2007 Annual Report, Floresta - Healing the Land and Its People

2. Mission Statement
Floresta, a Christian non-profit organization, reverses deforestation
and poverty in the world by transforming the lives of the rural poor.
We teach, we plant, we create enterprise, and we share the gospel.

3. from the director
In the last couple of years there has in places where vicious cycles existed before. In so doing
been a subtle but massive change we are solving two enormous problems that taken by
in the way that Christians see themselves seem intractable. The big idea is that it is
environmental issues. For most of actually easier to address both problems together than
the fourteen years I have been at it is to take them on one at a time. This is pretty unique,
Floresta, I have frequently faced an and I think it is what sets Floresta apart from most other
uphill battle, explaining why Floresta organizations and solutions.
is working on reforestation to people
who thought it was superfluous. Many times, I felt I was Almost as important is the idea that the poor are the
walking into meetings with potential donors carrying a most important allies in solving these problems and
huge liability: trees. These donors, who might have been probably the greatest untapped resource on earth. They
interested in our evangelistic work, or our work fighting have the skills, insight and vested interest in solving their
hunger, often saw the environmental aspect of Floresta problems. They have far more intelligence and initiative
with some suspicion, or at best, amused indifference. than people give them credit for. Often they only lack
tools, opportunities or even just self-confidence. Yet far
But that has largely changed. Suddenly what we do is too often those who want to fight poverty see the poor
mainstream - even cool. New voices for God’s creation as an obstacle. The temptation is to try to solve their
have sprung up all over the place. New books have been problems for them without involving them. One of the
written. New conferences are being held. Many of the most important things we can do is empower the poor to
big Christian agencies are beginning to incorporate realize and use their God-given talents to change their
environmental programs into their work. And the communities and restore their land.
Church is waking up to its stewardship responsibilities.
Throughout the past year, as I visited with foundations, All of this new interest in the environment is exciting. It
pastors and Christian leaders, I heard a very different provides some tremendous possibilities for Floresta to
reaction than the one I have grown used to. People are grow and reach more people, as well as to share what we
actively looking for ways to make a difference for the have learned, thereby blessing others. Humanitarian
environment and to get their congregations involved in agencies, Christian and secular, are beginning to address
creation care. environmental issues, because they have to. Similarly,
environmental agencies are beginning to address
There is sometimes still a perception that it is all about humanitarian and spiritual issues, because they have
politics, but of course Floresta has never been about to. To my knowledge, Floresta is the only organization
politics. Regardless of which way you vote, you can still designed from the ground up to work at the intersection
fight global warming and deforestation by working with us of the two. We look forward to sharing some lesson
to plant in Africa or Mexico. And you can plant trees that learned from nearly a quarter century of healing the land
will save lives or keep a family in the Dominican Republic and its people. It is an exciting opportunity.
or Thailand from going hungry.
Thank you for your support.
I think that is one of the ways in which Floresta remains
unique. Our special contribution is the idea that we can Sincerely,
make environmental restoration profitable for the rural
poor at the same time we are making poverty reduction
beneficial for the environment. That is the Floresta idea.
In other words, we are creating virtuous cycles or spirals Scott Sabin

4. The second half of Floresta’s mission statement, “We teach, we plant, we create
enterprise, and we share the gospel,” reflects the four primary tools we use to break
the cycle of poverty: Community Development, Innovative Agriculture and Forestry,
Credit, and Discipleship.
We teach – Community Development is the process of empowerment. Floresta’s
about floresta program encourages rural communities to take ownership of their own problems,
Floresta was founded in 1984 by Tom giving them the self-confidence to seek out and apply local solutions. The rural poor
Woodard, who saw that much of the must believe and trust in the abilities they have been gifted with, and must have
human misery in the tropics was rooted ownership of the process of development. This takes time, but results are profound
in deforestation. At the same time, much and long lasting.
of this deforestation stemmed from a lack
of economic opportunities, creating a We plant – Innovative Agriculture and Forestry enable farmers to make the
vicious cycle from which farmers saw little best possible use of the assets they already possess. Absence of vegetation results in
hope of escape. While working on a relief severe erosion, poor water retention/spring replenishment, and low productivity.
project, Woodard realized that problems Floresta provides training in agroforestry systems that work more efficiently in such
of extreme poverty, hunger, and economic environments. For example, fruit trees provide food and a cash crop; woody perennial
decline were not being solved, but trees are planted as an investment in the longevity of the forest; and nitrogen-fixing
worsening. Extensive research indicated trees supply nutrients to the depleted soil. In addition, planting trees provides
that deforestation and the subsequent loss restored ground cover and living barriers that reduce erosion.
of soil fertility were primary causes.
As part of its sustainable agriculture development, Floresta works with farmers to
Motivated by Christ’s love and His construct cisterns, which provide a reliable water source while helping to mitigate
command to help the poor, Woodard erosion. Floresta also assists farmers in caring for and vaccinating livestock through a
and his colleagues created Floresta to program of veterinary training. Maintaining livestock often provides a way for farmers
meet the environmental, economic, to expand their farms and diversify income sources.
and spiritual needs of rural people
in the Dominican Republic. Floresta We create enterprise – Credit helps people to progress beyond bare
designed holistic programs to address and subsistence, as well as to diversify village economies that are often entirely dependent
reverse the vicious cycle of poverty and on charcoal or firewood production. Microenterprise credit is the world’s most
deforestation, replacing it with an upward effective poverty fighter, and Floresta finances a broad range of environmentally
spiral of economic growth, environmental sustainable and economically viable businesses and agricultural projects, offering
restoration, and real hope through a reasonable interest rates and making it possible for even the poorest of farmers to
growing relationship with Jesus Christ. qualify for a “hand up, not a handout.” Floresta also utilizes highly effective village
As the success of this program became community banking systems, which provide credit to community members and
apparent and Floresta’s vision began to promote financial independence.
grow, this unique work spread to other
areas where deforestation and poverty We share the gospel – Discipleship occurs through long-term relationships
are closely connected. In addition to that are formed as the Floresta staff works closely with individuals and community
the original program in the Dominican leaders. Through the witness of our field chaplains and other staff members, people
Republic, Floresta is now operating hear the good news of Jesus Christ, grow in their faith, and develop skills as servant
successful programs in Mexico, Haiti, leaders within their communities. While Floresta aims to make discipleship an
Tanzania, and Thailand. integrated component of regular teachings and community interactions, the love
and opportunities we share are unconditional: participation in any of its programs is
In each of these countries, Floresta works not contingent upon faith, nor does Floresta require participation in Bible studies or
with a partner organization comprised church services.
of a highly qualified indigenous team
with a strong call to Christian service. At Floresta, we are often reminded of the old saying: “If you give a man a fish, you feed
These organizations are responsible for him for a day. If you teach a man to fish, you feed him for a lifetime.” Floresta is not
the operation and oversight of Floresta’s only teaching him (and her) to fish, but teaching him to stock the pond, and to say
programs. Partners collaborate closely grace before he eats it!
with Floresta USA and are monitored for
accountability.

5. PROGRAM HIGHLIGHTS
Dominican Republic
Continuing in partnership with its Dominican sister organization
Floresta Incorporada, Floresta’s longest running field program made
impressive strides in 2007, particularly in the area of discipleship.
Floresta Incorporada has a well-developed capacity for local
fundraising, and a large portion of the program’s budget is raised
in-country, with the remainder provided by Floresta USA. Work
is ongoing in 41 communities north of Santo Domingo, and this
year expanded to the Haitian border, where staff from Floresta DR
devoted significant time and talent helping establish the Dominican
half of the Trans Border Project.
• As part of a long-term reforestation effort, participants in the
Floresta program planted 168,420 trees across a total area of
300 acres.
• 152 new micro-enterprise loans were made, in the total
amount of $32,983, for the purpose of helping local
program participants begin, maintain, and expand small
businesses. In addition, 67 microenterprise loans were
repaid in the total amount of $40,336 (including interest).
• Floresta granted 80 new agroforestry loans, in the total
amount of $34,246. In addition, 25 previously granted
agroforestry loans were repaid, in the total amount of
$23,314.
• The Discipleship Program added 81 new Bible study groups
and trained 56 new individuals to lead the 438 members of
these studies. As a result of discipleship efforts, 433 people
made a personal commitment to follow Christ.
• Floresta partnered with 56 churches to organize and train
277 individuals to lead regularly meeting Bible study
groups. At the end of the fiscal year, 1,491 individuals were
participating in one of 186 Floresta-sponsored community
Bible studies.
• Floresta began an egg production project in 9 communities,
providing farmers with 1,240 chickens. These in turn
produced 22,289 eggs, which helped improve community
nutrition and provided farmers with an additional source of
revenue.
• Dominican Republic staff officially established a new project
on the Haitian border, setting up an office and dedicated
staff in the region of Sabana Real. During its pilot year, the
Dominican portion of the Trans Border Project resulted
in 96,729 trees planted, the establishment of a new church
partnership, and the formation of 3 Bible studies.
Lifetime totals
Trees planted: 2,574,348
“If you teach a man to fish, you feed Agroforestry loans granted: 497
Microenterprise loans granted: 435
him for a lifetime.” Floresta is not
only teaching him to fish, but teaching
him to stock the pond, and to say
grace before he eats it!

6. PROGRAM HIGHLIGHTS
Mexico Haiti
Floresta continued partnership with its Mexican sister Floresta continued to work in the mountains of Southern
organization, Misión Integral, in the five Oaxacan Haiti in the region of Gran Colline. Work also extended to the
municipalities of San Andrés Nuxiño, Santa Inés Zaragoza, Dominican border for the second year, as Floresta Haiti staff
Santo Domingo Nuxaá, San Juan Tamazola, and Magdalena played an instrumental role in helping to further establish their
Jaltepec. A spirit of innovation and experimentation among nation’s half of Floresta’s Trans Border Project.
the communities was evident in several new, successful
projects implemented during the course of the year, including • Participants in Floresta’s programs planted 24,318
tomato and mushroom farms, a fish raising project, and trees in reforestation projects.
the construction of numerous ecological latrines and water • 2,737 fruit trees were grafted.
harvesting systems. • Credit cooperatives granted 372 new micro-enterprise
loans to members, in the total amount of $43,934.
• 45,603 trees were planted across 95 acres of land to • 42 miles of anti-erosion barriers were constructed to
counter deforestation, bringing the lifetime total of control soil erosion on otherwise vulnerable hillsides.
trees planted through Floresta Mexico to 300,826. • 674 compost piles were established, providing healthy
• 35,670 seedlings were produced in local tree nurseries organic soil to use as fertilizer for farms and family
for reforestation and agroforestry efforts. gardens.
• 97 new microenterprise loans, in the total amount • Farmers were trained to vaccinate and care for 3,689
of $9,633, were granted to program participants. 74 livestock.
previously granted loans were repaid, in the total • Together with team members from Floresta Dominican
amount of $9,867. Republic, Haitian staff officially established a new
• 16 new agroforestry farms were established. On these project on the Dominican border, working with 135
farms, trees are grown alongside food and other farmers. During its pilot year, the program resulted in
cash crops for the purpose of establishing mutually 128 compost piles established, 110 fruit trees grafted,
beneficial relationships that enrich the soil and 1.2 miles of soil conservation barriers constructed, and
improve crop yields. 8,277 trees planted.
• Floresta worked with families to construct 17 new fuel-
efficient stoves, helping to improve air quality, lower
the risk of respiratory illness, and significantly decrease Lifetime totals
the amount of wood needed for cooking and heating. Trees planted: 191,116
• 22 new family gardens were established, in which a Fruit trees grafted: 10,843
variety of vegetables and fruits were grown. Harvests Loans granted: 2,630
provide families with improved nutrition and an
additional source of income.
• 6 new cisterns were constructed, providing
communities with ready access to water for household
use and to help grow their family gardens and tree
nurseries.
• Floresta established 4 new mushroom farms and a new
tomato greenhouse to improve the local diet and give
farmers an alternative source of income.
• 74 new ecological latrines were built. These latrines
provide sanitary, environmentally-friendly systems of
waste management in which potentially toxic waste is
contained and converted to safe, organic fertilizer.
Lifetime totals
Trees planted: 300,826
Seedlings grown: 452,167
Loans granted: 312

7. Tanzania United States
Floresta’s newest program in Tanzania continued to expand • Floresta provided consulting services to each of
and develop during its third year of operation, working the overseas programs and was active in planning,
with over one thousand farmers and their families. Floresta evaluating, and monitoring each of the programs.
introduced a Village Community Banking (VICOBA) system • Floresta provided vision, leadership, and coordination
for distributing microcredit loans, which was met with for the Haitian and Dominican programs as they
enthusiastic support and resulted in a number of new economic developed the Trans Border Project.
opportunities, particularly for Tanzanian women. • Staff and other representatives from Floresta USA
participated in various projects and conferences
• Floresta worked with community members to establish around the world, providing expertise on community
34 tree nurseries for the purpose of growing new development, on the interface between microfinance
seedlings for reforestation and agroforestry efforts. and the environment, and on the Christian call to care
By the end of the fiscal year, these nurseries housed a for the environment.
supply of 54,405 seedlings. • Floresta held its annual auction and dinner at the
• 75,351 trees were planted in reforestation efforts, Hyatt Islandia in San Diego.
bringing the program’s lifetime total of trees planted • Floresta received grants from the following
to 147,514. foundations
• Floresta worked with Tanzanian communities to • Danellie Foundation
operate a total of 9 Village Community Banking • Wellspring Trust
(VICOBA) groups, which collectively distributed 164 • West Foundation
loans in the total amount of $17,083. Group members • The Servants Trust
contributed $16,231 of their own funds to use for these • Tyndale House Foundation
loans. • Alternative Gifts International
• Floresta provided communities with 17 rainwater- • Stewardship Foundation
harvesting cisterns, providing farmers with improved
access to water for household and garden use. Thailand
• 551 improved, fuel-efficient stoves were provided In partnership with the Upland Holistic Development Project
to community households for cooking and heating, (UHDP), a Christian organization specializing in agroforestry,
reducing local wood consumption and improving Floresta worked with farmers in the northern hilltribes,
respiratory health among community members. providing training in agroforestry and sustainable farming, as
• Floresta worked with farmers to construct 7 miles of well as on-site research support.
living barriers, protecting 7 watersheds from potential
soil erosion. • As a result of the partnership, more than 100 farmers
• 1660 bio-intensive vegetable gardens were established, have begun to adopt agroforestry and sustainable
providing fresh vegetables and a source of income that farming practices.
allows even the poorest families to participate in the • 69 individuals joined Floresta and UHDP’s network of
VICOBA groups. agroforestry farmers.
• Backyard agriculture workshops assisted over 100
families, promoting home gardens and the raising of
Lifetime totals pigs and catfish.
Trees planted: 147,514 • Expanded and improved village water systems provided
Participating farmers: 1,450 8 communities with year-round access to clean water.
Improved stoves: 863 • Microfinance programs benefited over 80 families,
providing them with loans for livestock and small
business enterprises.
• Over 2,000 women participated in capacity building
workshops and trainings in handicraft production.
• Floresta provided UHDP with technical support in
agroforestry and microfinance, assisting in related
village based plant trials and staff and network
member trainings.

8. Floresta USA Incorporated Financial Statements
June 30, 2007 and 2006
Statements of Activities 2007 2006
Temporarily
Unrestricted Restricted Total TOTAL
Revenue and Support:
General Donations $1,463,656 $1,463,656 $1,239,900
Interest and dividend income 13,317 13,317 10,131
Net assets released from restrictions 38,457 (38,457) - -
Total Revenue $1,515,430 ($38,457) $1,476,973 $1,250,031
Expenses:
Program activities:
Dominican Republic $ 308,622 $308,622 $247,088
Mexico 237,828 237,828 198,655
Haiti 304,546 304,546 231,339
Tanzania 137,754 137,754 122,905
Other Countries 30,647 30,647 43,671
U.S Awareness & Education 247,657 247,657 144,867
Total program activities $1,267,054 $1,267,054 85.04% $988,525 85.83%
Supporting activities:
General and administrative $104,330 $104,330 7.00% $ 77,594 6.73%
Fundraising 118,630 118,630 7.96% 85,589 7.43%
Total supporting activities $222,960 222,960 $163,183
Total Expenses: $1,490,014 $1,490,014 100% $1,151,708 100%
Change in net assets $25,416 ($38,457) ($13,041) $98,323
Net assets, beginning of year $218,681 $115,370 $334,051 $235,728
Net assets, end of year $244,097 $ 76,913 $321,010 $334,051
Dominican Republic 21%
Haiti 20%
Mexico 16%
Fundraising 8%
Administrative 7%
Tanzania 9%
U.S Awareness &
Education 17%
Other Countries 2%

9. Statements of Financial Position 2007 2006
Assets
Cash and cash equivalents $184,995 $116,037
Contributions receivable 1,667 -
Investments 175,000 175,000
Investment in Los Arbolitos* 28,307 28,307
Prepaid Expenses 18,161 -
Rent deposit 1,850 1,850
Property & equipment, net 16,675 16,352
Intangible Assets, net 5,278 -
Total Assets $431,933 $337,546
Liabilities and Net Assets
Liabilities:
Accounts payable and
accrued expenses $21,338 $3,495
Sales Tax Payable 377 -
Deferrred Revenue 89,208 -
Total Liabilities $110,923 $3,495
Net Assets:
Unrestricted $244,097 $218,681
Temporarily unrestricted 76,913 115,370
Total Net Assets $321,010 $334,051
Total Liabilities and Net Assets $431,933 $337,546
*Los Arbolitos is a for-profit tree nursery in the Dominican Republic, jointly
owned by Floresta USA, Floresta DR, & private investors.
Floresta Financial Growth 2003-2007
2003: $ 567,833
2004: $ 778,803
2005: $ 1,121,374
2006: $ 1,289,425
2007: $ 1,515,430
“With the right tools, technology, and coaching, the poor have the skills
and imagination to not only improve their farms and start businesses,
but to restore the land on which they depend.”

10. Board of Directors Advisory Board Organizational Affiliations
CHAIRMAN Robert Ainsworth Memberships:
Jeff Busby Former Vice President AERDO – Association of Evangelical Relief
CEO, Brandes Investment Partners World Vision and Development Organizations
TREASURER Anthony Campolo CPCA – Conservation and Preservation
Cindy Outlaw Author, Speaker Charities of America
Former Controller
SAIC Calvin DeWitt ECFA – Evangelical Council for Financial
Professor, Environmental Studies Accountability
SECRETARY University of Wisconsin
Martin Gore ICA – Independent Charities of America
Vice President Rev. Paul Landrey
Seahorse Capital, Inc. Director InterAction – American Council for
TOPIC (Trainers of Pastors International Voluntary International Action
Murray Decker Coalition)
Associate Professor, Intercultural Studies Floresta is a Partner Organization of the
Biola University Margaret Dalzell Lowman Evangelical Environmental Network
Director of Environmental Initiatives
Tricia Elisara New College of Florida
Director
Creation Care Study Program (CCSP) William McColl, M.D. Staff
Orthopedic Surgeon Scott Sabin
Jeff Kahler Former NFL Football Player Executive Director
General Partner
Kahler Capital Management John Perkins Armando Osorio
President Director of Programs
Eric Kaiser John Perkins Foundation
Former VP Bob Morikawa
Qualcomm Sir Ghillean Prance, FRS, VMH Technical Director
Science Director
Mary King Eden Project, Cornwall Kristen Kreitzer Tucker
Financial Advisor Business Manager
Merrill Lynch Ronald Sider
Professor Sarah Ferry
John McKay Palmer Theological Seminary Director of Outreach
Co-founder
SAJE Foundation D. Peter Stocker Megan VanderGeest
Retired Credit Manager Director of Communications
Richard H. Thompson Weyerhaeuser Company
Pastor Erin Weesner
Westminster Presbyterian Church Paul Thompson Administrative Assistant
Executive Director
Robert Witbeck Better World Together Foundation Rachel Castillero
Former Co-owner Administrative Assistant
Stacy and Witbeck, Inc. Mary Walker, Esq.
General Counsel Rebeca Elliott
U.S. Department of the Air Force Sponsor a Village Coordinator
Tom Woodard
Founder
Floresta
Printed on post-consumer waste paper.
Pictures courtesy of Rico Castillero and Armando Osorio

11. “And the leaves of the tree are for the healing of the nations”
Revelations 22:2

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