Holistic Management International Annual Report 2005

Dear Friends,

As we strive to heal our lands and create sustainable livelihoods – one ranch, one farm, one community at a time – we have been especially fortunate to have you walking with us over the past year. Thanks to you, our community of friends and donors, it has been a year of tremendous energy, important successes and growing momentum.

To take one example, in February, we spent a number of days working with the staff of the Africa Centre at our learning site, the Dimbangombe Ranch, in northwestern Zimbabwe. What an energizing experience it is to see Holistic Management working so productively in some of the poorest communities on the Hwange communal lands sur-rounding our 20,000-acre ranch!

Two full pages of this Annual Report have been set aside to acknowledge all of the many wonderful and visionary individuals and foundations that help make our work possible. To the untold numbers of people whom we cannot name, but who are taking important steps in the right direction, we also offer thanks.

With your continued support, we begin our third decade of successfully spreading the word about Holistic Management. Its importance in addressing severe worldwide problems related to desertification – from widespread hunger and starvation to the loss of family farms – has never been greater. Nor has our resolve.

With heartfelt appreciation,

Ron Chapman Shannon A. HorstChair of the Board Executive Director

“ �

it�has�been�a�year�of�tremendous energy, important successes and growing momentum”

Milestones 2005 A first-ever USAID grant to pilot a micro-banking with livestock project in two Hwange communities surrounding the Africa Centre for Holistic Management. This goat lending program makes livestock available to 80 of the poorest families in two villages. Along with the pooling of community herds for a simplified grazing program, this program will restore desertified land and provide sustainable livelihoods for the participating families.

World Vision Australia funded a $216,000 project to bring Holistic Management practices to 1,500 Maasai families in Kenya. The results: a reliable food supply and well-managed grazing lands.

Leading organic dairy producer Horizon Organic has engaged HMI to bring Holistic Management to a number of its production sites and to provide training for their family-owned farm producers, creating a new standard for pasture and surrounding rangeland management for organic dairies.

At The David West Station for Holistic Management, a two-year Southern SARE research project has begun to study the effect of animal impact on juniper/cedar infesta-tions. This project, monitored by a team of independent researchers, will add to the current body of knowledge in rangeland science.

HMI began a two-year project with Acoma Pueblo to develop a Holistic Management-based plan for improving the health and productivity of the land and the financial success of their livestock and hunting operations.

In partnership with Heifer International, we brought Holistic Management to a Navajo community group. The purpose of this effort is to develop a planning and implementation process that communities served by Heifer International can use to improve the health of their lands and their livelihoods.

2006 HighlightsWith the enthusiastic endorsement and support of our board of directors, staff, and other close stakeholders, we are embarking on an ambitious effort to accelerate our outreach to our core markets—ranchers, farmers, pastoralists, and those who support or regulate these communities worldwide. With this effort we will:

Restore 1,000,000 acres to health and full productivity by educating and training 1,000 ranchers and farmers in the U.S. and worldwide in Holistic Management.

Create sustainable livelihoods for hundreds of impoverished villagers in Zimbabwe by expanding our goat-as-currency banking project to benefit two additional Hwange communities.

Expand our work with 1,500 Maasai families in Kenya, helping them to restore their traditional grazing lands and create a sustainable future for their families.

“�... our�simplified planned grazing �program��

will�help�restore�desertified�land�and�provide��

sustainable livelihoods�for�the�participating �families”

Lion ($50,000+)Jim & Carol Parker

Wolf ($25,000+)Dr. Cynthia O & Leo O HarrisHealy Family Fund

Buffalo ($10,000+)Arntz Family FoundationHarriett Faudree Dublin Bud & Mary Lou FlocchiniDoug McDaniel & Gail HammackCharles L. Reed FundRosewood Foundation

Elephant ($5,000+)Edith CatherJ. Rukin Jelks, Jr.Clint & Betty Josey

Elk ($1,000+)Christina Allday-BondyBen & Denise BartlettSam BinghamDon & Bev CampbellRon ChapmanRoy & Megan (Savory) DavisThe Devon Management ClubNancy DickensonPaul EnglerJohn & Leslie FlocchiniDon & Randee HalladayJoe & Peggy MaddoxKim McDodge & Terence DodgeSue & Archie MossmanHenk & Andrew PaulAllan Savory & Jody Butterfield

Elk ($1,000+) continued

Don & Jane SchreiberKirvil SkinnarlandSan Luis Obispo Community FundElizabeth V. WilliamsTerry & Mary Ann Word

Antelope ($100+)Mary & Dan AdamsJerry AddisonSteve & Rachel AllenDonna AttewellAnn BeeghlyFremont BellMike & Mary BenzigerRobert & Shelly BernickWayne BerryDick ByrdM. K. CampbellGordon and Joan CartwrightDr. & Mrs. Watt M. CaseyHelen ChantlerBill & Karen DeGrootDouglas T. DockterLee & Jill DueringerDoug Edgar & Kathy OakleyAspen & David EdgeJohn & Sally FairbairnBill & Nellie FinanHeather Flashinski

Lowell & Mary FormanFloss, Jerry & Tony GarnerJimmy GarnerJoe GlodeGuy GlossonCharles B. Gompertz

Antelope ($100+) continued

Hawk & Shelley GreenwayGerard Guichon Ranch LTDCaroline J. HadleyL.L. & Elizabeth HaverfieldWillard HeckJohn & Susan HeynemanMargaret J. HillenbrandBlake HoltmanJerry & Sharon HoltmanChris HopkinsTaylor & Becky HydePeter & Leonore JohnstonAbbey KingdonKlaus KuelkenBob & Maureen LaidlawLaurence LasaterDianne Lathrop LawJoy LawEllen and Stan LeeBrad LittlePhil MetzgerAnne and Rich MorrisTony & Clara NibourgDina & Bill QuigleyMargaret Phelan ReedRichard E. RomingerRob & Martie RutherfordBrian RussCharles F. & Jennifer SandsBarry & Sandy SchorrYork N. SchuellerDelbert & Alice ScottJim and Sara SheltonBob SiemensKress SimpsonJack & Teresa Southworth

Over the years, many hundreds of committed individuals and dozens of foundations have helped to support our efforts to heal the land and create a viable future for the people who depend on it. It is with pleasure and gratitude

we recognize on these pages all the generous people who have supported our work in 2005. We couldn’t do it without you, and we know you will be as pleased as we are to continue our vital work in 2006. THANK YOU!

Our Donor Community 2005

Antelope ($100+) continued

Dr. Deborah StinnerCharles L. Sullivan IIIMilton B. SuthersLivingston K. ToomerW. Doug WarnockDwayne WarrickMaryann WestGeorge Whitten & Julie SullivanJack & Zera VarianJason & Chandra WeigleLaban WingertDrausin WulsinRandy & Gail YaklinDaren YoungVirginia Young

Zebra ($50+)Ann Adams Michael & Susan AhlersErnest A. Bryant IIIWayne BurlesonAlan ButterfiedBruce CondillMark CrowleyLlana DavisDennis DemmelTemple & Kathy DicksonMichael & Lynda DiemVirginia Dierker Bill C. DorranceShirley DwyerKathryn EhrhornWyatt & Jeanie FraasKen GallardMary Ellen GonzalesSid Goodloe

Zebra ($50+) continued

Louis I. HagenerKathy HarrisDuane HilbornJay & Tana HolzmillerJoann M. HuttonDavid JohnsonWilliam P. JonesMaRae KingJames KoontzKathy & Clyde LynnTony & Andrea MalmbergSandra M MathesonLowry McAllenChandler McLayBrooks McMillianMiles & Melinda McNeilRodney ParrG. Ben and N. Lee PengillyMark & Wendy PrattJim ReynoldsCharles RomingerElno D. RoundyWayne SampsonPeter SauerGerry StratelakKen TagerDonna TorrezRay TraversArne van GarrelJohn Wulsin

Kangaroo ($50-)AnonymousJohn & Alyson BallBen P. Berlinger

Kangaroo ($50-) continued

Dick BrighamRichard & Diane BroderickLonnie & Dawn CameronKirkwood M. CunninghamJessie FitzgeraldCornelia B. FloraLiz GraznakJack HamChristian HansenGlenn HarderVivianne HolmesIda HurleyEd & Gwen JensenJustin JessopPaul KaneMichael & Violet KasperTom LambBrian & Gail LuceNeil & Anita LundenDennis & Mona MorrisonAlice MooreJeff MoserGordie & Darlene PitchkoRhonda PowellSteven & Susan PylotBonnie RhinehartAlex ScharfCharles D. & Peggy SchmidtDr. & Mrs. Robert ScholesArlette SeibThomas TeichroebBryan Wehrli & Judith Ann MeeterJoe E. WilliamsMarshall Young

Over the years, many hundreds of committed individuals and dozens of foundations have helped to support our efforts to heal the land and create a viable future for the people who depend on it. It is with pleasure and gratitude

we recognize on these pages all the generous people who have supported our work in 2005. We couldn’t do it without you, and we know you will be as pleased as we are to continue our vital work in 2006. THANK YOU!

Our Donor Community 2005

Audited Financials 2005 Summarized Statement of Activities (Fiscal year January 1 - December 31) Financials audited by independent auditors Moss Adams LLP

2005 2004

RevenueEducational Sites 128,920 155,257

Philanthropy and Grants 438,949 172,502

Training and Education 96,689 183,658

Outreach & Educational Materials 130,425 103,590

Royalties from Assets 870,649 629,851

Other 28,860 35,239

Total 1,694,492 1,280,097

ExpensesPrograms 897,117 978,088

General Administrative 384,882 423,267

Marketing 133,502 123,650

Fundraising 119,791 140,865

Royalty Assets Related Cost 90,224 vvvvvvvv-

Total 1,625,516 1,665,870

Change in Net Assets 68,976 (385,773)

(restated)

2005 Revenue

Royalties from Assets

870,649

Other28,860

Educational Sites

128,920 Philanthropy & Grants438,949

Outreach & Educational Materials130,425

Training & Education 96,689

2005 Expenses

Programs897,117

Fundraising119,791

Administration384,882

Marketing133,502

Royalty Assets Related Costs

90,224

Audited Financials 2005 Summarized Statement of Financial Position (as of December 31) Financials audited by independent auditors Moss Adams LLP

2005 2004

AssetsCash 417,192 551,347

Investments, at fair value 289,346 -

Receivables 94,569 81,434

Other Receivables 76,701 106,732

Prepaid expenses 36,408 46,882

Inventory 5,192 14,457

Property/Equipment 1,667,252 1,733,788

Other Assets 2,664,059 2,677,672

Total 5,250,719 5,212,312

LiabilitiesCurrent Portion LTD 9,466 11,891

Accounts Payable 132,079 100,530

Accrued Liabilities 16,238 1,075

Deferred Revenue 47,169 108,992

Long Term Debt 232,103 245,136

Total 437,055 467,624

Net AssetsUnrestricted 3,465,178 3,427,008

Temporarily Restricted 61,796 30,990

Permenantly Restricted 1,286,690 1,286,690

Total 4,813,664 4,744,688

Total Liabilities and Net Assets 5,250,719 5,212,312

(restated)

Our Mission and Programs in Brief

Our Mission Holistic Management International works to reverse the degradation of private and communal land used for agriculture and/or conserva-tion, restore its productivity, and help create sustainable and viable livelihoods for the people who depend on it.

Training and EducationAs an educational non-profit, our main program is to train ranchers, farmers, pastoralists, public land managers, government agencies, and others com-mitted to responsible stewardship through a variety of learning and training opportunities incorporating the principles and practice of Holistic Management.

Learning SitesOn our learning sites, the David West Station for Holistic Management in Ozona, Texas, and the Africa Centre for Holistic Management in Victoria Falls, Zimbabwe, we conduct onsite training and research, demonstrating the effectiveness of Holistic Management in restoring degraded land to productivity.

Strategic PartnershipsIn some instances we collaborate with organizations who share our mission and whose strategies for community empowerment complement ours. This currently includes partnerships with the Land Stewardship Project and Heifer International.

“�...�Holistic�Management�International�works�

to reverse the degradation��

of� private�and �communal�land”

FoundersAllan Savory

Jody Butterfield

StaffShannon Horst, Executive Director

Peter Holter, Senior Director-Marketing and Products

Bob Borgeson, Director of Finance, Accounting and Administration

Jutta von Gontard, Director of Development

Kelly White, Director of Educational Services

Ann Adams, Managing Editor, IN PRACTICE and Director of Publications & Outreach

Constance Neely, International Training Programs Director

Maryann West, Executive Assistant

Donna Torrez, Administrative Assistant

Joe Maddox, Ranch Manager David West Station for Holistic Management

Peggy Maddox, Director of Public Relations & Education David West Station for Holistic Management

Board of DirectorsRon Chapman, Albuquerque, New Mexico, Chair

Ben Bartlett, Traunik, Michigan, Vice-Chair

Jody Butterfield, Albuquerque, New Mexico, Secretary

Sue Probart, Albuquerque, New Mexico, Treasurer

Ivan Aguirre, Hermosillo, Sonora, Mexico

Gail Hammack, Lostine, Oregon

Leo Harris, Albuquerque, New Mexico

Brian Marshall, Nundle, NSW, Australia

Jim McMullan, San Antonio, Texas

Ian Mitchell-Innes, Elandslaagte, KZN, South Africa

Jim Parker, Montrose, Colorado

Jim Shelton, Vinita, Oklahoma

Dennis Wobeser, Lloydminster, AB, Canada

Advisory CouncilRobert Anderson, Corrales, New Mexico

Mike Bowman, Wray, Colorado

Sam Brown, Austin, Texas

Sallie Calhoun, Paicines, California

D. Lee Dueringer, Scottsdale, Arizona

Gretel Ehrlich, Gaviota, California

Cynthia Harris, Albuquerque, New Mexico

Clint Josey, Dallas, Texas

Doug McDaniel, Lostine, Oregon

Guillermo Osuna, Coahuila, Mexico

York N. Schueller, Ventura, California

Contact InformationHolistic Management International 1010 Tijeras Ave. NW Albuquerque, NM 87102 USA (505) 842-5252

email: hmi@holisticmanagement.org

website: www.holisticmanagement.org

“ �the importance of�Holistic�Management�in��

addressing�severe�worldwide�problems�related�to��

land�desertification�...�has never been greater”

Holistic Management International 1010 Tijeras Ave. NW Albuquerque, NM 87102 USA (505) 842-5252

Or email: hmi@holisticmanagement.org

Or visit our website: www.holisticmanagement.org