AKF USA 2012 Annual Report (Cover+Spread)

AGA KHAN FOUNDATION U.S.A.An agency of the Aga Khan Development Network

AGA KHAN FOUNDATION U.S.A.An agency of the Aga Khan Development Network

An agency of the Aga Khan Development Network

ANNUAL REPORT2012

www.akdn .org 1

Contents

1 Welcome

2 Mission and Who We Are

4 A Day in the Life of our Communities

6 Lights on for Families and small Business in tAjikistAn

8 Growing Food security in MoZAMBiQUe

10 Fostering social entrepreneurship in kyrGyZstAn

12 Participating in Governance through Local Action in AFGhAnistAn

14 helping Families handle emergencies in PAkistAn

16 small enterprises Bloom near the Gem of CAiro

18 Activities in the UniteD stAtes

22 2012 Financial statements

24 institutional Partners

25 Board of Directors, national Committee and staff

Dear friends of Aga khan Foundation U.s.A.,

This report shares a day in the life of the communities we serve to show what

your support has meant for them. Many live in the worlds most remote areas,

where poverty is hardest to address.

For over 30 years, Aga Khan Foundation U.S.A. (AKF USA) has pursued integrated

solutions to help families overcome the incredible challenges they face every day.

Povertys challenges are like a knotted rope, and require an integrated approach

to untangle. You can tackle childhood malnutrition, for example, only if you also

improve education and livelihoods.

In 2012 we entered innovative new partnerships that multiply each contribution.

New ways to finance development included Global Development Alliances (GDAs)

with U.S. government agencies, coalitions of foundations, impact investing relationships

with private-sector investors, and community philanthropy for catalyzing community-

level assets. One highlight in impact investing is an exciting collaboration to revitalize

Nairobi City Park (see page 17). We spotlight these new par tnerships in our

expanding communications through blogs, news articles and dialogues with our peers.

We keep learning. In 2012, AKF USA explored new ways to put local organizations

in the drivers seat with community philanthropy, and we honed our capacity to

measure the impact of our work. (See the report on Quality of Life Assessment

on www.akdn.org.)

Finally, we learn from you, our donors. You generously shared your stories and

your energy. In the past two years, AKF USAs grants portfolio has grown by 30

percent, and 2012 PartnershipsInAction activities raised $8.1 million to support

AKF programs around the world, 24 hours a day. Thank you.

Welcome

AZiZ VALLiAniChairman,National Committee

Dr. MirZA jAhAniChief Executive Officer

Front CoVer: Food security was a critical need in Tajikistan when the Aga Khan Foundations rural development program began there in 1993. Now the program involves more than 1,200 independent village organizations and covers a population of 730,000. The organizations, with women forming almost half their membership, have grown to address other local priorities including healthcare and education.

2 2 0 1 2 A G A k h A n F o U n D A t i o n U s A A n n U A L r e P o r t www.akdn .org 3

AKF uSA SuppoRtS woRK in 12 countRieS.

Aga Khan Foundation has branches and affiliates in 20

countries with its headquarters in Geneva, Switzerland.

The Foundation is an agency of the Aga Khan Development

Network (AKDN), the largest private international network of its kind,

founded by His Highness the Aga Khan. The Network brings together

an extensive history of experience in social, economic and cultural

development. Each Network agency has a mandate and expertise,

ranging from environment, health, education to architecture, culture,

access to finance, rural development, disaster reduction, the promotion

of private-sector enterprise and the revitalization of historic cities.

The Networks agencies work for the common good of all citizens,

regardless of their gender, origin or religion, with a focus on societys

most vulnerable members.

Within the Network, AKF USA mobilizes resources and strategic partnerships

with a variety of U.S.-based institutional partners including government agencies,

policy institutes, corporations, foundations, non-governmental organizations (NGOs),

universities, associations and professional networks.

AKF USA serves as a learning institution for program enhancement, policy dialogue

and disseminating best practices and knowledge resources. It collaborates in providing

technical, financial and capacity-building support to other AKDN agencies and

programs worldwide.

In facilitating and representing AKDN interests in the United States, AKF USA

organizes outreach campaigns, manages volunteer resources and conducts

development education among US constituencies.

Who We Are

oUr Mission

AGA khAn FoUnDAtion U.s.A. (AkF UsA) is a

private, non-denominational, not-for-profit international

organization committed to the struggle against poverty,

hunger, illiteracy and poor health, primarily in Africa and

Asia. established in 1981, AkF UsA works to address

the root causes of poverty by supporting and sharing

innovative solutions in the areas of health, education,

rural development, civil society and the environment.

AkDn countries of activity AkF countries of activity

KYRGYZ REPUBLIC

MALI

SYRIA

KENYA

INDIA

EGYPT

FRANCE

UGANDA

RUSSIA

SENEGAL

PAKISTAN

TANZANIA

PORTUGALTAJIKISTAN

MOZAMBIQUE

MADAGASCAR

KAZAKHSTAN

BANGLADESH

SWITZERLAND

AFGHANISTAN

BURKINAFASO

CTEDIVOIRE

UNITED KINGDOM

BOSNIA-HERZEGOVINA

DEMOCRATICREPUBLIC OFTHE CONGO

AKDN countries of activityAKF countries of activity

CANADA

UNITED STATES OF AMERICA

KYRGYZ REPUBLIC

MALI

SYRIA

KENYA

INDIA

EGYPT

FRANCE

UGANDA

RUSSIA

SENEGAL

PAKISTAN

TANZANIA

PORTUGAL

TAJIKISTAN

MOZAMBIQUE

MADAGASCAR

KAZAKHSTAN

BANGLADESH

SWITZERLAND

AFGHANISTAN

BURKINAFASO

CTEDIVOIRE

UNITED KINGDOM

DEMOCRATICREPUBLIC OFTHE CONGO

AKDN countries of activityAKF countries of activity

CANADA

UNITED STATES OF AMERICA


A Day in the Life of oUr CoMMUnities

throUGh the CyCLe oF A sinGLe DAy these stories trACe oUr iMPACt

through the lives of different people in six places where poverty is a fact of life.

There we come to learn how the many strands of the rope can be woven

together better.

At dawn in the Pamir Mountains, Tajik families now have energy to fuel their schools

and home ventures. Early morning in Mozambique, farmers attend training sessions

to ensure they grow ample food for their families. At midday, young self-star ters in

the Kyrgyz Republic pursue new social enterprises. In the afternoon, local Afghan

committees gather to hammer out priorities that are knitting their remote villages to

public services.

In the evening, savings groups meet, bringing a new hope for Pakistani women coping

with health emergencies.

As a long day of work draws to a close, small shops around Cairos popular Al-Azhar

Park are busy with businesses spurred by training and microloans.

ALL throUGh eACh DAy, your contributions help strengthen communities and

uphold their dignity.

Following A DAy in the LiFe oF oUr CoMMUnities is a way to show the

daily challenges where poverty is hardest to address, and how people

live there. We work with them every day to untangle the knot of

poverty. For example, by improving education and livelihoods, we also

address childhood malnutrition and maternal health. Likewise through

food security, we can foster enterprise and access to finance.

MorninG MiDDAy AFternoon eVeninG sUnset DAWn


MAyRAM K.S woRKloAd iS big but typical for a woman in the Pamir

Mountains: cooking, cleaning, washing clothes, getting kids to school.

Until a few years ago, completing her daily tasks was much harder

because she and her family had electricity for only two hours a day.

tajikistans civil war in the 1990s left the power grid broken, and

in the poorest and most remote mountain communities of Gorno-

Badakhshan, over half of all residents lacked power during the cruel

winter months. As families relied on wood fuel for heating and

cooking, respiratory disorders increased, and the region lost over

two-thirds of its tree cover from 1992 to 2002.

Mayram doesnt like to look back on that time. During winter, life was so punishing

that it forced her family to make painful choices. My husband had to cut our

treasured fruit trees for firewood. One of the biggest troubles was baking bread,

she says. We didnt sleep at night because we could not miss those two to three

hours of electricity in order to bake bread for the kids to eat the next day.

Since Pamir Energy brought electricity, things have gotten much better. Electricity

changed life in ways we could see with our own eyes, Mayram says. It even allowed

her to star t a small business selling food from home. From my childhood, I liked

cooking. I really wanted to cook food and sell it, but when we had no electricity,

that was impossible. In the last four years I have been doing the work that I really

love. It also means new horizons for her children. Not long ago we bought a

computer for our children, says Mayram. All day long, they use the computer

and learn many new things.

For myself and my neighbors, says Mayram, I am grateful to Pamir Energy for

bringing electricity and heating to our homes.

Lights on for Families and Small Business in tAjikistAn

Hydropower benefits Schools and environment

Across borders

Until recently in Gorno-Badakhshan, the only source for

heating schools and hospitals was low-quality coal, which filled

rooms with smoke and a foul smell and made students feel

achy. that changed when a public-private partnership between

the Aga khan Fund for economic Development and the

Government of tajikistan, with World Bank and swiss support,

restored Pamir energy. now hospitals and schools use clean

hydropower energy. since 2010, hydropower has slashed

coal use in the provinces schools by over 80 percent.

in 2012 with funding from the U.s. Agency for international

Development (UsAiD), AkF UsA started the Cross-Border

energy project to expand Pamir energys reach across the

border to Afghanistans remote shugnan District. this helped

to multiply electricity use there by nearly eightfold,

and helps establish infrastructure for regional growth

in central Asia.

Pamir energy electricity Consumption in Afghanistan

yearConsumption

kWh

2008 186,000

2009 368,718

2010 564,990

2011 1,035,990

2012 1,464,000

electricity changed life in ways we could see with our own eyes, Mayram says. i am grateful to pamir energy for bringing electricity and heating to our homes.

DAWn | tAjikistAn

ABoVe: Electrication makes it possible for children to study longer. riGht: Electric power in schools opened new possibilities at this teacher training center.


Growing Food Security in MoZAMBiQUe

Sulu AbAcAR gRew up in Mozambiques northern Cabo Delgado

province. At age 18 he went to study at the Agricultural institute of

Bilibiza, a regional hub of learning and enterprise.

sulu embodies the adaptable smallholder farmer that Bilibiza aims

to produce. At the institute he absorbed better farming techniques

and market strategies. in 2003, with a scholarship from the Aga khan

Foundation, he pursued further studies that gave him new confidence

and skills. sulu returned to Bilibiza as an instructor in 2007, where

he kept experimenting for improved food production.

On his own half hectare (1.25 acres) of land in 2009, Sulu harvested 1,650 pounds

of rice, which fed his family and yielded $268 in sales. He faced daunting challenges

to improve that harvest. In three years, however, he diversified into other crops,

including vegetables and his harvest income more than tripled to $991.

He takes that adaptability into the classroom as instructor. AKF USA has worked

with the Institute for over eight years, supporting improved facilities and faculty training,

with funding from the Ford Foundation. In 2012, with a $1.35 million grant from Cargill,

Inc., AKF USA bolstered its initiative to make Bilibiza a regional hub for agricultural

enterprise with more instructors like Sulu, equipment and a commercial farm that

demonstrates innovations and generates revenue for the Institute for years to come.

Worldwide, 2.5 million people have benefited directly from the Foundations

rural development programs, and nearly 12 million people in over 8,400 village

organizations have indirectly benefited.

Says AKF Mozambiques CEO Faiza Janmohamed, Our joint efforts address the

need for improving smallholder farmers skills, an important keystone in the regions

future and food security.

MorninG | MoZAMBiQUe

improvement in computer: student ratio at Agricultural institute of Bilibiza 20092012

# of students

# of computers

computer: student ratio

2009/2010 60 2 1:30

2010/2011 120 8 1:15

2011/2012 120 25 1:5

Sulu faced daunting challenges to improve his harvest. in three years, he diversified his crops and his harvest income more than tripled. He takes that adaptability into the classroom as instructor.

LeFt: Instructors at Bilibiza know the challenges of food security rsthand. ABoVe: Food security in Mozambique depends on smallholder farmers.


MedeR uSupbeKov iS one oF 150 people in the city of naryn,

in the kyrgyz republic, who use a wheelchair to get around. he faces

huge obstacles every day.

If we could put ramps in major public institutions, he realized, we could solve

some of the problems. So in July 2012, Meder created a plan for improving

accessibility in Naryn, and entered a competition for social entrepreneurship held

by the University of Central Asias School of Professional and Continuing Education

(SPCE). Funded by a grant from Coca-Cola and the Coca-Cola Foundation to Aga

Khan Foundation U.S.A., the contest received over 200 applications from across

Kyrgyzstan. To boost submissions the University organized training sessions in

social entrepreneurship in seven cities. Meder attended one of those sessions.

Finalists received intensive two-week training to refine their ideas into

business plans. They learned the fundamentals of social enterprise

recognizing a social problem and using entrepreneurial principles to

organize a venture for changealong with social marketing, business

communication, and information technology. In the end, Meder became

one of nine winners who received a small grant to turn their dreams

into reality.

Each winner received a seed grant of up to $3,000. Other winning

proposals included a plan to generate profits from waste separation

efforts in schools for purchasing school supplies for needy students.

Now Meders dream is coming true. He leads a team to build ramps

throughout Naryn. He recently presided at the ceremony opening the first ramp,

and hopes to see three more built in the coming year.

I would like to thank the donors and School of Professional and Continuing

Education instructors for their entrepreneurship training, he said. This win has

encouraged me to do more and taught me how to implement projects.

Fostering Social Entrepreneurship in kyrGyZstAn

MiDDAy | kyrGyZstAn

this win has encouraged me to do more and taught me how to implement projects, says Meder.

growing youth Skills Across borders

In May, Natalie Ross, Program Associate, visited a cross-border program

at the University of Central Asia. This is her story from the trip.

traveling across tajikistans Gorno-Badakhshan region, i could

see across the Pyanj river to the region of Afghan Badakhshan.

electricity poles lined the tajik side of the border, but not on

the Afghan side. in khorog, the University of Central Asia manages

the Cross-Border Vocational education (CVeB) program, funded

by the U.s. Agency for international Development. i was eager

to meet the students brought together from both sides of the

border. CVeB provides scholarships for Afghan youth to study

bookkeeping, information technology, or english; dozens more

students received vocational training in carpentry and masonry.

Fourteen of the first scholarship recipients were women, with

more in the second phase. i was struck by how the students

from just across the border had never been to tajikistan

before. Likewise a tajik student told me that he had always

seen Afghanistan across the river but never visited. they were

surprised to discover how much they shared. in the short term,

the program grows job skills, but in the long term these students

can together build a strong, vital region of Central Asia.

ABoVe: The training with University of Central Asia yielded certied social entrepreneurs. riGht: Meder used his training to bring wheelchair-accessible ramps to his city.


SARe HAwz, A villAge oF About 1,000 people, is three hours walk

from the district center in northern Afghanistan. Despite the distance,

the village is getting closer to needed services. shair Zai leads the

local Community Development Committee that connects sare hawz

to the national solidarity Programme (see sidebar), which Aga khan

Foundation helps to implement through a program funded by the U.s.

state Department.

According to Shair, only 1520 percent of the village can read and write. Most

residents grow crops or raise livestock. So the community prioritized two core

needs for basic infrastructure: power and a safe water supply.

Participating in Governance through Local Action in AFGhAnistAn

Aga Khan Foundation in the national Solidarity

programme, Moving Forward

the national solidarity Programme (nsP), under Afghanistans

Ministry of rural rehabilitation and Development, aims to

give decision-making about resources and priorities directly

to villages while it lays a foundation for local governance. each

community prioritizes its requests to nsP for project funding

through a community-wide planning process. Communities

elect local groups known as Community Development

Committees (CDCs) to design and execute the projects.

Aga khan Foundation has helped to train community leaders

in the CDCs and build their capacity through micro-grants and

infrastructure support in four provinces. Phase 2 of a program

called strengthening sub-national Governance in Afghanistan

combines over $600,000 in in-kind contribution from AkF

with over $4 million from the U.s. state Department. Phase 2

directly touches over 11,300 people and, more broadly,

will help 2.5 million through better links from villages to

provincial-level government.

Four years after they first organized a committee under the National Solidarity

Programme, they had designed and built a water supply system. Before implementing

the water supply project, we used river water, which caused a lot of sickness, including

diarrhea, stomach ache, and cholera, Shair recalls.

In addition to safe water, Shairs committee used support from another NGO to

establish a mini-hydro electricity plant. A canal carries water two miles up to the

electric station, which produces 50 kilowatt hours and irrigates almost 150 acres

of cropland. Sale of the crops has brought a 15 percent rise in local living standards.

The electricity also brings families light for work and study.

With AKF support, Shairs committee also established a 2.5-acre forest grove with

over 1,270 fruit and other trees, which the villagers protect and maintain. Now they

feel they have the power to set their priorities and organize support from public

and private sources to make those initiatives happen.

before we used river water, which caused a lot of sickness, Shair recalls. His committee designed and built systems for safe water and hydropower.

AFternoon | AFGhAnistAn

BeLoW: Before, the village of Sare Hawz lacked safe drinking water. Local leadership made a plan and got it implemented. riGht: The new water channel provides safe drinking water, irrigation for crops and hydropower electricity.


in ReMote noRtHeRn cHitRAl diStRict oF pAKiStAn, women

and children are especially vulnerable to health challenges and lack of

options. Fewer than 1 in 7 births in Chitral are attended by a doctor or

nurse. Many who suffer complications die on the way to get clinical help.

For four years AKF USA has trained and supported community midwives, creating an

enabling environment so they can practice their new skills for the long run. The Chitral

Child Survival Program, begun in 2008 with funding from the U.S. Agency for Inter-

national Development (USAID), has trained midwives and established them in dozens

of remote communities to reduce the Chitral regions high levels of mother and child

mortality. The midwives are already having an impact: a 2012 survey showed increased

use of health services, including a dramatic rise in continuum of care (see graph).

Along with supplying much needed health services, the project has fostered nearly

420 community-based savings groups that help poor families save and pay for health

emergencies or other unexpected expenses.

When first invited to join the savings group, 37-year-old Bibi Noshad admitted,

I didnt think too seriously about the savings group. But when I saw the benefits

other women in the village were getting from it, I joined it as well.

Bibis family relied on her husbands income as a security guard. Bibi supplemented

that with tailoring and embroidery jobs, which could increase with an embroidery

machine. The problem: it would cost over $100.

So her first request to the savings group was for a loan to cover 60 percent of the

cost. Now her embroidery work goes much faster.

The savings group helped her at a crucial time. She attends every meeting and pays

her share with cash from sewing jobs. Eventually she wants to open her own store.

Bibis community savings group helps her handle emergencies that may come up.

And that gives her peace of mind.

Helping Families Handle Emergencies in PAkistAn

eVeninG | PAkistAn

when your baby cant wait

Aisha lives in Chitral and joined a Village savings and Loan

Association in 2010. it was the third such savings group in her

community, providing women with a local option to save money

and access loans. her daughter-in-law nahida faced a dangerous

birtha retained placenta caused serious bleeding with the

threat of infection. nahida needed to get to a clinic quickly,

but the nearest was over two hours away and she couldnt

afford the trip. so Aisha rushed to her community-based savings

group and got an emergency loan for 3,000 rs. (about $30) to

hire transport. thanks to the fast cash from the savings group,

nahida and her child lived. since then, nahida has joined a

savings group herself.

the Chitral Child survival Program has set up over 340

Community-based savings Groups with 8,000 women

members.

i didnt think too seriously about the savings group. but when i saw the benefits other women in the village were getting from it, i joined it as well, says bibi.

Comparison of 2009 Baseline and2012 Study on the Use of Health Servicesfrom Skilled Providers by Percentage

The graph shows a significant rise indemand for continuum of care services.

0

20

40

60

80

1002009 Baseline

2012 Study

Continuumof Care

PostnatalCare

DeliveryServices

PrenatalCare

65.0

83.0

33.0

52.5

16.9

31.2

1.0

23.0

ABoVe: Bibi Noshad used a loan to boost her embroidery income. riGht: With AKF support, Bibi and others used the savings group to create a rainy day fund where none existed before.


cARoline lAi, pRogRAM ASSiStAnt with Aga Khan Foundation

U.S.A., visited Egypt in November 2012. During my first trip to

egypt to see a friend in 2006, we visited Cairos Al-Azhar Park. on

the way there, my friend called it the most beautiful spot. At that

time, i had not heard of the Aga khan Development network.

Al-Azhar Park is a hallmark of the Aga Khan Development Networks long-term

approach. The park provides Cairos residents with recreational and healthy

greenspace. The Project for Public Spaces ranked it among the worlds 60 top

public spaces. The park also provides livelihoods for low-income neighborhoods

nearby. Paying visitors contributions have helped to improve housing, water and

sanitation, and health and education. in the parks first four years, household

purchasing power in these neighborhoods increased 20 percent.

Seven years after my first visit, I was back at the beautiful park, working with the

Aga Khan Foundation U.S.A. and its the Head Start! for Youth Entrepreneurship and

Employment program. Funded by the U.S. Agency for International Development,

Head Start! works in neighborhoods near the park. To address high youth unemploy-

ment and underemployment, Head Start! provides training, improved infrastructure,

and microfinance loans to young entrepreneurs.

One loan client, Reham Ahmed Mohamed, proved especially memorable. A 29-

year-old woman, Reham always dreamed of star ting her own business. But societal

norms prevent young, unmarried women from managing businesses and accessing

credit. Through Head Start! Reham received a loan of $2,500 to open a poultry

shop in her familys apartment building. With her loan, Reham installed lighting

and purchased processing machinery, a refrigerator, and chickens. Reham also hired

two employees. After a few months, her business was selling 80 chickens per day.

Visiting the shop that afternoon we got a hearty welcome, an invitation to take a

seat, and a chat with her father. The pride on his face as he watched his daughter

was overwhelming.

Small Enterprises Bloom near the Gem of CAiro

sUnset | eGyPt

greenspace as catalyst for local enterprise

in revitalizing urban parks across Africa and Asia, the

Aga khan trust for Culture (AktC) has established a

strong track record with Cairos Al-Azhar Park, kabuls

Babur Gardens, and Bamakos national Park of Mali. Latest

plans include revitalizing the nairobi City Park, which his

highness the Aga khan launched in november 2012.

the plan will revitalize 150 acres of forest cover in the citys

heart that had fallen into disrepair. AktC aims to preserve

the sites unique ecological integrity (including much of the

areas last indigenous forest) while developing a botanical

garden, open-air theatre, and eating and sports facilities.

AktC has committed to fund one-third of the costs; another

third would be supported by revenues from park activities.

AkF UsA is working with AktC to arrange for investors to

help make the revitalized park a reality.

his highness the Aga khan noted, one of the characteristics

of this activity is that you discover more opportunity as you

move forward from year to year. Visit www.akdn.org/videos

to see a short film about the nairobi park. Reham always dreamed of

starting her own business. with her loan, she purchased supplies and hired two employees. After a few months, her business was selling 80 chickens per day.

ABoVe: Reham received a small loan that enabled her to start her poultry shop.

ABoVe: This auto parts shop in the neighborhood of Al-Azhar Park started with a loan from the Head Start! program. BeLoW : In the historic district of Cairo, Al-Azhar Park is proving to be a catalyst for urban renewal in one of the most congested cities in the world.


in 2012 pARtneRSHipSINActIoN, an initiative of AKF USA that supports

the Foundations work overseas and fosters a U.S. network of volunteers to raise

awareness and funds, celebrated 18 years of activities. Partnership Walks and golf

tournaments in over a dozen cities engaged Americans nationwide in AKFs work

to improve the lives of people in Asia and Africa.

With 31,000 participants, PartnershipsInAction events in 2012 raised $8.1 million

for the Foundations programs in Africa and Asia. 100% of all donations go

directly to AKF programs fighting hunger, poor health and poverty

in Africa and Asia, with not a penny going to administrative costs.

The Foundation draws on its deep expertise to advance public dialogues on key

topics and inform new initiatives and U.S. policy related to development.

new initiatives: impact investingThrough its Impact Investing Initiative, AKF USA is pioneering this sector that

engages private investment to support initiatives for the public good in developing

countries, with a financial return. AKF USA participated in forums including the

Aspen Network of Development Entrepreneurs and the annual conference of

Social Capital Markets (SOCAP). AKF USA was a proud partner for the SOCAP12

Conference, the largest and best respected platform for socially minded investors

and entrepreneurs. AKF USA arranged a panel at which executives from Calvert

Foundation, The Heron Foundation, and Morgan Stanley discussed how to achieve

risk-return balance for impact investors.

In smaller settings, AKF USA engaged with U.S. foundations and agencies on specific

investment opportunities, yielding two developments: First, interest in AKDNs plan

to revitalize Kenyas Nairobi City Park (see page 17 ). Second, in December AKF

USA signed its first Mission Related Investment in its Impact Investing Initiative, with

a $2.6 million investment in the First MicroFinance Bank of Afghanistan. The impact

investing arrangement immediately leveraged funding from two development finance

institutions, the German Development Bank and the International Finance Corporation

(IFC), totaling approximately $3.3 million. AKF USA is poised to help lead and

promote the new sector of Impact Investing in crucial areas of Asia and Africa.

informing public dialogue on developmentThe Foundation engages in many discussions that inuence international development.

In 2012 these included talks on new directions at the World Banks spring meeting;

panels on Community Philanthropy at the Global Philanthropy Forum and at

the InterAction Forum 2012; and discussions about the direction of community

philanthropy, held at Pocantico, a Rockefeller retreat in upstate New York.

Activities in the UniteD stAtes

Many rural people walk far to grow their food, take care of their families, and bring about change. it seems fitting that we are walking today in support of them.

sarah hobson, Executive Director new Field Foundation

toP: Dignitaries cut the ribbon at San Antonios rst PartnershipsinAction Walkjoining in the national event held in 10 cities to raise awareness and funds to end global poverty. ABoVe: In Dallas, youth ambassadors helped promote reading at a nearby elementary school, inspired by the Foundations education programs. This volunteer is painting a mural to improve the school library.

ABoVe: Young walkers at the Memphis Colorful Fun Run raise funds and awareness of poverty issues while having fun.


With the Charles Stewart Mott Foundation, AKF USA published a report of regional

roundtables on lessons from Community Philanthropy, and through public dialogue

formed an outline for advancing the field worldwide, and the formation of an

international alliance. Alongside that initiative, AKF USA supported assessments

of civil society including an updated Civil Society Organization Sustainability Index

(CSOSI). That index, begun in the 1990s to assess civil society in eastern Europe,

has been adapted to other regions. In 2012 AKF USA partnered with the U.S.

Agency for International Development (USAID) for CSOSI assessments in 23

African countries, and finalized first applications of the index for Afghanistan

and Pakistan.

Through the year, Aga Khan Development Network (AKDN) experts led development

conversations with U.S. audiences in Washington, DC. Apoorva Oza, CEO of the

Aga Khan Rural Support Programme (AKRSP) in India, presented AKRSP experience

at American University. Abdul Malik, General Manager of AKRSP in Pakistan, spoke

at the Woodrow Wilson International Center for Scholars. In November, Dr. Joanna

Ledgerwood, AKF Senior Adviser on Access to Finance, spoke to the SEEP Conference

about microfinance and AKDNs work with community-based savings groups.

The progress of AKF USA received recognition in publications and forums ranging

from the Hufngton Post to the International Food Policy Research Institute and

the U.S. Depar tment of Agriculture. In the #GivingTuesday national campaign,

the Hufngton Post featured a blog about the Foundation and its volunteers

commitment to improving the world, locally and globally.

you know how investments in education and healthcare pay off many times over in your families. Aga Khan Foundations partnership with you makes those investments across the world.

Dr. Dianne Morrison-Beedy, Vice President University of south Florida health

internship programFor over 20 years the AKF USA Professional Development Internship Program has

been growing the capacity of young professionals in international development. The

highly selective program takes applicants with degrees in Agricultural Development,

Development Economics, Education, Finance, International Development, International

Management, Marketing/Communications and Public Health. In 2012 we hosted

six U.S. interns to work at the Washington, DC office, as well as four interns from

Tajikistan. The interns made important contributions to the Foundations work and

acquired experience with a range of development issues. Over the years, some

two dozen interns have gone on to professional careers within the Aga Khan

Development Network.

In 2013 we will launch an enhanced program that combines the AKF USA placement

with a field placement at Aga Khan Foundation offices in Central Asia. The AKF

USA Fellowship Program will offer fellows a unique opportunity to gain experience

working on development issues in a donor country context and build upon their

knowledge through hands-on experience in a developing country.

Through its monthly e-newsletter Empowered, the PartnershipsInAction website and

social media sites, AKF USA shares updates, stories and news about the Network.

the Aga Khan development network is an example for all of us.

Dr. johannes Linn, senior Fellow, the Brookings institution

ABoVe: The Aspen Institute hosted a forum on Community Philanthropy, organized by Aga Khan Foundation U.S.A. and Mott Foundation, to explore community-centered development. toP riGht: Internships give young professionals hands-on experience in international development and expose them to real-world issues.


Statement of Financial Position

The Aga Khan Foundation U.S.A.s overall FY2012 financial performance was stable. Support and revenue, as

well as overall spending, increased modestly. This allowed us to increase our investments in our programs in

Africa, Central and South Asia. Operating expenses are funded by a grant from His Highness the Aga Khan.

Therefore, no donations from individuals, foundations and corporations are used for operating expenses.

The financial results depicted on pages 22 and 23 are derived from the AKF USA audited consolidated

financial statements, dated April 30, 2013, performed by BDO USA, LLP. AKF USAs complete, audited

statement is available at our website in the About AKF USA section: http://www.partnershipsinaction.

org/content/aga-khan-foundation-usa

noorDin MoLoo

Chief Financial Officer

As of December 31, 2012 and December 31, 2011

Dollars in Thousands

2012 2011Assets Cash and cash equivalents $48,276 $50,998 investments 13,545 10,633 Accounts receivable and other current assets 116 79 Donor agency receivables 1,142 337 receivables from affiliates 1,564 1,441 Contributions receivable, net 14,508 22,241

Fixed assets: Property held for charitable purposes 89,224 87,446 other fixed assets 323 324 Less accumulated depreciation (14,754) (13,449) Fixed assets, net 74,793 74,321

total assets $153,943 $160,051

liabilities and net assetsLiabilities: Accounts payable and accrued liabilities $ 424 $ 1,119 Payable to affiliates 1,138 1,890 Deferred rent 109 160 Deferred revenues 191 2,368

total liabilities 1,863 5,537

net Assets 152,080 154,514 total liabilities and net assets $153,943 $160,051

For the year ended December 31, 2012 and 2011

Dollars in Thousands

2012 2011Revenues:Contributions $27,034 $17,720Federal grants 10,784 12,722other grants 1,267 1,390

investment income (622) (516)

total Revenues 38,463 31,316

expenses:Program grants 34,154 31,836General and administrative expenses: salaries 2,635 2,563 Legal, accounting and consulting 137 179 travel 162 138 Doubtful pledges provision 659 167 General office 257 274 taxes & licenses 161 842 Premises 305 340 Communications 98 103

total general and administrative expenses 4,414 4 4,606

Fundraising 1,022 1,100

Depreciation and amortization 1,306 1,307

total expenses 40,896 38,848

change in net assets (2,433) (7,532)

net assets at beginning of year 154,514 162,046

net assets at end of year $152,080 $154,514

Statement of Financial Activities

Contributions Federal Grants Other Grants69%

28%

3%

2012 Source of Funds

Program Grants General & Admin. Fundraising

86%

11%

3%

2012 Use of Funds

Contributions Federal Grants Other Grants69%

28%

3%

2012 Source of Funds

Program Grants General & Admin. Fundraising

86%

11%

3%

2012 Use of Funds2012 Source of Funds

24 2 0 1 2 A G A k h A n F o U n D A t i o n U s A A n n U A L r e P o r t

BoArD oF DireCtors

his highness the Aga khan

Prince Amyn Aga khan

Matre Andr Ardoin

Guillaume de spoelberch

nAtionAL CoMMittee

Aziz Valliani, Chairman

Mohammad Ashraf ramji, Vice Chairman

Dr. Barkat Fazal

Zamila karimi

sultana Mangalji

Dr. eboo Patel

Alnoor shivji

jehan Velji

exeCUtiVe & senior stAFF

Dr. Mirza jahani, Chief Executive Officer

noordin Moloo, Chief Financial Officer

Charles sheerin, Director of Communications and Resource Development

joanne trotter, Director of Programs

kamran Ali, Accounting and Grants Manager

evan Gill, Impact Investment, Acting Manager

karim juma, Donor Services and Administration Manager

salmin Pardhan, Resource Development and Volunteer Services Manager

Martha sipple, Communications and Public Affairs Manager

Caryn sweeney, Manager of Program Development

sharon Bayolo, Executive Assistant

see WeBsite For FULL stAFF List:

http://www.partnershipsinaction.org/content/staff

Board of Directors, National Committee and Staff

The Foundation works with many institutional partners around the world. It also works closely with

national, provincial and district governments in the countries where it operates. The Foundations efforts

to alleviate poverty, hunger, illiteracy and poor health would not be possible without their unwavering

support. Our 2012 partners include:

ACDI/VOCA

Cargill Inc.

The Coca-Cola Foundation

Flora Family Foundation

The Ford Foundation

Bill & Melinda Gates Foundation

The William and Flora Hewlett Foundation

International Youth Foundation

Johnson & Johnson

Lions Clubs International

Microsoft Corporation

The Aga Khan Development Network has agreements and protocols with the following countries and

organizations: Afghanistan, Asian Development Bank, Bangladesh, Canada, Egypt, the European Commission,

France, Germany, India, Ivory Coast, Kazakhstan, Kenya, Kyrgyz Republic, Mali, Mozambique, Norway,

Pakistan, Portugal, Russia, Syria, Tajikistan, Tanzania, Uganda, United Kingdom, and the United Nations

(United Nations Development Programme and World Health Organization).

Institutional Partners

Charles Stewart Mott Foundation

Pfizer Inc.

Rockefeller Foundation

Synergos

TechnoServe

Texas A&M University

United States Agency for International Development

United States Department of Agriculture

United States Department of State

University of California at Berkeley

Whole Planet Foundation

Photo CreDits: Aga Khan Foundation/Neghatullah Abeer, Ramsha Ali, Rizwan Babwani, Miriam Ezzani, Karim Jan, Thomas Kelly, Caroline Lai, Dastanbui Mamadsaidov, Shagufta Noor, Gary Otte, Matthieu Paley, Jean-Luc Ray, Paul Rippey, Mikhail Romanyuk, Aizada Shakir, Nafisa Shekhova, Mar tha Sipple, Rober t Sorbo

1825 K Street, N.W.Suite 901Washington, DC 20006Telephone (202) 293-2537Facsimile (202) 785-1752Email [email protected] www.PartnershipsInAction.org

AGA KHAN FOUNDATION U.S.A.An agency of the Aga Khan Development NetworkAGA KHAN FOUNDATION U.S.A.An agency of the Aga Khan Development Network

AKF USA 2012 Annual Report (Cover+Spread)

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