06 thp ar 08 21professor jeffrey sachs, director of the un millennium project and special advisor to...

2005 Annual Report

MDG Event: 1,100 people gathered at the New York Hilton Hotel to in-crease awareness of the MillenniumDevelopment Goals (MDGs) and thegroundbreaking, low-cost strategiesThe Hunger Project implements toempower people to achieve them.

Clinton Global Initiative: Joan Holmes,president of The Hunger Project,attended the inaugural meeting of the Clinton Global Initiative and announced The Hunger Project’s commitment to scale up its epicenter strategy.

New Members of the Global Board:Joaquim Alberto Chissano, formerpresident of Mozambique and 1997Africa Prize laureate, and Cecilia LoríaSaviñón, head of the National Devel-opment Institute (INDESOL) in Mexico,joined the Global Board of Directors.

Ghana Epicenter Visit: In March, Professor Jeffrey Sachs, director of the UN Millennium Project and specialadvisor to UN Secretary-General KofiAnnan, visited the Nsuta-Aweregyaepicenter in Ghana at the specialrequest of Joan Holmes.

Tsunami Rehabilitation: The HungerProject worked with 17 panchayats(local councils) in India, empoweringour partners to take control of theirlives as they rehabilitate their villagesfollowing the December 2004 tsunami.

Launch of Aagaz Academy in India:Six centers for women’s leadershipwere established to provide advancedtraining for key women leaders.

Good Governance in Bangladesh: TheHunger Project worked with a citizens’initiative, bringing campaigns to promote good governance to theparliamentary level for the first time.

Decentralization in Mexico: TheHunger Project implemented a new,decentralized, gender-focused strategyin six states of Mexico.

People’s Participation in Bolivia: The Hunger Project and its partnersworked to support indigenous people’s participation in the politicalprocesses, which resulted in the election of Bolivia’s first indigenouspresident.

Global Investors traveled at their ownexpense to India, Mexico, Uganda andtwice to Bangladesh to see The HungerProject’s work, express solidarity andstrengthen their ability as spokespeople.

2005:The Year of the Millennium DevelopmentGoals (MDGs)

photo: Clinton Global Initiative

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Each region faces distinct challenges, and The Hunger Project has strategies to address them:

• In Latin America, economic progress bypasses rural,indigenous people. The Hunger Project empowers themwith information and skills. They now have a voice intheir governments and access to resources that are rightfully theirs.

• In South Asia, severe gender discrimination is the singlereason that child-malnutrition rates are twice as high as in Africa. When, for the first time in 5,000 years, newlaws mandated that women serve on village councils, butprovided them no support for their success, The HungerProject invested in the newly elected women. Thesewomen are now leaders affecting the lives of more than12 million people.

• In Africa, what’s missing is leadership committed to the well-being of Africa’s people — leaders who will stop corruption and invest in people’s health, educationand productivity. The Hunger Project’s epicenter strategymobilizes people in rural communities to form strongerpartnerships with local governments for meeting basicneeds. We give top priority to investing in Africa’s mostimportant and least supported producers — the 100 million women who grow Africa’s food.

Now, it is time to meet the next challenge: to scale up successful strategies — to ensure that all people have the chance to meet their basic needs. Experts agree thatscaling up is the next great challenge, particularly for Africa.During 2005, we committed to demonstrate that scalingup is possible in Africa, and that bottom-up, gender-focused development represents a viable and affordablesolution for all of Africa.

Scaling up will require powerful new partnerships with governments, corporations and foundations, as well aswith committed, visionary individuals. I welcome your partnership in this bold and vital human endeavor!

Message from Joan Holmes,President of The Hunger Project

or the first time in history, ending abjectpoverty is on the world’s agenda as a priority.Our global community of nations is commit-ted to a comprehensive set of goals. The

Millennium Development Goals (MDGs) are the world’stime-bound and quantified targets for addressing extremepoverty in its many dimensions, while promoting genderequality, education and environmental sustainability.

There are enormous challenges to meeting these goals —real make-or-break issues. The foremost is gender. TheMDGs are not only gender-related — gender inequalityis the root cause of the problem. In every region of thedeveloping world, The Hunger Project has created high-leverage strategies to empower women and promotegender equality.

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The Make-or-Break Issues for the MillenniumDevelopment Goals

n September 2000, the leaders of 189 nations made a commitment to achieve specific results by 2015 ineight major areas, results that have come to be known as the Millennium Development Goals. The HungerProject is committed to playing a leadership role for the MDGs.

Here are the key targets for 2015 and highlights of the numerous cutting-edge, large-scale strategies pioneered by The Hunger Project to empower people to achieve the MDGs.

Empowering People to Achieve the MillenniumDevelopment Goals

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Reduce by half the proportion of people livingon less than $1 per day.

Reduce by half the proportion of children that are malnourished.

At our epicenters across Africa, thousands of women foodfarmers are increasing their incomes through training andcredit, and strengthening their clout in the marketplace.

In six of the poorest states of Mexico, we have mobilizedpeople to grow vegetables, build greenhouses and intro-duce other farm innovations, resulting in better nutrition.

GOAL 1: Eradicate extreme poverty and hunger.

Ensure that, by 2015, children everywhere, boysand girls alike, will be ableto complete a full course of primary schooling.

Across Bangladesh, Hunger Project animators carry outmass mobilizations to ensure 100 percent school registrationof girls, and campaigns to reduce drop-out rates.

GOAL 2: Achieve universal primary education.

Eliminate gender disparity in primary and secondaryeducation, preferably by2005, and in all levels of education no later than 2015.

The Hunger Project goes beyond this target by empoweringwomen as the key change agents for the end of hunger.

In Peru, we brought together indigenous women leadersfrom across Latin America to create a shared platform ofaction, including the commitment to train young women as the leaders of tomorrow.

GOAL 3: Promote gender equality and empower women.

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Halt and begin to reversethe spread of HIV/AIDS, and the incidence ofmalaria and other diseases, by 2015.

Across Africa, more than 450,000 villagers have taken theHIV/AIDS and Gender Inequality Workshops. The HungerProject-Malawi has carried out successful campaigns tohave villagers use bed nets to prevent malaria.

GOAL 6: Combat HIV/AIDS, malaria and other diseases.

Cut by half the proportionof people without safedrinking water and withoutsanitation in rural areas.

In Bangladesh, The Hunger Project created a national coalition to stop industrial pollution of the air and thewater supply.

GOAL 7: Ensure environmental sustainability.

More fully develop an open,rule-based, predictable,nondiscriminatory tradingand financial system.

Deal comprehensively withthe debt problem.

While these are actions that must be taken by govern-ments, Hunger Project investors are a microcosm of thespirit that will be required. Hunger Project investors do notsee themselves as donors, but as co-equal partners withhungry people to create a better future for all humanity.

GOAL 8: Develop a global partnership for development.

Reduce the under-five mortality rate by two-thirds,between 1990 and 2015.

As a result of the health centers and preschool nutritionprograms we have established at our African epicenters,more than 1,000 villages have dramatically reduced childmortality.

GOAL 4: Reduce child mortality.

Reduce the maternal mor-tality rate by three-quarters,between 1990 and 2015.

More than 45,000 women elected representatives trainedby The Hunger Project-India work to improve primaryhealth centers and ensure that all women receive pre- and postnatal care.

GOAL 5: Improve maternal health.

the epicenter strategy. In August, the new president ofMalawi, Bingu Mutharika, visited one of our epicenters —recognized its essential component of self-reliance — andstated, “It has shown us how we can rely on our ownefforts to fight hunger and poverty. If the work of this project was spread to all places, then hunger would reduce.”

As of December 2005, there were 77 epicenters and 91subepicenters mobilizing more than three million people inmore than 1,000 villages. Elements of the strategy include:

High-level support: Before it will work in any country, The Hunger Project secures support from — and is usuallyinvited by — the head of state. It selects a dynamic localcountry director, who establishes a national advisory council of influential people in the country.

An aligned national vision: An early step in the process is a strategic forum that brings together leaders from allsectors of society to build a shared understanding of allaspects of poverty in the country, and align their supportfor the epicenter strategy.

he Millennium Declaration calls for specialattention to Africa. More than 46 percent ofAfricans live on less than $1 per day, and 33percent are undernourished. Africa has been

The Hunger Project’s highest budget priority for 15 years.

The four social conditions that give rise to the persistenceof hunger and poverty in Africa are the marginalization ofwomen food farmers, poor leadership, too little investmentin building people’s capacity in rural areas, and AIDS andthe gender inequality that fuels the epidemic.

To transform these conditions and empower the people ofAfrica to meet their basic needs on a sustainable basis, TheHunger Project has pioneered its epicenter strategy. Thisstrategy is a unified, people-centered approach that hasproven effective in Benin, Burkina Faso, Ghana, Malawi,Senegal and Uganda. During 2005, villagers constructedthe first epicenter in Ethiopia.

In March, at the invitation of Joan Holmes, Prof. JeffreySachs, director of the Millennium Project, visited one of ourepicenters in Ghana and publicly expressed his support for

Epicenters for Meeting Basic Needs

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Choosing a strategic location: Work begins in a villagethat is clearly impoverished, yet has shown a readiness tobe mobilized for self-reliant action. The village must also be close enough to the capital so that policy-makers caneasily witness the success.

Overcoming the mind-set of resignation and depend-ency: The experience of rural people has taught them thatthey are powerless to change things. The Hunger Projectdirectly intervenes in that mind-set with its Vision, Commit-ment and Action Workshop. Villagers create a vision fortheir village, commit to it, and design plans of action toachieve it based entirely on their own resources. Only aftersix months of successful self-reliant action is the village’s senseof self-reliance sufficiently strong to take the next step.

Building social infrastructure: As the community beginsto mobilize to meet its basic needs, it elects committees tobe responsible for each aspect of work: a committee formeeting community needs overall; and subcommittees forhealth, education, food security, employment generation andother village priorities. An absolute requirement is that therebe equal numbers of women and men on each committee.

Building the physical infrastructure: With village leader-ship in place, The Hunger Project mobilizes the communityto construct a building that will house its school, healthcenter, food processing, food bank, adult literacy classes,other training, a meeting room and a rural bank. For mostvillagers, this is an achievement beyond the realm of what

A F R I C A

� Facing page, left: Construction of the Jaldu epicenter in Ethiopia.

� Facing page, right: Joan Holmes and President Kufuor of Ghana.

� Left: Library at the Atuobikrom epicenter, Ghana.

� Right: Food bank at the Jali epicenter, Malawi.

they could ever imagine — yet they do it themselves. An individual or chief contributes land, including land for a community farm. Others contribute labor, learning to make bricks and construct the building.

Creating strong linkages with local government:Local government officials are included at every stage ofthe process. As the village gains confidence, it also gains a stronger voice and is more able to negotiate with localgovernment to obtain teachers, health workers, extensionworkers and pharmaceutical supplies.

Sustainability: In our experience, projects never succeed in making a transition from donor dependency to sustain-ability. Sustainability must be established from the start. Epicenters generate sufficient funds to maintain their facilities from proceeds from the community farm, interestpayments to the bank, usage fees for using mechanizedfood-processing equipment, and rental of the main com-munity hall for weddings and other local celebrations.

frica is the only region in the world whereper capita food production has declined, andthis is due in large measure to the low socialstatus of women. In Africa, women produce

80 percent of the food. They do the lion’s share of thework to process, transport and market the food. Yet theyare systematically bypassed by virtually all official programsto improve African agriculture.

As UN secretary-general Kofi Annan has stated, “A greenrevolution in Africa will happen only if it is also a genderrevolution.”

In addition to insisting on equal representation of womenin epicenter leadership, in 1999 The Hunger Project createdits African Woman Food Farmer Initiative (AWFFI) — acredit, training and empowerment program designed to make women economic players in their community. Itsupports groups of rural women in their agricultural andother income-generating activities. AWFFI is implementedin all seven epicenter countries as well as in Mozambique.

Since the program’s inception in 2000, women have taken70,908 loans, totaling more than $4 million.

A key goal for AWFFI is to establish a woman-owned, government-recognized rural bank at every epicenter.AWFFI has succeeded in having 10 women-owned ruralbanks gain this recognition. In 2005, our first two women-owned rural banks in Ghana were recognized by the government. To our knowledge, The Hunger Projectis the first organization to empower African rural womento establish government-recognized rural banks.

Economic Empowerment

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A F R I C A N W O M A N F O O D F A R M E R I N I T I A T I V E

� Above: Literacy class at the Nchalo epicenter, Malawi.

� Below: Issuing loans at the Peki epicenter, Ghana.

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• Replacement of dangerous traditions. For example, inMalawi, widows were required to sleep with anotherman within two days in order to release the husband’sspirit. The elders created a new, safe custom in which aproxy, married couple has relations to release the spirit.

In addition, The Hunger Project-Malawi, in partnership withUNICEF, has launched a pioneering and highly successfulbed-net program that is stopping the spread of malaria.The Hunger Project provides our partners with a loan tobuy bed nets, so that they can sell them at a very low price.So far, several hundred bed nets have been sold, reducingthe incidence of malaria in several villages.

f the 40 million people currently living withHIV/AIDS worldwide, 64 percent live in sub-Saharan Africa.

AIDS attacks people in their most productiveyears. Africa is losing its doctors, nurses, farmers, agricultureextension workers and teachers faster than they can bereplaced. Families struck by AIDS see their food productiondrop by 50 percent.

In Africa, HIV/AIDS is predominantly spread through heterosexual activity. It is fueled by traditional gender rolesthat encourage men to engage in risky sexual behavior, and deny women the power to say no to unsafe sex.

In 2002, in partnership with African experts from eightcountries, The Hunger Project developed the first-everHIV/AIDS and Gender Inequality Workshop designed to bedelivered at the grassroots level. The workshop empowersthe population around each epicenter to learn the facts ofHIV/AIDS and change the dangerous attitudes and behav-iors that spread the disease. The epicenter then carries outa three-month campaign of action to stop the spread of HIV.

Since 2003, more than 400,000 people have taken theworkshop. A survey of the impact of this campaign, con-ducted in August 2004 (and available on our Web site),indicates a wide range of positive effects:

• Reductions in early marriage and domestic violence.

• Increase in birth-spacing.

• Reduction in stigma, and an increase in people going for voluntary testing and counseling.

• Increase in men taking responsibility to stop the spread of the disease.

• Reduction in other sexually transmitted diseases.

Stopping HIV/AIDS, Malaria and Other Diseases

M I L L E N N I U M D E V E L O P M E N T G O A L

� Launch of voluntary counseling and testing program in Malawi.

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outh Asia has the highest rates of child mal-nutrition in the world — twice as high as insub-Saharan Africa. Why are these rates sohigh, in a region that produces surplus food?

The one reason, according to top nutritionists, is theregion’s severe subjugation of women. This subjugationgives rise to a deadly cycle of malnutrition.

• A girl in India and Bangladesh is born underweight andmalnourished. She is nursed less and fed less nutritiousfood than her brother. She is often denied health careand education.

• She is forced to work, even as a child. Her work burdenincreases significantly as she gets older — even when she is pregnant. She is married and pregnant when she is young, often just a teenager.

• She is underweight and malnourished when she givesbirth to her children, who are born underweight and malnourished. And the cycle continues.

The Hunger Project is seizing a historic opportunity to catalyze a transformation in this condition. Changes in the laws of India and Bangladesh guarantee women avoice in local democracy — a profound breakthrough inthe position of women in rural society. All our programs in South Asia are focused on empowering grassrootswomen leaders as key change agents for the end ofhunger — and creating an environment in which they can succeed.

Breaking the Cycle of Malnutrition

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S O U T H A S I A

Underweightat birth

Breast-fedshorter time

Eats last,eats least

Malnourishedin adolescence

Marriedtoo young

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o transform the gender inequality in Indiathat gives rise to hunger, The Hunger Projectempowers the one million women elected to India’s panchayats (local councils) to be

effective change agents to end hunger and poverty in theirvillages. Over the past five years, The Hunger Project hasbecome the leading organization in India working on thisissue. We do this through a four-pronged strategy:

1. Capacity building of women leaders through the three-day Women’s Leadership Workshop (WLW), follow-upmeetings and skills training. More than 45,000 womenleaders in 14 states have taken the WLW. This year, we also launched six Aagaz Academies — centers forwomen’s leadership — for more intensive learning, mentoring and field-team support for elected womenleaders. These programs are carried out in dozens of languages and dialects through partnership with morethan 90 local partner organizations.

2. Making panchayats effective through pre-electionvoter awareness campaigns, campaigns to mobilize villagers to directly participate in gram sabhas (villageassemblies) that hold panchayats to account, and detailedpeople’s planning processes for village development.

3. Influencing public opinion by mobilizing the power of the media — through workshops for journalists andeditors, and by linking journalists with women leaders,directly providing stories, and awarding the annual Sarojini Naidu Prize.

4. Influencing public policy through high-level roundtablemeetings with national- and state-level governments,civil society and international donors, and by buildingparticipation in alliances of civil-society organizations.

Key Change Agents: Elected Women Leaders

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� Above: Leader of a federation of elected women leaders inUttaranchal.

� Below: Participant at the Aagaz Academy in Rajasthan.

Strengthening Local Democracy

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B A N G L A D E S H

year on September 30, this alliance organizes NationalGirl Child Day events across the country. In 2005, therewere 1,200 events. A formal alliance of 300 organiza-tions, the Girl Child Forum (girlchildforum.org), is alsonow working to address domestic violence and thespread of HIV/AIDS.

The Hunger Project also catalyzed the creation of analliance of committed influential individuals in supportof good governance and decentralization of democracy,SHUJAN (shujan.org). In August, the Boalmari branch of SHUJAN brought together the candidates for the by-election in Faridpur-1 on one stage to face the voters in a historic event — the first time candidates ina parliamentary election declared in unison that theywould work together for a free and peaceful election.

o break the cycle of malnutrition inBangladesh, we must not only overcomesevere gender discrimination, but alsoachieve reforms in an exceedingly

corrupt, dysfunctional government that has failed to transfer meaningful resources and autonomy to local democratic bodies.

The Hunger Project is the largest volunteer-basedorganization in the country. In 2005, we passed themilestone of our eight hundredth animator training,having now trained 61,930 grassroots animators, ofwhom 40 percent are women, and who represent every district in the country. They in turn mobilize eight million people.

Ten-point program to strengthen local democracy:All the work of our animators is focused at the lowestlevel of local democracy, known as the union parishad(UP) — a constituency of roughly 20,000 people. Weare demonstrating that when people are mobilized forself-reliance in the context of strong local democracy,they are able to meet their basic needs. As of the endof 2005, this woman-centered strategy focused on 440 UPs.

Some of these unions are now proudly posting signsthat they have reached the goals of 100 percent immunization, 100 percent literacy, 100 percent safesanitation, and 100 percent dowry-free marriages.

Self-governing UP advocacy group: The Hunger Projecthas organized locally elected representatives into theirown advocacy group to demand greater rights andresources, which now has its own Web site —www.local-democracy.org.

National Girl Child Day: In 2000, The Hunger Projectcatalyzed the creation of a national alliance committedto ending all forms of discrimination against girls. Each

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� National Girl Child Day rally in Dhaka.

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Transforming the Culture of Relief

T S U N A M I R E H A B I L I T A T I O N

� Planning for tsunami recovery, Tamil Nadu.

ear after year, The Hunger Project demon-strates that the most effective way to dealwith disasters is to empower local peoplebefore disaster strikes, so that they can

deal with emergencies.

On December 26, 2004, the coast of the Indian state ofTamil Nadu was hit by a tsunami. The Hunger Project hasworked in Tamil Nadu for 15 years, and its local partnerorganization visited 50 devastated areas within two days.

Within weeks, more than 1,000 aid organizations arrived in Tamil Nadu to provide relief.

The culture in relief situations is that outsiders (the govern-ment, the private aid groups) have things to give, and thepeople petition to get them. The challenge for The HungerProject in the tsunami-affected areas has been — can weempower people to take charge of their own development?Our team frankly had initial doubts. Yet, we found that notonly is it possible, but to truly meet people’s needs, it isessential. For example:

• Donors and the government focused on the fishing communities — the dominant caste in most of these villages — and largely ignored the lower-caste farmers.Salt water from the tsunami wave ruined farming in theregion. Removing salt from farmland is a much harderprocess than providing fishing families with boats andnets. The Hunger Project has successfully empowered the low-caste farmers to restore the farmland.

• Government relief efforts were not channeled throughthe elected panchayats — the constitutionally mandateddemocratic structures that ensure that women and low-caste people have a voice — but through traditional castepanchayats, which have no legal accountability and norepresentation of women. While this may have allowedsome short-term efficiencies, it undermined the electedpanchayats and further marginalized women. The Hun-ger Project has succeeded in strengthening the role ofelected panchayats.

One of the key tools that The Hunger Project brings to the mobilization and empowerment of local communities is our microplanning, or people’s planning process. Notunlike the Vision, Commitment and Action Workshop, this process engages the entire population of every hamletin creating a vision for their own future and taking respon-sibility for achieving it. In addition, it entails months ofdetailed planning on precisely how to meet basic needs,and results in a plan document that is signed (or thumb-printed) by every member of the village who attends theopen meetings of the village assembly. The plan is then formally endorsed by the district administration, and there-fore provides the village with enormous clout in negotiatingpartnership with government agencies for new classrooms,health facilities and vocational training.

All 17 panchayats in the areas where The Hunger Projectworks successfully completed plan documents during 2005,and all have been endorsed by the district administration.

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launched a three-year strategy to greatly expand the num-ber of “people’s reporters” — volunteers who interactdirectly with the people, facilitating their self-reliant devel-opment, and making sure their voices are heard throughRadio ACLO.

The development of this strategy coincided with a political,social and economic crisis in the nation centering on thecontrol of natural resources. ACLO and the people’s reportersplayed a critical role in encouraging indigenous people’sparticipation, and particularly women’s participation, inpolitical processes, helping to achieve the election of Bolivia’sfirst indigenous president, Evo Morales, in December 2005.

OUR DECENTRALIZED STRATEGY IN MEXICO

Following The Hunger Project’s first Latin America StrategyConference in August 2004, the Mexico team launched adecentralized, gender-focused strategy in the poorestmicroregions of six states in Mexico. The Vision, Commit-ment and Action Workshop and animator training wereredesigned to give top priority to gender issues, and tomobilize people’s energies on the 35 most high-leverageactions for the end of hunger. The main achievement of2005 has been breaking through people’s resignation tomobilize self-reliant action for the end of hunger andpoverty.

he Hunger Project’s work in Latin America isbased on the understanding that the region’sgreatest concentrations of hunger and po-verty are in rural indigenous communities.

While all indigenous people in Latin America are more likelythan others to be disadvantaged, indigenous women sufferdouble discrimination — because they are indigenous andbecause they are women.

Over the past two years, The Hunger Project significantlyexpanded and altered its programs in Latin America, frommodest but effective programs to positioning them to playa major catalytic role for achieving the MDGs throughoutLatin America.

CONTINENTAL LEADERSHIP FROM PERU

In 2003, The Hunger Project launched a partnership withChirapaq — an indigenous people’s organization — toempower indigenous women leaders across Peru as keychange agents in ending hunger. In partnership with Chirapaq, The Hunger Project has provided training tomore than 9,000 indigenous women leaders in 37 languagegroups, who in turn work with more than one million people to meet their needs on a sustainable basis.

BOL IV IA: TOWARD A NEW NATIONAL V IS ION

Bolivia is the South American nation with the highest density of indigenous people, and the most severe hungerand poverty.

In Bolivia, The Hunger Project works in partnership withACLO — an organization that empowers remote indigenouscommunities through radio programs in their own lan-guage. Radio ACLO is the sole source of training and edu-cation in health, education, agriculture and human rightsfor 500,000 Quechua speakers in the Andes. In 2004, we

Overcoming the Marginalization of Rural andIndigenous People

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L A T I N A M E R I C A

Indigenous women sufferdouble discrimination —because they are indigenousand because they are women.

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� Above left: Building the epicenter in Oaxaca, Mexico.

� Above right: Human rights training in Peru.

� Below left: Reporting from a rural area via Radio ACLO, Bolivia.

� Below right: Silkworm income-generating activity in San MateoPeñasco, Mexico.

L A T I N A M E R I C A

nfluencing policy-makers — and educating a worldwide constituency of committed individuals — have always been high priori-ties of The Hunger Project. During 2005,

The Hunger Project seized the opportunity of unprecedentedworldwide attention on issues of hunger and poverty toplay a leadership role for the Millennium DevelopmentGoals. Milestones in this work in 2005 included:

• We educated and mobilized our investor constituency on the MDGs.

• We worked with all our country directors to reexamine,rearticulate and — in some cases — retool our programsto ensure that they are at the cutting edge of strategicaction to achieve all the MDGs.

• We expanded our capacity for research and analysis,employing a team of 10 interns each semester, includinga liaison in Washington, D.C.

• Our country directors became members of the MDGimplementing committees and civil society advocacyalliances in their countries.

• Joan Holmes was an active member of the UN HungerTask Force, spoke twice at the UN, and was invited toparticipate in other international forums — such as theClinton Global Initiative — where the experience and perspective of The Hunger Project could make a contribution.

• In October 2005, we held a major international eventwith over 1,100 attendees from six continents to engagein dialogue about the MDGs. At the event, Joan Holmesunderscored the make-or-break issues for achieving theMDGs in each region. Five Hunger Project leaders fromAfrica, Asia and Latin America shared what it means tobe working on the ground in fulfillment of the MDGs.

Leadership for theMillennium DevelopmentGoals

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E D U C A T I O N A N D A D V O C A C Y

• Prior to the event, we hosted a 400-person policyforum that examined the policy framework of theMDGs, with presentations delivered by President Chissanoof Mozambique, George Mathew of India, Cecilia LoríaSaviñón of Mexico, and Joan Holmes.

• In 2005, The Hunger Project was featured in media storiesrun by Africa Media Productions, AllAfrica.com, BBC’sWorld News, New York City Public Radio, OneWorld.net,the Voice of America, Women’s eNews — and in hundredsof articles in our program countries.

� Joan Holmes speaking at the United Nations.

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he Hunger Project is funded almost entirelyby thousands of committed individuals and a growing number of foundations and corporations. Those who fund The Hunger

Project do not consider themselves to be donors, butinvestors — coequal partners with hungry people in creating a future free from hunger.

The Hunger Project is funded by investors in the U.S., innine partner countries in the developed world, and in theprogram countries — including our first significant fundingfrom bilateral government agencies.

Building on a strategic framework for fund-raising establishedby Joan Holmes in 2002, The Hunger Project achieved significant growth in sustainable fund-raising during thepast three years, permitting it to expand its programs forthe end of hunger. Excluding large, one-time-only gifts, the level of sustainable funding grew by 64 percent. Since2002, the U.S. increased its fund-raising by 53 percent, and the partner countries increased their fund-raising by 54 percent.

One of the most significant achievements of 2005 was raising over $10 million in the year — a goal we’ve had for many years.

Beginning this year, the audited financial statements will represent the funding received from our partners in countries throughout the world.

During 2005, over 60 Global Investors ($5,000+) from sixcountries traveled at their own expense to India, Mexicoand Uganda, and twice to Bangladesh, to see our work,express solidarity and strengthen their skills as spokespeoplefor The Hunger Project in their communities.

Committed Individualsand Foundations

I N V E S T I N G I N T H E E N D O F H U N G E R

T In addition to individuals, the following foundationsand corporations made grants of $5,000 or more to The Hunger Project during 2005:

Alfa LavalAlfa Omega InternationalASN BankBarnes Family FoundationBatheja Memorial TrustBiltings IdéBox DeliveryCooper Family FoundationCross Family FoundationDesarrolladora HOMEXeCorridor, Inc.ELFAEvents to Empower

HumanityFeelGoodFestival IjlstFreehillsFremont Bank FoundationRobert Frisby FoundationGap InternationalSteven B. Hard FoundationRobert G. Hemingway

FoundationHershey Family FoundationConrad N. Hilton FoundationHilton DresdenHilton DuesseldorfHurley-Trammell FoundationING BankJMJ AssociatesKappAhlEwing Marion Kauffman

FoundationKuhne and Heitz NVKunskapsPartnerThomas and Dorothy Leavey

FoundationLend LeaseMaclaren Europe Ltd.

Macquarie Bank FoundationMammoet Holding BVWalter S. Mander FoundationMarijke Lingsma/DzjegoewarFree Publicity BVMedtronicNamescape CorporationNikken Inc.NIPSEDNPM CapitalOD-PartnerPer Hemgren ArkitektPrime Broking Co. LimitedPromotions By Design, Inc.Sagt blir gjortThe Santa Monica

Zen Center SB & T LimitedScholastic, Inc.Schretlen & Co.Jane M. Sheehan Charitable

FoundationSondheimer Family

FoundationStichting LibertyTara SubkoffSymsoftSyngesticTelfortThe Thanksgiving FundUpstart FoundationVegro BVSP Virmani Public

Charitable TrustVM InvestmentVSA Consulting Group, Inc.Wild Fig CafeThe Xerox Corporation

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(Current as of December 31, 2005)

Joan HolmesPresident, The Hunger Project

Peter G. Bourne, M.D.Chair, Global Board, The Hunger Project

Former Assistant Secretary-General, United Nations

Joaquim A. ChissanoFormer President, Mozambique

1997 Africa Prize Laureate

Mohini GiriFormer Chair, National Commission for Women, India

Speciosa Wandira KazibweFormer Vice President, Uganda

Cecilia Loría SaviñónDirector, INDESOL, Mexico

George MathewDirector, Institute of Social Sciences, India

Global Board of Directors

Queen Noor of Jordan*

Javier Pérez de Cuéllar*Former Secretary-General, United Nations

Amartya Sen*Master, Trinity College, Cambridge

1998 Nobel Laureate in Economics

Steven J. SherwoodCWS Capital Partners LLC, U.S.

George M. WeissPresident, Beechtree Capital Group LLC, U.S.

M. S. Swaminathan, Ph.D.Chair Emeritus

Charles DeullSecretary

Steven RossiTreasurer

*Honorary

17

McGladrey & Pullen, LLP is a member firm of RSM International,an affiliation of separate and independent legal entities.

Independent Auditor’s Report

To the Board of DirectorsThe Global Hunger ProjectNew York, New York

We have audited the accompanying consolidated balance sheet of The Global Hunger Project and Affiliates,(Bangladesh, India, Benin, Burkina Faso, Ethiopia, Ghana, Malawi, Senegal, Uganda, Mozambique and Mexico), as of December 31, 2005, and the related consolidated statements of activities, functional expenses, and cash flows for the year then ended. These financial statements are the responsibility of The Global Hunger Project and Affiliates’management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of The Hunger Project - Bangladesh, India, Benin, Burkina Faso, Ethiopia, Ghana,Malawi, Senegal, Uganda, Mozambique and Mexico, consolidated affiliates, which statements reflect total assets andrevenue constituting 21% and 16%, respectively, of the related consolidated totals. Those statements were auditedby other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amountsincluded for The Global Hunger Project and Affiliates are based solely on the report of the other auditors. The prioryear’s summarized comparative information has been derived from the 2004 consolidated financial statement of theGlobal Hunger Project and Affiliates and, in our report, based on our audit and the reports of other auditors, datedMarch 10, 2005, we expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciples used and significant estimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audit and the reports of the other auditors, the 2005 consolidated financial statementsreferred to above present fairly, in all material respects, the financial position of The Global Hunger Project andAffiliates as of December 31, 2005, and the changes in their net assets and their cash flows for the year then endedin conformity with accounting principles generally accepted in the United States of America.

Bethesda, MarylandJune 30, 2006

McGladrey & PullenCertified Public Accountants

2

The Global Hunger Project And Affiliates

Consolidated Balance SheetDecember 31, 2005(With Comparative Totals For 2004)

Assets 2005 2004Cash and Cash Equivalents 4,615,362$ 3,802,364$Investments (Note 4) 3,644,811 3,487,550Promises to Give, net (Note 2) 2,075,984 1,329,843Micro Credit Loans 796,813 862,751Charitable Remainder Trust (Note 3) 533,083 439,368Property and Equipment, net (Note 5) 507,939 493,781Other Assets 245,612 159,313

12,419,604$ 10,574,970$

Liabilities And Net Assets

LiabilitiesAccounts payable 201,029$ 179,884$Accrued expenses 376,862 418,928Deferred rent (Note 7) 125,674 156,359

Total liabilities 703,565 755,171

Commitments (Notes 7 and 9)

Net AssetsUnrestricted 8,754,663 7,810,790Temporarily restricted (Note 6) 2,961,376 2,009,009

11,716,039 9,819,79912,419,604$ 10,574,970$

See Notes To Consolidated Financial Statements.

18


Consolidated Statement Of ActivitiesYear Ended December 31, 2005(With Comparative Totals For 2004)

2005Temporarily 2004

Unrestricted Restricted Total TotalSupport and revenue

Contributions 7,858,366$ 3,161,563$ 11,019,929$ 9,152,269$Investment income (Note 4) 165,461 93,715 259,176 418,897Other 196,550 - 196,550 175,550Released from restrictions 2,302,911 (2,302,911) - -

Total support and revenue 10,523,288 952,367 11,475,655 9,746,716

ExpensesProgram services

Education and advocacy 1,690,298 - 1,690,298 1,558,897Africa 3,036,860 - 3,036,860 2,748,365Asia 2,292,230 - 2,292,230 1,792,674Latin America 574,175 - 574,175 489,546

Total program services 7,593,563 - 7,593,563 6,589,482

Supporting servicesManagement and general 1,380,980 - 1,380,980 1,075,582Fund raising 604,872 - 604,872 746,186

Total supporting services 1,985,852 - 1,985,852 1,821,768Total expenses 9,579,415 - 9,579,415 8,411,250

Change in net assets 943,873 952,367 1,896,240 1,335,466

Net AssetsBeginning 7,810,790 2,009,009 9,819,799 8,484,333Ending 8,754,663$ 2,961,376$ 11,716,039$ 9,819,799$


3

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Consolidated Statement Of Cash FlowsYear Ended December 31, 2005(With Comparative Totals For 2004)

2005 2004Cash Flows From Operating Activities

Change in net assets 1,896,240$ 1,335,466$Adjustments to reconcile change in net assets to net cash provided by operating activities

Donated securities (61,466) (36,487)Deferred rent (30,685) (22,688)Depreciation 189,260 191,464Gain on charitable remainder trust (93,715) (145,072)Unrealized loss on investments (34,138) 2,348Changes in assets and liabilities:

(Increase) decrease in:Receivables (746,141) (354,067)Micro Credit Loans 65,938 -Other assets (86,299) (71,386)

(Decrease) increase in:Accounts payable 21,145 37,227Accrued expenses (42,066) 129,148

Net cash provided by operating activities 1,078,073 1,065,953

Cash Flows From Investing ActivitiesPurchase of investments (2,191,361) (1,886,474)Proceeds from sale and maturity of investments 2,118,654 1,710,010Purchase of property and equipment (196,925) (361,892)Sales of property and equipment 4,557 10,907

Net cash (used in) investing activities (265,075) (527,449)

Net increase in cash and cash equivalents 812,998 538,504

Cash And Cash EquivalentsBeginning 3,802,364 3,263,860Ending 4,615,362$ 3,802,364$

Supplemental Schedule Of Noncash Investing And Financing ActivitiesReceipt of donated securities 61,466$ 36,487$


5

21


Notes To Consolidated Financial Statements

Note 1. Nature of Activities and Significant Accounting Policies

Nature of activities: The Global Hunger Project and Affiliates (The Hunger Project) is a California not-for-profit,nonmember, public benefit corporation.

The Hunger Project is a strategic organization and global movement committed to the sustainable end of worldhunger. In Africa, Asia, and Latin America, it empowers local people to create lasting society-wide progress inhealth, education, nutrition, family income, gender equality and environmental sustainability - objectives which arenow enshrined as the UN Millennium Development Goals (MDGs). The Hunger Project gives its full support for theMDGs, and in each country where we work, we play a leadership role for their achievement.

One key tool in our process of grassroots mobilization in each region is the Vision, Commitment and ActionWorkshop (VCAW), which enables local people to create a vision of a self-reliant, hunger-free future and empowersthem to take self-reliant action to achieve it. The VCAW is led by trained volunteers we call animators who galvanizeand facilitate their fellow villagers in taking self-reliant action.

The financial position and activities of affiliated partner countries entities based in the developed countries outsidethe United States (i.e. THP-Australia, THP-Germany, THP-Netherlands, etc.) are not included in these financialstatements. The affiliated partners are not controlled by The Hunger Project: they have separate boards and nofunding is provided to them. However, there are charter agreements in place for the use of The Hunger Project’sname. These agreements can be terminated at any time by The Hunger Project. The affiliated partners raise fundswhich, less their own expenses, are applied to The Hunger Project programs and projects.

A summary of The Hunger Project’s significant programs is as follows:

Africa: The Hunger Project has offices in Benin, Burkina Faso, Ethiopia, Ghana, Malawi, Senegal, Uganda, andMozambique. The Hunger Project carried out three integrated initiatives for Africa during the year endedDecember 31, 2005: the Epicenter Strategy, the African Woman Food Farmer Initiative (AWFFI), and the "AIDS andGender Inequality Workshop" to empower grassroots people to know the facts about AIDS and change thedestructive behaviors that spread the disease.

The Epicenter Strategy mobilizes the population of groups of villages to work together to meet their basic needs. The centerpiece of the strategy is a multipurpose building created by the people themselves through which they createand operate their own programs for health, education, income-generating activities, nutrition, food production andprocessing, food security and microfinance. During 2005, there were 79 epicenters and 114 subepicentersencompassing 3 million people and more than 1,000 villages.

The African Woman Food Farmer Initiative (AWFFI) operated in eight countries during the year ended December 31,2005, and operates the microfinance component of the epicenter strategy. This program is committed to theeconomic empowerment of Africa’s most important and least supported producers - the 100 million women who growAfrica’s food. During the year ended December 31, 2005, AWFFI disbursed 11,513 loans totaling $899,848.

622



Note 1. Nature of Activities and Significant Accounting Policies (Continued)

Education and Advocacy: Influencing policymakers - and educating a worldwide constituency of committedindividuals - are high priorities of The Hunger Project. During the year ended December 31, 2005, The HungerProject organized more than 100 local events that were organized across the United States - including our 1,100person international annual event - to have people understand and support the Millennium Development Goals(MDGs). The Hunger Project leaders joined their own national MDG task forces and held meetings with The GlobalHunger Project President in the context of her work as a member of the UN Millennium Project Hunger Task Force.All our public communications were refocused to support the MDGs.

Asia: The Hunger Project has offices in India and Bangladesh. In India in the year ended December 31, 2005, TheHunger Project carried out its four-prong strategy to empower elected local women leaders as key change agents forhuman development, social justice, and economic growth. Since 2000, more than 45,000 Indian women leadershave taken our Women’s Leadership Workshop. In Bangladesh, we carry out a 9-prong strategy to strengthen localdemocracy and empower women. We have trained, and continue to empower, 61,930 volunteer animators, of whom40% are women, focusing their efforts in 450 clusters of villages.

Latin America: The Hunger Project has an office in Mexico, and works in partnership with established organizationsin Bolivia and Peru that share our vision and philosophy. In Mexico, The Hunger Project implemented its newdecentralized program in partnership with local government in indigenous areas of six states that mobilizes people totake 35 key strategic actions for the end of hunger. In Bolivia, The Hunger Project works with ACLO (Accion CulturalLoyola), whose radio stations provide literacy and agricultural training to Quechua-speaking people in the Andes. InPeru, The Hunger Project works with Chirapaq, a national network of indigenous people to strengthen women’sleadership in local democracy.

Program Countries: The financial positions of affiliated Hunger Project entities that implement programs in thedeveloping world (e.g. THP-Senegal, THP-Bangladesh, etc.) are consolidated into these financial statements. Eachentity is registered according to the laws of its own country, and is led by a country director who reports directly to a vice president in The Global Hunger Project Office. All affiliated program country directors are citizens and residentsof their respective countries. They have individual contractual agreements with and are compensated directly fromThe Hunger Project’s Global Office. The program country director’s contracts can be cancelled for cause or otherwise at any time with proper notice. The affiliated program countries receive annual appropriations quarterlybased on an operational program budget approved by The Hunger Project.

A summary of the significant accounting policies of The Hunger Project follows:

Basis of accounting: The Hunger Project maintains its accounting records and prepares its consolidated financialstatements on the accrual basis of accounting whereby revenue is recognized when earned and expenses arerecognized when incurred.

Consolidation policy: The accompanying consolidated financial statements include the accounts of The GlobalHunger Project and its Affiliates in the developing world which work within a common strategy, with funding largelyfrom The Global Hunger Project, and led by country directors employed directly by The Global Hunger Project. All significant transactions between The Global Hunger Project and the Affiliates have been eliminated in theconsolidation.

7 23




Basis of presentation: The consolidated financial statement presentation follows the recommendations of theFinancial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, FinancialStatements of Not-for-Profit Organizations. Under SFAS No. 117, The Hunger Project is required to reportinformation regarding its financial position and activities according to three classes of net assets: unrestricted netassets, temporarily restricted net assets, and permanently restricted net assets. The Hunger Project has no permanently restricted net assets at December 31, 2005.

Cash and cash equivalents: The Hunger Project considers all highly liquid investments with original maturities ofthree months or less to be cash equivalents.

Financial risk: The Hunger Project maintains its cash in bank deposit accounts, which, at times, may exceedFederally insured limits. The Hunger Project has not experienced any losses in such accounts. The Hunger Projectbelieves it is not exposed to any significant financial risk on cash.

Promises to give: Unconditional promises to give are recognized as revenue or gains in the period acknowledged.Conditional promises to give are recognized when the conditions on which they depend are substantially met.Management determines the allowance for doubtful accounts by regularly evaluating individual promises to give andconsidering prior history of donors and proven collectibility of past donations. Promises to give are written off whendeemed uncollectible. Recoveries of promises to give previously written off are recorded when received. The allowance for doubtful promises at December 31, 2005, is $251,467.

Micro-credit loans: Micro-credit loans are recorded as a receivable and revenue when funds are initially paid to theborrower and as a reduction of the receivable upon repayment by the borrower. Annual interest rates range from 10% - 36%, a deposit (collateral) is required which is usually 10% of the loan principal and loan terms are between 6 months to one year.

Investments: Investments with readily determinable fair values are reflected at fair market value. To adjust thecarrying value of these investments, the change in fair market value is charged or credited to current operations.

Property and equipment: The Hunger Project capitalizes all property and equipment with a cost of $5,000 or more.Property and equipment are recorded at cost and depreciated on the straight-line basis over estimated useful lives ofthree to ten years. Leasehold improvements are recorded at cost and amortized over the lesser of the useful life orlease term.

Impairment of long-lived assets: The Hunger Project accounts for the valuation of long-lived assets under Statementof Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.SFAS No. 144 requires that long-lived assets and certain identifiable intangible assets be reviewed for impairmentwhenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the assets to futureundiscounted net cash flows expected to be generated by the assets. If such assets are considered to be impaired,the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds theestimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fairvalue, less costs to sell.

Deferred rent: The Global Hunger Project has a lease agreement for rental space in New York City. Under the termsof the lease agreement, The Global Hunger Project occupied its office space for a period of free rent during the initialrental period. The benefits that The Global Hunger Project received from the free rent and rent increases in futureyears, are being allocated on a straight-line basis over the term of the lease.

824




Support and revenue: Contributions received are recorded as unrestricted, temporarily restricted, or permanentlyrestricted support, depending on the existence and/or nature of any donor restrictions.

All donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, dependingon the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purposerestriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reportedin the Statement of Activities as net assets released from restrictions. Temporarily restricted net assets are reportedas unrestricted net assets if the restrictions are met in the same period received.

Expenses: Direct costs associated with specific programs are recorded as direct program expenses. Personnelcosts, depreciation, occupancy, office, data processing and certain corporate expenses are allocated to programsbased on employee time distributions.

Income taxes: The Hunger Project is generally exempt from Federal income taxes under the provisions ofSection 501(c)(3) of the Internal Revenue Code. In addition, The Hunger Project qualifies for charitable contributiondeductions and has been classified as an organization that is not a private foundation. Income which is not related toexempt purposes, less applicable deductions, is subject to Federal and state corporate income taxes. The HungerProject did not have any net unrelated business income for the year ended December 31, 2005.

Estimates: The preparation of consolidated financial statements requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets andliabilities at the date of the consolidated financial statements and the reported amounts of revenue and expensesduring the reporting period. Actual results could differ from those estimates.

Note 2. Receivables

Receivables at December 31, 2005, consist of the following:

Promises to give 2,330,917$Accrued interest - Certificates of Deposit 17,879

2,348,796Less provision for doubtful accounts 251,467Less discount to present value 21,345

2,075,984$

Promises to give in one year or more are measured using the present value of future cash flows based on a discountrate of approximately 5%. Unconditional promises to give at December 31, 2005, consist of the following:

Promises to give in less than one year 1,882,667$Promises to give in one to five years 448,250

2,330,917$

9 25



Note 3. Charitable Remainder Trust

The Global Hunger Project is a beneficiary in a charitable remainder trust (the Trust). The Trust makes paymenteach year to the grantor for the duration of the Trust’s term (the grantor’s lifetime). At the end of the Trust’s term, the remaining assets are available for The Global Hunger Project’s use. The administrator, who is a third-party trustee, holds the assets. The Global Hunger Project’s interest in the Trust is recognized at the estimated net present value.The fair market value of the Trust at December 31, 2005, was $1,131,666. The Global Hunger Project’s estimatedinterest in the Trust at December 31, 2005, was $533,083.

Note 4. Investments

Investments at December 31, 2005, consist of the following:

Certificates of deposit 2,920,038$Cash surrender value of life insurance policy 403,042U.S. Treasury notes 200,000Equity securities 61,266Money market 32,495Other 27,970

3,644,811$

Investment income for the year ended December 31, 2005, consists of the following:

Interest income 199,599$Gain on charitable remainder trust 93,715Unrealized loss on investments (34,138)

259,176$

Note 5. Property and Equipment

Property and equipment and accumulated depreciation at December 31, 2005, and depreciation expense for the yearended December 31, 2005, consists of the following:

Estimated Accumulated DepreciationAsset Category Lives Cost Depreciation Net ExpenseNew York:

Leasehold improvements 9 years 168,611$ 107,724$ 60,887$ 18,735$Furniture and equipment 5 to 10 years 84,484 66,440 18,044 3,885Computers 3 years 12,533 12,533 - -

265,628 186,697 78,931 22,620Developing Countries 3 to 10 years 1,132,224 703,216 429,008 166,640

1,397,852$ 889,913$ 507,939$ 189,260$

1026



Note 6. Temporarily Restricted Net Assets

Temporarily restricted net assets include donor restricted and other funds, which are only available for programservices, or supporting services designated for future years. Temporarily restricted net assets were released fromrestrictions during the year ended December 31, 2005, due to the time restriction ending or the purpose restrictionbeing accomplished.

Temporarily restricted net assets at December 31, 2005, are available for the following programs:

Balance BalanceDecember 31, December 31,

2004 Additions Released 2005Time restricted:

Promises to give 1,429,194$ 1,977,605$ (1,423,694)$ 1,983,105$Charitable Remainder Trust 439,368 93,715 - 533,083

Program restricted:Mozambique 100,000 100,000 (100,000) 100,000Ethiopia - 190,000 - 190,000Hunger Project - India 40,447 893,958 (779,217) 155,188

2,009,009$ 3,255,278$ (2,302,911)$ 2,961,376$

Note 7. Lease

The Global Hunger Project has a lease for office space in New York City, which expires on October 31, 2008. Thelease provided for a period of free rent followed by escalating payments. Rent expense is being recognized on astraight-line basis over the term of the lease. The difference between the expense and the cash paymentsamounting to $125,674 at December 31, 2005, is reported as deferred rent in the accompanying financial statements.Rent expense for the year ended December 31, 2005, was $276,463.

A certificate of deposit in the amount of $30,000 has been pledged as collateral for an irrevocable letter of creditissued to The Global Hunger Project’s landlord. The letter of credit was issued in lieu of a security deposit and is inthe amount of $26,985.

Future minimum lease payments at December 31, 2005, are as follows:

Years Ending December 31,2006 332,101$2007 340,0972008 289,522

961,720$

11 27



Note 8. Retirement Plan

The Global Hunger Project has a profit sharing contribution employee retirement plan (the Plan) coveringsubstantially all U.S. employees who are 18 years of age and have completed 1,000 hours of service. Amountscontributed to the Plan are discretionary and determined on an annual basis. During the year ended December 31,2005, the Global Hunger Project contributed $264,213, to the Plan.

The Global Hunger Project also maintains a 403(b) savings plan for all full-time employees. Employees are eligibleto participate immediately upon employment. The Global Hunger Project makes no contributions to this plan.

Note 9. Commitment - Retirement Contract

The Global Hunger Project has executed a post retirement contract with the President. Under the terms of this agreement, the President will receive $100,000 per year in exchange for part-time services rendered upon retirement from full-time employment.

Note 10. Life Insurance

The Global Hunger Project established a life insurance policy on the President. The Global Hunger Project pays thepremiums and is the sole beneficiary on the policy. Total face amount and cash surrender value of the policy atDecember 31, 2005, was $1,645,142 and $403,042, respectively.

1228

The Era of the MillenniumDevelopment Goals

n the final analysis, ending hunger and abjectpoverty is not a matter

of charity. It is a matter of social justice. It is the privilege of TheHunger Project to embrace the people living in poverty, embracethem as our partners and as ourbrothers and sisters.

We are grateful for the opportunityto work with them and to invest inthem, always knowing that it is theywho do the lion’s share of the workto improve their lives and the lives oftheir children, their communities andtheir world.

— Joan Holmes

October 22, 2005

I

The Hunger Project Global Office15 East 26th StreetNew York, NY 10010 Phone: 1-212-251-9100Fax: 1-212-532-9785Web: www.thp.org

The Hunger Project is active in these countries: Australia, Bangladesh, Benin, Bolivia, Burkina Faso,Canada, Ethiopia, Germany, Ghana, India, Japan,Malawi, Mexico, Mozambique, The Netherlands, New Zealand, Peru, Senegal, Sweden, Switzerland,Uganda, United Kingdom, United States.

Des

ign

by R

oths

child

Des

ign,

NYC

06 thp ar 08 21professor jeffrey sachs, director of the un millennium project and special advisor to...

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