Annual Report 2011

ChangingChildren's Lives Forever

ANNUAL REPORT 2011

*Dagim — Ethiopialived with his father and two siblings in a dilapidated hut in Ethiopia. His

mother recently died from AIDS and his father, Anamo, was left to care for Dagim

on his own. He considered releasing Dagim into Holt’s care. Instead, Holt offered

this helpless father assistance, providing him with chickens and start-up busi-

ness supplies. Giving livestock to impoverished families can make a world of

difference. Chickens create a wonderful resource for nutrients and a substantial

means of income. Through Holt support, Dagim and his siblings were able to stay

with their father, and in 2011, Anamo graduated from Holt’s family preservation

program — stronger, self-sufficient and able to care for his children.

*Watsana — Thailandlives with her loving foster mother, Mrs. Patchara, in Thailand. In October

2011, flood damage reached a critical stage in the two rural provinces where

most of Holt’s foster families in Thailand reside. After transporting many of the

families—including Watsana and her foster mother—from flooded homes to

temporary shelters or to stay with relatives, Holt’s staff provided weekly distribu-

tions of food, water and supplies and worked to ensure all urgent needs were met.

“I always feel supported by Holt during difficulties," says Mrs. Patchara. “During

the flood, the staff called every day and responded immediately to my needs.”

Today, homes are being rebuilt for Holt foster families in Thailand and, with the

help of generous donors, they have started to rebuild their lives.

*Donald — Chinaneeds a family. He’s a smart, outgoing little boy with a ready smile. Donald

has spina bifida and will need extra help finding the right loving family. The

majority of children available for international adoption today have some form of

special need, are older or in a sibling group. This year, Holt placed more children

who have special needs with loving families than any year before. We will con-

tinue to find families for children through domestic or international adoption.

For I assisted the poor in their need, and the orphans who required help.” – Job 29:12

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Opening Doors, Changing LivesGod continues to bless Holt International in abundance. Our work for children

always has been and always will be a reflection of Christ’s love. And I know I

speak for everyone at Holt when I say we are excited to embark on new opportu-

nities in the countries and among the people we serve, and determined now more

than ever to continue this work – the work that Harry and Bertha Holt started

over 55 years ago – for the world’s most vulnerable children.

Love, it seems, can be felt in all facets of Holt’s work. It was love, and a passion

for the message of James 1:27 (…to look after orphans), that led 18,000 individuals

to say ‘Yes!’ to becoming a Holt child sponsor in 2011. Their monthly contribu-

tions have brought warm clothes to children in Mongolia, food and medicines

to North Korean orphanages, school supplies and books to girls in India, and

income-generating livestock to struggling families in Ethiopia.

Like many adoption agencies, we too met with obstacles in 2011. But when

God closes the door on one country or project, He always provides Holt another

opportunity to care for children.

In 2011, 561 children were placed through Holt with forever families in the

United States. More than ever, families welcomed children with special needs

into their homes and their hearts. The face of international adoption has

changed, and prospective adoptive families are whole-heartedly embracing it.

Harry and Bertha would be happy to know that children with special needs are

now first in line to join loving adoptive families overseas.

In April, Holt celebrated its 55th year with a conference in our nation’s capital.

We reconnected with some of Holt’s first adoptees and learned how to better

assist younger generations. Through our successful adoptee camps and heritage

tours, Holt will continue to reach out to adoptees and their families.

In 2011, Holt helped thousands of children through adoption and other efforts.

As you look over our annual report summary, please realize that this would not

have been possible without our devoted foster mothers, caregivers and other

compassionate people like you.

You have taken hold of Holt’s mission and the children, and for this, I am truly

grateful.

Blessings,

Phillip Littleton | President and CEO

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Family Preservation

In countries around the world, Holt works to keep families together by providing the fundamental support parents need

to give their children a safe, stable home. We supplement nutrition, provide medical care and send children to school. We

provide microloans for small businesses and train parents in income-generating trades. Through these efforts and allied

with our partners overseas, we help families work toward a place of self-reliance and lasting stability. Last year, Holt sig-

nificantly expanded the number of families and broadened services in almost all of our family preservation programs.

Throughout the year, many families also successfully exited the program. In Ethiopia last February, 120 families partici-

pated in a graduation ceremony celebrating their extraordinary achievement. By year’s end, every one of the original 360

families had graduated. While in Thailand, China, Haiti, the Philippines and Uganda, Holt helped thousands more children

to stay in the loving care of their birth families.

Family Reunification

Before pursuing domestic or international adoption, our partners overseas first strive to determine whether children

can return to their birth families. Many homeless children have living parents or relatives whose lack of resources, not

lack of love, compelled them to relinquish their child. With a little assistance, however, many birth families can continue

caring for their children. In Guatemala last year, Holt, the Guatemalan government and local NGOs successfully completed

reforms to the country’s system of child welfare, enabling over 1,000 children to reunite with their birth families. These

families continue to receive support through government-sponsored programs in Guatemala.

Foster Care

Rather than institutional care, Holt strives to place children in a more attentive, family-like environment while they wait

to join permanent families. In many countries, Holt has introduced model foster care programs designed to nurture chil-

dren’s growth and development. In the loving embrace of a foster family, children are able to reach critical developmental

milestones, and develop healthy emotional attachments. In countries such as China and South Korea, many children stay

in foster care while Holt works to find them adoptive families. Holt also supports and advocates for foster care in countries

where international adoption is not currently active, such as in Vietnam – home to one of our longest-standing foster care

programs.

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Our Work | Highlights from 2011

Nutrition

Many children enter into care weak and malnourished. With proper nutrition, their health and development dramati-

cally improves – often giving them the strength to rejoin their families or join an adoptive family. Several of Holt’s partner

programs provide regular meals and nutrition training to help struggling families. Last year, Holt partnered with the

government of Vietnam to strengthen day care programs for children in several low-income communities. While children

participate in learning activities, their parents receive education in child nutrition, hygiene, health and development. In

countries such as Vietnam, Cambodia and Ethiopia, Holt also provides livestock for families in our family preservation

programs – providing both constant nutrition and the basis for a small family business.

Medical Care

Critical to the health and wellbeing of families and children, basic medical care is an integral part of our services. All

children in the care of our partners overseas receive vaccinations and other routine medical care. More and more, children

we support and seek homes for also have medical conditions that require surgery or other involved care. Last September,

Holt assumed management of the Ping An Medical Foster Home – or “Peace House” – providing before-and-after care for

orphaned and abandoned children in China who come to Beijing for medical treatment. As their health improves, many of

these children will go on to join adoptive families in China or the U.S.

Education

A significant component of family preservation, educational support includes vocational training for parents, sponsor-

ship for children to attend school, and also parenting classes to help families raise strong, healthy children. Last year,

Holt initiated a pilot vocational training project for woman-headed families belonging to the “Dalit” caste – comprising the

most shunned and most impoverished families in Nepal. Through this program, single mothers will begin earning vital

income to support their families. In India, educational sponsorship helped cover the cost of books, fees, uniforms and sup-

plies needed for 370 children to attend school – most of them girls. While in Haiti, Holt began a school and student-based

sponsorship program – keeping 300 at-risk children in school, and working with educators to monitor their health and

wellbeing.

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Domestic Adoption

Circumstances sometimes make it impossible to reunite children with their birth families. For these children, we first

try to place them with loving families in their birth country. Giving children the opportunity to grow up in their birth

country and culture is central to an ethical system of adoption, and we have long promoted it in the countries where we

work. Because of recurring social stigmas, however, domestic – or in-country – adoption has been slow to develop. But

as cultures grow and change, many more children have in recent years found the loving families they deserve through

domestic adoption.

International Adoption

Not every child is able to rejoin their birth family or join an adoptive family in their birth country. For these children,

we seek homes in the U.S. Since our founding in 1956, Holt has placed more than 40,000 children with families through

international adoption. In recent years, however, the profile of children needing homes – and coming home to families – has

changed. In many of the countries where Holt works, growing economies are giving birth families the resources to care for

their children. As domestic adoption also becomes more socially accepted, orphaned and abandoned children are increas-

ingly finding adoptive families in their birth countries. Most of the children adopted domestically are healthy, infant girls.

As a result, children who once waited longer than others to find families – children with special healthcare needs, older

children, and boys – are now first in line for international adoption

S. Korea, 1956–

Bangladesh, 1972–73

Ecuador, 1987–2005

Bulgaria, 2002-04, 08-11

Brazil, 1984–95

China, 1993–

Costa Rica, 1986–94

Colombia, 1984–88

El Salvador, 1984–86Guatemala, 1986–

Haiti, 2003–

Honduras, 1983–86

Hong Kong, 1986–2001

India, 1979–

Nepal, 2008–

Mexico, 2001–02

Mongolia, 2000–

Nicaragua, 1976–82

Peru, 1984–85

Philippines, 1972–

Romania, 1989–

Russia, 91–94, 98–02

Taiwan, 1979–82

U.S.A., 1956–

Vietnam, 73–75, 89–

N. Korea, 1998–

Cambodia, 91–93, 05–Uganda, 2002–

Thailand, 1976–

Ukraine, 2004–10

Ethiopia, 2007–

Kazakhstan, 2006–08

Bolivia, 1985–88

Chile, 1984–85

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Programs for Children with Special Needs

Children who are older, have special needs or are part of sibling groups often wait longer for families. Holt has for

many years made extra effort to find loving homes for these children, and supported in-country programs that help them

develop to their fullest potential. Last year, Holt initiated a special program to promote adoption of older children in the

Philippines. A team of 6 ambassadors traveled to the Philippines to meet 11 older children. Upon return home, they began

advocating for their adoption. By the end of 2011, 5 of the 11 children had families. Among in-country programs to serve

children with special needs, our first – the Ilsan Center in South Korea – celebrated its 50th anniversary in December. In

1961, Harry and Bertha Holt founded this long-term care facility for children who weren’t likely to be adopted, often chil-

dren with profound medical and developmental conditions. Today, the Ilsan Center continues to provide short and long-

term rehabilitation, vocational skills training and many other services for children and adults with disabilities.

Post Adoption Services

Holt offers a range of services to address the continuing needs of adoptees, adoptive parents and birth parents – from

counseling for families and assistance with birth searches to heritage tours and adoptee camps. Holt Adoptee Camps pro-

vide a particularly unique experience for adoptees, as they are the only camps of their kind designed specifically to foster

healthy adoptee identities. In 2011, Holt Adoptee Camp expanded from four to six locations – adding camps in Wisconsin

and Georgia – and served 559 children. The Post Adoption Services Department at Holt helps adoptees regardless of agency

affiliation and last year, provided services for over 3,900 adoptees and families – many of them not previously associ-

ated with Holt. In an effort to strengthen post-adoption education and support, Holt also initiated a partnership with the

non-profit organization Adoption Mosaic. Together, Holt and Adoption Mosaic presented two free, informational webinars

addressing various post-adoption issues.

S. Korea, 1956–

Bangladesh, 1972–73

Ecuador, 1987–2005

Bulgaria, 2002-04, 08-11

Brazil, 1984–95

China, 1993–

Costa Rica, 1986–94

Colombia, 1984–88

El Salvador, 1984–86Guatemala, 1986–

Haiti, 2003–

Honduras, 1983–86

Hong Kong, 1986–2001

India, 1979–

Nepal, 2008–

Mexico, 2001–02

Mongolia, 2000–

Nicaragua, 1976–82

Peru, 1984–85

Philippines, 1972–

Romania, 1989–

Russia, 91–94, 98–02

Taiwan, 1979–82

U.S.A., 1956–

Vietnam, 73–75, 89–

N. Korea, 1998–

Cambodia, 91–93, 05–Uganda, 2002–

Thailand, 1976–

Ukraine, 2004–10

Ethiopia, 2007–

Kazakhstan, 2006–08

Bolivia, 1985–88

Chile, 1984–85

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ASSETS 2011 2010 Cash & Cash Equivalents $1,830,565 $2,156,303

Receivables 1,295,266 1,013,927

Prepaid Expenses & Supplies 541,633 372,820

Prepaid Support - Holt Children's Services, Korea 1,778,416 1,467,466

Investments 6,059,136 6,377,860

Promise to give, net of discount 529,582 543,941

Land, Building, & Equipment, Net of Accumulated Depreciation 1,449,404 1,500,801

Total Assets $13,484,002 $13,433,118

LIABILITIES Accounts Payable & Accrued Expenses $746,028 $699,510

International Program Support Payable 711,039 682,414

Deferred Adoption Fee Revenue 4,553,974 3,989,804

Deferred Transportation Fees 79,260 76,070

Deferred Revenue - Other 30,250 13,325

Deferred Compensation 102,157 94,395

Annuity Obligation 255,133 194,042

Total Liabilities 6,477,841 5,749,560

NET ASSETS Unrestricted Net Assets:

Undesignated Net Assets 1,439,690 1,792,772

Board Designated Endowment 1,646,302 1,892,973

Temporarily Restricted Net Assets 953,709 1,245,533

Permanently Restricted Net Assets 2,966,460 2,752,280

Total Net Assets 7,006,161 7,683,558

Total Liabilities & Net Assets $13,484,002 $13,433,118

Statement of financial positionDecember 31, 2011 (with Comparative Totals for December 31, 2010)

COUNCIL ONACCREDITATION

FOUNDED1977

Hague AccreditedProgram Services

Fundraising

Management & General

72.5%

9.8%

17.7%

2011 expenses

The partnership between Holt and its

supporters changes children’s lives. We at

Holt recognize that we serve as the hands and

feet of very caring and generous people. We

strive to use our financial resources effectively

and efficiently, and maintain an open and

transparent relationship with our donors. Holt

undergoes an annual audit performed by an

independent accounting firm. The following

charts are based upon the report of Moss

Adams. A complete audit report is available and

gladly provided upon request. The download-

able version is also available on our website at

holtinternational.org

Holt International is a Christian organization

committed to expressing God’s compassion for

children. While always upholding the highest

ethical standards, we:

• Find and support permanent, loving

families for children who are orphaned,

abandoned or at serious risk of separation

from their family

• Provideservicestoensurethatchildrenwill

grow and develop to their fullest potential

• Leadtheglobalcommunityinadvocating

on behalf of the world’s most vulnerable

children

A world where every child has a loving and

secure home.

A Partnership for the Children

Our Mission

Our Vision

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2011 2010

REVENUES & OTHER SUPPORT Unrestricted Temporarily

Restricted Permanently

Restricted Total Total

Public Support:

Sponsorship Contributions $ 439,492 $9,300,102 - $9,739,594 $7,461,605

Other Contributions 1,208,810 2,121,308 105,587 3,435,705 3,473,651

Promise to give - 60,056 108,593 168,649 629,941

Grants Received:

USAID Grant, Ukraine - - - - 230,524

Other - 89,863 - 89,863 372,729

Revenues:

Adoption Fees 9,767,829 - - 9,767,829 10,579,353

Transportation Fees 123,020 - - 123,020 225,570

Investment, Principally Interest, Net of Investment Fees 71,953 30,188 - 102,141 120,486

Tour Charges 315,957 - - 315,957 297,491

Adoptee Services 172,355 - - 172,355 167,225

Publication Sales, Net of Expenses of $37,687 in 2011 and $26,492 in 2010 3,561 - - 3,561 3,556

Other Revenue 62,815 - - 62,815 11,304

Gains:

Gain (Loss) on Sale of Assets 100 - - 100 (185,840)

Net Unrealized/Realized Gains/ (Loss) on Investments (268,389) (119,012) - (387,401) 698,121

Net Assets Released from Restrictions 11,774,329 (11,774,329) - - -

Total Revenues & Other Support 23,671,832 (291,824) 214,180 23,594,188 24,085,746

EXPENSES Program Services:

U.S. Program 6,837,255 - - 6,837,255 6,664,654

International Program 2,164,691 - - 2,164,691 2,012,303

International Program Support:

Holt Children's Services - Korea 2,922,770 - - 2,922,770 2,422,448

Other 5,664,996 - - 5,664,996 6,751,801

Total Program Services 17,589,712 - - 17,589,712 17,851,206

Supporting Services:

Management & General 2,369,636 - - 2,369,636 2,241,976

Fundraising 4,312,237 - - 4,312,237 3,847,777

Total Supporting Services 6,681,873 - - 6,681,873 6,089,753

Total Expenses 24,271,585 - - 24,271,585 23,940,959

CHANGE IN NET ASSETS (599,753) (291,824) 214,180 ( 677,397 ) 144,787

Net Assets, Beginning of Year 3,685,745 1,245,533 2,752,280 7,683,558 7,538,771

Net Assets, End of Year $3,085,992 $ 963,709 $2,966,460 $7,006,161 $7,683,558

Statement of activitiesFor the year ended December 31, 2011 (with Comparative Totals for the year ended December 31, 2010)

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For the ChildrenHarry and Bertha Holt's Legacy of Love

In the mid-1950s, Harry and Bertha Holt saw a film about Amerasian children in Korean orphanages who were desper-

ately in need of help. Harry and Bertha sent money and clothes, but that didn’t feel like enough. Then they came to an

inspired realization – those children needed families.

Harry and Bertha decided to adopt eight Korean children, but soon learned it would be impossible…unless they could

get both Houses of Congress to pass a special law. “Then that’s what we’ll do,” Bertha said, and she moved ahead on faith.

The Holts’ adoption was revolutionary. Their example showed that a family’s love can transcend the barriers of race

and nationality. At a time when adoption was regarded as something to be kept secret, they adopted children who were

obviously not their birth children. Through their deep Christian faith and fierce determination, they showed the world that

adoption is a banner of love, not a badge of shame.

Word spread and inspired people across the nation. Many inquired as to how they, too, could adopt. Only five months

after he brought their eight children home, Harry headed back to Korea to help other children have families. Holt was offi-

cially incorporated in 1956, financed almost entirely by Harry and Bertha’s personal funds.

When Harry passed away in 1964, many thought the Holt agency would simply fold up. But Bertha said, "This work was

always God’s work. If He wants it to continue, it will." Her strength and faith persevered, and Holt continued to grow and

meet the needs of an increasing number of homeless children.

Bertha worked tirelessly on behalf of children in need until her death at age 96. She was affectionately known as

"Grandma Holt" to adoptive families and to the thousands of children around the world whose lives she changed.

Today, Holt International is proud to continue finding families for children. Holt is the largest international adoption

agency, having united more than 40,000 children with adoptive families in the United States. We offer our families unri-

valed stability, an extensive knowledge bank, a highly successful track record, and proven skills in international relations.

Most of all, Holt always has and always will be driven by what is best for the children. By upholding Harry and Bertha’s

ethics, up-front and honest practices, and ongoing support to adoptive families and children, we look forward to finding

many more homes for children who need them.

In Bertha’s words, “All children are beautiful when they’re loved.”

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P.O. Box 2880 | Eugene, OR 97402 | www.holtinternational.org