Mission stateMentFloresta, a Christian non-profit organization, reverses deforestation and poverty in the world by transforming the lives of the rural poor.

We teach, we plant, we create enterprise, and we share the gospel.

In the last couple of years there has been a subtle but massive change in the way that Christians see environmental issues. For most of the fourteen years I have been at Floresta, I have frequently faced an uphill battle, explaining why Floresta is working on reforestation to people

who thought it was superfluous. Many times, I felt I was walking into meetings with potential donors carrying a huge liability: trees. These donors, who might have been interested in our evangelistic work, or our work fighting hunger, often saw the environmental aspect of Floresta with some suspicion, or at best, amused indifference.

But that has largely changed. Suddenly what we do is mainstream - even cool. New voices for God’s creation have sprung up all over the place. New books have been written. New conferences are being held. Many of the big Christian agencies are beginning to incorporate environmental programs into their work. And the Church is waking up to its stewardship responsibilities. Throughout the past year, as I visited with foundations, pastors and Christian leaders, I heard a very different reaction than the one I have grown used to. People are actively looking for ways to make a difference for the environment and to get their congregations involved in creation care.

There is sometimes still a perception that it is all about politics, but of course Floresta has never been about politics. Regardless of which way you vote, you can still fight global warming and deforestation by working with us to plant in Africa or Mexico. And you can plant trees that will save lives or keep a family in the Dominican Republic or Thailand from going hungry.

I think that is one of the ways in which Floresta remains unique. Our special contribution is the idea that we can make environmental restoration profitable for the rural poor at the same time we are making poverty reduction beneficial for the environment. That is the Floresta idea. In other words, we are creating virtuous cycles or spirals

in places where vicious cycles existed before. In so doing we are solving two enormous problems that taken by themselves seem intractable. The big idea is that it is actually easier to address both problems together than it is to take them on one at a time. This is pretty unique, and I think it is what sets Floresta apart from most other organizations and solutions.

Almost as important is the idea that the poor are the most important allies in solving these problems and probably the greatest untapped resource on earth. They have the skills, insight and vested interest in solving their problems. They have far more intelligence and initiative than people give them credit for. Often they only lack tools, opportunities or even just self-confidence. Yet far too often those who want to fight poverty see the poor as an obstacle. The temptation is to try to solve their problems for them without involving them. One of the most important things we can do is empower the poor to realize and use their God-given talents to change their communities and restore their land.

All of this new interest in the environment is exciting. It provides some tremendous possibilities for Floresta to grow and reach more people, as well as to share what we have learned, thereby blessing others. Humanitarian agencies, Christian and secular, are beginning to address environmental issues, because they have to. Similarly, environmental agencies are beginning to address humanitarian and spiritual issues, because they have to. To my knowledge, Floresta is the only organization designed from the ground up to work at the intersection of the two. We look forward to sharing some lesson learned from nearly a quarter century of healing the land and its people. It is an exciting opportunity.

Thank you for your support.

Sincerely,

Scott Sabin

froM the director

Floresta was founded in 1984 by Tom Woodard, who saw that much of the human misery in the tropics was rooted in deforestation. At the same time, much of this deforestation stemmed from a lack of economic opportunities, creating a vicious cycle from which farmers saw little hope of escape. While working on a relief project, Woodard realized that problems of extreme poverty, hunger, and economic decline were not being solved, but worsening. Extensive research indicated that deforestation and the subsequent loss of soil fertility were primary causes.

Motivated by Christ’s love and His command to help the poor, Woodard and his colleagues created Floresta to meet the environmental, economic, and spiritual needs of rural people in the Dominican Republic. Floresta designed holistic programs to address and reverse the vicious cycle of poverty and deforestation, replacing it with an upward spiral of economic growth, environmental restoration, and real hope through a growing relationship with Jesus Christ. As the success of this program became apparent and Floresta’s vision began to grow, this unique work spread to other areas where deforestation and poverty are closely connected. In addition to the original program in the Dominican Republic, Floresta is now operating successful programs in Mexico, Haiti, Tanzania, and Thailand.

In each of these countries, Floresta works with a partner organization comprised of a highly qualified indigenous team with a strong call to Christian service. These organizations are responsible for the operation and oversight of Floresta’s programs. Partners collaborate closely with Floresta USA and are monitored for accountability.

The second half of Floresta’s mission statement, “We teach, we plant, we create enterprise, and we share the gospel,” reflects the four primary tools we use to break the cycle of poverty: Community Development, Innovative Agriculture and Forestry, Credit, and Discipleship.

We teach – Community Development is the process of empowerment. Floresta’s program encourages rural communities to take ownership of their own problems, giving them the self-confidence to seek out and apply local solutions. The rural poor must believe and trust in the abilities they have been gifted with, and must have ownership of the process of development. This takes time, but results are profound and long lasting.

We plant – Innovative Agriculture and Forestry enable farmers to make the best possible use of the assets they already possess. Absence of vegetation results in severe erosion, poor water retention/spring replenishment, and low productivity. Floresta provides training in agroforestry systems that work more efficiently in such environments. For example, fruit trees provide food and a cash crop; woody perennial trees are planted as an investment in the longevity of the forest; and nitrogen-fixing trees supply nutrients to the depleted soil. In addition, planting trees provides restored ground cover and living barriers that reduce erosion.

As part of its sustainable agriculture development, Floresta works with farmers to construct cisterns, which provide a reliable water source while helping to mitigate erosion. Floresta also assists farmers in caring for and vaccinating livestock through a program of veterinary training. Maintaining livestock often provides a way for farmers to expand their farms and diversify income sources.

We create enterprise – Credit helps people to progress beyond bare subsistence, as well as to diversify village economies that are often entirely dependent on charcoal or firewood production. Microenterprise credit is the world’s most effective poverty fighter, and Floresta finances a broad range of environmentally sustainable and economically viable businesses and agricultural projects, offering reasonable interest rates and making it possible for even the poorest of farmers to qualify for a “hand up, not a handout.” Floresta also utilizes highly effective village community banking systems, which provide credit to community members and promote financial independence.

We share the gospel – Discipleship occurs through long-term relationships that are formed as the Floresta staff works closely with individuals and community leaders. Through the witness of our field chaplains and other staff members, people hear the good news of Jesus Christ, grow in their faith, and develop skills as servant leaders within their communities. While Floresta aims to make discipleship an integrated component of regular teachings and community interactions, the love and opportunities we share are unconditional: participation in any of its programs is not contingent upon faith, nor does Floresta require participation in Bible studies or church services.

At Floresta, we are often reminded of the old saying: “If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime.” Floresta is not only teaching him (and her) to fish, but teaching him to stock the pond, and to say grace before he eats it!

about floresta

“If you teach a man to fish, you feed

him for a lifetime.” Floresta is not

only teaching him to fish, but teaching

him to stock the pond, and to say

grace before he eats it!

prograM highlightsdoMinican republicContinuing in partnership with its Dominican sister organization Floresta Incorporada, Floresta’s longest running field program made impressive strides in 2007, particularly in the area of discipleship. Floresta Incorporada has a well-developed capacity for local fundraising, and a large portion of the program’s budget is raised in-country, with the remainder provided by Floresta USA. Work is ongoing in 41 communities north of Santo Domingo, and this year expanded to the Haitian border, where staff from Floresta DR devoted significant time and talent helping establish the Dominican half of the Trans Border Project.

• Aspartofalong-termreforestationeffort,participantsintheFloresta program planted 168,420 trees across a total area of 300 acres.

• 152newmicro-enterpriseloansweremade,inthetotalamount of $32,983, for the purpose of helping local program participants begin, maintain, and expand small businesses. In addition, 67 microenterprise loans were repaid in the total amount of $40,336 (including interest).

• Florestagranted80newagroforestryloans,inthetotalamountof$34,246.Inaddition,25previouslygrantedagroforestry loans were repaid, in the total amount of $23,314.

• TheDiscipleshipProgramadded81newBiblestudygroupsandtrained56newindividualstoleadthe438membersofthese studies. As a result of discipleship efforts, 433 people made a personal commitment to follow Christ.

• Florestapartneredwith56churchestoorganizeandtrain277 individuals to lead regularly meeting Bible study groups. At the end of the fiscal year, 1,491 individuals were participating in one of 186 Floresta-sponsored community Bible studies.

• Florestabegananeggproductionprojectin9communities,providing farmers with 1,240 chickens. These in turn produced 22,289 eggs, which helped improve community nutrition and provided farmers with an additional source of revenue.

• DominicanRepublicstaffofficiallyestablishedanewprojecton the Haitian border, setting up an office and dedicated staff in the region of Sabana Real. During its pilot year, the Dominican portion of the Trans Border Project resulted in 96,729 trees planted, the establishment of a new church partnership, and the formation of 3 Bible studies.

lifetiMe totals Treesplanted:2,574,348Agroforestry loans granted: 497Microenterpriseloansgranted:435

MexicoFloresta continued partnership with its Mexican sister organization, Misión Integral, in the five Oaxacan municipalities of San Andrés Nuxiño, Santa Inés Zaragoza, Santo Domingo Nuxaá, San Juan Tamazola, and Magdalena Jaltepec. A spirit of innovation and experimentation among the communities was evident in several new, successful projects implemented during the course of the year, including tomato and mushroom farms, a fish raising project, and the construction of numerous ecological latrines and water harvesting systems.

• 45,603treeswereplantedacross95acresoflandtocounter deforestation, bringing the lifetime total of trees planted through Floresta Mexico to 300,826.

• 35,670seedlingswereproducedinlocaltreenurseriesfor reforestation and agroforestry efforts.

• 97newmicroenterpriseloans,inthetotalamountof $9,633, were granted to program participants. 74 previously granted loans were repaid, in the total amount of $9,867.

• 16newagroforestryfarmswereestablished.Onthesefarms, trees are grown alongside food and other cash crops for the purpose of establishing mutually beneficial relationships that enrich the soil and improve crop yields.

• Florestaworkedwithfamiliestoconstruct17newfuel-efficient stoves, helping to improve air quality, lower the risk of respiratory illness, and significantly decrease the amount of wood needed for cooking and heating.

• 22newfamilygardenswereestablished,inwhichavariety of vegetables and fruits were grown. Harvests provide families with improved nutrition and an additional source of income.

• 6newcisternswereconstructed,providingcommunities with ready access to water for household use and to help grow their family gardens and tree nurseries.

• Florestaestablished4newmushroomfarmsandanewtomato greenhouse to improve the local diet and give farmers an alternative source of income.

• 74newecologicallatrineswerebuilt.Theselatrinesprovide sanitary, environmentally-friendly systems of waste management in which potentially toxic waste is contained and converted to safe, organic fertilizer.

lifetiMe totals Trees planted: 300,826Seedlingsgrown:452,167Loans granted: 312

haitiFloresta continued to work in the mountains of Southern Haiti in the region of Gran Colline. Work also extended to the Dominican border for the second year, as Floresta Haiti staff played an instrumental role in helping to further establish their nation’s half of Floresta’s Trans Border Project.

• ParticipantsinFloresta’sprogramsplanted24,318trees in reforestation projects.

• 2,737fruittreesweregrafted.• Creditcooperativesgranted372newmicro-enterprise

loans to members, in the total amount of $43,934.• 42milesofanti-erosionbarrierswereconstructedto

control soil erosion on otherwise vulnerable hillsides.• 674compostpileswereestablished,providinghealthy

organic soil to use as fertilizer for farms and family gardens.

• Farmersweretrainedtovaccinateandcarefor3,689livestock.

• TogetherwithteammembersfromFlorestaDominicanRepublic, Haitian staff officially established a new projectontheDominicanborder,workingwith135farmers. During its pilot year, the program resulted in 128 compost piles established, 110 fruit trees grafted, 1.2 miles of soil conservation barriers constructed, and 8,277 trees planted.

lifetiMe totals Trees planted: 191,116Fruit trees grafted: 10,843Loans granted: 2,630

prograM highlights

tanzaniaFloresta’s newest program in Tanzania continued to expand and develop during its third year of operation, working with over one thousand farmers and their families. Floresta introduced a Village Community Banking (VICOBA) system for distributing microcredit loans, which was met with enthusiastic support and resulted in a number of new economic opportunities, particularly for Tanzanian women.

• Florestaworkedwithcommunitymemberstoestablish34 tree nurseries for the purpose of growing new seedlings for reforestation and agroforestry efforts. By the end of the fiscal year, these nurseries housed a supplyof54,405seedlings.

• 75,351treeswereplantedinreforestationefforts,bringing the program’s lifetime total of trees planted to147,514.

• FlorestaworkedwithTanzaniancommunitiestooperate a total of 9 Village Community Banking (VICOBA) groups, which collectively distributed 164 loans in the total amount of $17,083. Group members contributed $16,231 of their own funds to use for these loans.

• Florestaprovidedcommunitieswith17rainwater-harvesting cisterns, providing farmers with improved access to water for household and garden use.

• 551improved,fuel-efficientstoveswereprovidedto community households for cooking and heating, reducing local wood consumption and improving respiratory health among community members.

• Florestaworkedwithfarmerstoconstruct7milesofliving barriers, protecting 7 watersheds from potential soil erosion.

• 1660bio-intensivevegetablegardenswereestablished,providing fresh vegetables and a source of income that allows even the poorest families to participate in the VICOBA groups.

lifetiMe totals Treesplanted:147,514Participatingfarmers:1,450Improved stoves: 863

united states• Florestaprovidedconsultingservicestoeachof

the overseas programs and was active in planning, evaluating, and monitoring each of the programs.

• Florestaprovidedvision,leadership,andcoordinationfor the Haitian and Dominican programs as they developed the Trans Border Project.

• StaffandotherrepresentativesfromFlorestaUSAparticipated in various projects and conferences around the world, providing expertise on community development, on the interface between microfinance and the environment, and on the Christian call to care for the environment.

• FlorestahelditsannualauctionanddinnerattheHyatt Islandia in San Diego.

• Florestareceivedgrantsfromthefollowingfoundations

• DanellieFoundation• WellspringTrust• WestFoundation• TheServantsTrust• TyndaleHouseFoundation• AlternativeGiftsInternational• StewardshipFoundation

thailandIn partnership with the Upland Holistic Development Project (UHDP), a Christian organization specializing in agroforestry, Floresta worked with farmers in the northern hilltribes, providing training in agroforestry and sustainable farming, as well as on-site research support.

• Asaresultofthepartnership,morethan100farmershave begun to adopt agroforestry and sustainable farming practices.

• 69individualsjoinedFlorestaandUHDP’snetworkofagroforestry farmers.

• Backyardagricultureworkshopsassistedover100families, promoting home gardens and the raising of pigs and catfish.

• Expandedandimprovedvillagewatersystemsprovided8 communities with year-round access to clean water.

• Microfinanceprogramsbenefitedover80families,providing them with loans for livestock and small business enterprises.

• Over2,000womenparticipatedincapacitybuildingworkshops and trainings in handicraft production.

• FlorestaprovidedUHDPwithtechnicalsupportinagroforestry and microfinance, assisting in related village based plant trials and staff and network member trainings.

Statements of Activities 2007 2006 Temporarily

UnresTricTed resTricTed ToTal ToTal revenue and support: General donations $1,463,656 $1,463,656 $1,239,900 interest and dividend income 13,317 13,317 10,131 net assets released from restrictions 38,457 (38,457) - - Total revenue $1,515,430 ($38,457) $1,476,973 $1,250,031 expenses: program activities: dominican republic $ 308,622 $308,622 $247,088 mexico 237,828 237,828 198,655 Haiti 304,546 304,546 231,339 Tanzania 137,754 137,754 122,905 other countries 30,647 30,647 43,671 U.s awareness & education 247,657 247,657 144,867 Total program activities $1,267,054 $1,267,054 $988,525 supporting activities: General and administrative $104,330 $104,330 $ 77,594 Fundraising 118,630 118,630 85,589 Total supporting activities $222,960 222,960 $163,183 Total Expenses: $1,490,014 $1,490,014 $1,151,708 change in net assets $25,416 ($38,457) ($13,041) $98,323

net assets, beginning of year $218,681 $115,370 $334,051 $235,728net assets, end of year $244,097 $ 76,913 $321,010 $334,051

floresta usa incorporated financial stateMentsJunE 30, 2007 And 2006

dominican republic 21%

Haiti 20%

mexico 16%

Fundraising 8%

administrative 7%

Tanzania 9%

U.s awareness & education 17%

other countries 2%

85.04%

7.00%7.96%

100%

85.83%

6.73%7.43%

100%

FlorESTA FInAnCIAl GroWTh 2003-2007

2003: $ 567,833

2004: $ 778,803

2005: $ 1,121,374

2006: $ 1,289,425

2007: $ 1,515,430

Statements of Financial Position 2007 2006assets cash and cash equivalents $184,995 $116,037 contributions receivable 1,667 - investments 175,000 175,000 investment in los arbolitos* 28,307 28,307 prepaid expenses 18,161 - rent deposit 1,850 1,850 property & equipment, net 16,675 16,352 intangible assets, net 5,278 - Total assets $431,933 $337,546 liabilities and net Assets liabilities: accounts payable and accrued expenses $21,338 $3,495 sales Tax payable 377 - deferrred revenue 89,208 - Total liabilities $110,923 $3,495

net assets: Unrestricted $244,097 $218,681 Temporarily unrestricted 76,913 115,370 Total net assets $321,010 $334,051 Total liabilities and net assets $431,933 $337,546

*Los Arbolitos is a for-profit tree nursery in the Dominican Republic, jointly owned by Floresta Usa, Floresta dr, & private investors.

“With the right tools, technology, and coaching, the poor have the skills

and imagination to not only improve their farms and start businesses,

but to restore the land on which they depend.”

board of directors

CHAIRMANJeff BusbyCEO, Brandes Investment Partners

TREASURERCindy OutlawFormer ControllerSAIC

SECRETARYMartin GoreVice PresidentSeahorse Capital, Inc.

Murray DeckerAssociate Professor, Intercultural StudiesBiola University

Tricia ElisaraDirectorCreation Care Study Program (CCSP)

Jeff KahlerGeneral PartnerKahler Capital Management

Eric KaiserFormer VPQualcomm

Mary KingFinancial Advisor Merrill Lynch

John McKayCo-founderSAJE Foundation

Richard H. ThompsonPastorWestminster Presbyterian Church

Robert WitbeckFormer Co-ownerStacy and Witbeck, Inc.

advisory board

Robert AinsworthFormer Vice PresidentWorld Vision

Anthony CampoloAuthor, Speaker

Calvin DeWittProfessor, Environmental StudiesUniversity of Wisconsin

Rev. Paul LandreyDirectorTOPIC (Trainers of Pastors International Coalition)

Margaret Dalzell LowmanDirector of Environmental InitiativesNew College of Florida

William McColl, M.D.Orthopedic SurgeonFormer NFL Football Player

John PerkinsPresidentJohn Perkins Foundation

Sir Ghillean Prance, FRS, VMHScience DirectorEden Project, Cornwall

Ronald SiderProfessorPalmer Theological Seminary

D. Peter StockerRetired Credit ManagerWeyerhaeuser Company

Paul ThompsonExecutive DirectorBetter World Together Foundation

Mary Walker, Esq.General CounselU.S. Department of the Air Force

Tom WoodardFounderFloresta

organizational affiliations

Memberships:AERDO – Association of Evangelical Relief and Development Organizations

CPCA – Conservation and Preservation Charities of America

ECFA – Evangelical Council for Financial Accountability

ICA – Independent Charities of America

InterAction – American Council for Voluntary International Action

Floresta is a Partner Organization of the Evangelical Environmental Network

staffScott SabinExecutive Director

Armando OsorioDirector of Programs

Bob MorikawaTechnical Director

Kristen Kreitzer TuckerBusiness Manager

Sarah FerryDirector of Outreach

Megan VanderGeestDirector of Communications

Erin WeesnerAdministrative Assistant

Rachel Castillero Administrative Assistant

Rebeca ElliottSponsor a Village Coordinator

printed on post-consumer waste paper.pictures courtesy of rico castillero and armando osorio

“And the leaves of the tree are for the healing of the nations”

revelations 22:2

Floresta USA, 4903 Morena Blvd.,Suite 1215,San Diego, CA 92117www.floresta.org | Email: info@floresta.org | 1.800.633.5319