MUSANA JEWELRYYEAR-END REPORT | 2012

TABLE OF CONTENTS

SUMMARY OF ACCOMPLISHMENTS

UGANDA PAGE MANAGEMENT 2

STAFFING 2

ESTABLISHMENT 3

SOCIAL SERVICES 4

PRODUCTION AND SALES 5

FINANCES 5-6

UNITED STATES MANAGEMENT 7

ESTABLISHMENT 7

MARKETING AND MEDIA 7-8

SALES 8-9

FINANCES 9

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Uganda Operations

ManagementUganda

At the beginning of 2012, Musana was run by an interim manager in Uganda, Lutajani Kemisi. Lutajani fulfilled the basic duties of coordinating payroll, supplies procurement, jewelry orders, and accounting. The organization was functioning at a minimum operational level. During the period of May through December of 2012, Musana’s in-country management be-came established, and began functioning as a stable, efficient, and dynamic entity.

Melissa Sevy and Meredith Duncan arrived in Uganda in May. Together with Lutajani, the three worked together as joint in-country leadership from May until August. During this time, a perfor-mance pay system was established, the Lugazi retail storefront opened, the foundations for a more holistic social services implemented, and logistics for the Plan International order worked through.

In August, Tina Kyambadde was hired as Musana’s first full-time Uganda Manager. Lutajani took on a part-time role of Logistics Intern, and Francis Ngoboka maintained his role of Community Advisor. Melissa remained in Uganda until December, working as the In-Country Director and directly communicating with Meredith on a regular basis. The in-country leadership team held bi-weekly planning meetings, with minutes being recorded and shared with the US team.

StaffUganda

In order to fill the increased demand for jewelry production, Musana hired 3 additional full-time female artisans - Nagawa Medina, Babirye Immaculate, and Birungi Cissy - for a total of 10 artisans.

Additionally, to meet the demand of the Plan International contract, 30 contract artisans were hired from four community women’s groups including the Geri-Geri Women’s Group, New Canaan School Mother’s Group, Agape Elderly and Widows Group, and Friends Women’s Group. These artisans were trained, given materials, and then crafted the products from home. Their increase in monthly income was shown to be 3-4 times what they had previously been making.

A “performance pay” system was utilized for about 6 months of 2012, where artisan’s payment became reliant upon productivity (rather than a set monthly salary). This was designed to both incentivize increased productivity and provide for an organic salary raise to the artisans. The program resulted in a productivity increase of more than 100% and doubled each artisan’s monthly income by the end of the year.

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In order to truly build women who are leaders for social change at the community level, each Musana artisan has a responsibility within the organization. At each artisan’s bi-weekly mentor-ing session with Tina, items of discussion are follow-up, mentorship, and goal-setting for these responsibilities. Leadership positions are:

Eve: Music CoordinatorFlorence: Community Service CoordinatorImmaculate: Uniform CoordinatorHarriet: Time-keeper and SpokespersonRosette: Design and Material CoordinatorSusan: Women’s Affairs RepresentativeMedina: Procurement CoordinatorChristine: Cleaning CoordinatorBetty: Childcare CoordinatorCissy: Food Coordinator

With the transition to a new workshop, Musana hired a night guard to protect the building from 7pm through 7am.

EstablishmentUganda

Significant progress was made in establishing Musana as a registered, established, and known organization within Uganda.

In May, Musana opened a retail storefront in Lugazi to facilitate showing and selling the jewel-ry to locals and visitors to the workshop. This began with a community event on June 5th where community leaders, such as Lugazi’s Mayor and the Town Council Representative for Women, spoke and led the ribbon-cutting ceremony. Over 100 people from the community attended the event. In October, Musana moved to a workshop that included 2 double-room units and was located more centrally within the town. This new building includes space in the backyard area for a garden (built in December), 2 flushing toilets, 2 sinks, and a storage room. With the move to a more public location, Musana hired a night guard to watch the premises each night.

In September, Musana applied for and received the status of Community-Based Organization within Uganda, granted by the local Town Council and the Buikwe District. The name “Musana Foundation- Uganda” was reserved and registered with the Uganda Registry. The rigorous pro-cess for applying as a Non-Governmental Organization within Uganda was nearly completed at the end of 2012, and will be submitted in early 2013.

In December, Musana opened a local bank account with Barclays bank, which will facilitate better tracking of financial transactions, save significant money from the previous ATM with-drawal fees, and act as leverage for many local transactions and applications.

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Social ServicesUganda

Though social services have been an integral part of Musana’s program from the begin-ning, they have fluctuated in their consistency and effectiveness with the change of interns and available staff for teaching. However, with the hiring of Tina as Manager, the programs have become both consistent in frequency and facilitatation. Each workday (Monday through Friday) the women end their work at 1:30pm to then receive one hour of training. The weekly training schedule is as follows:

Day Lead Trainer TopicMonday Francis Values, Work EthicsTuesday Tina English/LiteratureWednesday Melissa HealthThursday Tina, Francis Personal Finance, BusinessFriday Tina, Melissa Team Building

Values and work ethic training included establishing guiding ethics and rules within Musana. These were formed through a collaborative effort of the entire group of artisans in both brain-storming and establishing top priorities. The artisan-established Musana Values are:

Respect Integrity Creativity Unity Service Ever-learning

Each of these values are the topic of training for 3 consecutive weeks during Monday trainings.

The English and Literacy programs are facilitated by Tina. Due to the extremely varying levels of literacy and English-ability, Tina utilizes participatory learning methods in whole-group les-sons, small group discussions with similar-level learners, and individualized activities particularly for those who are not literate. Additionally, more advanced speakers among Musana artisans are paired with lower-level learners to mentor them through basic literacy. Emphasis is placed on first learning functional language that can be used in everyday life.

Health classes have been compiled from a variety of open source curricula especially suited for developing contexts. These are then adapted to Ugandan, even Lugazi-specific, situations. Each lesson utilizes participatory learning methods, including pictorial “codes” to spur discus-sion, followed by active learning and discussions, and concluding with take-home assignments. In November, the full-time artisans were trained as health advocates and were mentored in teaching the recent nutrition unit. After ample preparation, they presented the information to the 30 contract employees. They will continue teaching other women’s groups in the surrounding area at least once a month for Musana’s monthly service day.

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Personal finance classes included creating budgets, prioritizing and planning expenses, and principles of saving. Business classes have focused on principles of income, ex-penses, and revenue, and currently include mentoring women through creating basic business plans for their future business ventures.

Additionally, each artisan receives a 30-minute one-on-one mentoring session with Tina. During this session, discussion includes family finances and budgeting, personal and family well-being, literacy and English class notes, health implementations at the home-level, and future goals, including preparation to launch a personal business venture.

Production and SalesUganda

In the spring of 2012, Musana solidified a contract with Plan International that includ-ed the production of 5,000 leather bracelets, and 5,000 barkcloth gift bags. In order to finish the order in the rigorous 6-week time frame, 30 additional contract artisans were hired from 4 women’s groups within Lugazi. Through long hours and challenging logistical coordination, all 10,000 products were shipped on time.

The majority of Musana’s sales in Uganda have come from the opening of the Lugazi storefront and were mainly sold to HELP International volunteers and other connected foreign visitors. In November of 2012 Musana approached several retail venues in Kam-pala, and Musana’s jewelry is now selling in Banana Boat (the capital’s most prestigious gift shop chain of 3 stores), and two luxury hotel gift shops: the Sheraton Hotel and the Serena Hotel. Additionally, jewelry is sold in a high-end restaurant, The Keep, in the tour-ist hub of Jinja.

FinancesUganda

By the end of 2012, all of the artisan’s salaries had doubled since the beginning of the year, from 100,000ugx (~$40) to 200,000ugx (~$80). This salary has been shown to be sufficient to cover the needs of the women and their families and also allow for monthly savings toward future goals.

The interim manager’s wage was increased to 300,000ugx (~$120) monthly, and Fran-cis Ngoboka, Musana’s Advisor, began being paid a monthly stipend of 100,000 (~$40). In August, Tina Kyambadde was hired as a full-time Ugandan Manager, with a 600,000ugx (~$240) monthly wage. In October, Musana hired a night guard at 150,000ugx (~$60).

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2012 Uganda IncomeCategory AmountTOTAL Sales $776.37

2012 Uganda ExpendituresCategory AmountSalaries $6,638.80 Rent and Utilities $1,107.40Production Expenses $9,693.97Postage and Mailing $3,698.08Printing and Reproduction $101.53Communication $660.01Support Supplies $548.82Other $1,041.56TOTAL Operating Expenses $23,490.18

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United States Operations

ManagementUnited States

The three co-founders of Musana Jewelry, Kristen Wade, Rebecca Burgon, and Melissa Sevy, have continued involvement in Musana on a volunteer basis. Kristen Wade acts as President, Rebecca Burgon as a board member, and Melissa Sevy as the Uganda Director.

Early in 2012, this leadership staff was joined by Meredith Duncan, who began as the Program Intern and among many other accomplishments, was instrumental in securing the Plan Inter-national contract during this time. In May, she joined Melissa to work in Lugazi through HELP International’s summer internship program. In August, she returned back to the US, and took the position of US Director of Operations (also functioning on a volunteer basis).

EstablishmentUnited States

In June of 2012, Musana officially became a registered 501c3 charitable organization in the US, allowing Musana to accept donations. Because Meredith is based in New York and over-sees management and communication, Musana began the process of applying to do business in New York.

Marketing and MediaUnited States

The fall of 2012 kicked-off Musana’s new commitment to increasing its media presence and spreading the organization’s message. Although the budget was very tight, Musana designed and printed postcards to be made available at Musana Markets and to include in online or-ders. With the help of Jae Young Paek, one of the fall interns, Musana now has several print and online sources for people to learn more about the organization.

The focus of Musana’s social media remains its robust Facebook page, and Twitter was also started in 2012. We saw strong growth and a huge increase in interaction on our Facebook page as we regularly posted updates. We started sharing introductory videos of the artisans that are posted on our YouTube channel and shared on our Facebook page, and this has proven to be a great way to interact with fans. We also ran a series of giveaways in December, which saw a lot of involvement.

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The current primary media strategy is partnering with bloggers to review Musana’s products, host giveaways and share the message. The followers of these blogs generally align well with Musana’s targeted demographics. Musana successfully collaborated with several bloggers, which laid a good foundation for projects in 2013.

Musana has also placed flyers in road race packets and purchased ad space on blogs, but the results thus far have been limited.

Lou Goore is a current Musana intern focusing on campus outreach. As part of Musana’s effort to reach more young people, Lou is designing a program to attract and work with college stu-dents interested in supporting women’s empowerment and third world development. Lou created the first draft of the program description and application in 2012.

SalesUnited States

In July, Musana signed a contract agreement with Plan International, agreeing to produce 5,000 leather bracelets and 5,000 barkcloth gift bags. This order was punctually received by the mid-October deadline, and Plan International was very pleased with the final product. Though revenue from this large order was much less than originally expected due to shipping costs and outsourced materials, it provided Musana with the influx of funds to carry out the remainder of the year’s operations.

Musana has maintained its 3 retail store sites in the US, and added one retail site, Harmony Boutique. The current retail outlet roster in the US includes:

1) M&S Turquoise (St. George, Utah)2) Rosenbruch Wildlife Museum (St. George, Utah)3) Country Hearts Boutique (Bountiful, Utah)4) Harmony Boutique (Provo, Utah)

Sales from the website have more than doubled during 2012. Total holiday online sales in November and December were nearly triple the sales from 2011. Much of this is due to the increased attention to an online media presence and outreach through Musana Markets.

Musana has built partnerships with social cause e-commerce vendors. These companies sell the jewelry on their online stores while making a percentage of each sale.The two vendors cur-rently collaborating with Musana are Roozt and Glocal Connection. Roozt’s focus is providing socially conscious products on sale (similar to a flash sale site), and Glocal is a start-up that sells products through their website, at events, and plans to also provide consulting to artisan collectives or organizations similar to Musana.

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While Musana Markets have occurred on an infrequent basis over the past 2 years, in Sep-tember, the new Musana Market program was launched. This program includes instructions for running a Musana Market, sample invitation text, Ugandan recipes and music, and updated photos and bios of the artisans. This is all sent in a package, thus allowing Musana Markets to take place anywhere within the US. Additionally, hosts are encouraged to ask a question to the artisans in Uganda. A unique greeting from the artisans, their answers to the host’s questions, and a song are taken via video and uploaded to YouTube with a private link for the party to view. Since the launch of the program, Musana has had an average of 2-3 Musana Markets per month, and revenue per market has more than doubled.

FinancesUnited States

During November-December, Musana ran an online social fundraising campaign through In-diegogo.com. This money was specifically earmarked for funding Musana social services and training for the artisans in Uganda. A total of $1,000 was raised. The remaining $242.52 of donations were received through the paypal “Donate Now” application on the website.

2012 United States IncomeCategory AmountUS Sales $28,334.63Gifts and Donations $1,242.52TOTAL US Income $29,578.15

2012 United States ExpendituresCategory AmountSales Expenses $211.30Production Expenses $94.74Postage and Mailing $515.93Printing and Reproduction $317.85TOTAL US Expenses $1,139.82

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