CONSTRUCTIONFOR

CHANGE

Annual Report 2009

It’s not just bricks and mortar...We build buildings that

change lives, inspire hope, and create opportunity.

We are the Constructionand here is the Change...

Welcome to CONSTRUCTION for CHANGE

Brief History & Highlights Letter from the president

Dear Supporters,

It was not long ago that Construction

for Change existed merely as a v

ision to bring

opportunity to those most in need. The hard work

and overwhelming generosity of those involved

has

now made this vision a reality. Our first full year

of operations was 2009 and it was not without

challenges. Faced with economic uncertainty n

ot

seen for decades, and t

he realities of constructing

buildings in developing cou

ntries, we had much to

consider. Fortunately, where there are challenges

there are also opportunities.

The past year has seen the development of our project m

anager

program, the development of our budget management systems, the completion

of two school buildings in Zambia, the planning a

nd execution of a highly

successful awareness banquet, the design and

precon of our current projec

t

in Kenya, partnerships with six other non profi

t organizations with projects

planned for the upcoming years, an

d the safe deployment and retu

rn of four

project managers half way across the world. We have also gro

wn from a

core group of six volunteer staff

to an operating team that includes over

thirty volunteers and five new board members. In a year of

financial peril for

individuals, companies, and foundations, w

e managed to raise over $140,000

which far exceeded our projection

s for the year.

We are proud of all of the above, but the real success exist

s in

Limulunga, Zambia where the Community School now has the classrooms

needed to provide free

education for over seven h

undred children.

Construction for Change was created

to change lives and provide ge

nuine

opportunities for individuals and com

munities who find it difficult to break

out of the poverty cycle. One only has to witness a sin

gle child walk to

class or see a single li

fe lost in sickness to

understand the importance of

stewarding our gifts and resources well. As Warren Buffet says, “

we are

winners of the ovarian lo

ttery,” and we have a choice to make.

It has been a busy year but there is no sl

owing down for Construction

for Change. With plans to build another two schools, an ec

onomic

development center, and a hospital, the challenges are

many, but so are

the opportunities. We are ever grateful for our supporters an

d cannot

succeed without your help. Please join us in 2010 as we continue setting

cornerstones for the future.

Thanks,

Nick Tosti

While attending school at the University of Washington, three

construction management students were inspired by time spent abroad in

developing countries around the world. Seemingly destitute communities that

have a desire for a better life and all it offers presented an overwhelming need. Whether it was a young child wiping the sweat off of a brow, a packed classroom with no light and little materials, a boy living in the town garbage dump longing

for a glass of clean water, or the funeral of a young girl who contracted AIDS by no

fault of her own, these experiences had a lasting affect on eventual Construction for Change founders Nick Tosti, Mike McEvoy, and Elijah Grindstaff. Many late nights together brainstorming paid off and after graduating spring of 2006 the process of starting an organization began. In November of 2007 CfC was

formed and due to a generous donor and a school in need of CfC’s expertise, our

first project began in August of 2008. A year and a half later the Limulunga Community School has two brand new buildings with 14 classrooms. CfC has start-

ed the 2010 campaign having been involved with projects in Zambia, Brazil, and Kenya and has plans for future projects in Cambodia, India, Liberia and the Domini-can Republic. The need continues to grow with over twenty project inquiries in twenty different countries in the past sixteen months.

- Raised over $140,000 in first full year of operations - Managed over $100,000 of construction- Completed design and preconstruction for first phase of project in Kenya- Completed first and second phases of project in Zambia- Added 5 new board members and are actively talking to others who are interested

- Worked with over 30 volunteers in many different capacities

2009 AT A GLIMPSE:

ZAMBIABudget: $200,000

Type: Community school

Specs: 2 buildings, approx 7,000 sq. ft

Status:Completed

Located just outside of Mongu, a small village in Western Zambia, Limulunga Community School has been providing free education for the community since 2002.

The Zambian government’s educational curriculum is the basis for academics at the community school. This includes Social Studies, Community Studies, Creative and Technology Studies, English, Numeracy, Silozi (local language), and Literacy. The school is run by headmistress Mbuywana Mbukusita-Lewanika. There are around 560 students currently enrolled, ranging in age from 5 to 18. There are 16 full-time teachers that cover grades K-7.

The school that was completed this past February by CfC replaced the old structure and will allow the school to meet the growing needs for education in the

community. The new school has 14 new classrooms and will allow for over 700 kids to attend. It will also give them the ability to eventually expand education to grades K-12.

Outside of education, the facility can now make use of a new well that provides clean drinking water.

Limulunga Community School

COMPLE

TED

“It’s exciting to work with such a unique organization that has provided a much needed service to a well deserving organization in Zambia.” -Dan Wachtler Project Manager

Dan & Kyle with the work crew in front of completed school building.

KENYABudget: $175,000

Type: EconomicDevelopment Center

Specs: 6 buildings

Status:Under constructionfundraising

Located in Bungoma, Kenya, One Acre Fund was created to empower East African families so that they can overcome poverty and hunger. One Acre Fund has successfully tripled their clients agricultural yield through agricultural education,

providing material capital, creating harvest markets, and insuring crops. The One Acre Fund office complex (now under construction) will provide additional office and educational space as well as allow One Acre Fund to centrally locate their in-country operations.

One Acre Fund currently has a clientele of around 12,000 Kenyans, mostly women, and plans to increase that number to around 33,000 in the next two years. One Acre Fund has already procured $100,000 for the project, enough to cover the first phase. Construction for Change has partnered with One Acre Fund to provide the remaining fundraising, project design, and construction management.

ONE ACRE FUND

IN PROG

RESS

CAMBODIASTEPBudget: $60,000

Type: School

Specs: approx. 3,500 sq. ft.

Status:fundraisingprecon

Project Rendering

Located in Kampong Cham, Cambodia, STEP works with the public school system to improve infrastructure and supply supplemental income for school

teachers so they do not have to take on a second job. STEP also provides upgraded teaching materials, teacher training, and improved school

infrastructure.

Construction for Change has partnered with STEP to raise funds and provide the construction management for a kindergarten building to be added to the Lveatay school campus. The Meanchey District currently has no other kindergarten options besides the two temporary classrooms on the Lveatay campus that provide cramped space and a very poor learning enviroment for around 100

children. With the completion of the new school building the school will be able

to add a third kindergarten teacher and increase the number of kindergarten students to between 150 and 200.

“Without CfC, we would be living and working in concrete boxes. And now, after CfC, we have a permanent, productive, and pleasant place for our organization to grow.” -Andrew Youn One Acre fund Executive Director

THE PROCESS

1. Initial ContactCfC is approached by an organization for potential

partnership. The organization is asked to fill out a project application and provide any additional information important to the project.

2. Review ApplicationCfC carefully reviews the application in order to

determine if their work aligns with CfC’s mission and goals. The starting point for this step is the UN Millennium Development Goals (MGDs). As an organization we measure our impact based on the

globally recognized MDG’s, and do so with each applying organization as well.

3. Research OrganIzationOnce it has been determined that the applying

organization sufficiently aligns with the mission and goals, CfC further researches the organization to gather

important information regarding their long term

commitment to the cause, their financial responsibility, and their plan for the future.

4. Begin Partnership

Details of Partnership

CfC and the organization discuss partnership and

begin collaboration to start the fundraising, design,

and construction of the project.

Partial Funding

Design

ConstructionManagement

❑ Since smaller organizations have difficulty raising the one time large sum of money necessary for each project, Construction for Change will provide anywhere from 0% to 100% of the construction costs.

❑ Each project is it’s own case and must be looked at separately from other projects. Partial funding is dependent on the project size and the organization’s ability to raise funds.

❑ Projects designed by CfC take into account local resources, topography, and climate to create a structure that is efficient while meeting the local organization’s needs.

❑ Partnering organizations will often require a full design created for each respective project, CfC partners with architects and engineers to provide this service if it is needed.

❑ CfC provides all the management necessary to complete the project. This includes 1-2 project managers that volunteer and live in the community for the duration of the project as well as all scheduling, budgeting, procurement, quality control, and value engineering.

❑ CfC hires all local labor and uses all local methods and materials. We do our best to invest in the local economy at all times to provide secondary benefits to the community.

❑ Designs also include simple layout changes and aesthetics that add design interest and create an inviting environment. This can generally be done by adding little or no cost to the structure.

❑ CfC also aims at providing training to local laborers whenever possible.

Financial Statement OverviewYear of

2009

YTD Funds Raised

Total Assets

Net Equity

Unrestricted Funds

$142 ,630 .00

$53 ,416 .00

$52 ,337 .00

$1 ,027 .00

Allocation Cash Outflows % Cash Outflows

Projects (98,634.00)$ 87.1%

Fundraising/Marketing (12,209.00)$ 10.8%

Overhead (2,344.00)$ 2.1%

Grand Total (113,187.00)$ 100.0%

87.7%

10.8%

2.1%

Projects

Fundraising/Marketing

Overhead

Allocation Cash Outflows % Cash Outflows

Projects (98,634.00)$ 87.1%

Fundraising/Marketing (12,209.00)$ 10.8%

Overhead (2,344.00)$ 2.1%

Grand Total (113,187.00)$ 100.0%

87.7%

10.8%

2.1%

Projects

Fundraising/Marketing

Overhead

Allocation of Funds (USD)

Letter from the CFO

Construction for Change’s first full year of operations was 2009 and as such we had to overcome many

challenges. The stock market had declined 35% over the prior twelve months, endowments shriveled in size, and

corporations found it easy to cut charitable contributions.

A start-up non-profit will always struggle to raise funds and we faced this challenge with immense headwinds.

Even in such an environment, Construction for Changerealized great growth during our first full year of operations. A few of the financial accomplishments we are most proud of include:

-Year over year donations increased 600% and totaled nearly $150,000 in calendar year 2009.-87% of expenditures went directly to construction projects in impoverished communities.-Number of monthly recurring donors more than doubled.

-Overhead costs were cut to below 2% of total expenditures and is expected to decline even further as we take on more projects and remain an entirely volunteer-driven organization.-Zero compensation was paid to staff or Board Members.-Every $1 spent on fundraising (11% of total expenditures) returned over $14.

Moving forward, we have many reasons to expect that 2010 will be another year of great growth. New additions to our Board and volunteer staff, as well as successfully completed projects, add credibility and attract new donors. We also operate with a model that emphasizes efficient and purposeful allocation of funds. Project Managers are always at the job site to oversee all operations and cash flows, protecting us against corruption and ensuring that construction is of the highest

quality.

More importantly, the CfC team takes pride in identifying organizations that are committed to their communities for the long term. We want to build schools that

are full of students and hospitals that care for many. We feel the best approach to

ensure this will happen is to build relationships with local leaders. Last summer when I visited the Limulunga Community School our team ate dinner with Headmistress Mbyuwana and learned first hand the importance of a strong relationship with local leaders.

This fiscal year we feel that we can raise $200,000 to fund a list of shovel-ready projects in places like Cambodia (school), Kenya (offices), India (hospital) and Liberia (schools). Please join us for the ride.

Thanks, James Stoner

Board of DirectorsNick Tosti Bill StauffacherElijah Grindstaff Angela ChapmanMike McEvoy Victoria BergsagelTom Johnston Sarah OlinBehrooz Emam

Volunteer StaffNick Tosti - President & Co-founderMike McEvoy - Co-founderElijah Grindstaff - Co-founderJames Stoner - CFOMatt Lambert - CommunicationsMary Hiemstra - DesignTyler Nelsen - Project ManagerEric Hardie - Project ManagerDan Wachtler - Project ManagerKyle Parrish - Project ManagerDave Betts - Project ManagerConnor Dinnison - Project Manager

Special Thanks

Her Excellency Dr. Inonge Mbukisita-Lewanika Alex Tosti Kit & Sam Kollmeyer (Alavekios Photographic Essays) Marisa Cusack Allen and Marcia Craig Mary Herche Bill Wachtler Matt Williams Bill & Jennifer Stauffacher Mike & Kathleen Lambert Britini Port Mike McCauseland Bruce Gryniewski Nick Kot Dan Glanville Paul Hageman Fred & Janet Stephens Rich & Linda MacIntosh Gary Lin Ryan & Brooke Anderson Geneva Sipes (RW Anderson Custom Homes) (Geneva Diane Designs) Sarah Olin HILTI North America Shelby Port Jason & Jenny Koenig Ted & Fran Hiemstra (Jkoe Photography) Tim & Marcia McEvoy Jeff & Marilyn Vancil Tom & Beth Johnston Jennifer Pekol Tom Betts Jim and Patty Tosti Fiji house John Messner (University of Washington chapter) Ken Edgar Ken & Marcia Tank

2009 Management

Thank you to everyone who contributed time, finances, and talents to the Construction for

Change organization to ensure a sucessful 2009. We are ever grateful for your sacrifice and could

not have accomplished our many goals without your aid.

Graphic Design by: Alex Tosti