 USD) which she used for empanada ingredients such as flour, butter, and oil. As Sandra progressed she started saving from the business revenue to invest in more substantial materials including a new store, refrigerator, and packaged snacks.
The empanada business slowly but surely began to flourish, and Sandra noticed tremendous differences in her life as a result. Sandra explained, “my friend told me to invest more in the business so that I could save. Also, Esperanza teaches you how to keep track of your expenses. So from there, it started going really well for me – because at the end of the loan cycle, I was able to take out a [new] loan and also take a part of my savings...things started improving!”
A major accomplishment of Sandra's was paying for her granddaughter's medical expenses when she was sick. She was elated to be able to help. Eventually Sandra reached a point in her borrowing where she was eligible for an individual loan. These loans are available to Associates that “graduate” from a community loan. Individual loans are larger in size, and require one-on-one meetings with Loan Officers for repayment. With her individual loan, Sandra worked toward home improvement for her family and began to experience hope in her life.
Looking Forward Looking into the future Sandra feels optimistic. She dreams of changing the city for good by growing her business and offering employment to at-risk youth. A life that felt broken and impossible is now full of dreams for the future.
I like to work."
Temply Annual Report 2015 Designed By Temply 13
WHAT A GIFT IT IS TO BE GIVEN NEW YEARS AND NEW SEASONS TO SEE GOD AT WORK ALLOWING THE SEEDS HE'S ASKED US TO PLANT START TO
GROW. IN 2017, WE HAVE BIG DR EAMS FOR BOTH OUR U.S. AND D.R. TEAMS.
IN THE D.R., WE PLAN TO STR ENGTHEN OUR MONITOR ING AND EVALUATION PROGR AM
TO BETTER ASSESS PROGR ESS AND OUTCOMES TOWAR D INTENDED GOALS. IN THE U.S., WE AR E FOCUSED ON GROWING AWAR ENESS OF
ESPER ANZA'S WORK WHICH TR ANSFOR MS LIVES THROUGH A COMPR EHENSIVE APPROACH TO
POVERTY ALLEVIATION.
BY TELLING THE STOR IES OF LIVES TR ANSFOR MED, WE HOPE OTHERS WILL JOIN US IN THE JOUR NEY TOWAR D DIGNITY R ESTOR ED FOR THE VULNER ABLE. WHAT A PR IVILEGE IT IS TO SHAR E IN THIS WORK WITH YOU AS WE R EMAIN CONFIDENT OF THIS, "THAT HE WHO
BEGAN A GOOD WORK IN YOU WILL CAR RY IT ON TO COMPLETION."
Where We Are Headed
Temply Annual Report 2015 Designed By Temply
E SPER A NZ A I N TER NATIONA L PO BOX 14 0807 DA LL AS, T X 75214-0807
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