LETTER FROM THE PRESIDENT Dear Friends, Thanks to the generosity of donors, the shared vision of partners, and the dedication of staff members, Feed the Children will remember 2013 as a year of advances. How do you measure a year’s success? You can look at the numbers: •$215 million of food and supplies distributed to over 10 million individuals in the U.S. •250 shipments of essentials to help those devastated by the tornadoes in Oklahoma •350,000 children around the world receiving nourishing meals every school day You can look at the accomplishments: •A four-star rating from Charity Navigator, an honor that recognizes our commitment to accountability and transparency •A renewed emphasis on child sponsorships •A new approach to customer service But most importantly, you can look at the stories. Every effort we make as donors, partners, volunteers, or Feed the Children employees eventually becomes part of a child’s story. The stories you help us tell on our blog, in our newsletters, and to each other are the end result of immeasurable effort by people dedicated to one mission. In 2014, we will keep telling the stories—some new, some old, some with beginnings that go back years. Each one a true representation of everything we do at Feed the Children. Thank you for your help in writing our 2013 story. Your help enabled the communities we serve—moving them even closer to realizing our vision: To create a world where no child goes to bed hungry. Sincerely, Kevin L. Hagan President and CEO, Feed the Children 4 | 2013 Feed the Children Annual Report 5 DOMESTIC OVERVIEW Feed the Children serves people in need in the U.S. by responding to disasters, delivering food and essentials, and providing tools for education. In 2013, over 10 million children and families in danger of running out of the basics received $215 million worth of food and essentials. DISASTER RELIEF When natural disasters hit the U.S. in 2013, leaving people in desperate need, they received help and hope from our donors and partners. EDUCATION Giving children access to quality education is a key component in fighting poverty and hunger. In 2013, our efforts in education included: • Enabling homeless children to go to school with backpacks full of children’s books, school supplies, and personal care products thanks to the donors who funded H.E.L.P. (Homeless Education and Literacy Program). In 2013, this program delivered 65,000 backpacks to children in need. • Students in Title I schools have a better chance of succeeding because of the school supplies, children’s books, and personal care products they receive twice a year through our Kids School Basics program. In 2013, this project reached schools in all 50 states and the District of Columbia. On May 20, 2013, an EF5 tornado struck Moore, Oklahoma. This horrific disaster killed 24 people, including seven children at one elementary school. The tornado also destroyed an estimated 1,150 houses, leaving families homeless and devastated. Those affected soon received nearly 250 shipments of food and supplies, weighing more than 2.6 million pounds and valued at $8.5 million, thanks to 50 of our partners. Additionally, Feed the Children and 56 of our partners responded to the lingering effects of Hurricane Sandy with 145 shipments of food and supplies, weighing 3 million pounds and valued at approximately $8 million. Stories of little things bringing big smiles Dear Miss O, Thank you for giving me a new backpack. I thank you as many times as there are stars in the sky. You are a good person for doing that. Stories of determination “We’ll rebuild at some point and we’ll be better. But it’s a lot to put on your shoulders. It helps when there’s an organization like If you didn’t get me a new backpack, everything in my old bag, it would rip and I would have to stop and pick everything up and make it to class before the bell rings. Feed the Children out there, kind of giving you the little extra push Long story short, you saved my grade. You also saved me. to get you going.” Your friend, — Oklahoma resident at a 2013 Feed the Children relief event Mario 6 | 2013 Feed the Children Annual Report 7 INTERNATIONAL OVERVIEW Feed the Children’s mission extends to people around the world. In 2013, we acquired World Neighbors as a subsidiary, expanding our reach to serve people in 18 countries: • Bolivia • Burkina Faso • El Salvador • Guatemala • Haiti • Honduras • India • Indonesia • Kenya • Malawi • Mali • Nepal • Nicaragua • Peru • the Philippines • Tanzania • Timor-Leste • Uganda All our efforts to help children around the world are built around our Four Pillars philosophy to fighting hunger. This approach—which comprises Food & Nutrition, Health & Water, Education, and Livelihoods —addresses not just immediate food needs, but also the root causes of hunger. FEEDING PROGRAMS Every school day in 2013, more than 350,000 children, who otherwise may have gone an entire day without eating, received nutritious meals from our donors and partners. Stories of survival At four months old, a severely undernourished infant was sent to a Feed the Children feeding center near her family’s home in Honduras. WATER We also addressed a broad array of water issues. In 2013, 179,000 children and families benefited as Feed the Children installed more than 80 water wells and systems, bathroom facilities, and other cleanwater sources in 16 countries. In addition, more than 24,000 children and families are collecting valuable rainwater after we installed large-scale water retention systems. Stories of clean water changing everything When members of Feed the Children’s U.S. staff and volunteers visited the community we serve in Hambongan, Philippines, they were quickly cautioned away from the beautiful beaches because they were contaminated with human waste. The community had no toilets. Through our sanitation project, we implemented a latrine system and taught the people of Hambongan how to dispose of waste so it wouldn’t go into the water. Every household in the community now has a toilet. She stayed at the facility, receiving care and nutritious meals, until Disease is declining, and quality of life is improving. Instead of staying she was stable enough to go home. home seriously ill, more children are attending our school and feeding The infant’s parents still have difficulty providing the essentials for their kids. But Feed the Children remains active, standing strong in the gap and ensuring that this family’s children have a chance at a better life. — Report from the field, February 2013 8 | 2013 Feed the Children Annual Report center. And, now better-educated and equipped to bolster their own community, their parents are part of the savings and loan program we helped establish there, with 10% of their profits going directly back to the school and feeding center. — Excerpt from “What’s in the Water? 4 Facts That Will Shock You” on blog.feedthechildren.org 9 DEWORMING MEDICINE Children in areas with widespread hunger also face the danger of parasites, which can rob children of the nutrition we provide. To prevent this, we provide deworming medicine to children in Ecuador, Rwanda, Sierra Leone, Senegal, Sao Tome, Central African Republic, Gambia, and Columbia. In 2013, nearly 18 million doses of this medicine were given to 14 million children. Stories of healing The Oklahoma office of Feed the Children sent a traveling medical mission to Guatemala. For a week, the group of health professionals went out to serve in seven communities. The team included a variety of disciplines: general medicine, dentistry, ophthalmology, Stories of healthy prevention “I was very worried for my son’s life. The thought of losing my son was piercing my heart.” — Ruth Hara, an African mother whose son’s hunger was made worse by parasites. Feed the Children provides her son with vital nutrition and, just as importantly, deworming medicine that will allow him to grow in strength and health. MEDICAL MISSIONS In 2013, 27,000 patients around the world were treated through our medical missions. In addition, we dispensed 54,000 prescriptions, gave 8,500 eye exams, and provided 2,800 dental exams. 10 | 2013 Feed the Children Annual Report and pediatrics. This group can be very proud of their statistics. In all, they saw 10,224 children, adults, and seniors. The local people with disabilities received consultations, medication, and lenses free of charge. In dental clinics, people came in for two or more extractions and got supplies like floss and toothpaste from the staff. Even the pediatric patients got a toothbrush and toothpaste to take home. In the eye clinic, patients got a visual examination and prescription glasses. Because they work outdoors and are prone to eye disease from over exposure, many patients also got needed sunglasses. — Report from the field, July 2013 11 12 | 2013 Feed the Children Annual Report 13 FEED THE CHILDREN PARTNERS FEED THE CHILDREN BOARD Actavis H.J. Heinz Rick England, Chairman Avery Institution Recycling Network Gregg Yeilding, Treasurer Avon International Masters Publishers Michael Dinkins Barcel USA JAKKS Pacific Mike Hogan Better World Books Kao USA Michelle Mesen Church & Dwight Co., Inc. Lowe’s Mary Schrick, N.D., Ph.D. Colomer USA Mars Chocolate Kathy Doyle Thomas Cott Beverages USA, Inc. Nestle Prepared Foods Mary Wong CVS Niagara Bottling, LLC Dannon Company, Inc. Nourish the Children Davis Vision Office Depot Direct Brands, Inc. One World Enterprises, LLC Disney Publishing Worldwide Ora Optical Energizer Personal Care Penguin Random House Esselte Corporation Perfect Timing, Inc. Kevin Hagan, President and CEO Exel/Clorox Pharmavite Travis Arnold, Chief Operations Officer Ferrara Candy Company Ralston Foods Tom Davis, Chief Program Officer FGX International Rich Products Corp. Corey Gordon, Chief Marketing and Communications Officer Filmyard Holdings, LLC Teleperformance Scott Killough, Ph.D., Senior Vice President of International Operations First Book TEVA Pharmaceuticals USA Matt Panos, Chief Development Officer Frito-Lay, Inc. TOMS Christy Tharp, Chief Financial Officer Guess, Inc. Tyson Foods, Inc. Gary Sloan, Senior Vice President of Domestic Operations Hachette Book Group USA Unilever Half Price Books Vi-Jon Laboratories, Inc. Hero USA WhiteWave Foods Hirzel Canning Co. & Farms YUM! Brands FEED THE CHILDREN EXECUTIVE STAFF This list represents the top corporate donors that gave gift-in-kind donations of $1 million or more in FY 2013. 14 | 2013 Feed the Children Annual Report 15 FINANCIAL HIGHLIGHTS FOR THE YEARS ENDED JUNE 30, 2013 AND 2012 2013 PERCENTAGES REVENUES, GAINS, AND OTHER SUPPORT: 2013 2012 382,943,793 545,570,833 65,200,314 71,822,861 Transportation service revenue 3,403,673 2,710,951 Contribution received in acquisition of World Neighbors, Inc. 7,152,364 — 11,489,889 621,810 470,190,033 620,726,455 Gifts-in-Kind Contributions and grants Other revenue TOTAL REVENUES, GAINS AND OTHER SUPPORT EXPENSES REVENUES, GAINS, AND OTHER SUPPORT: 2013 2012 Gifts-in-Kind 81% 88% Contributions and grants 14% 12% Transportation service revenue 1% < 1% Contribution received in acquisition of World Neighbors, Inc. 2% < 1% Other revenue 2% < 1% 88% 92% Fundraising 8% 5% Management and general 3% 2% Transportation service expenses 1% 1% 72% 80% 5% 1% 81% Gifts-in-Kind EXPENSES: Program services Fundraising 368,578,659 619,162,645 32,470,505 37,354,685 Management and general 14,451,276 16,442,090 Transportation service expenses 4,337,884 3,061,043 419, 838, 324 676,020,463 TOTAL EXPENSES Disaster relief 88% Program services PROGRAM SERVICES: PROGRAM SERVICES Childcare, food and medical Program services 267,436,141 493,844,076 17,494,062 7,777,248 Education and community development 83,648,456 117,541,321 TOTAL PROGRAM SERVICES 368,578,659 619,162,645 NET ASSETS Childcare, food and medical Disaster relief Education and community development 23% 19% 72% Childcare, food and medical NET ASSETS: Unrestricted 140,423,264 99,620,206 Unrestricted 80% 74% Temporarily restrictedpurpose restrictions 20,992,816 15,699,644 12% 12% Temporarily restrictedtime restricted Temporarily restrictedpurpose restrictions 10,531,114 9,072,199 6% 7% Permanently restricted 2,796, 564 Temporarily restrictedtime restricted Permanently restricted 2% 7% TOTAL NET ASSETS 16 | 2013 Feed the Children Annual Report 174,743,758 124,392,049 80% Unrestricted Feed the Children’s audited consolidated financial statements for the years ended June 30, 2013 and 2012 are available at www.feedthechildren.org/reports or upon request. 17 www.youtube.com/user/ FeedtheChildrenOrg feedthechildren.org P.O. Box 36, Oklahoma City, OK 73101-0036 1-800-627-4556 PR1387A 9-14 www.facebook.com/ feedthechildren @feedthechildren