Year End Report for Life in Africa Usa 2007/2008

Fiscal year ending June 30, 2008

Summary

Life in Africa USA was formed and registered in November of 2007 as a non profit corporation in the state of Washington. There was a small Christmas sales campaign on line and with Shawn Kelly but actual operations did not begin until February of 2008. Since the organization's year end is June 30, this only allowed 5 months of actual operations. Many challenges arose during these months which caused our results to be more than disappointing. However, we are more determined than ever to meet the challenges and move forward in the coming year. The following report will outline the challenges faced, the goals set forth and the financial reports for the year end.

Life in Africa USA

Board Members:

Evvy Bryning

Shawn Kelly

Christina Jordan

Director: Evvy Bryning

The mission of LIA USA is to fundraise and market crafts for the communities in Uganda and to support the programs operated by the communities. The two main programs for this year were the LiA Kids Club and the School Fee Campaign. While these programs are nowhere near where we wanted them to be, they are both in operation and are being funded which is a plus for the organization.

The start up funds were loaned to the organization by Evvy Brying and the jewelry was provided from the stock owned by Christina Jordan. Both of these contributions are considered interest free loans to the organization and are slated to be repaid.

• The loan from Evvy Bryning in cash amounts to $8150.00 as of the end of the year. Payments on this loan shall be determined by the board as the revenue for the organization increases.
• The jewelry stock provided by Christina Jordan must also be paid. Currently 5% of all sales is being set aside as payment. As sales increase, the payment shall also increase to a monthly payment of appoximately $300 per month.

• The challenge is that the majority of the jewelry is still in Uganda. Evvy Bryning was able to bring a small amount in her suitcases when she returned but the postage to ship the remaining stock is substancial. There is also a lot of jewelry that is not saleable and must be restrung into saleable items. These costs must be allocated.

The organization is in the process of applying for a 501c3 certificate. We are currently working with a law firm in Seattle who are handling this pro bono. The challenge is that they are very busy and must do this in their spare time. They estimate that we will not have the certification for 7-12 months.

• This is a big challenge since many of our planned fundraising events require this certification. We are researching ways around this or to speed up the process.

Challenges:

1. None of us could have anticipated many of the events that transpired and the tradgedies that occurred at the start up of the organization.
2. The tragedy in Uganda that involved a death in Christina’s prospective family through a huge monkey wrench in the works. None of us realized how crucial her participation was and when she was no longer able to participate, the organization suffered terribly.
3. The move to Washington took much longer than anticipated by the director, Evvy Bryning, and this caused a delay in the actual start up of operations.
4. Lack of adequate funding has been a huge challenge. Taking on the responsibility of paying the Ugandan salaries has proved to be a financial burden that has used half of the funds available leaving the organization constantly struggling on a month to month basis.
5. The devaluation of the American dollar has also been a challenge. Due to this factor, the amounts we budgeted for programs has not been adequate to absorb the difference.
6. Lack of the 501c3 certificate has proved to be crucial in fundraising efforts. Too many doors are closed to us because we do not have it.
7. The website is very outdated and updated it without Christina has proved to be very difficult. Plus the fact that Microsoft chose to discontinue Front Page software. We now need to completely revamp the website so that it can be updated regularly.
8. Poor communication between the directors and the communities in Uganda has caused a big rift in operations.

Goals

1. We must move forward to get the 501c3 certificate as quickly as possible.
2. Reorganize and update the website so that it can be maintained and updated on a monthly basis.
3. We must explore new and better ways to generate income for the organization.
4. We must develope and maintain a communication network between the board members and the communites in Uganda.

Program Reports

**Program Reports**
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The following is a report on the programs currently supported by LiA USA

Jungle Beads

1. While we have had some success with sales we must increase this in order to sustain the program. Currently we are only selling stock on hand and no new order have been placed. This is frustrating for the bead makers since they are relying on new orders to generate income for their families.

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1. We are currently negotiating a deal with Mark Grimes/Ned to sponsor a bracelet program for a 6 month trial . He will pay 5 beaders to produce bracelets at a set salary. This will provide them with a small guaranteed income plus will provide the center in Kampala with the funds they need to reconnect the internet. Hopefully this program will start in the next few weeks. The members in Kampala are very excited and encouraged by this prospect.
2. LiA Usa will also hire 5-6 beaders to restring existing stock into a new product we are calling “Jungle Bling” These pieces will consist of necklaces in two lengths (18” and 28”), bracelets, and earrings all made with accent beads that glisten with gold, shine with silver or use the elegance of ebony. These new pieces will be for our Christmas campaign. The beaders will be paid a flat rate salary to produce the pieces ordered.
3. We will aggressively approach a shared revenue program with groups who need to raise money. We currently have a test program going with a large church in So Cal and so far it looks like our share will be around $1000, maybe more. If we can do 1-3 per month to start, the revenue and order generation could be amazing. This would involve selling only bracelets and the split is 50/50.
4. We need to develop an aggressive reseller program to target the small craft show/flea market venders. We are developing a wholesale price list to accommodate this.
5. We are in the process of developing packaging for the products to facilitate marketing to small boutiques.

School Fee Campaign

We have sponsored 12 children at our centers in two terms of school. These children are all orphans and without assistance, have little or no hope of getting an education.

1. 12 is a good start but is nowhere near enough. We have identified around 200 that need assistance so this program needs to be expanded. This requires fund and a stable source needs to be found.
2. A much better reporting system needs to be put into place for accountability and transparency.
3. As this program develops and expands, funds will need to be allocated for a person on the ground in Uganda to administer the program. This will greatly improve the reporting process, the application process and assure accountability.

LiA Kids Club

The Kids Club has been our best success. Starting from a morning Breakfast club, we changed to a Saturday Kids Club. The children are given a nutritious meal and activities that are designed to be a healing for their spirits, character building, encouragement in school, behavioral counseling, and just plain fun which is something these kids don’t get too much of.

1. Using an initial donation from La Crescenta Church, we were able to purchase the needed cooking utensils and to fund the program for the first two months at the centers in Kampala and Gulu.
2. Activities included games, contests, art, drama, music, dance and debate
3. At the end of the year we ran low on funds and were forced to eliminate the full meal but continue with the program providing snacks and drinks. And the children still come. We average around 70 children each Saturday.
4. Many thanks to a wonderful staff in Uganda who have made this all happen. There is very little money for them in the way of pay but they do it for the kids. Hopefully we can develop the program through funding that will allow them to be paid sufficiently for their efforts and time.

Community Report-Kampala

The community in Kampal has had many struggles but they remain focussed, determined and loyal to the organization. They have made good progress in filing their CBO documents and cooperated in all requirements put to them fom LiA USA.

1. Their first endeavor was to move from the center in Kireka and to open a web cafe in Ntende. This proved to be a total failure due to the following reasons.

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1. They did not have adequate funding to support the cafe for the time needed to develop a business
2. They found that no one knew how to use their type of computer and much time had to be spent trying to teach customers how to use them. This was frustrating for the staff who were mostly volunteers and so frustrating for the customer who subsequently just went to another cafe with regular PCs.
3. They could not afford the more expensive internet connection and this made it impossible to compete with nearby cafes who could
4. Power outages is a constant problem in Uganda and this makes it very difficult to run this type of business

2. It was decided, with the advice of LiA USA to close down the cafe and move back to the old cener which was much better located for the members and was well set up to host the Kids Club. LiA USA financed this move.
3. We have currently developed two business models to support the community center. One is Varnish Production and the other is Soap Production. These can be launched together since much of the same equipment is used. These two businesses will be able to employ around 12 members as regular staff and will be able to provide the funds needed to pay the day to day operational expenses of the center.

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1. We are designing a chip in campaign to try and raise the funds needed to launch these businesses which will be forthcoming. We need to raise $2500 to get them going.
2. The administrator and members have done a lot of work to develop these plans and have done an in depth survey of the market to insure that they will be profitable.
3. Part of the procedes of these businesses will be used to launch more small enterprises that will employ more members. The idea is to have many small businesses that will support the members with a guaranteed income and will support the center and the programs.

4. This community has proved to be resilient and totally accountable. They are loyal and look forward to future programs, projects and involvement with LiA USA. There is a good network of staff in place and it is highly recommended that LiA USA continue their support of this community.

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Community Report-Gulu

It with great regret that we announce that as of July 2008 we have severed our ties with the community in Gulu. The center has been closed and all assets and liabilities have been taken back by Life in Africa Foundation. This includes the solar panels, computers, stock and furniture. We did not reach this decision easily.

The community elected officers did not attempt to file their CBO documents as required, they refused to communicate and there was no accountability or transparency with regard to funds they recieved. We made every effort to work with them but it was in vain.

We have notified and recieved the blessing of the District Manager in Gulu and we have encouraged the women to reorganize themselves, file their CBO papers and reapply for financial support in Jan of 2009. We have also made it known to the officials in Gulu that we will be happy to accept applications from other groups at that time.

Financial Report

**Financial Report**
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The following report has been prepared by Evvy Bryning. This report along with a detailed ledger account of all monies earned and spent will be presented to the board members at a meeting scheduled for the end of July 2008 in La Crescenta, CA. The meeting will be attended by Evvy Bryning, Shawn Kelly and Christina Jordan.

Income

Expenditures and Allocations

Account Balances

Account balance verified by Wells Fargo Bank 6/30/08