2006 Unitus Labs Annual Report

Inspiration. Innovation. Transformation.
Global poverty can’t
afford our patience.
Under a corrugated tin roof, a mother is
waiting. She is living in one of the world’s
poorest countries. Every day she struggles
to feed and clothe her children, and keep
her family healthy. She’s waiting in line
for her first microcredit loan.
When she gets this loan, she’ll expand
her small bakery, increase her savings and
send her children to school. Her despair
will be replaced by hope, opportunity and
a view toward a brighter future.
But for now, this mother is still waiting.
…And there are 400 million others in line behind her.
Global poverty can’t
afford our patience.
president’s letter
I’m naturally impatient. I’m the guy who pushes the “close door” button on
the elevator 10 times in a row. I do the same thing at crosswalks. And I usually
wear slip-on shoes so I don’t have to tie the laces. So naturally, when I left the
business world to spend my life fighting poverty, I wanted to do the greatest good
2006 Highlights
n
Helped our partners reach 1.4 million micro-entrepreneurs, exceeding
our goal by 200,000.
n
Added six new partners to our worldwide portfolio, including expanding
network to Argentina, Indonesia
and the Philippines.
n
Provided over $5 million in grants,
debt and Unitus Equity Fund investments to Unitus partners.
n
Our portfolio grew at an annualized
rate of more than 109 percent.
n
Won Fast Company / Monitor Group’s
Social Capitalist award for the
second consecutive year for our innovative, business-minded approach to
the fight against global poverty.
n
Named a Four Star Charity by Charity
for the most people in the shortest amount of time. As a Unitus supporter, I’m
sure you feel the same way.
We founded Unitus because we knew that microfinance worked, and we wanted
to make it work faster. In the six years since we launched, we’ve had tremendous
success toward this goal.
Through the first quarter of 2007, we’ve partnered with 13 of the brightest,
most passionate social entrepreneurs in the world of microfinance. You’ll learn
about these leaders and the people they’re serving in the coming pages. We’ve
helped them with the systems, capital and innovations needed to support
their vision and accelerate their growth. And as a result, they’re growing more
than 100 percent a year and adding 11 times as many clients per year as the
average MFI. The Unitus portfolio now reaches more than 1.8 million clients,
and we hope to reach more than 3.3 million by the end of 2007.
With support from the Bill and Melinda Gates Foundation, we’ve launched
the Unitus Efficiency Project to support innovation and dramatically enhance
efficiency. This will allow our partners to grow even faster and pass cost savings
on to their clients. As you’ll read, we’re also launching new initiatives designed
to accelerate growth and harness market forces for the good of the poor—
something Bill Gates calls “creative capitalism.”
Navigator (their highest rating) for
our internal efficiencies.
This creativity is essential at a time when only 20 percent of the poor have
access to life-changing financial services. We must act boldly to create the rapid,
Q1 2007 Updates
n
Added Credex of Mexico to our
portfolio of microfinance partners;
total of 13 partners working in six
countries, serving more than 1.8 million clients worldwide.
n
Launched the Unitus Partner Network
dramatic results needed to reach the remaining 400 million families without
access. These aren’t abstract numbers—these are incredibly hardworking,
capable mothers and fathers who simply lack the opportunity to reach their full
potential. Giving them that opportunity is what we’re passionate about. When I
think about what needs to be done to reach them, I realize that it’s time to stop
writing and get back to work.
Thank you for your continued support.
which will create an industry-leading
peer-to-peer learning network so
that high-growth microfinance institutions can learn from each other’s
challenges and successes.
n
Unitus Equity Fund closed at
$23.4 million.
To read more about our solutions to global poverty, visit unitus.com
Geoff Davis, President and CEO
transformation
Leonita lives in the rural town of Iloilo with her husband and three children. For
years, Leonita’s family lived off the small income that her husband made as a
farmer until she discovered Lifebank, a Unitus microfinance partner that provides
financial services to low-income individuals in the Philippines. With the seed
capital from her first loan of 4,000 pesos ($87), Leonita bought clay and a potter’s
wheel and opened her own pottery business.
She used subsequent loans from Lifebank to purchase additional raw materials and
a kiln, allowing her to offer new products and increase her sales. Her business is
now thriving: Leonita has hired two employees to help her keep up with the growing
demand for her ceramic goods. Thanks to the profits from her enterprise, Leonita
was able to send her eldest child to college—the first in the family’s history.
Around the world, people like Leonita are using microfinance to transform their
lives. Microfinance organizations like Lifebank empower the poor by offering them
An Urgent Need to Close the Gap
something many of us take for granted: access to credit. These “banks for the
Even after 30 years of industry effort, there
poor” are striving to fill the critical gap left by conventional banks and provide
is still a huge gulf between the supply and
life-changing credit, savings and insurance to the working poor.
demand for microfinance services, leaving
80 percent of the working poor in need of
financial services. At current growth rates,
there will still be 395 million unserved in
Though microfinance began in the 1970s, to date the entire industry is only serving 20 percent of the 400 million people who want access to credit. Unitus helps
rapidly close this gap by identifying the most promising leaders in the microfinance space and eliminating their barriers to growth. We work to support these
2010. This slow growth is due to the fact
pioneering organizations so that millions more people like Leonita can break the
that most microfinance institutions still
cycle of poverty. Through entrepreneurship, they are able to transform their own
rely on a limited pool of donor dollars to
lives, the lives of their families and the future of their communities.
finance their operations. To scale rapidly,
microfinance institutions need to secure
growth capital from the financial markets.
Unitus provides the business planning
Microfinance industry failing to close the gap
and experience to connect our partners
Microfinance Supply and Demand
to large sources of growth capital to help
700,000,000
them rapidly expand and serve more of
Demand
600,000,000
the working poor.
500,000,000
72% (395+ million)
unserved
400,000,000
300,000,000
80% (400+ million)
unserved
200,000,000
100,000,000
* Based on CGAP data and population growth rates from UN Population Division
** Current and forecasted numbers based on Microcredit Summit Campaign data 2005
To read more about poverty and microfinance, visit unitus.com/poverty
2010
2009
2008
2007
2006
2005
2004
Population with access to microfinance**
Supply
0
2003
Population in need of microfinance*
Microfinance loans
empower individuals to
transform their lives.
With the help of microcredit loans, Leonita
built her pottery
business and sent her
eldest son to college.
Veena Mankar, CEO of
Swadhaar FinAccess,
a Unitus partner.
Unitus partners with
the brightest, most
passionate leaders
in microfinance.
vision
In 2005, Veena Mankar made a life-changing decision. She left her 30-year
career as one of India’s leading bankers to dedicate her life to empowering the
hardworking women living in Mumbai’s urban slums. Previously, this was a group
left untouched by traditional banks and even microfinance organizations, who
thought that the people in Mumbai’s urban slums were just too hard to reach.
Veena, however, is always up for a challenge. She founded a microfinance organization called Swadhaar FinAccess to bring opportunity and hope to hardworking
“I remember one day I was speaking
individuals trapped in a cycle of poverty.
with one of our clients: a woman
Veena’s partnership with Unitus began in May 2006, when Swadhaar was less
who’d just completed repaying her
than a year old and serving just 150 women. Unitus and Swadhaar shared a
first small loan. I asked her what she
vision of reaching not just thousands of individuals in Mumbai, but hundreds of
was going to do with the profits from
thousands. As a startup, Veena and her staff at Swadhaar needed help building
her business. She said, ‘I’m going
their business plan, setting up internal systems, accessing growth capital and
to send my daughter to school.’ identifying additions to her management team so that they’d be prepared to serve
When I asked what she would have
thousands of new clients each month. As a “microfinance accelerator,” Unitus fit
done if she hadn’t received a loan,
the bill for Swadhaar’s needs.
she said simply, ‘I would have
only sent my son.’”
—veena mankar
“Our partnership with Unitus means that we can access a wealth of resources,”
says Veena. “We have greater access to service providers and vendors because of
the aggregate power of the Unitus network, and Unitus has debt resources that we
can take advantage of as we focus on growth.” Unitus is also connecting Veena to
a network of her peers, a group of equally passionate leaders who are successfully
Unitus Partners grow rapidly
With technical and financial support
from Unitus, our microfinance partners
grow faster and reach more of the
world’s working poor. Over the past
six years, the Unitus portfolio of
microfinance partners has grown expo-
growing at over 100 percent per year, which allows her to learn best practices.
Veena has ambitious goals for the future. In five years, she’s planning for Swadhaar to serve more than 200,000 women micro-entrepreneurs, working in and
outside of Mumbai. “As the CEO of a microfinance institution, I’m focused on
today,” she says. “My partnership with Unitus is key because I know that they’re
watching out for the bigger picture.”
nentially, and so have the number of
micro-entrepreneurs they are reaching.
As of March 2007, our 13 partners
Yearly Growth: Unitus’s Total Portfolio of Partners
Number of Clients
were reaching close to 1.8 million
Projected
clients. We project that our portfolio
6,000,000
of partners will reach more than
5,000,000
five million clients by 2010.
4,000,000
6000000
5000000
4000000
3000000
2000000
1000000
End of Partnership Goal
5,005,000 clients
3,000,000
2,000,000
1,000,000
0
To read more about our Unitus partners, visit unitus.com/partners
Dec ’10
Dec ’07
Mar ’07
Dec ’06
Dec ’05
Dec ’04
Dec ’03
Dec ’02
Goal
0
innovation
On any given day, Neeru Sharma can be found either hovering over a spreadsheet
or riding on the back of a motorcycle with a rural loan officer in India’s Chhattisgarh
region. Neeru is based in Unitus’s Bangalore office, and is one of five members of
the Unitus Efficiency Team.
The Unitus Efficiency Project was launched in 2006 with support from the Bill
and Melinda Gates Foundation. Neeru and the other Efficiency Team members are
Unitus recently formed a partnership
with Dr. Shafiq Dhanani, CEO of MBKV
in Indonesia. Prior to the partnership,
we estimated that the demand for
microfinance in Indonesia was more
than 20 million households—a very
large market. But we weren’t prepared
for what we saw when we visited
MBKV: There were hundreds of microentrepreneurs lined up around the
block, waiting to get a loan.
working with four diverse microfinance partners in three countries. Their goal is
to identify which levers are most powerful at improving efficiency, so that microfinance organizations can lower the cost of delivering financial services to the poor.
This three-year-long project includes a “current state assessment” to determine
each partner’s operating environment. The team also facilitates a highly participatory “innovation workshop” that includes every level of the organization—field
staff, central office personnel and senior management, with the aim of uncovering
solutions that remove barriers to growth. The resulting solutions are being implemented and tracked throughout the three years of the project.
“The best ideas come straight from the microfinance practitioners and leaders in
the field,” says Neeru. “The power of this project is that we are able to share these
Prior to his partnership with Unitus,
innovations across the different countries: employee incentive systems and training
Shafiq spent more than 80 percent of
programs, innovative products and credit rating models. Ultimately, our findings
his time fundraising for additional capi-
will be shared with the entire industry—which will impact the quality and supply
tal to meet the demand for microcredit
of microfinance for millions of the working poor.”
loans. However, few banks were willing
to lend to his nonprofit organization,
and large donations were hard to find.
Through the Unitus partnership, we’ve
supported MBKV’s transformation into
a for-profit entity, which enabled us to
help them raise $1.2 million from international lenders. They now have all the
money they need for 2007 and Shafiq
and his team are focusing on what they
do best: giving more loans. MBKV is
growing more than 125 percent per
year, has 30,000 clients as of March
2007 and expects to end the year with
more than 60,000.
—Mark Wensley,
Global Selection Manager
“I get excited coming to work every day because we are working on something that
will move our entire industry forward,” says Efficiency Team member Catherine
Shaw. “Greater efficiency means that poor clients will be paying less for their
loans. More innovation means that these same micro-entrepreneurs will be able to
get more than just small loans but also health insurance, education loans, mortgages, savings, retirement accounts and all sorts of other services that will help
them to have a profitable, successful and hopeful future.”
Innovation & efficiency
mean better financial
services for more
micro-entrepreneurs.
Neeru Sharma,
a Unitus staff member
in Bangalore and
member of the
Efficiency Team.
where we work
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China
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Pakistan
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Pakistan
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Mexico
Mexico
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Brazil
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Brazil
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Argentina
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Argentina
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Nigeria
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India
Nigeria
Kenya
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India
Kenya
Indonesia
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South Africa
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Projected Partner Locations 2007– 2010
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South Africa
Unitus ended 2006 with 13 partners, adding six new partners in
Argentina, India, Indonesia, Mexico and the Philippines. In 2007,
our goal is to almost double our reach to 25 partners by year-end.
When identifying new partners, we look for microfinance organizations with visionary leadership, a commitment to serving the poor,
a focus on outstanding service and a dedication to growth and
efficiency. By 2010, our goal is to work with 50 partners. We plan
to expand into Brazil, China, Nigeria, Pakistan and South Africa
over the next three years.
To read more about our Unitus partners, visit unitus.com/partners
I
UNITUS PORTFOLIO 2006
ASA-GV (12/04)
158,325
99%
81
11,163,923
191,224
125,224
300,000
Bandhan (4/05)
399,588
204%
61
21,468,378
517,758
466,137
900,000
BSS (12/04)
54,977
133%
134
6,368,217
69,753
59,753
150,000
T
Grameen Koota
(4/05)
91,478
169%
112
8,160,696
109,251
88,551
200,000
P
426,403
182%
119
43,813,509
603,933
593,933
1,200,000
1,003
543%
96
92,656
1,394
1,244
10,000
Ujjivan (5/06)
15,419
826%
118
1,485,305
19,474
17,809
75,000
Indonesia
MBKV (12/06)
27,976
N/A
38
1,045,864
31,709
3,733
60,000
Jamii Bora
(7/04)
130,000
N/A
114
5,575,218
140,000
51,238
154,000
Credex (12/06)
15,264
N/A
338
5,155,096
16,019
2,436
27,000
Pro Mujer
Mexico (3/02)
15,820
22%
284
4,298,852
15,118
15,118
22,600
Lifebank
(11/06)
66,542
7%
92
5,661,231
85,902
14,690
155,000
1,406,921
**154%
$ 93
$115,374,605
1,805,372
1,440,746
3,259,700
Argentina
P
,
, $U,
$D, $G
M
T , $U,
$D, $G
India
Philippines
Mexico
Swadhaar (5/06)
TOTAL
,
,
P
,
B
, $G
110,000
,
H
, $G
47,133
,
H
E
,
0
B
,
290,824
0
M
, $U, $G
1,518,000
, P ,
, $UEF
1,000,000
P , M , H ,
, $U, $D, $G
2,330,000
, P ,
, $G
75,000
P
E
B
,
1,062,000
, H ,
, $UEF
P
B
1,162,606
76,666
B
T
610,000
P ,
, $G
E , H , B ,
$U, $G, $UEF
T
$
M
T
Philippines
SKS (3/03)
Total Financing
Arranged by Unitus
6,100
FY ’07 Goal*
(New Clients)
Gross Loan Portfolio
880
Number of Clients
Average Loan Size
3,837
Annualized Growth
Rate
$ 1,085,665
FIS (2/06)
Number of Clients
$263
Partner
(Unitus Partnership
Start Date)
44%
Region
4,126
Kenya
Key Capacity-Building
Projects in 2007
Q1 2007 Update (as of March 31, 2007)
Clients Added Since
Partnership Start Date
2006 Portfolio Numbers
E
M
$ 8,282,229
* Fiscal Year (FY) for Indian Partners ends March 2008
** This number is the growth rate for the entire Unitus portfolio, including the addition of six new partners to the Network in 2006
B
= Board Representation / Governance
E
= Efficiency Project
$D = Dignity Fund Debt Disbursed
T
= Transformation Strategy
H
= Human Resources
$G = Unitus Grants
M
= MIS / IT assistance
$U = Unitus Debt Disbursed
P
= Strategic / Financial Planning
$UEF = UEF Investment
our strategy
Microfinance works. We make it work for more people. We help
the most promising microfinance leaders to scale up their organizations to serve more micro-entrepreneurs, more effectively.
Our Acceleration Model has four parts:
S elect We search for visionary leaders at work in the
∆
c onsult Other barriers to growth include human
∆
world’s poorest countries. We rigorously evaluate their
resource management, lack of strategic planning, and
organizations, management teams and plans for growth.
outdated or inappropriate information technology and
This process helps us to select the highest-potential
infrastructure. Our professional team, with backgrounds
organizations and ensures that our donor dollars make
from McKinsey, Starbucks, Microsoft, Goldman Sachs
the largest possible impact on global poverty.
and others, are bringing our partners targeted solutions
in technology, human resource training and recruit-
I nvest The most critical barrier to growth for micro∆
ment, and assistance with strategic planning and
finance organizations is the lack of growth capital
transparent governance.
needed to expand their pool of loans and to serve more
of the world’s working poor. We solve this problem by
c onnect Our partners are some of the best and
∆
working closely with our partners’ management teams
brightest leaders in the microfinance industry. Unitus
to customize a financing plan that includes grants,
connects its partners through a peer-to-peer network
debt and equity. Equity investments are made through
that includes leadership summits, business trainings at
the Unitus Equity Fund, an affiliated private equity
some of the best business schools in the world and regu-
fund founded by Unitus. When appropriate, Unitus
lar dissemination of best practices and field knowledge.
partners also benefit from the strategic relationships
Through the Unitus Partner Network, our partners have
Unitus has with local and international banks, which
the ability to share and discover new ways to provide
can lead to additional long-term financing.
higher-quality microfinance services for more people.
UNITUS DELIVERS RESULTS
To read more about our strategy, visit unitus.com/strategy
Average Microfinance Organization
Average Unitus Partner
Primarily donor-funded
Local and international investors support sustainable capital structure
Unsustainable business model
Profitable and growing rapidly
Capacity constraints limit growth potential
Best practices demonstrated by management team
Serving < 10,000 clients
100,000 to 1,000,000+ thriving micro-entrepreneurs
Growing 15% per year
Growing 110% per year
Why are equity investments
so important?
“Equity investments are powerful in this
field. Even though the microfinance space
has evolved, it’s still difficult for most
microfinance organizations to get this type
The unitus effect
of base capital. Our fund was recently part
Clients by Partner Before and During Partnership
of a $12 million equity investment round
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
-36
-24
-12
0
12
24
36
Time (Months Prior to or After Partnership Start)
800
700
600
500
400
300
Unitus
200Partners*
n100
ASA-GV
n Bandhan
0
in SKS that will ultimately enable them to
access $120 million in new loan capital.
That means that 120,000 new borrowers
can be added to their portfolio. That’s an
incredible amount of leverage.”
—Chris Brookfield, Investment Director,
Unitus Equity Fund
n BSS
n FIS
350000
n Grameen Koota
300000
n Jamii Bora
n SKS
250000
200000
* Excludes startups with no prior tracking data
150000
Unitus works
with the leaders of our
partner 100000
organizations to identify and
50000their barriers to growth.
break through
These barriers0limit most organizations to serving less than 10,000
What creates the unitus effect?
Staff Recruitment and Training Programs:
microfinance clients. Our team of
experts offers solutions that acceler-
n
ate growth and enable our partners
Technology Systems:
to reach out to more hardworking
n
Well-trained staff lowers costs, increased staff enables growth.
T
he transition from paper-based to modern systems improves data
collection and tracking.
micro-entrepreneurs.
Unitus Solutions
350000
Growth Capital:
n
F
inance packages of grants, debt and equity increase loan portfolio
300000
and number of borrowers served.
250000
Strategic Planning and Governance:
200000
n
Fast-Growing & Efficient Microfinance Partners:
100000
50000
0
B
usiness planning, board participation and connections to other
leaders in the field enable smart growth for our partners.
150000
n
Result: “The Unitus Effect”
n
n
Lower-cost loans to micro-entrepreneurs.
More diverse and higher-quality financial products for the poor.
More opportunity for the world’s poor to lift themselves out
of poverty.
Thank you for helping
to transform the
lives of more than
1.8 million families.
donors
$1 Million +
Crystal Springs Foundation*
Bill & Melinda Gates Foundation
$100,000 +
Anonymous
Biel Fund
Martin and Florence Finegold*
Richard M. and
Susan P. Jacobsen*
Omidyar Network (multi-year gift)
Zeke and Angela Dumke
William and Karen Early*
John Childers
Jeff and Kate Cochran
Tracy Atteberry
Manisha Aurora
Stephen Cooper
Countrywide
Gilman Private
Family Foundation*
Christine Codina
Anita Culp
Dragos Axinte
Dinesh Bajaj in honor of
Linda Cox
Coxe Fund in honor of
Terry and Anne Guerrant
Chris Huggins and Maria Gudelis
Mark Dove
eBay Foundation
Sameer Bhatia and Reena Patel
Jennifer Baker
Lorene Arey
Robert D. Craig
The Impart Group, Inc.*
Terri Khonsari
Susan M. Freeman
Lily Friedlander in honor of
Venkatakrishnan Balakrishnan
Mike Bangasser
Lary Cullimore
Stephen Cummings
Anne Jane Oliver Barbrey Davis
Ivan Barriga
Andrea Cunningham
Susan Curington
Edmond and Barbara Lee
Lisa Lorimer
Amy Fedders, Ann Mijanovic,
Magali Haser and Stuart Meddin
The David Mitchell Family Fund of
The Saint Paul Foundation
Ritchie Hale
Deborah and Russell Hall
Jack Barros
Bob Barry
David Curtin
Mary Sandra Dadula
Sorenson Legacy Foundation
Paramitas Foundation
Gerry & Jane Pittenger*
Michael and
Mary Kay Hallman
Philip Bean
Matthew Becker
Michael Daigle
Dolores and Robert Darst
$25,000 +
Gregory Poulos
Donald and Jane Pugh
The Herbold Foundation
Barry Kent
Glynn Bedington
Paul Bedington in honor of
David Davenport
Geoff and Darcie Davis Family
Family Foundation*
Thomas and Joy Rohrer
Amy Klement
Jacob Larson
Bertha Boyken
Mara Benjamin
Geoff Davis in honor of
Darcie Davis
Frank and Anne Sixt*
James Slavet
Mark Lazar
Robin Lee
Stan and Sophie Beraznik
Valerie Berberoglu
Heather Davis
Keenan and Mesha Davis
$2,500 +
James and Pamela McBain
Harold and Marilyn
John A. Berry IV
Diane Billman in honor of
Kiko and Darcie Jo de Freitas
Gregory M. De Pena
Anonymous (2)
Alfio Bardolla
Milavsky Fund
Rod and Marie Murray
Helga Birk
Michael Blaylock
John Dealey
Dorene Dean
Herb and Shirley Bridge*
Tosca Carroll
Catherine Mutungi
Paul O’Beirne
Scott and Gayle Bleak
Joe’l Bocchino
Jennie Dean
David DeBus
Jeff Chen
J.J. Childers
Bill and Paula Clapp
Roger Collins*
Yolanda Copeland
Toni Cupal and Mike Volpi
Davidson Family Fund*
Heidi De Jager and
Donald Watkins
Frank Esposito
Esther Foundation
Molly and Scott Forstall
Anil and Jyoti Godhwani
Bob and Paula Heddle*
Brandt Hooker
Alex John
Stacey Keare and John Hodge*
Alan and Leslie Layton*
L. Serenella Leoni
David and Meggin Mann
Dave and Saya McClure*
Larry and Lynn Powalisz
Bradford Richardson
John Roberson
Paul Robshaw and
Linda Benge*
Roke Foundation
Bill and Karen Sample*
Kelly Samson
Linna Tanny
Munir and Nimira Walji
Barbara Wheeler
W. Brett Wilson
“The Woods” Charitable
Foundation
On-Giri Foundation at The
Seattle Foundation
Carl B. Page
Jeremy R. Pankratz
Don and Jane Pugh
Abhay Puri in memory of
K. Puri
The Redwoods Group, Inc.
Evan Richardson
Jerry Russell
Zig and Ashley Serafin
Lalit Shahani
Boyd and Jill Smith
Reginald Smith
Alan Tien
Julie Todaro
Stephen Weyl
John and Mary Zesbaugh
Mike Boich
Karen Bolger
Karen Bolton
Timothy Breidigan
Keli Breisacher
Tim Brennan and
Shawn Stoner
Lawrence Briliant
Kevin Britt
Dwight B. Bronnum
Anna Bronstein
Chris Brookfield
Jonathan Brookfield
Caroline Brown
Sharon Brown
Stacy Bruner and
Ryan Dietrich
David Buker
Patricia Burke in honor of
Linda Conte
Rebecca Burns Tufano
Steven and Linda Burns
Colin Burr
Margaret Busse
Cynthia Camargo
Alex Cano
Canyon Lake Lioness Club
Curt Carpenter
Chandler Carriker in honor of
Anna and Lee Sease
Doug Carriker in honor of
John Carriker
Doug Carriker in honor of
Pat Carriker
Larry and Brenda Carroll
Steven and Jum Carroll
Jaydeep Chakraborty
Danielle Chamberlin
Danielle Chamberlin in
honor of Walt Hauer
Brett Clousing
Sherri Coates
Nathan Colkitt
Jennifer Collins-Daly
Jennifer Condren in honor of
Steph and Justin Dragonas
Jennifer Condren in honor of
William Condren
James T. Cooper
William Rys Dekle
Pamela DeLange
Diana Dickinson
Odette Dodier
Heather Donati
Eric Dorr
Howard Douglas
Thomas Driemeyer
David Duguid
David Adam Edelstein and
Rebecca Kelley
Devin Elliot
William Elmore
Vincent Engerer
Anne Ensminger
Chris Eyre
Benjamin Fajen
Kimberly Farner
Folashade A. Fashokun
Debra Felske
Goldie Fialkow
Bogdan Fiedur
Neil Fitch
Ashley Flake
Maureen Flannery in honor of
Kerry Flannery Reilly
Joseph and Karen Friend
James Fruchterman
Cade Fulton
Elizabeth and Steven Funk
Karen Fusco
Anjellea Gabriel in honor of
Adjoa Boateng and Kojo Boateng
Raj Gajwani in honor of
Sameer Bhatia and Reena Patel
Dr. Terry L. and Carolyn Gannon
Stephanie Gardner
Praerit, Kavita and Zoya Garg
Oleg Gavrilyuk
Jody and Conrad Gehrmann
Lori Beth Geils
Jill Geurts
Nina Gidwaney in honor of
Sameer Bhatia and Reena Patel
Bruce Glen, Ph.D., Inc
Kari Goldberg in honor of
Glenn Goldberg
Beverly Goodman
Daniel Gordon
Shadow Lake Children’s Fund*
Skees Family Foundation
Anonymous
Norm and Lisa Bontje
The Church of Jesus Christ of
Latter-day Saints Foundation
The Clara Fund*
Joseph and Celia Grenny*
Jeld-Wen Foundation
Clair and Nancy Jenkins*
Richard E. and Nancy P.
Marriott Foundation
Northwestern Kellogg
School of Management
Mark and Jacqueline Palmer
Gift Fund*
PRWeb International, Inc.*
The Rockdale Foundation, Inc.
VitalSmarts
Geoff Woolley*
$10,000 +
Danny and Michelle Ainge*
The Robert and
Amy Barker Foundation
Charlotte Brownlee, Pamela
Dressler, Janet Harlow, Ferrell
McDonald, Ilene Resnick and
Kristen Sager
Chispa Consulting Services, Inc.
Jo Ann Corkran and Randy Ezratty
Richard and Christine Costello
Dart Group II Foundation
Mark and Ruth Gunning
Vidar Jorgensen
Microsoft
Tom and LaDawn Painter*
Tomi Pierce and
Douglas Carlston
Louis and Christine Pope*
Kyle and Brenda Powell*
Jon and Becky Rands
Stephen and Carolyn Reidy
The Richards Family*
David and Valerie Robinson*
John Sollecito
Seth Thaler*
Donn A. Tice and
Maurine B. Heard
Rogers and Julie Weed*
Wishes Are Forever Foundation
$5,000 +
Anonymous (2)
Brian Arbogast and
Valerie Tarico*
ARD Management
Greg and Paula Benson
Duncan and Cindy Campbell of the
Campbell Foundation*
Carolyn Downey
$1,000 +
Anonymous (3)
Andrew Anker
Matt and Margaret Bannick
Daniel Biagi
Steve and Kay Bleak
Roger G. Byford
The Susan Calmenson Fund of The
Minneapolis Foundation
Duane and Anita Campbell
Janet Cardinell
John and Nancy Carrier
Mike Chen
*Denotes member of Unitus Leadership Circle for two years or more
Up to $1,000
Anonymous (38)
Greg Adams
ADC, Inc./Multiple Streams of
Income International, Inc.
Susan Adkins in honor of
Sameer Bhatia and Reena Patel
Manoj Aggarwal
Monica Aguilar-Barriga
Sundeep Ahuja in honor of
Sameer Bhatia and
Reena Patel
Brad and Lisa Akard
Carol Akright
Denise Alfery
Jim and Catherine Allchin in honor
of Adelyn Allchin
Dave Allgood in honor of
Doug and Wilma Allgood
Stephanie Allgood
J. Allison
Eric Allred
Mike Amelang
Gloria Andrus
Jesse Angelo
Jasmin Ansar
Lorene Arey
Steven Aslett
Raj Atluru and
Melissa Buckley
Sona and Elia Gourgouris
Shilpi Gowda in honor of
Joanne Kagle
Jason Kap
Erica Mora
Colette Morris
James and Kaye Slavet
Matt Graham
Davee Kaplan
Lars Karlsson
Jen and Dan Morris
Michael Mullin
Cynthia Grandfield
Anne Grayhek in honor of
Kent Karras
Todd Kaye and Rebecca Holman
Julianne Murray
Tom Murray
Katie Gruver and Garrett Tenold
Grazia Forte
David Keller
Wendy Kennedy
Steve Mushero
Karen Nelson Bell
Brad Green
David M. Greenberg
Larry R. Kern
Steven Ketchpel
Glen Nelson in honor of
Glen Nelson, Julie Welch,
Holly Greene
Daniela Greville in honor of
Claudia and Jon Keyworth
John and Elizabeth King
Kristy Sorber and Mark Nelson
Chuck Neuschafer
John Klein
Alden Komorowski
Nathan and Natalie Niederhausern
S. Gifford and Wendy O. Nielsen
Clark D. Gridley
Scott Grill
Vasantha Kostojohn
Manish Kothari
Stephen Nielson
Michael Noble
bers take a group of supporters across
Katie Gruver and Garrett Tenold
Megan Gruver
Masha Kovarsky in honor of
Sameer and Reena Bhatia
Andrew Oberhardt
Gayla O’Dell
the globe to see microfinance up close
Daniel and Lisa Guderjohn
Michael Guglielmo
Neill Kramer
Leela Kuo
Greg Osborn
Paul and Susan Osborn
and personal. Trips last between five and
Shailendra Gujarati
Bulbul Gupta and Aman Verje
Justin and Christy LaBry
Steven Ladik
Barbara Ostby
John Owens
Dinesh Gupta, Anu Deshpande
and Diya Gupta
George Landolt
Roy E. Larson
P.E.O. Sisterhood Chapter TN
Manuel Palma
Gaurav Gupta in honor of
Neelima Gupta
Yezdi Lashkari
Peter and Shirley Dugdale Laundy
Octavia Parker
Katherine Pate in honor of
Reid Gustin
Danny Ha
Nancy Haberstitch
Peter Han
Joanna Hancock
Anthony Hanson in honor of
Chris Hanson, Ellen Hanson and
Rachael Hanson
Eric Hanson
Felix Harke
Dave and Nancy Harper
Josh and Jamie Harris
Jason Harrow
Kevin Hawkins
Scott C. Hayes
Andrew Heath
Mary Henderson in honor of
James Henderson,
Ken Henderson and
Terri Henderson
Nancy Hendricks
Ryan Henning
Phyllis Hershey
Robert Hesley II
Clark Hickey
Beverly Hill in honor of
Jim and Sharlyn Tompkins
Spencer Hill
Hooman Hodjat
Marty Hollander
Jennifer R. Holley
Constance Hoppe
Paul Hornikx
Vince Houmes
David Huska
Crystal Hutter
I Do Foundation
Eric Ippolito
Charles Isdale
Sarina Israel in honor of
Jon, Monica, Dani and
J.P. Loustalot
Michael Jarvis in honor of
Robert Giuntini and
William Jarvis
David T. John
Adam M. Johnson
Robert Johnston in honor of
Bobi and Todd Michael
William Jukes
Kim Law
Justin M. Leahy
Todd Lee
Dave LeFevre
Legacy Venture
Stephen Lesser
Edward Levine in honor of
Dona Coates
Ben W. Lewis
Jill Lightner in honor of
Jan Lightner
Huat Chye Lim
Jeff Linney
Bill Litfin
Mark Louie
Patricia Luse
Erik and Pam Lustig
Greg and Yvonne Lynott
Daniel Maas
Subodh Madiwale
Anne and David Manuel
Jayantha Marachchi
Apryl Martin and Kelly Sorensen
Art Martin in honor of
Robert Kleinberg
Luis Martinho in honor of
Catarina Moura
Kevin Maude
Timothy F. McCarthy
Judith McConkie
John McDowell
Rhonda E. McInroy
Jacquelynne McReynolds
MDS Advertising
Matthew Mechenbier
Karim and Julie Meghji
Cindy Meredith
Kay and John Merrell
Dr. Harve and Mrs. Letty Meskin
Stephen Meyer
Becca Michel
Sara Mirabito
Johnny Miran and Lillian Balenbin
Anjan Mirle
Ruth Mitchell in honor of
Alan Walker and Ilaina Edison
Sophie Mitkevitch and
Fabrice Herpain
Mark Monsky
W. Vito Montone
Romalia Stickney-Shibley
Samir Patel in honor of
Sameer Bhatia and Reena Patel
Dan Peay
Shaunda Peck
Matthew and Meribeth Pedersen
Geoffrey Perrin
Bryce E. Peterson
Nichole Peterson
Peter Petesch
Arthur Peyer
Marshall Phelps
Dana Pieper
Glen Pier
Gary and Karen Pippin in honor of
Joyce Murray
Sohrab Pirayesh
Ed Pleninger
Emily Porter
Brandy Powers
Reed A. and Julie R. Probst
Quellos Group, LLC
Aaron Racine in honor of
the Callahan, Koch and
Racine Families
Sujit Raghavan
Vijay Raghavendra
Supriya Ramaswamy
Dilum Ranatunga in honor of
Karl Schmalz
Kathleen Rasmussen
Mikki Rausch
Karen Recht
Lucy Reckseit
Pam Rector in honor of
Lorena Chavez, Maria Alderete,
Renita Batiste, Rich Rocheleau
and Tom King
Diana Reid
Diana Reid in honor of
Pam and John Hanold
Kate Reid
Randy and Erin Reid
Kerry Reilly
Michelle Repp in honor of
Wanda Wiseman
George Richards
Abby Richardson
Robert R. Riley IV
Julien Rivest-Nilsen
partner expeditions
Twice a year, Unitus staff and board mem-
seven days, and during that time we travel
to village branches where participants
meet with field staff and attend loan
repayment meetings. Most importantly,
our supporters visit the businesses of
these micro-entrepreneurs. They meet
their families and hear their stories. It’s
a moving and empowering experience.
“My strongest memory of our trip to India
was talking with the women [borrowers],
hearing their stories of hard work and
advancement, and seeing the spark of
pride in their eyes. I felt a sadness at the
number of people living in such extreme
poverty, but overall I felt hope after
witnessing how the women clients were
lifting themselves and their families up
with the help of Unitus and their microfinance partners.”
—Lisa Bontje, Unitus supporter and
2006 partner expedition participant
To read more about our impact, visit unitus.com/impact
Matt and Elana Greville and
Nick and Lucie Greville
Chuck and Mila Robbert
Andy and Yvonne Roberts
Mike Sferra
William J. Shack
Sheree and Charles Stewart
Keith Stobie and
Roberto Velasquez
Andrew Verprauskus and
Crystal Springs Foundation
DLA Piper
Timothy Robertson in honor of
Marilyn Robertson
Ayele Shakur
Kavita and Anurag Sharma
Lois Watson
Lance Stone
Michaelanne Ehrenberg
Adam and Karen Waalkes
David Duguid
Elizabeth and Steven Funk
Winston Robinson
Lorraine Robledo
David and Marie Shiflet
Katherine Shrader
Natalie Stone
Dave and Gina Stouffer
Muyoka N. Wambalaba
Mahjabeen and
Gemelli
Home Plate Dry Cleaners
Geoffrey Rockhill
Jim and Carolyn Rodman in
Shroyer Family Foundation
Marc Shubb
Nicole Strand
Eric Strauss
honor of Joyce Murray
Sylvia and Eugene Rodriguez
Cynthia Shurtleff
Mary Siegel
Rob Strong
Kathleen Sullivan-Vander
Matthew Wasse in honor of
Jess Knaster
Gates Ellis LLP
Microsoft
Sunil Rohira and Kathryn Mar
Robert and Elizabeth Rondeau
Janneke Sikken
SilkBow
Thomas Sweeney
Janice Tabbut
Leigh Wasson
Dan Waters
Denise Neopolitan
Orrick, Herrington &
Jennifer Rosa
Mark Rose
Andrea Silvestrini
Frances Simmons
David Tarshes in honor of
Tamar Migdal
Lois Watson
Kristin Webber
Sutcliffe LLP
PRWeb International, Inc.
Rosenthal/Geser Fund
Elmer Ross
Scott Simpson
Abhideep Singh in honor of
Thomas Taylor
Robert Temps
Stephen Wenzel
Dave and Donna White
Pure Fitness
Shore Club—South Beach
Jeremy Ruch
Colin Rule
Asawari RaoRane Agrawal
Sheryl Sirotnik
Gayle Teuscher
Lakshmi Thanu
Gareth D. White
Brian and Wendy Wilcox
Skin Science
The Sofia Hotel
Diana Rutowski in honor of
the Rutowski, Mitchell and
Bryan and Lori Sisler
Benjamin Sklar
Rebecca Theim in honor of
Mrs. John Solmen
Mr. and Mrs. Graff Williams
Joshua and Melanie Williams
Vine Solutions, Inc.
The Wine Bank
York Families
Rob Ryan
George L. Smith, Jr. and
Nancy Doyle
Roshan V. Thomas
Blake Thompson
Nancy Gunter Wilson and
Dale R. Wilson
Unitus Advisors
Abid Saifee
Katharine Salisbury
Kasey Smith
Laurie Smith
Peter M Thompson
Scott R. Thompson
The Wine Bank
Vicki Winterton
Avnish Bajaj
Kintan Brahmbhatt
Melisa L. Samuelson
Thomas Sander and
Lewis and Felecia Smith
Lynn Smith
Chase Tingley
Marcella Tobola
Jodi Womack
Irene Wong
Tilman Ehrbeck
Chris Eyre
Laura Carter Sander
Carol Sands in honor of
Sameer Bhatia and Reena Patel
Richard Saunders
Kenneth Sawyer
James and Nancy Schacht
AnnMarie Schilling
Shelley Schlender in honor of
Betsy Turner
Ivan Schrock
Susan Schulz
Joe and Tiffany Schumacher
Howard Schweber
Kent Searight
Ravi Selvaraj
Paul and Nancy Smith
Randy Smith
Robert Smith
Sandra Smith
Tyler Smith
Stuart Smits
Social Action Committee
Doug and Susan Solomon
Gregg Spiridellis
Shimoga Srinath in honor of
Sameer Bhatia and Reena Patel
Patricia Starr in memory of
Carol McRae
Kira Stephens in honor of
Louise Lopez
Corinne Tomeo
Transcend Marketing
International, Inc.
Lydia and Tom Trotter
Nina Tsao in honor of Dak Sze
Johanna Turfest
Kenneth Tyler
United Way of
Snohomish County
Hal Urban
Linda Urbick
David Vanderlaan
Lucretia Vanderwende
Tony Vargas
Sean Vegeler
Woody Woodaman
Warner Woodworth
Joel Wright
Sean Wylde in honor of the
Tamez and Wylde Families
Peter Yao
Toby Yorke
Kyle Young
Robert Zveibil
Josef Zwass
Jeremy Hartman
Julie Herness
Sabrina Kang
Ashish Karamchandani
Anil Kumar
Brij Mohan
Paul O’Beirne
Louis Pope
Sitaram Rao
William Reffett
Paul Saunders
Dave Schappell
Paulette Subert
Tarek Toubale
Warner Woodworth
Tarim Wasim in honor of
Asawari RaoRane Agrawal
In-kind donations
Anonymous
Bob Barry
Brazilia Skin Care
Kirkpatrick &
Lockhart Preston
financials
Balance Sheet
Assets
Liabilities
Net Assets
72% Total Program Services
December 2005
December 2006
$9,477,119
$13,327,149
593,534
2,425,526
$8,883,585
$10,901,623
19% Management & General
9% Fundraising
Income Statement for Fiscal Year 2006
REVENUE
Contributed Income
Earned Income
Total Revenue
Actual
$5,738,708
634,737
$6,373,445
EXPENSES
Total Program Services
Management & General
Fundraising
Salaries & Benefits
$2,149,696
$1,474,897
$448,908
$225,891
Grants & Financing
878,204
861,519
—
16,685
Professional Services
366,924
242,838
117,607
6,479
Travel
321,015
269,481
19,857
91,380
All Other Expenses
639,568
291,400
229,395
135,458
$4,355,407
$3,140,135
$815,767
$399,505
72%
19%
9%
Total Expenses
Net Income
$2,018,308
In 2006, Unitus was designated as a Four Star Charity
by Charity Navigator, recognizing exceptional financial
management. Unitus was
also awarded the Social
Capitalist Award by Fast
Company / Monitor Group for
the second year in a row.
For complete financial information, visit unitus.com/financials
get involved
y our donation = High social return
∆
Unitus welcomes passionate
individuals, groups and
y ou can also support our work by:
∆
Unitus works hard to give our donors the best
Spreading the Word
social return for their financial support. Because
If you’ve been inspired by our story and our work
of our focus on high-impact partner growth, we
to fight global poverty, tell five friends. You are our
estimate that for every $100 donation to Unitus,
best outreach tool to new audiences!
our microfinance partners are able to provide
services to 20 additional micro-entrepreneurs.
organizations to get involved
n
Host a party or sponsor an event where you invite
others to learn more about Unitus.
with our mission to decrease
Give to Unitus and we’ll leverage your dollars to
n
Link to unitus.com from your website or blog.
poverty by increasing
change lives. Here are some of the options we
n
Contribute your time and professional skills.
have available:
n
access to microfinance.
The more people who know
about our work, the more
lives we can change!
n
n
n
n
If you have professional skills in the areas of high-
Donate online, or sign up to become a
growth businesses, human resource management,
recurring donor
information technology or other areas that could
Contact us about planned giving
benefit Unitus and its microfinance partners, you
Ask us about socially responsible investing and
may be a good candidate to join our Advisory Net-
direct lending opportunities for accredited investors
work. Contact us at [email protected] to learn more.
Become a major supporter of Unitus, and gain
access to our senior management via quarterly
conference calls and special partner reports.
Visiting our Microfinance Partners
The best way to understand how microfinance
changes lives is to see it in action. If you’re con-
Please visit us online at unitus.com and click
sidering a significant gift to Unitus, we invite
“donate now” to learn more about these
you to join us on a Unitus Partner Expedition to
options, or contact us at [email protected] or
meet our microfinance partners and the micro-
1.888.2.UNITUS to talk with Unitus staff
entrepreneurs they serve, and to see how your
about customizing your financial involvement.
donation can truly make a difference.
To read more about how to get involved, visit unitus.com/getinvolved
Management
Chair
President and CEO
Elizabeth Funk
Geoff Davis
President and CEO, CML
Global Capital
Investment Director,
Unitus Investment
Vice Chair and Selection
Management Company
Committee Chair
Chris Brookfield
Clair Jenkins
Co-founder, Alerton
VP, Capital Markets
Technologies, Inc.
Kylie Charlton
Capital Markets
VP, Finance & Operations
Committee Chair
Geoff Woolley
Executive Chairman,
European Venture Partners
Sandeep Farias
VP, Donor & Investor Relations
Diana Reid
Lorene Arey
Derek Streat
Geoff Davis
VP, Portfolio Management
President and CEO
Katherine Switz
Dr. Steven C. Funk
Chairman,
Grand Marais Investments
Bob Gay
Retired Managing Director,
Bain Capital
Joseph Grenny
Co-founder and President,
VitalSmarts
Dave McClure
Startup Advisor and Investor,
500 Hats
Les Moore
Executive VP, Bain Capital
Mike Murray
Retired VP of HR &
Administration, Microsoft Corp.
Dave Richards
President and COO, DigWorks
Tim Stay
Co-founder and Chief
Innovations Officer,
Know More Media
Photography: Veena Mankar © Paul Newman, Lifebank © Jake Verzosa, Neeru Sharma © Vidya Narasimhan, and various photographers / Unitus staff
VP, Solutions
The Clara Fund
n
President,
Graphic Design: studio e2
Dominion Ventures
Chief Innovation Officer and
India Country Director
n
Founding Partner,
Roger Coulter
This annual report was printed on recycled paper with soy-based inks.
Board of directors
n
Unitus India Office
PO Box 626
n
n
n
Redmond WA 98073 USA
India Microfinance Center
n
n
Tel: 425.881.2264
64 - A, 5th Cross, Lavelle Road
n
n
Toll-free: 1.888.2.UNITUS
Bangalore, 560001, India
n
n
Fax: 425.881.2085
Tel: 91.80.4112.0008
n
n
Email: [email protected]
Fax: 91.80.4112.0009
Writing and Editing: Mary Balmaceda for Unitus.
Unitus U.S. Office