2010ANNUAL REPORT

The Great Work of our generation is to carry out the transition from a period of human devastation of the Earth to a period when humans would be present to the planet in a mutually beneficial manner ... to ensure each species of their proper habitat and to conserve the basic functioning of the biosystems of the planet.

— Thomas Berry, The Great Work

Dear Friends,

Nature and Culture International dedicates itself to conserving Latin America’s most extraordinary yet highly threatened ecosystems and cultures. We do so by saving endangered habitats, developing and strengthening local institutions and assisting communities to preserve their way of life and traditions. We believe we have been extremely effective, due in part to our ethic of operating with a very small US staff, and devoting over ninety percent of our resources to in-country programs and to building local capacity. We achieved major successes in 2010: • Formal declarations of important regional and community reserves in Piura and Amazonas, Peru,

some as large as 50,000 acres;• Significant advancement in municipal watershed protection in southern Ecuador, resulting in a re-

quest that we consider expanding this effort nationally;• Protection of 8.8 million additional acres of headwaters in Peru from large development projects; and• Major land acquisition to expand our Alamos reserve in Mexico.

In all projects, Nature and Culture International builds local capacity and works with residents to establish long-term conservation efforts that integrate local communities and are sustainable in biological, social and political terms. Toward this end, NCI will continue its important work to: • Protect the tropical forests of Ecuador, Peru, Mexico and Colombia that possess some of the highest

biodiversity levels in the world;• Build in-country capacity by hiring talented local people and relying on their knowledge of tropical

ecosystems, which allows NCI to consistently protect more land for less; and• Instill a conservation ethic in every generation.

We ask you to join us in helping to save the miraculous diversity of life and cultures on our planet, that are now at risk. As a Shuar leader told us during an ages-old ceremony, the tropical forests are the “lungs of the Earth:” without them, we can’t survive. The destiny of creation, and of our own well-being, lies in the hands of our generation.

Sincerely,

Ivan Gayler Byron SwiftChairman of the Board Executive Director

2Cover photo courtesy of Charles Smith

Ivan Gayler and Byron Swift talk with a Shaur curandero in the upper Amazon of Ecuador.

In 2010, Ivan Gayler was awarded the ZoologicalSociety of San Diego’s prestigious Conservation Medal.

The Medal has, in 44 years, been awarded to toconservation luminaries such as Jane Goodall,

Edward O. Wilson, and Prince Philip.

Contents

2010 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

OUR GOALS

Conservation of Tropical Dry Forests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Conservation of Andean Cloud Forests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Conservation of Amazon Rainforests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

OUR METHODS

Land Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Scientific Investigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Environmental Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Valuing Ecosystem Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Sustainable Community Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Environmental Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Finances & Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Board & Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Conservation Partners & Donors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Senior Staff Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

2010 HighlightsConservation Measures Protect Fifteen Million acres of Peruvian Amazon Forest

With NCI’s assistance, the government of Loreto, Peru took action to restrict development in 15 million acres of forests—8.8 million of which are outside existing reserves—that protect the headwaters of the Region’s rivers. This action will help maintain a full and healthy wa-ter supply to sustain the people of these Amazon lowland rainforests, while protecting forests with some of the greatest species diversity on Earth.

Southern Ecuador Fund Advances Protection of Watershed Forests

2010 was a year of success for FORAGUA, the regional fund NCI helped to establish with municipal gov-ernments in southern Ecuador with the dual goals of improving water supplies for thousands of people and conserving highly threatened and biodiverse watershed forests. FORAGUA now is a self-maintaining structure through which municipalities manage, protect and pay for watershed conservation.

Purchase and Protection of Unique Dry Forests

NCI expanded the Cazaderos Private Reserve in southwestern Ecua-dor by financing the purchase of an additional 10,000 acres of excep-tionaltropical dry forest. This acquisition protects an unspoiled section of tropical deciduous forest in one of the world’s most endangered ecosystems, which is a major stronghold for many threatened species of birds, reptiles and plants. Tragically, only 5% remains of this forest type, which has one of the highest numbers of endemic and endan-gered species in all the tropics, making this habitat purchase espe-cially important.

Innovative Bio-Knowledge Program in Ecuador

Working with the Ecuadorian government and local universi-ties, NCI is helping to create an innovative national program for the conservation of ecosystems and generation of bio-knowledge through scientific research coupled with the de-velopment of productive industries based on environmental

goods and services. The program’s multifaceted develop-ment approach should make Ecuador a bench-

mark country for biodiversity conservation and the sustainable use of natural resources.

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Creation of Regional Conservation Areas to Protect Endangered Species and Habitats in Northwest PeruNature and Culture International is working to protect the most important sites for biodiversity in the highly threatened dry forests of northwestern Peru, a renowned center of endemism. In collaboartion with the Regional government of Piura, and with German assistance, NCI staff leaders have prepared the technical documents to support the declaration of seven new species-rich Re-gional Conservation Areas to preserve over 325,000 acres of land as well as several threatened marine ecosystems.

Creating Economic Incentives for Community Forest Conservation

NCI is helping to implement the new Socio Bosque or “Forest Partners” program under which the Ecuadorian government provides payments to rural communities and farmers to preserve their forested lands. In 2010, NCI helped four communities and another eight landowners inscribe 16,800 acres of rich cloud forests and paramo into Socio Bosque, with a special focus on protecting lands within the exceptional Podocarpus-El Condor Biosphere Reserve. We have helped these communities and property owners ob-tain economic incentive payments of $62,000 annually for 20 years to conserve these forests.

Advancing Sustainable Development Initiatives

NCI promotes an ethic of productive conservation that combines conservation goals with sustainable development objectives to improve livelihoods in local communities. In the endangered dry forest of southern Ecuador we are working with communities surrounding our La Ceiba reserve to promote the sustainable use of the palo santo tree for the extraction of essential oils that are later used for cosmetic products by the Brazilian company, Natura. As a result, community members earn significantly more revenue, while 7,500 acres of endangered tropical dry forests are conserved.

In the Peruvian Region of Loreto, NCI is helping fishermen’s as-sociations near several new conservation areas such as the Alto Nanay and Pintuyacu basins improve the management of local

fisheries, which will protect and enhance this major source of protein for local populations. This pro-gram has led to the adoption of more responsible fishing practices such as the use of larger

mesh nets that allow fry and smaller fish to escape, as well as the elimination of such ex-treme practices such as using explosives and poison.

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Nature & Culture International arranged the financing to purchase an additional 9,100 acres of highly endangered Tumbesian dry forests in southwestern Ecuador to expand the Cazaderos Forest Reserve. The tropical deciduous forests of southwestern Ecuador and northern Peru form a unique dry forest ecosystem that has one of the high-est numbers of endemic and endangered species in all the tropics, and is home to sixty endangered bird species and many endemic plant and animal species. What little re-mains—barely five percent—is one of the top conservation priorities for Ecuador and the world.

Working with local communities, NCI is attempting to cre-ate the largest continuous protected block of tropical de-ciduous forest in the region. The area of focus adjoins our 25,000 acre La Ceiba Reserve and 4,000 acre Laipuna Re-serve, and helps link the Ecuadorian forests with the Bio-sphere Reserve in northwestern Peru. In and near all these

reserves, NCI is developing the capacity of local communities to manage and conserve these areas while improving the livelihoods of their citizens.

This purchase was only partially funded through private donations. In order to take advantage of favorable land prices, we helped our partner, Nature and Culture-Ec-uador, secure a $725,000 loan to complete purchase of the remaining 12,000 acres. That loan must be repaid by 2013.

In another initiative, NCI bought 900 acres to preserve the Catacocha watershed that protects a site with ancient canals and la-goons that provided year-round water to the local population in pre-Incan times.

In the Peruvian State of Piura, Nature & Culture International is work-

ing to conserve multiple sites with substantial spe-

cies diversity. That list in-cludes the coastal deserts of

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Our GoalsConservation of Tropical Dry Forests

Talara, the dry forests of the Limon Watershed—home to the endangered White-winged Guan—and the Cota de Caza El Angolo. In 2010, we submitted extensive technical documentation for the creation of five regional conservation areas that will protect over 325,000 acres including endangered dry forests. That work continued with the development of proposals to protect an additional 70,000 acres in the region, including threatened marine environments that are important habitats for endangered species such as the Humboldt Penguin and green sea turtles.

At Alamos, Mexico, we are creating a 20,000 acre reserve within the Sierra de Alamos national protected area (pictured above). This area protects the northernmost extension of tropical deciduous forest in the Americas, and also the headwaters of the Rio Cuchujaqui. To date, Nature & Culture International has purchased 12,000 acres, and has improved several cabins in order to promote visitation and scientific research in this remarkable landscape.

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Our Goals

Conservation of Andean Cloud Forestss

Andean cloud forests arguably have the highest species diversity of any terrestrial habitat. Due to their geography and climate, southern Ecuador and northern Peru are among the most diverse areas within this ecosystem which, because of its exceptional endemism and mul-tiple impending threats, is deemed by many as the top global conser-vation priority on the planet. In 2010, NCI continued to assist in the management of the 3 million acre Podocarpus-El Condor Biosphere Reserve, working with gov-ernments, communities, and the private sector to conserve the pris-tine tropical forests and local cultures of this region.

An important NCI program provides the technical assistance needed by communities to inscribe their natural land holdings into the government’s Socio Bosque program, which exchanges ecosystem service payments to communities that agree to protect their forests for 20 years. In 2010, NCI helped the Sara-guro indigenous community create two new reserves called Paquishapa and Guambusari, and to inscribe

these and an additional three called Cochecoral, Tundurama and Cofradía into SocioBosque—protecting 15,000 acres in all. NCI also helped private land owners inscribe an additional 2500 acres in this program during the year.

In 2010, NCI also emphasized conservation in the Nangaritza Valley, one of the key watersheds in this region that includes significant stands of foothill forests. Those forests are especially endangered due to timber harvest and the growing of specialty

crops. Initiating work with farming communities and with the indigenous Shuar people who live here, NCI focused on the creation of community reserves and Shuar hunting reserves. In prior years, we suc-cessfully helped three indigenous Shuar communities establish ancestral homelands and protect 40,000 acres of cloud forests as the Yacuambi Shuar Community Reserve.

In Peru, Nature & Culture International is working with the Regional government of Piura to promote the protection of endangered cloud forests and paramos at sites such as Ayabaca and Pacaipampa in Piura. NCI leaders in Peru are also assisting the national government by providing information to support declaration of a new conservation area of 275,000 acres that would protect a corridor of cloud forest con-necting the Tabaconas-Namballe National Park all the way to the border with Ecuador, where it would

join the Colambo-Yacuri national sanctuary. The protection of threatened paramos (high-altitude grasslands) that protect the most important local water source for the Chira and Huancabamba rivers is another priority

of the leadership of NCI-Peru. In addition to directly promoting sustainable management practices, NCI supports policies emphasizing conservation and sustainable development.

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Conservation of Amazon RainforestsHome to an amazing diversity of species, Amazon lowland rainforests are the most extensive tropical forests in the Americas. In such areas, NCI primarily works with Re-gional governments and other partners to implement region-wide conservation pro-grams. The leading example of this is the Program for Conservation, Management and Use of Biodiversity of Loreto, Peru (PROCREL) implemented by the Regional Government of Loreto, with technical assistance provided by NCI together with the Institute for Inves-tigation of the Peruvian Amazon (IIAP) and local organizations. PROCREL promotes a regional conservation vision combined with sustainable develop-ment initiatives for local communities with-in the Amazon forests of this vast 90 million acre region. Nearly 4.5 million acres of large-ly untouched Amazon forests have already been protected through the program to date. Successful sustainable development initiatives have also been launched to help local communities. Efforts have included the creation and marketing of hand-made crafts using the fiber of the Chambira Palm, and the enhancement of commu-nity forest management. In 2010, with NCI’s assistance, the government of Loreto, Peru took action to improve fishery regulations and to designate 15 million acres of headwaters forests—8.8 million of which were outside existing reserves —in order to protect the sources of the Regions rivers. These results can be seen at www.procrel.gob.pe.

In 2010, NCI initiated work to extend this program with the government of Ucayali, another large Region to the south of Loreto that includes over 60 million acres of Peruvian Amazon. We aim, in future years, to initiate productive conservation programs that will protect several million additional acres of Amazon rainforests while improving the livelihoods of local people.

Our Goals

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Our Methods Land Conservation

A central priority of Nature & Culture Inter-national’s mission is land conservation. We work to protect land through direct land purchase, the creation of reserves through community efforts, and declarations of reserves by municipal, regional and national governments. In 2010 we purchased over 10,000 acres in Ecuador and Mexico, and are working with communities to protect over 120,000 acres as community reserves. We are also working with regional governments in Ecuador and Peru to declare more than 2 million acres as state protected areas.

National and Regional Protected Areas

NCI has found that working with local, regional and national governments to support the declaration of large protected areas is one of the most productive and cost effective methods of land conservation. By assisting the Regional Government of Loreto, we have already helped support the creation of three major Regional Conservation Areas that together protect close to 4.5 million acres of extraordinarily-diverse tropical forest. At present, NCI is providing information required by the Regional Government of Piura to extend protection to 400,000 acres through a Regional System of Con-servation Areas that will protect paramos, cloud forests and endan-gered dry forests. NCI also extend-ed such efforts to Ucayali in 2010.

Assisting local governments with land conservation is another focus, and NCI has been particularly suc-cessful in helping to protect com-munity watersheds. Loja has of-fered NCI management rights over its 17,000 acre Romerillos Reserve, which will protect cloud forests

bordering the Podocarpus Park. We are also working

with smaller mu-nicipalities to pro-tect cloud forests

around this park.

Community Reserves

Several current projects are aimed at helping indigenous and farming communities declare commu-nity reserves. This includes continued work with Shuar communities to designate lands as community reserves in the Yacuambi Mountains and the Nangaritza River Valley, as well as a continuing commit-ment to the Saraguro indigenous community that protected 16,000 acres in 2010. Work also continues with farming communities in endangered Tumbesian tropical dry forest along the Catamayo River Valley in southern Ecuador. In the Amazonas Region of Peru, NCI helped local communities and the munici-pality Rodriguez de Mendoza establish the Huamanpanta municipal reserve of 57,000 acres that pro-tects remarkable cloud forests. Technical support was provided, enabling protection of the Tilacancha Reserve of 16,800 acres, extending watershed protection to Chachapoyas, a city of 36,000 inhabitants.

Land Purchase

The purchase of land is an important tool when rare ecosystems are privately owned. In 2010, NCI pur-chased more than 10,000 acres of tropical dry forest to expand the Cazaderos Reserve in the endangered Tumbesian ecosystem of southern Ecuador, and initiated the purchase of over 2,000 acres at Alamos, Mexico—site of the northernmost tropical dry forest in the Americas.

NCI also continued its innovative land-for-rights program to protect the spectacular cloud forests in and around the Podocarpus National Park in southern Ecuador. After buying land outside the park that was less valuable for conservation purposes, yet more accessible, NCI traded ownership of those properties to people who ceded to the government their rights to utilize lands within the park.

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Our MethodsScientific Investigation

On the northern edge of Podocarpus National Park in Ecuador is Nature & Culture International’s 2,000 acre San Francisco Scientific Station. Here, the German Research Foundation (DfG) and 17 German and Ecuadorian universities conduct one of the largest ecosystem studies worldwide, investing $3 million a year in interdisciplinary study of tropical mountain forests. The DfG’s research plan going forward gives greater emphasis to maintaining the region’s ecosystems with the practical application of research to aid in conservation efforts. Results to date include 109 Doctoral and MS theses (33 of which are Ecuadorian), training of 500-700 research interns from local universities, and 140 papers published in peer-reviewed journals. To learn more, see http://www.bergregenwald.de and http://www.tropicalmountainforest.org. In Piura, NCI assists the government park service with information on the biodiversity priorities in its national reserves such as the Cota de Caza Angolo. We also work with the Regional Government of Piura,

providing information on the biodiversity of its dry forests and paramos to improve its planned re-gional system of conservation areas.

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Our MethodsEnvironmental ManagementNCI is also helping Ecuador become a leader in the devel-opment and promotion of environmental goods and ser-vices. This innovative “bio-knowledge” program integrates the conservation, research and production sectors to in-crease sustainable development and also the conservation of natural ecosystems. Encouraging programs that enhance human prosperity and nature is a founding principle of Na-ture and Culture International. Elements of the program will include ecotourism ventures, carbon sequestration pro-grams, the valuation of ecosystem services for protection of watersheds, adding nutritional value by tapping the vast plant diversity, and the training of high-level professionals in the area of biodiversity conservation and sustainable use.

Through this multifaceted, integrated ap-proach, Ecuadorian leaders hope to make their country the recognized benchmark for biodiversity conservation and the sus-tainable use of natural resources in order to guarantee a high quality of life for human and other inhabitants, now and in the future.

Photo courtesy of Shea Johnson, I.C.R.

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Our MethodsValuing Ecosystem ServicesA pressing conservation task is that of valuing the ecosystem services that provide us with so many of life’s essentials—most notably air, water and climate stability. Nature and Culture International is actively advancing projects that value water and other resources that result from watershed protection.

NCI has succeeded in helping municipal governments in southern Ecuador, including the provincial capi-tals of Loja and Zamora, to purchase, reforest and protect cloud forest lands in the watersheds that pro-vide them with drinking water. The conservation of these forests has especially high value as this effort is simultaneously: • protecting the very high species diversity of these tropical cloud forests; • providing clean water and related health benefits to the citizens downstream; and• creating climate benefits by saving virgin forests and reforesting degraded lands.

It was a year of success for FORAGUA, the regional watershed protection fund that NCI helped municipal governments in southern Ecuador establish. With dual goals of improving water supplies for the Region’s residents while conserving highly-threatened, species-diverse watershed forests through ecosystem ser-vice payments collected by municipalities from waters users, FORAGUA is now a self-executing mecha-nism by which municipalities manage, project and pay for watershed conservation. In 2010: •TwoadditionalmunicipalitiesjoinedFORAGUA—Zamora(protecting2,500acresatLimonand Jambue watersheds) and Chinchipe (protecting 37,500 acres).

• The technical secretariatwasestablished,and the foundingmunicipalitiesbeganbuying landthrough the FORAGUA trust —2,000 acres in the case of Loja;•NCIattractedacounterpartcontributionof$500,000fromthenationalgovernmenttosupport reforestation on municipal watershed lands owned and protected by the mem-

ber communities of FORAGUA.

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Our MethodsSustainable Community DevelopmentAs is evident throughout this report, a core element of the NCI ethic is to link the well being of local peo-ple with environmental conservation activities. The transformative power of working with communities to enhance economic benefit through sustainable use of natural resources is visible in the reduction of local activities that degrade forest ecosystems, and in the protection by residents of “their” forests.

Amazon Community Initiatives

At the Tamshiyacu-Tahuayo reserve in Peru, we work with local artisans to create a sustainable develop-ment model using beautiful value-added products such as multi-colored baskets from the local chambira palm. We helped the ar-tisans create the cooperative Mi Esperanza, and worked to place products in gift shops at the San Diego Zoo and the Natural His-tory Museum in Balboa Park. Average incomes in communities around the reserve have doubled due to these efforts. In 2010, working with the government of Loreto, we successfully expand-ed this program to other reserves and communities.

NCI also strengthened four community forestry associations in the buffer zone of the Alto Nanay Pintuyacu Cham-

bira Regional Conservation Area by helping them adopt sustainable forestry practices and market their products directly at fair prices to local enter-

prises in Iquitos. Association members participated

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Our Methodsin training courses aimed at helping them implement sustainable practices, learning about low-impact production, value-added products, business management, sales, safety and legal protection. As a con-sequence, illegal logging and large-scale forest degradation has been virtually eradicated in these areas.

In the Amazonas region of northeastern Peru, NCI is promoting the construction of small scale fish farms, using native species to improve the health of community members while also reducing pressures on the surrounding forests. Once heavily reliant on extractive activities with destructive long-term impacts, the impoverished populations in these rural areas are siting these small fish farming operations on degraded land and producing high-quality protein for nearby families. Other rural populations in the region have taken notice of the project and are beginning fish farms of their own, which could eventually influence the conservation of over 24,000 acres.

Palo Santo Project Adds Value while Conserving Dry Forests in Southern Ecuador

The conservation of 7,500 acres of endangered tropi-cal dry forests is supported through the sustainable use of the Palo Santo tree, with land-owning com-munities deriving benefit from the sale of essential oils to the Brazilian cosmetics group, Natura.

The local people are protecting the forest effectively, and have been granted certification of sustainability by guaranteeing that the environment will not be contam-inated, the functionality of the ecosystem will not be affected, and the people who live in these natural eco-systems will benefit economically from the activity. This project is recognized as a model of sustainable use and conservation, which we will duplicate and hope that others will emulate. We thank the entities collaborating with NCI on this initiative, which are the Environmental Ministry, the Technical University of Loja, and Natura.

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Our MethodsEnvironmental EducationNature & Culture International seeks to develop an environmental ethic within society through programs for children, youth and adults. By stressing the management of natural resources for sustained use, ac-tive participation in community decisions, and the importance of living in healthy ecosystems free of contamination, NCI encourages local people to take control of their environments.

In southern Ecuador, our public outreach effort includes publication of a full weekly page of local conservation news in the leading regional news-paper, and workshops that reach rural populations across the region. NCI offers environmental educa-tion programs for children from the first through twelfth grades, and organizes annual Science and Technology fairs and Encounters for Creativity, which have reached 200,000 students in southern Ecuador and northern Peru.

NCI is also active locally in the regional capitol, with training programs and a campaign for the

recycling of batteries offered with the EcoClubs of Loja, and programs on fire prevention offered in con-junction with Podocarpus National Park and the Zoological Gardens of Loja.

NCI also works with the Piura Department of Education (DREP) to deliver specialized training courses to elementary and high school teachers. Several ecoclubs are successfully utilizing our environmental edu-cation platform, Darwin Net, to coordinate events and as an information resource (http://www.darwin-net.org/)

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Finances & AdministrationOverall, our 2010 revenues were $2,334,323 and costs were $2,076,638 (expenses plus land and building purchases). We are proud that over 93% of all costs were spent within our project countries, building capacity where it is needed most.

 

NATURE  AND  CULTURE  INTERNATIONAL  Statement  of  Financial  Position  

For  the  year  ended  December  31,  2010    

ASSETS                CURRENT  ASSETS        

Cash  and  cash  equivalents   $                            897,318    Pledged                      59,989    Prepaid  expenses  &  deposits                                              140,542    Total  current  assets                                        1,097,849    

       PROPERTY  &  EQUIPMENT  (at  cost)        

Land         $                                2,260,266    Building  &  improvements          226,242    Furniture  and  equipment                43,613    Vehicles              182,902    Less  accumulated  depreciation     (190,703)  Total  property  &  equipment                                      2,522,320    

       OTHER  ASSETS        

Deposit  -­‐  Land  Purchase          100,613    Total  other  assets            100,613    Total  assets         $                                3,720,782    

               LIABILITIES  AND  NET  ASSETS                CURRENT  LIABILITIES        

Accounts  payable       $                28,686    Accrued  payroll  &  vacation                97,766    Deferred  revenue  –  grants          379,441    Total  current  liabilities                                      505,893    

       NET  ASSETS        

Unrestricted         $   2,091,203    Temporarily  restricted                                      273,686    Permanently  restricted                                      850,000    

   Total  net  assets                                            3,214,889    

 Total  liabilities  &  net  asse   $   3,720,782  

 NATURE  AND  CULTURE  INTERNATIONAL  

Statement  of  Activities  For  the  year  ended  December  31,  2010  

 REVENUES        

 Grants  &  Contributions      Foundations          $                                  337,652    Community  Funds              880,000    Governments                  104,807    Individuals                618,741    Organizations                                                        197,392    Fees                  160,291    Other                      35,217    Interest                                  223    

   Total  revenues      $                              2,334,323    

       EXPENSES        

Auto        $              62,522    Consultants                128,094    Insurance                      44,632    Office  expense                    64,260    Other  direct  costs                    20,021    Outside  services              116,365    Project  grants              458,772    Publications                      51,917    Repairs  &  maintenance                        11,073    Salaries  &  related  benefits              910,230    Supplies                                30,597    Telephone                                          20,548    Training                                          9,227    Travel                      127,652    Utilities                                          9,968    Depreciation                    45,278    Total  expenses      $   2,111,156    

       CHANGE  IN  NET  ASSETS        

Land  and  buildings                  21,000    Other                202,167    Total  change  in  net  assets    $        223,167    

       NET  ASSETS  AT  Jan.  1,  2010       2,991,722            NET  ASSETS  AT  Dec.  31,  2010    $   3,214,889      

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2010 Income Sources

2010 Cost Categories

44%

5%7%

9%

16%

19% Land Conservation, Mgmt &Reserve Creation

Land Purchase

Administration

Science

Community Development

Education & Policy

14%

38%

8%

27%

5%8%

Foundations

Advised Fund Donors

Organizations

Individuals

Government

Fees & Other

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Board & OfficersIvan Gayler, Chair, President, Del Mar Partnership; Board member and past President, San DiegoMuseum of Man

David Welborn, Vice-Chair, Director, Hunter Industries; San Diego Foundation. EnvironmentalWorking Group

Carol Dean Hertzberg, Artist, Conservationist

Richard Hertzberg, President, ENPEX Corporation; Board Member, UCSD Foundation

David Neil, PhD, Missouri Botanical Garden; Founder, National Herbarium of Ecuador

Doug Sheres, Partner, Rice Hall James & Associates; Former Mayor, Solana Beach

Charles Smith, Founder, Knowledge Factor; photographer

Ann Hunter Welborn, Director, Hunter Industries; Board Member, National Environment Trust

David J. Winkler, CEO, Del Mar Partnership; Chair, Whittier Institute of Diabetes

Byron Swift, President

Renzo Paladines, Vice-President and Director, NCI-Ecuador

Sara Dozier, Chief Financial Officer

Conservation Partners & DonorsWe wish to thank the following donors, whose generous support has been essential to carrying out our conservation activities:

The Gordon and Betty Moore FoundationBirdlife InternationalBritish Bird Watching Fair Belgian Forestry FundBlue Moon FundBlue Mountain ArtsCommunity FoundationEcoFund of EcuadorEuropean UnionGlobal Environmental Fund /Mountain InstituteHunter Industries

Jewish Community FoundationInstitute for the Investigation of the

Peruvian Amazon

Municipality of Loja, EcuadorNetherlands National Committee - The WorldConservation UnionOverbrook Foundation United Nations Environmental ProgramUnited Nations Science and Culture OrganizationWildlife Conservation SocietyWorld Land Trust World Land Trust-USDLA Piper (donated legal services)Del Mar Partnership (donated space andaccounting services)Groovy bits (donated internet services)Many generous individual donors

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Senior Staff MembersByron Swift, President, has worked with local partners throughout Latin America for over two decades to improve land and resource conservation and environmental policy. An environmental lawyer, Byron is an expert in private lands conservation and has published widely on natural resources and biodiversity, industrial pollution and climate change. He has directed the energy program at the Environmental Law Institute (1994-2004) and directed the US office of IUCN - World Conservation Union (1988-1994).

Renzo Paladines, Director of Nature & Culture-Ecuador, has led our program in Ecuador since 1996. Renzo has broad experience in conservation, served as Coordinator of the United Nations Geo-Loja re-port, and was President of the Regional Council of the Catamayo-Chira river basin in 2003. Renzo received the Podocarpus Award of Loja’s Provincial Council for his efforts in conservation and environmental man-agement and has a master’s degree in Zootechnics from the People’s Friendship University, Moscow.

Sara Dozier, Secretary and Treasurer, has held an Officer position as a volunteer with NCI since its founding in 1997. She has worked in the accounting field for 20 years with Del Mar Partnership, Inc. and supervises NCIs financial affairs.

Luis Alban, Director of Nature & Culture-Peru, initiated our Peru office in 2003. He is a Biologist (Uni-versity Ricardo Palma of Lima), with twelve years experience in projects dealing with conservation and development, especially in relation to forest genetic resources. Luis served as scientific director for refor-estation at the University of Piura (1994-2004), President of the Regional Environmental Commission of Piura (2002-2004), and Coordinator of the Piura working group on paramos (2001-2004).

Wagner Guzman, Director of Nature & Culture-Amazonas, is an agricultural engineer with a Masters degree from the Catholic University of Chile and Bachelors from La Molina National Agrarian University of Peru. Wagner did post graduate studies at the Alcalá University of Spain. He is a specialist in environmen-tal economics and planning, and also works for the Institute for Investigation of the Peruvian Amazon (IIAP) and as a university professor.

Mike McColm, International Director, is an expert in conservation, reforestation, sustainable develop-ment and environmental education. He worked for over 20 years in Ecuador as Development and then Executive Director of the Jatun Sacha Foundation, leading it to become one of Ecuador’s preeminent conservation organizations. He has a doctorate in Administration from the University of California and a Masters in Environmental Studies. Mike enjoys leading natural history study groups, teaching, and is a musician.

Cesar Aguirre is a environmental lawyer and veterinary doctor. He worked for several years on con-servation projects for the Podocarpus Foundation before joining Nature & Culture International. Cesar

created the Protective Forest “Servo Aguirre” over forest lands he owns, and founded a regional orga-nization BOPRISUR for conservation landowners.

Eduardo Cueva, Forester, has studied and published on the native fruits of south-ern Ecuador, the growth of the forest species and seeds, and reforestation. He carried out

postgraduate work at the National Herbarium of Ecuador in Quito, and completed his Doc-

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torate studies at the University of Bayreuth, Germany.

Galo Carrillo, Education Coordinator, has trained a generation of environmental activists in southern Ecuador, where he has taught high school since 1970. Galo works with Nature & Culture to implement the national and binational Science Fairs, the Encounters of Children’s Creativity program and the network of Loja EcoClubs. He has a degree in Education.

Priscila Dávila, Head of Finance, has worked at Nature & Culture International since 2000. Previously, she was head of control for the Banco de Loja (1999-2000) and credit officer at Banco del Austro. Priscila has a Doctorate in accounting.

Alex Moore, Biologist, is Administrator of DarwinNet and coordinator of Nature & Culture Internation-al’s program at the El Angolo Reserve in Peru. Alex has conducted biodiversity surveys in northwest Peru since 2002, and has worked on information management systems with the Institute for Investigation of the Peruvian Amazon (IIAP).

Bruno Paladines, Ecologist, directs Nature & Culture International’s programs for community devel-opment in southern Ecuador, working on both social and environmental aspects. He also directs Nature & Culture International’s largest project at La Ceiba-Pilares in the dry forests of Zapotillo. Bruno has a degree in Ecology from the University of Brussels, Belgium.

Pedro Paladines is Administrator of the San Francisco Scientific Station. He has a degree in Envi-ronmental Management from the Technical University of Loja, and postgraduate studies at the Peoples Friendship University, Moscow.

Trotsky Rivera, Environmental Engineer, coordinates Nature & Culture International’s Zamora office. Trotsky is a specialist in habitat restoration, and conducted his thesis at Nature & Culture International’s San Francisco Scientific Station. He is also a professor at the Technical University of Loja.

Fabián Rodas, Biologist, became the head of NCI’s Cuenca office in 2010, where he coordinates a multi-institutional effort to establish and strengthened a wide variety of conservation areas and pro-grams. He has published on bird conservation and on the use of GIS for protected areas. He has also served as a university professor (2000-2002). Fabián has a post-graduate degree in Population Ecology from the University of Costa Rica.

Felipe Serrano is Coordinator of the Biosur project, the Biosphere Reserve program, and the com-munity programs at Colambo-Yacuri. He has a Masters in Management of Tropical Biodiversity from San Pablo University, Spain, and was a university teacher (1999 - 2002). Felipe is the founder of the Azuay Herbarium and president of Funbotánica.

Emily Welborn, Program Officer & Writer, has a Masters in Environmental Science and Man-agement (specializing in Conservation Planning) from UC Santa Barbara and a B.A. in En-vironmental Studies and Chemistry. Through her Group Project Master’s Thesis, Reduced Emissions from Deforestation and Degradation (REDD) in the Cofán Bermejo Reserve, Ec-

uador, she gained valuable knowledge on carbon markets and applying them to conserva-tion in Latin America. 

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