Working Together
People. Purpose. Passion.
To Fulfill Our Mission.
www.tenthousandvillages.com
Use this logo for reductions only, do not print magenta. Do not reduce more than 40%.
Magenta indicates the clear area, nothing should print in this space
Color PMS 1805
Annual Report
April 1, 2010–
March 31, 2011
Photo © Lynn Johnson
Our Vision
One day all artisans in the developing countries
will earn a fair wage, be treated with dignity and
respect and be able to live a life of quality.
Kokila Pius, tailor,
Ahmedabad, India
Gladys Commey of
All Pure Nature Ventures
in Ghana. Women in Ghana
receive vital income for
harvesting and processing
shea nuts used in All Pure
Nature’s eco-friendly body
care products sold at
Ten Thousand Villages.
Mr. The
Younus
timely
Masih,
and better
masterwages
stone .carver,
..
[have] Karachi,
given mePakistan
an advantage
to support
Can we
myget
family
a quote?
and send
my children to school.
Mr. Younus Masih, master stone carver,
The Dominion Traders, Karachi, Pakistan
Photo © LynnPhoto
Johnson
© Lynn Johnson
Mrs. Naly, a basket weaver with Phontong Handicraft Cooperative,
and Kathleen McGinley, Store Manager at Ten Thousand Villages
in Saint Paul (Minn.), share a laugh during the 2011 Learning Tour
visit to Ban Vang Mon, Laos.
2
Ten Thousand Villages Annual Report
OUR MISSION
To create opportunities for artisans in developing countries
to earn income by bringing their products and stories to our markets
through long-term, fair trading relationships.
3
Photo © Lynn Johnson
4
At Rajana Association, Cambodian
young adults are trained in traditional
craft-making and earn an income
to support their families.
Photos © Lynn Johnson
Message FROM OUR CEO
At Ten Thousand Villages,
people, purpose and passion
converge to create a dynamic
organization committed to
achieving its mission. Working
to create hope and opportunity
through fair trade, artisans, customers, volunteers
and staff demonstrate passionate intention. Talented
artisans build better lives for their families by
crafting beautiful products; volunteers and staff share
boundless energy and creativity; customers delight
in giving gifts that give twice, finding meaning in
beautiful, unique products.
These are the values Ten Thousand Villages was
founded upon 65 years ago, though this year we
articulated our purpose in a new mission statement.
Ten Thousand Villages creates opportunities
for artisans in developing countries to earn
income by bringing their products and stories
to our markets through long-term, fair trading
relationships. This statement distinguishes our
organization. We emphasize our efforts to alleviate
poverty through trade, rather than aid. We highlight
our commitment to tell the story behind a product
and to maintain long-standing relationships with the
people who make that product.
As one of the world’s oldest and largest fair trade
organizations, we are careful in basing our important
work upon a strong foundation. In fiscal year
2011, we worked diligently to bolster our financial
position. A focus on rebuilding coupled with a strong
holiday season resulted in $25 million in sales, an
increase of 6.7% from 2010.
A bright future lies ahead. During fiscal year 2011,
we opened four new stores and prepared for the
April 2011 opening of another. E-commerce sales
grew 21% this year, marking a two-year increase
of more than 46%. The opportunity to grow new
markets means opportunity to increase purchases
from our artisan partners.
We strive to provide an exceptional experience
for all—from artisans to customers to staff and
volunteers. During the past year, we purchased
handcrafted goods from 123 artisan groups in
35 countries, partnering with these groups to
develop and introduce 647 new products. We
provided tools and looms to Pakistani artisans
allowing them to return to work after their homes
and workshops were destroyed by flooding.
We traveled with a group of staff and volunteers
on our annual learning tour, visiting artisans in
Cambodia and Laos.
To all the generous people who have joined us in
this common purpose with true passion, thank you.
Together, we are fulfilling our mission, creating
opportunities for artisans, and changing lives
and communities.
Fair Trade Means…
AT TEN THOUSAND VILLAGES,
A Fair Price
We pay mutually agreed upon fair prices
for artisans’ creations.
Cash Advances and Prompt Final Payment
Capital up-front helps build sustainable businesses.
Long-Term Relationships
Consistent orders support artisans’ long-term planning.
Design Collaboration
Trend and style information helps artisans
adapt traditional skills.
Craig R. Schloneger
Chief Executive Officer
May 2011
Environmental Responsibility
We emphasize sustainable practices, recycled and
natural materials.
To learn more about us or to shop online, visit
tenthousandvillages.com
www.tenthousandvillages.com
5
Photo © Lynn Johnson
Working Together
PEOPLE. PURPOSE. PASSION.
If there is work, a family has something to focus on,
something that makes them feel like they are building a step in their future.
Just sitting around, looking at the water and wondering what is
coming next doesn’t make it easy
for these families.
TO FULFILL OUR MISSION.
Nasir Gul, village supervisor in Dera Ghazi Khan, Pakistan,
during the 2010 flood recovery efforts
Opportunities
FOR ARTISANS
Ten Thousand Villages works to improve
the livelihood of thousands of skilled
artisans in 35 countries. Product sales
generate income for artisans who
would otherwise be unemployed or
underemployed, enabling them to provide
food, education, health care and housing
for their families.
a marketable product. During 2010,
flooding throughout Pakistan directly
affected a number of artisans, destroying
their homes and workshops. Bunyaad,
a Ten Thousand Villages artisan group,
helped rebuild seven family homes in
Dera Ghazi Khan district, and used
$10,000 from the Special Needs Fund
to replace family looms, tools and
materials, so that both men and women
could return to work.
The Artisan Special Needs Fund is used
to assist artisan groups with extraordinary
expenses, such as disaster recovery,
or to enhance their ability to produce
Sharing
When we make jewelry
[like this dove pendant]
then we know our
country has peace.
ARTISANS’ STORIES
Rajana silversmith
Rajana, which helps
young people gain
skills in handicrafts
production and
marketing, transforms
bomb casings into
statements for peace.
6
Ten Thousand Villages Annual Report
Photo © Lynn Johnson
Every Ten Thousand Villages product
tells a story—about the crafting process,
about the artistic design, and about the
life-changing effect fair trade has for the
artisan who creates it. We are committed
to hands-on learning experiences and to
sharing these stories—through descriptive
tagging, evocative imagery and in-store
signage—with staff, volunteers and
customers.
In June 2010, artisans from Peru and
Colombia visited the U.S. for National
Workshops. More than 150 participants
from stores across the country attended
the conference, and they learned
from artisans about their art, lives
and countries.
In February 2011, a group of 13
Ten Thousand Villages store and
home office staff visited artisan
groups in Southeast Asia: Rehab Craft
and Rajana Association in Cambodia
and Phontong Handicrafts in Laos.
Growing
OUR MARKETS
Growth and success in our markets
translate directly to improved lives
for artisans and their families. We use
net revenues to increase craft purchases
and to expand our distribution channels.
In fiscal year 2011, Ten Thousand Villages
brought artisans’ crafts to customers
through 74 stores across the U.S.,
a burgeoning e-commerce website and
as a wholesale supplier to several hundred
retailers. Additionally, local groups at
churches, colleges and community centers
around the country host more than
280 Festival Sales annually. Our oldest
distribution channel, Festival Sales are
short-term community events that enable
individuals and organizations to support
our mission and learn about fair trade.
In 2010, Ten Thousand Villages opened
stores in Pigeon Forge, Tennessee and
South Windsor, Connecticut, and in
Pennsylvania at Lehigh Valley Mall and
King of Prussia Mall, one of the largest
shopping complexes in the U.S. We put
the final touches on the opening of a
store located on Charlottesville, Virginia’s
historic Downtown Mall, one of the most
beautiful and successful pedestrian malls
in the nation. Charlottesville is the first
store to open in fiscal year 2012. We also
assisted in the relocation of the Dayton,
Virginia store to downtown Harrisonburg,
where they have expanded hours and
more opportunity for events. Customers
visiting our stores meet staff and
volunteers who share a passion for our
beautiful products and our people-driven
mission.
Fair Trading
LONG-TERM,
RELATIONSHIPS
Photo © Lynn Johnson
The group spent two weeks meeting
artisans and their families, learning about
the history of their villages, participating
in their culture and observing their crafts
and processes—from silk weaving to
ceramics, soap making to woodcarving.
Decades of war in Cambodia have littered
the landscape with bomb casings,
as well as bombs that have not yet
exploded. Artisans working with Rajana
create necklaces from casings that are
collected by a demining agency that is
working to make land safe once again for
communities throughout Cambodia.
A founding member of the World Fair
Trade Organization, Ten Thousand
Villages has spent 65 years cultivating
long-term buying relationships in which
artisans receive a fair price for their work
and customers have access to unique gifts,
accessories and home decor from around
the world.
As we increase sales
and open new markets,
we create more
opportunities for artisans to earn
income that will feed and house their
families and educate their children.
Tom Wenger, Sales Director
STORE NETWORK SNAPSHOT
as of March 31, 2011
Ten Thousand Villages Stores
Alliance Accounts
States in which we
hosted Festival Sales
Corporate Staff Members
Volunteers
74
351
47
294
4,500+
By making long-term commitments
to purchasing from artisan groups,
we enhance their capacity to be
successful and enable them to plan for
the future. Consistent purchases provide
a sustainable source of income that is
used for food, shelter, health care and
education, and that provides technology
and skills training toward achieving full
business potential. At Ten Thousand
As a nonprofit retail network,
we strive to be fair trade leaders,
coupling our mission with
sustainable economic and
environmental practices.
Craig Schloneger, Chief Executive Officer
of Ten Thousand Villages
Photo © Jonathon Bowman
Kokila Pius works as a tailor in Ahmedabad,
India with St. Mary’s Mahila Shikshan Kendra.
Ten Thousand Villages has purchased products
from St. Mary’s since 1987.
Villages, the average length of purchasing
relationships is 13.5 years. Our oldest
purchasing relationship, with Surif
Women’s Cooperative in the West Bank,
dates to 1952.
We encourage our staff and artisan
partners to use environmentally friendly
processes, sustainable natural resources
and recycled materials to ensure each
product is crafted and offered responsibly.
Our commitment to being good for
people and good for the earth has
not gone unnoticed. For the fourth
consecutive year, Ten Thousand Villages
was named one of the World’s Most
Ethical Companies by the Ethisphere
Institute.
www.tenthousandvillages.com
7
Financial SUMMARy
Ten Thousand Villages is committed to balancing sound financial management with our promise of offering cash
advances to artisan groups when orders are placed, and paying artisans in full for each order immediately upon
shipment. This capital allows artisans to purchase equipment and raw materials without taking high-interest loans.
Pam Raffensberger, Chief Financial Officer
STATEMENT OF INCOME AND EXPENSE
BALANCE SHEETS
For Year Ended For Year Ended
March 31, 2011 March 31, 2010
SALES
Retail Stores
Contract Stores
Alliance Accounts
E-Commerce
Festival Sales
Rug Sales
Other
$11,435,348
7,346,694
2,703,985
1,451,301
998,218
646,081
395,194
__________
$9,949,423
7,325,024
2,986,599
1,197,045
1,018,929
533,861
395,514
__________
Total Sales
$24,976,821
$23,406,395
COST OF GOODS SOLD
Purchases
Importing and Other Costs
Decrease in Ending Inventory
Total Cost of Goods Sold
$7,204,797
1,044,584
523,817
__________
$8,773,198
$6,694,856
913,843
625,660
__________
$8,234,359
GROSS MARGIN
GROSS MARGIN % OF SALES
$16,203,623
65%
$15,172,036
65%
EXPENSES
Warehouse
$3,305,324
E-Commerce
675,766
Sales, Merchandising & Marketing
2,188,110
Retail Stores
6,741,488
Administration
2,946,048
__________
Total Expenses
$15,856,736
$3,162,693
564,786
2,020,426
6,254,235
2,928,727
__________
$14,930,867
NET OTHER INCOME/(EXPENSE) $389,126
NET INCOME
$736,013
($1,717)
$239,452
8
Ten Thousand Villages Annual Report
ANNUAL SALES HISTORy
As of
As of
March 31, 2011 March 31, 2010
ASSETS
Cash
$932,322
Accounts Receivable
668,830
Inventory
6,678,838
Prepaid Expenses and Deposits
594,920
Advances to Artisans
1,762,476
Long-term Receivables
76,658
Equipment and Vehicles
947,165
Land and Buildings
1,588,276
MASP Reserve Fund
289,395
__________
Total Assets
$13,538,880
$984,285
679,745
7,202,655
560,699
1,322,088
117,624
844,299
1,335,732
__________$13,047,127
LIAbILITIES
Accounts Payable and Accruals 1,876,521
Long-Term Notes and Payables __________
326,176
Total Liabilities
$2,202,697
1,844,001
602,957
__________
$2,446,958
EquITy
$11,336,183
$10,600,169
Total Liabilities plus Equity
$13,538,880
$13,047,127
Total
Percent
Change
FY 2002
12,599,867
15.4%
FY 2003
14,624,475
16.1%
FY 2004
15,243,106
4.2%
FY 2005
16,085,865
5.5%
FY 2006
20,135,080
25.2%
FY 2007
23,487,984
16.7%
FY 2008
25,513,297
8.6%
FY 2009
23,948,726
-6.1%
FY 2010
23,406,395
-2.3%
FY 2011
24,976,821
6.7%
U.S. SAles ($million)
U.S. Sales (Million)
0
4
8
12
16
20
24
28
02
Year Ending (March)
YEAR ENDING (MARCH)
03
04
05
06
07
08
09
10
11
U.S. AND CANADA
FY11 Figures in U.S. Dollars
Combined U.S. & Canada Sales
$39,000,000
Combined U.S. & Canada Purchases
$13,000,000
Ten Thousand Villages Canada is incorporated separately as a nonprofit
organization and is operationally and financially independent from
Ten Thousand Villages U.S. However, both organizations maintain a deep
commitment to our shared mission of creating opportunities for artisans
in developing countries to earn income by bringing their products and
stories to our markets through long-term, fair trading relationships.
Together, and with the support of customers across North America,
we are committed to a shared vision of alleviating global poverty
through fair trade business practices.
9
Photo © Lynn Johnson
Seeing products beautifully displayed in each store,
it can be easy to forget the accomplishment that
each item represents. From communities where
opportunity and resources are extremely scarce,
artisans depend upon their ingenuity, tradition
and sheer determination to craft works of art that
captivate us time and again.
Kathleen Campbell, Purchasing Director
Photo © Lynn Johnson
Artisans at Rehab Craft Cambodia, which provides employment for individuals
with disabilities, display colorful products made from recycled fish food bags.
ARTISAN SUPPORT SNAPSHOT
as of March 31, 2011
Countries from which we purchased
35
Artisan groups
123
New items introduced
647
Craft purchases from artisans $6.5 million
Buyers’ trips
40 groups in 10 countries
Joel Santiago, artisan,
Huancayo, Peru
10
PURCHASES By COUNTRy
For Year Ended March 31
CRAFTS
India
Pakistan
Bangladesh
Peru
Vietnam
Kenya
Indonesia
Nepal
Philippines
West Bank
Haiti
Guatemala
Ecuador
Mexico
Uganda
Colombia
Egypt
Burkina Faso
Chile
Cambodia
Niger
Tanzania
Bolivia
Nicaragua
Nigeria
Ghana
Cameroon
El Salvador
Honduras
Democratic Republic of the Congo
Laos
Sri Lanka
South Africa
Zimbabwe
Ethiopia
Thailand
Liberia
Israel
FOOD AND OTHER PRODUCTS
Coffee, Tea, and Chocolate
Int’l Music, Books, and Miscellaneous
STORE AND OTHER SUPPLIES
TOTAL PuRCHASES
PURCHASES By REGION
For Year Ended March 31
FY 2011
FY 2010
$1,603,598
726,821
557,792
493,598
467,483
407,923
365,001
341,195
333,215
121,575
115,908
113,337
81,025
78,861
67,945
62,441
59,627
58,137
51,190
49,949
36,022
33,705
32,717
29,959
27,740
26,313
24,905
23,663
21,222
20,430
19,855
17,596
14,205
7,875
7,388
5,004
0
0
$1,367,888
617,334
483,420
522,218
462,290
360,490
375,731
354,855
278,682
118,401
83,587
109,741
74,579
62,452
48,109
47,826
42,913
58,641
63,660
52,753
36,698
24,906
35,697
43,039
8,035
31,490
38,098
23,588
19,819
10,750
43,607
27,975
13,047
19,192
4,108
10,703
1,400
12,913
301,882
173,129
261,851
177,265
224,568
_________
265,105
_________
$7,204,797
$6,694,856
FY 2011 Total
FY 2010 Total
$3,247,002
$2,851,472
East Asia
1,240,508
1,223,765
Latin America/Caribbean
1,103,919
1,086,206
Africa
732,587
654,965
Middle East
181,201
174,227
Other
699,579
_________
704,221
_________
TOTAL
$7,204,797
$6,694,856
South Asia
TEN THOUSAND VILLAGES BOARD OF DIRECTORS
left to right: Gordon A. Zook, Craig R. Schloneger (Ten Thousand Villages U.S.
CEO), John E. Yoder, Tonya Neff Klause, Karen Klassen Harder, Kristy L. Schultz,
Don Epp (Ten Thousand Villages Canada CEO), Arli E. Klassen (Mennonite
Central Committee Executive Director/Ex Officio), J. Alex Hartzler (Chair),
M. Jacob Makoyo, Luke M. Roush (Vice Chair)
Not pictured: Marcus D. Shantz (Secretary/Treasurer)
PRINCIPLES OF OPERATION
Ten Thousand Villages operates as a business with a compassionate
mission by maintaining integrity in our actions and relationships.
We market quality products from diverse cultures around the world
made by people we know and care enough about
to do business with in a manner that together we consider fair.
2011 PURCHASES BY REGION
OTHER
MIDDLE EAST 10%
3%
AFRICA
10%
SOUTH ASIA
45%
• We honor the value of
• We choose handicrafts that
seeking to bring justice
and hope to the poor.
LATIN AMERICA/
CARIBBEAN
15%
• We trade with artisan groups
who pay fair wages and
demonstrate concern for
their members’ welfare.
EAST ASIA 17%
• We encourage North
American customers to
learn about fair trade and
to appreciate artisans’
cultural heritage and life
circumstances with joy
and respect.
• We provide consistent
purchases, advances and
prompt final payments
to artisans.
• We increase market share
in North America for fairly
traded handicrafts.
A NONPROFIT PROGRAM OF
MENNONITE CENTRAL COMMITTEE
MCC is a worldwide ministry
of Anabaptist churches,
sharing God’s love and compassion
for all in the name of Christ by
responding to basic human needs
and working for peace and justice.
Sunrise over Laos during February 2011 Learning Tour.
Photo © Lynn Johnson
reflect and reinforce rich
cultural traditions, that are
environmentally sensitive
and which appeal to the
North American consumer.
• We use resources carefully
• We market quality products
that are crafted by
underemployed artisans.
and value volunteers who
work in our North American
operations.
MEMBER
• We build sustainable
operations using a variety
of sales channels, including
a network of stores with
a common identity.
www.tenthousandvillages.com
11
704 Main Street, PO Box 307
Akron, PA 17501
(717) 859-8100
Use this logo for reductions only, do not print magenta. Do not reduce more than 40%.
Magenta indicates the clear area, nothing should print in this space
Color PMS 1805
www.tenthousandvillages.com
Photo © Lynn Johnson