AGA KHAN FOUNDATION U.S.A.

AGA
KHAN
FOUNDATION
An agency
of the Aga
Khan DevelopmentU.S.A.
Network

An agency of the Aga Khan Development Network

2012

A N N UA L R E P O RT

An agency of the Aga Khan Development Network

Welcome
Contents

1 Welcome

2 Mission and Who We Are

Dear friends of Aga Khan Foundation U.S.A.,

This report shares a day in the life of the communities we serve to show what
your support has meant for them. Many live in the worlds most remote areas,
where poverty is hardest to address.

4 A Day in the Life of Our Communities

6 Lights on for Families and Small Business in
Tajikistan

8 Growing Food Security in

MOZAMBIQUE

10 Fostering Social Entrepreneurship in

Kyrgyzstan

A z i z Val L i a n i
Chairman,
National Committee

12 Participating in Governance
through Local Action in
Afghanistan

14 Helping Families Handle Emergencies in

Pakistan

16 Small Enterprises Bloom near the Gem of

Cairo

United States

22 2012 Financial Statements

25 Board of Directors, National Committee

and Staff

In 2012 we entered innovative new partnerships that multiply each contribution.

New ways to finance development included Global Development Alliances (GDAs)
with U.S. government agencies, coalitions of foundations, impact investing relationships
with private-sector investors, and community philanthropy for catalyzing communitylevel assets. One highlight in impact investing is an exciting collaboration to revitalize
Nairobi City Park (see page 17). We spotlight these new par tnerships in our
expanding communications through blogs, news articles and dialogues with our peers.
We keep learning. In 2012, AKF USA explored new ways to put local organizations
in the drivers seat with community philanthropy, and we honed our capacity to
measure the impact of our work. (See the report on Quality of Life Assessment
on www.akdn.org.)

18 Activities in the

24 Institutional Partners

For over 30 years, Aga Khan Foundation U.S.A. (AKF USA) has pursued integrated
solutions to help families overcome the incredible challenges they face every day.
Povertys challenges are like a knotted rope, and require an integrated approach
to untangle. You can tackle childhood malnutrition, for example, only if you also
improve education and livelihoods.

D r . M i r za Jah a n i
Chief Executive Ofcer

Finally, we learn from you, our donors. You generously shared your stories and
your energy. In the past two years, AKF USAs grants portfolio has grown by 30
percent, and 2012 PartnershipsInAction activities raised $8.1 million to support
AKF programs around the world, 24 hours a day. Thank you.

F ro n t C ov e r : Food security was a critical need in Tajikistan when

the Aga Khan Foundations rural development program began there in

1993. Now the program involves more than 1,200 independent village
organizations and covers a population of 730,000. The organizations,
with women forming almost half their membership, have grown to
address other local priorities including healthcare and education.

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RUSSIA
RUSSIA

CANADA

Who We Are

UNITED KINGDOM

FRANCE

PORTUGAL
PORTUGAL
UNITED STATES
STATES OF
OF AMERICA

BOSNIA-HERZEGOVINA

SYRIA

AKF USA supports work in 12 countries.

Aga Khan Foundation has branches and afliates in 20

Network (AKDN), the largest private international network of its kind,

founded by His Highness the Aga Khan. The Network brings together
an extensive history of experience in social, economic and cultural

EGYPT

PAKISTAN
PAKISTAN

MALI

INDIA

SENEGAL

KYRGYZ
KYRGYZ REPUBLIC
REPUBLIC
TAJIKISTAN
TAJIKISTAN

AFGHANISTAN

countries with its headquarters in Geneva, Switzerland.

The Foundation is an agency of the Aga Khan Development

KAZAKHSTAN

SWITZERLAND

BANGLADESH

BURKINA
BURKINA
FASO
CTE
DIVOIRE

UGANDA
UGANDA
DEMOCRATIC
REPUBLIC OF
THE CONGO
CONGO

development. Each Network agency has a mandate and expertise,

KENYA

TANZANIA

MOZAMBIQUE

ranging from environment, health, education to architecture, culture,

MADAGASCAR

access to nance, rural development, disaster reduction, the promotion

of private-sector enterprise and the revitalization of historic cities.
The Networks agencies work for the common good of all citizens,
regardless of their gender, origin or religion, with a focus on societys
most vulnerable members.
Within the Network, AKF USA mobilizes resources and strategic partnerships
with a variety of U.S.-based institutional partners including government agencies,
policy institutes, corporations, foundations, non-governmental organizations (NGOs),
universities, associations and professional networks.
AKF USA serves as a learning institution for program enhancement, policy dialogue
and disseminating best practices and knowledge resources. It collaborates in providing
technical, nancial and capacity-building support to other AKDN agencies and
programs worldwide.

Our Mission
Aga Khan Foundation U.S.A. (AKF USA) is a

private, non-denominational, not-for-profit international

organization committed to the struggle against poverty,
hunger, illiteracy and poor health, primarily in Africa and
Asia. Established in 1981, AKF USA works to address
the root causes of poverty by supporting and sharing

AKDN countries of activity

AKF countries of activity

innovative solutions in the areas of health, education,

rural development, civil society and the environment.

In facilitating and representing AKDN interests in the United States, AKF USA
organizes outreach campaigns, manages volunteer resources and conducts
development education among US constituencies.

2 0 1 2 A G A K h a n F o u n da t i o n U S A A n n ual R e p o r t

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dawn

Morning

MiDday

Afternoon

Evening

SUNSET

Through the cycle of a single day these stories trace our impact

A Day in the Life of

Our Communities

Following

a day in the life of our communities

is a way to show the

daily challenges where poverty is hardest to address, and how people

live there. We work with them every day to untangle the knot of
poverty. For example, by improving education and livelihoods, we also
address childhood malnutrition and maternal health. Likewise through
food security, we can foster enterprise and access to finance.

through the lives of different people in six places where poverty is a fact of life.
There we come to learn how the many strands of the rope can be woven
together better.
At dawn in the Pamir Mountains, Tajik families now have energy to fuel their schools
and home ventures. Early morning in Mozambique, farmers attend training sessions
to ensure they grow ample food for their families. At midday, young self-starters in
the Kyrgyz Republic pursue new social enterprises. In the afternoon, local Afghan
committees gather to hammer out priorities that are knitting their remote villages to
public services.
In the evening, savings groups meet, bringing a new hope for Pakistani women coping
with health emergencies.
As a long day of work draws to a close, small shops around Cairos popular Al-Azhar
Park are busy with businesses spurred by training and microloans.
All through EACH day,

your contributions help strengthen communities and

uphold their dignity.

2 0 1 2 A G A K h a n F o u n da t i o n U S A A n n ual R e p o r t

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Dawn | Tajikistan

Lights on for Families and Small Business in

Tajikistan
Mayram K.s workload is big

but typical for a woman in the Pamir

Mountains: cooking, cleaning, washing clothes, getting kids to school.

Until a few years ago, completing her daily tasks was much harder
because she and her family had electricity for only two hours a day.
Tajikistans civil war in the 1990s left the power grid broken, and
in the poorest and most remote mountain communities of GornoBadakhshan, over half of all residents lacked power during the cruel
winter months. As families relied on wood fuel for heating and
cooking, respiratory disorders increased, and the region lost over
two-thirds of its tree cover from 1992 to 2002.

Electricity changed life in ways

we could see with our own
eyes, Mayram says. I am
grateful to Pamir Energy
for bringing electricity and
heating to our homes.

A B OV E : Electrication makes it possible

for children to study longer. RI G HT: Electric

power in schools opened new possibilities at

this teacher training center.

Mayram doesnt like to look back on that time. During winter, life was so punishing
that it forced her family to make painful choices. My husband had to cut our
treasured fruit trees for rewood. One of the biggest troubles was baking bread,
she says. We didnt sleep at night because we could not miss those two to three
hours of electricity in order to bake bread for the kids to eat the next day.

Hydropower Benefits Schools and Environment

Across Borders
Until recently in Gorno-Badakhshan, the only source for
heating schools and hospitals was low-quality coal, which filled
rooms with smoke and a foul smell and made students feel
achy. That changed when a public-private partnership between
the Aga Khan Fund for Economic Development and the
Government of Tajikistan, with World Bank and Swiss support,
restored Pamir Energy. Now hospitals and schools use clean

Since Pamir Energy brought electricity, things have gotten much better. Electricity
changed life in ways we could see with our own eyes, Mayram says. It even allowed
her to start a small business selling food from home. From my childhood, I liked
cooking. I really wanted to cook food and sell it, but when we had no electricity,
that was impossible. In the last four years I have been doing the work that I really
love. It also means new horizons for her children. Not long ago we bought a
computer for our children, says Mayram. All day long, they use the computer
and learn many new things.
For myself and my neighbors, says Mayram, I am grateful to Pamir Energy for
bringing electricity and heating to our homes.

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hydropower energy. Since 2010, hydropower has slashed

coal use in the provinces schools by over 80 percent.
In 2012 with funding from the U.S. Agency for International

Pamir Energy
Electricity
Consumption
in Afghanistan
Year

Consumption
KWh

2008

186,000

2009

368,718

2010

564,990

2011

1,035,990

2012

1,464,000

Development (USAID), AKF USA started the Cross-Border

Energy project to expand Pamir Energys reach across the
border to Afghanistans remote Shugnan District. This helped
to multiply electricity use there by nearly eightfold,
and helps establish infrastructure for regional growth
in Central Asia.

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Morning | MOZAMBIQUE

Growing Food Security in

Mozambique
Sulu Abacar grew up

in Mozambiques northern Cabo Delgado

province. At age 18 he went to study at the Agricultural Institute of

Bilibiza, a regional hub of learning and enterprise.
Sulu embodies the adaptable smallholder farmer that Bilibiza aims
to produce. At the Institute he absorbed better farming techniques
and market strategies. In 2003, with a scholarship from the Aga Khan
Foundation, he pursued further studies that gave him new condence
and skills. Sulu returned to Bilibiza as an instructor in 2007, where
he kept experimenting for improved food production.
On his own half hectare (1.25 acres) of land in 2009, Sulu harvested 1,650 pounds
of rice, which fed his family and yielded $268 in sales. He faced daunting challenges
to improve that harvest. In three years, however, he diversied into other crops,
including vegetables and his harvest income more than tripled to $991.

Sulu faced daunting challenges

to improve his harvest. In three
years, he diversified his crops
and his harvest income more
than tripled. He takes that
adaptability into the classroom
as instructor.

He takes that adaptability into the classroom as instructor. AKF USA has worked
with the Institute for over eight years, supporting improved facilities and faculty training,
with funding from the Ford Foundation. In 2012, with a $1.35 million grant from Cargill,
Inc., AKF USA bolstered its initiative to make Bilibiza a regional hub for agricultural
enterprise with more instructors like Sulu, equipment and a commercial farm that
demonstrates innovations and generates revenue for the Institute for years to come.
Worldwide, 2.5 million people have beneted directly from the Foundations
rural development programs, and nearly 12 million people in over 8,400 village
organizations have indirectly beneted.
Says AKF Mozambiques CEO Faiza Janmohamed, Our joint efforts address the
need for improving smallholder farmers skills, an important keystone in the regions
future and food security.

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Improvement in computer: student ratio

at Agricultural Institute of Bilibiza 2009 2012
# of students

# of computers

computer:
student ratio

2009/2010

60

1:30

2010/2011

120

1:15

2011/2012

120

25

1:5

L e f t: Instructors at Bilibiza know the challenges

of food security rsthand. A B OV E : Food security

in Mozambique depends on smallholder farmers.

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Midday | Kyrgyzstan

Fostering Social Entrepreneurship in

Kyrgyzstan
Meder Usupbekov is one of 150 people

in the city of Naryn,

in the Kyrgyz Republic, who use a wheelchair to get around. He faces

huge obstacles every day.
If we could put ramps in major public institutions, he realized, we could solve
some of the problems. So in July 2012, Meder created a plan for improving
accessibility in Naryn, and entered a competition for social entrepreneurship held
by the University of Central Asias School of Professional and Continuing Education
(SPCE). Funded by a grant from Coca-Cola and the Coca-Cola Foundation to Aga
Khan Foundation U.S.A., the contest received over 200 applications from across
Kyrgyzstan. To boost submissions the University organized training sessions in
social entrepreneurship in seven cities. Meder attended one of those sessions.
Finalists received intensive two-week training to rene their ideas into
business plans. They learned the fundamentals of social enterprise
recognizing a social problem and using entrepreneurial principles to
organize a venture for change along with social marketing, business
communication, and information technology. In the end, Meder became
one of nine winners who received a small grant to turn their dreams
into reality.
Each winner received a seed grant of up to $3,000. Other winning
proposals included a plan to generate prots from waste separation
efforts in schools for purchasing school supplies for needy students.

Growing Youth Skills Across Borders

In May, Natalie Ross, Program Associate, visited a cross-border program
at the University of Central Asia. This is her story from the trip.
Traveling across Tajikistans Gorno-Badakhshan region, I could
see across the Pyanj River to the region of Afghan Badakhshan.
Electricity poles lined the Tajik side of the border, but not on
the Afghan side. In Khorog, the University of Central Asia manages
the Cross-Border Vocational Education (CVEB) program, funded
by the U.S. Agency for International Development. I was eager
to meet the students brought together from both sides of the
border. CVEB provides scholarships for Afghan youth to study
bookkeeping, Information Technology, or English; dozens more

This win has encouraged me to

do more and taught me how to
implement projects, says Meder.

students received vocational training in carpentry and masonry.

Fourteen of the rst scholarship recipients were women, with

Now Meders dream is coming true. He leads a team to build ramps

throughout Naryn. He recently presided at the ceremony opening the rst ramp,
and hopes to see three more built in the coming year.

more in the second phase. I was struck by how the students

from just across the border had never been to Tajikistan
before. Likewise a Tajik student told me that he had always

A B OV E : The training with University of Central

Asia yielded certied social entrepreneurs.

RI G HT: Meder used his training to bring
wheelchair-accessible ramps to his city.

I would like to thank the donors and School of Professional and Continuing
Education instructors for their entrepreneurship training, he said. This win has
encouraged me to do more and taught me how to implement projects.

seen Afghanistan across the river but never visited. They were
surprised to discover how much they shared. In the short term,
the program grows job skills, but in the long term these students
can together build a strong, vital region of Central Asia.

10

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11

afternoon | afghanistan

Aga Khan Foundation in the National Solidarity

Participating in Governance through Local Action in

Afghanistan

Programme, Moving Forward

The National Solidarity Programme (NSP), under Afghanistans
Ministry of Rural Rehabilitation and Development, aims to
give decision-making about resources and priorities directly
to villages while it lays a foundation for local governance. Each

Sare Hawz, a village of about 1,000 people,

is three hours walk

from the district center in northern Afghanistan. Despite the distance,

the village is getting closer to needed services. Shair Zai leads the
local Community Development Committee that connects Sare Hawz

through a community-wide planning process. Communities

elect local groups known as Community Development
Committees (CDCs) to design and execute the projects.
Aga Khan Foundation has helped to train community leaders

to the National Solidarity Programme (see sidebar), which Aga Khan

in the CDCs and build their capacity through micro-grants and

Foundation helps to implement through a program funded by the U.S.

infrastructure support in four provinces. Phase 2 of a program

State Department.

called Strengthening Sub-National Governance in Afghanistan

combines over $600,000 in in-kind contribution from AKF

B E L OW : Before, the village of Sare Hawz lacked

safe drinking water. Local leadership made a

plan and got it implemented. RI G HT: The new
water channel provides safe drinking water,
irrigation for crops and hydropower electricity.

community prioritizes its requests to NSP for project funding

According to Shair, only 1520 percent of the village can read and write. Most
residents grow crops or raise livestock. So the community prioritized two core
needs for basic infrastructure: power and a safe water supply.

with over $4 million from the U.S. State Department. Phase 2

directly touches over 11,300 people and, more broadly,
will help 2.5 million through better links from villages to
provincial-level government.

Before we used river water, which

caused a lot of sickness, Shair
recalls. His committee designed
and built systems for safe water
and hydropower.

Four years after they rst organized a committee under the National Solidarity
Programme, they had designed and built a water supply system. Before implementing
the water supply project, we used river water, which caused a lot of sickness, including
diarrhea, stomach ache, and cholera, Shair recalls.
In addition to safe water, Shairs committee used support from another NGO to
establish a mini-hydro electricity plant. A canal carries water two miles up to the
electric station, which produces 50 kilowatt hours and irrigates almost 150 acres
of cropland. Sale of the crops has brought a 15 percent rise in local living standards.
The electricity also brings families light for work and study.
With AKF support, Shairs committee also established a 2.5-acre forest grove with
over 1,270 fruit and other trees, which the villagers protect and maintain. Now they
feel they have the power to set their priorities and organize support from public
and private sources to make those initiatives happen.

12

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13

Evening | Pakistan

Helping Families Handle Emergencies in

Pakistan
In remote northern Chitral district of Pakistan,

women

and children are especially vulnerable to health challenges and lack of

options. Fewer than 1 in 7 births in Chitral are attended by a doctor or
nurse. Many who suffer complications die on the way to get clinical help.
For four years AKF USA has trained and supported community midwives, creating an
enabling environment so they can practice their new skills for the long run. The Chitral
Child Survival Program, begun in 2008 with funding from the U.S. Agency for International Development (USAID), has trained midwives and established them in dozens
of remote communities to reduce the Chitral regions high levels of mother and child
mortality. The midwives are already having an impact: a 2012 survey showed increased
use of health services, including a dramatic rise in continuum of care (see graph).
Along with supplying much needed health services, the project has fostered nearly
420 community-based savings groups that help poor families save and pay for health
emergencies or other unexpected expenses.

I didnt think too seriously about

the savings group. But when I
saw the benefits other women
in the village were getting from
it, I joined it as well, says Bibi.

When rst invited to join the savings group, 37-year-old Bibi Noshad admitted,
I didnt think too seriously about the savings group. But when I saw the benets
other women in the village were getting from it, I joined it as well.
Bibis family relied on her husbands income as a security guard. Bibi supplemented
that with tailoring and embroidery jobs, which could increase with an embroidery
machine. The problem: it would cost over $100.
So her rst request to the savings group was for a loan to cover 60 percent of the
cost. Now her embroidery work goes much faster.

When Your Baby Cant Wait

Aisha lives in Chitral and joined a Village Savings and Loan
Association in 2010. It was the third such savings group in her
community, providing women with a local option to save money
and access loans. Her daughter-in-law Nahida faced a dangerous
birth a retained placenta caused serious bleeding with the

A b ov e : Bibi Noshad used a loan to boost her

embroidery income. RIG HT: With AKF support,
Bibi and others used the savings group to create
a rainy day fund where none existed before.

14

2 0 1 2 A G A K h a n F o u n da t i o n U S A A n n ual R e p o r t

100

2009 Baseline

threat of infection. Nahida needed to get to a clinic quickly,

but the nearest was over two hours away and she couldnt
afford the trip. So Aisha rushed to her community-based savings

83.0

2012 Study

80
65.0
60

52.5

group and got an emergency loan for 3,000 Rs. (about $30) to
hire transport. Thanks to the fast cash from the savings group,
Nahida and her child lived. Since then, Nahida has joined a
savings group herself.

The savings group helped her at a crucial time. She attends every meeting and pays
her share with cash from sewing jobs. Eventually she wants to open her own store.
Bibis community savings group helps her handle emergencies that may come up.
And that gives her peace of mind.

Comparison of 2009 Baseline and

2012 Study on the Use of Health Services
from Skilled Providers by Percentage

The Chitral Child Survival Program has set up over 340

Community-based Savings Groups with 8,000 women
members.

40

33.0

31.2
23.0
16.9

20

1.0
Prenatal
Care

Delivery
Services

Postnatal Continuum
Care
of Care

The graph shows a significant rise in

demand for continuum of care services.

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15

Sunset | Egypt

Greenspace as Catalyst for Local Enterprise

Small Enterprises Bloom near the Gem of

Cairo

In revitalizing urban parks across Africa and Asia, the

Aga Khan Trust for Culture (AKTC) has established a
strong track record with Cairos Al-Azhar Park, Kabuls
Babur Gardens, and Bamakos National Park of Mali. Latest
plans include revitalizing the Nairobi City Park, which His

Caroline Lai, Program Assistant

with Aga Khan Foundation

Highness the Aga Khan launched in November 2012.

U.S.A., visited Egypt in November 2012. During my rst trip to

The plan will revitalize 150 acres of forest cover in the citys

Egypt to see a friend in 2006, we visited Cairos Al-Azhar Park. On

heart that had fallen into disrepair. AKTC aims to preserve

the way there, my friend called it the most beautiful spot. At that

the sites unique ecological integrity (including much of the

areas last indigenous forest) while developing a botanical

time, I had not heard of the Aga Khan Development Network.

Al-Azhar Park is a hallmark of the Aga Khan Development Networks long-term
approach. The park provides Cairos residents with recreational and healthy
greenspace. The Project for Public Spaces ranked it among the worlds 60 top
public spaces. The park also provides livelihoods for low-income neighborhoods
nearby. Paying visitors contributions have helped to improve housing, water and
sanitation, and health and education. In the parks rst four years, household
purchasing power in these neighborhoods increased 20 percent.

Reham always dreamed of

starting her own business.
With her loan, she purchased
supplies and hired two
employees. After a few
months, her business was
selling 80 chickens per day.

A B OV E : Reham received a small loan that

enabled her to start her poultry shop.

16

Seven years after my rst visit, I was back at the beautiful park, working with the
Aga Khan Foundation U.S.A. and its the Head Start! for Youth Entrepreneurship and
Employment program. Funded by the U.S. Agency for International Development,
Head Start! works in neighborhoods near the park. To address high youth unemployment and underemployment, Head Start! provides training, improved infrastructure,
and micronance loans to young entrepreneurs.

garden, open-air theatre, and eating and sports facilities.

A B OV E : This auto parts shop in the neighborhood
of Al-Azhar Park started with a loan from the
Head Start! program. B e l ow : In the historic
district of Cairo, Al-Azhar Park is proving to be
a catalyst for urban renewal in one of the most
congested cities in the world.

AKTC has committed to fund one-third of the costs; another

third would be supported by revenues from park activities.
AKF USA is working with AKTC to arrange for investors to
help make the revitalized park a reality.
His Highness the Aga Khan noted, One of the characteristics
of this activity is that you discover more opportunity as you
move forward from year to year. Visit www.akdn.org/videos
to see a short film about the Nairobi park.

One loan client, Reham Ahmed Mohamed, proved especially memorable. A 29year-old woman, Reham always dreamed of starting her own business. But societal
norms prevent young, unmarried women from managing businesses and accessing
credit. Through Head Start! Reham received a loan of $2,500 to open a poultry
shop in her familys apartment building. With her loan, Reham installed lighting
and purchased processing machinery, a refrigerator, and chickens. Reham also hired
two employees. After a few months, her business was selling 80 chickens per day.
Visiting the shop that afternoon we got a hearty welcome, an invitation to take a
seat, and a chat with her father. The pride on his face as he watched his daughter
was overwhelming.

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17

Activities in the
United

States

In 2012 PartnershipsIn Action, an initiative of AKF USA that supports

the Foundations work overseas and fosters a U.S. network of volunteers to raise
awareness and funds, celebrated 18 years of activities. Partnership Walks and golf
tournaments in over a dozen cities engaged Americans nationwide in AKFs work
to improve the lives of people in Asia and Africa.
With 31,000 participants, PartnershipsInAction events in 2012 raised $8.1 million
for the Foundations programs in Africa and Asia. 100% of all donations go
directly to AKF programs ghting hunger, poor health and poverty
in Africa and Asia, with not a penny going to administrative costs.
The Foundation draws on its deep expertise to advance public dialogues on key
topics and inform new initiatives and U.S. policy related to development.

New Initiatives: Impact Investing

TO P : Dignitaries cut the ribbon at San Antonios

rst PartnershipsInAction Walk joining in
the national event held in 10 cities to raise
awareness and funds to end global poverty.
A B OV E : In Dallas, youth ambassadors helped
promote reading at a nearby elementary school,
inspired by the Foundations education programs.
This volunteer is painting a mural to improve
the school library.

18

Through its Impact Investing Initiative, AKF USA is pioneering this sector that
engages private investment to support initiatives for the public good in developing
countries, with a nancial return. AKF USA participated in forums including the
Aspen Network of Development Entrepreneurs and the annual conference of
Social Capital Markets (SOCAP). AKF USA was a proud partner for the SOCAP12
Conference, the largest and best respected platform for socially minded investors
and entrepreneurs. AKF USA arranged a panel at which executives from Calvert
Foundation, The Heron Foundation, and Morgan Stanley discussed how to achieve
risk-return balance for impact investors.

2 0 1 2 A G A K h a n F o u n da t i o n U S A A n n ual R e p o r t

In smaller settings, AKF USA engaged with U.S. foundations and agencies on specic Many rural people walk far to
investment opportunities, yielding two developments: First, interest in AKDNs plan
grow their food, take care of their
to revitalize Kenyas Nairobi City Park (see page 17 ). Second, in December AKF
families, and bring about change.
USA signed its rst Mission Related Investment in its Impact Investing Initiative, with
It seems fitting that we are walking
a $2.6 million investment in the First MicroFinance Bank of Afghanistan. The impact
today in support of them.
investing arrangement immediately leveraged funding from two development nance Sarah Hobson, Executive Director
institutions, the German Development Bank and the International Finance Corporation
New Field Foundation
(IFC), totaling approximately $3.3 million. AKF USA is poised to help lead and
promote the new sector of Impact Investing in crucial areas of Asia and Africa.

Informing Public Dialogue on Development

The Foundation engages in many discussions that inuence international development.
In 2012 these included talks on new directions at the World Banks spring meeting;
panels on Community Philanthropy at the Global Philanthropy Forum and at
the InterAction Forum 2012; and discussions about the direction of community
philanthropy, held at Pocantico, a Rockefeller retreat in upstate New York.

A B OV E : Young walkers at the Memphis Colorful

Fun Run raise funds and awareness of poverty
issues while having fun.

w w w. a k d n . o r g

19

Internship Program
For over 20 years the AKF USA Professional Development Internship Program has
been growing the capacity of young professionals in international development. The
highly selective program takes applicants with degrees in Agricultural Development,
Development Economics, Education, Finance, International Development, International
Management, Marketing/Communications and Public Health. In 2012 we hosted
six U.S. interns to work at the Washington, DC ofce, as well as four interns from
Tajikistan. The interns made important contributions to the Foundations work and
acquired experience with a range of development issues. Over the years, some
two dozen interns have gone on to professional careers within the Aga Khan
Development Network.

The Aga Khan Development

Network is an example for
all of us.
Dr. Johannes Linn, Senior Fellow,
The Brookings Institution

With the Charles Stewart Mott Foundation, AKF USA published a report of regional
roundtables on lessons from Community Philanthropy, and through public dialogue
formed an outline for advancing the eld worldwide, and the formation of an
international alliance. Alongside that initiative, AKF USA supported assessments
of civil society including an updated Civil Society Organization Sustainability Index
(CSOSI). That index, begun in the 1990s to assess civil society in eastern Europe,
has been adapted to other regions. In 2012 AKF USA partnered with the U.S.
Agency for International Development (USAID) for CSOSI assessments in 23
African countries, and nalized rst applications of the index for Afghanistan
and Pakistan.

In 2013 we will launch an enhanced program that combines the AKF USA placement
with a eld placement at Aga Khan Foundation ofces in Central Asia. The AKF
USA Fellowship Program will offer fellows a unique opportunity to gain experience
working on development issues in a donor country context and build upon their
knowledge through hands-on experience in a developing country.

You know how investments

in education and healthcare
pay off many times over in your
families. Aga Khan Foundations
partnership with you makes
those investments across the
world.
Dr. Dianne Morrison-Beedy, Vice President
University of South Florida Health

Through its monthly e-newsletter Empowered, the PartnershipsInAction website and

social media sites, AKF USA shares updates, stories and news about the Network.

Through the year, Aga Khan Development Network (AKDN) experts led development
conversations with U.S. audiences in Washington, DC. Apoorva Oza, CEO of the
Aga Khan Rural Support Programme (AKRSP) in India, presented AKRSP experience
at American University. Abdul Malik, General Manager of AKRSP in Pakistan, spoke
at the Woodrow Wilson International Center for Scholars. In November, Dr. Joanna
Ledgerwood, AKF Senior Adviser on Access to Finance, spoke to the SEEP Conference
about micronance and AKDNs work with community-based savings groups.
A B OV E : The Aspen Institute hosted a forum
on Community Philanthropy, organized by Aga
Khan Foundation U.S.A. and Mott Foundation,
to explore community-centered development.
To p RI G HT: Internships give young professionals
hands-on experience in international development
and expose them to real-world issues.

20

The progress of AKF USA received recognition in publications and forums ranging
from the Hufngton Post to the International Food Policy Research Institute and
the U.S. Depar tment of Agriculture. In the #GivingTuesday national campaign,
the Hufngton Post featured a blog about the Foundation and its volunteers
commitment to improving the world, locally and globally.

2 0 1 2 A G A K h a n F o u n da t i o n U S A A n n ual R e p o r t

w w w. a k d n . o r g

21

Statement of Financial Position

Statement of Financial Activities

The Aga Khan Foundation U.S.A.s overall FY2012 nancial performance was stable. Support and revenue, as
well as overall spending, increased modestly. This allowed us to increase our investments in our programs in
Africa, Central and South Asia. Operating expenses are funded by a grant from His Highness the Aga Khan.
Therefore, no donations from individuals, foundations and corporations are used for operating expenses.
The nancial results depicted on pages 22 and 23 are derived from the AKF USA audited consolidated
nancial statements, dated April 30, 2013, performed by BDO USA, LLP. AKF USAs complete, audited
statement is available at our website in the About AKF USA section: http://www.partnershipsinaction.
org/content/aga-khan-foundation-usa

2012Use
UseofofFunds
Funds
2012

2012 Source
Source of
ofFunds
Funds

69%

Contributions
Federal Grants
Other Grants

69%

Contributions
Federal Grants
Other Grants

2012 Source of Funds

28%

3%

86%
86%
11%
11%

ProgramGrants
Grants
Program
General& &Admin.
Admin.
General
Fundraising
Fundraising

3%
3%

28%

3%

Noordin Moloo

Chief Financial Ofcer

For the year ended December 31, 2012 and 2011

Dollars in Thousands

2012

Contributions
Federal grants
Other grants
Investment income
Total Revenues

$27,034
10,784
1,267
(622)
38,463

$17,720
12,722
1,390
(516)
31,316

Program grants
General and administrative expenses:
Salaries
Legal, accounting and consulting
Travel
Doubtful pledges provision
General office
Taxes & licenses
Premises
Communications

34,154

31,836

2,635
137
162
659
257
161
305
98

2,563
179
138
167
274
842
340
103

Total general and administrative expenses

4,414 4

4,606

Fundraising

1,022

1,100

Depreciation and amortization

1,306

1,307

Total expenses
Change in net assets

40,896
(2,433)

38,848
(7,532)

Net assets at beginning of year

154,514

162,046

$152,080

$154,514

Revenues:

As of December 31, 2012 and December 31, 2011

Dollars in Thousands

Assets

Cash and cash equivalents

Investments
Accounts receivable and other current assets
Donor agency receivables
Receivables from affiliates
Contributions receivable, net
Fixed assets:
Property held for charitable purposes
Other fixed assets
Less accumulated depreciation
Fixed assets, net
Total assets

2012
$48,276
13,545
116
1,142
1,564
14,508

89,224
323
(14,754)
74,793
$153,943

2011
$50,998
10,633
79
337
1,441
22,241
87,446
324
(13,449)
74,321
$160,051

Liabilities and net assets

Liabilities:
Accounts payable and accrued liabilities
Payable to affiliates
Deferred rent
Deferred revenues
Total liabilities

Net Assets
Total liabilities and net assets

22

2 0 1 2 A G A K h a n F o u n da t i o n U S A A n n ual R e p o r t

$ 424
1,138
109
191
1,863

$ 1,119
1,890
160
2,368
5,537

152,080
$153,943

154,514
$160,051

Expenses:

Net assets at end of year

2011

w w w. a k d n . o r g

23

Institutional Partners

Board of Directors, National Committee and Staff

The Foundation works with many institutional partners around the world. It also works closely with
national, provincial and district governments in the countries where it operates. The Foundations efforts
to alleviate poverty, hunger, illiteracy and poor health would not be possible without their unwavering
support. Our 2012 partners include:
ACDI/VOCA

Charles Stewart Mott Foundation

Cargill Inc.

Pzer Inc.

The Coca-Cola Foundation

Rockefeller Foundation

Flora Family Foundation

Synergos

The Ford Foundation

TechnoServe

Bill & Melinda Gates Foundation

Texas A&M University

The William and Flora Hewlett Foundation

United States Agency for International Development

International Youth Foundation

United States Department of Agriculture

Johnson & Johnson

United States Department of State

Lions Clubs International

University of California at Berkeley

Microsoft Corporation

Whole Planet Foundation

The Aga Khan Development Network has agreements and protocols with the following countries and
organizations: Afghanistan, Asian Development Bank, Bangladesh, Canada, Egypt, the European Commission,
France, Germany, India, Ivory Coast, Kazakhstan, Kenya, Kyrgyz Republic, Mali, Mozambique, Norway,
Pakistan, Portugal, Russia, Syria, Tajikistan, Tanzania, Uganda, United Kingdom, and the United Nations
(United Nations Development Programme and World Health Organization).

Board of Directors

His Highness the Aga Khan

Prince Amyn Aga Khan
Matre Andr Ardoin
Guillaume de Spoelberch
National Committee

Aziz Valliani, Chairman

Mohammad Ashraf Ramji, Vice Chairman
Dr. Barkat Fazal
Zamila Karimi
Sultana Mangalji
Dr. Eboo Patel
Alnoor Shivji
Jehan Velji
Executive & Senior Staff

Dr. Mirza Jahani, Chief Executive Officer

Noordin Moloo, Chief Financial Officer
Charles Sheerin, Director of Communications and Resource Development
Joanne Trotter, Director of Programs
Kamran Ali, Accounting and Grants Manager
Evan Gill, Impact Investment, Acting Manager
Karim Juma, Donor Services and Administration Manager
Salmin Pardhan, Resource Development and Volunteer Services Manager
Martha Sipple, Communications and Public Affairs Manager
Caryn Sweeney, Manager of Program Development
Sharon Bayolo, Executive Assistant
See website for full staff list:

http://www.partnershipsinaction.org/content/staff

Aga Khan Foundation/Neghatullah Abeer, Ramsha Ali, Rizwan Babwani, Miriam Ezzani, Karim Jan, Thomas Kelly,
Caroline Lai, Dastanbui Mamadsaidov, Shagufta Noor, Gary Otte, Matthieu Paley, Jean-Luc Ray, Paul Rippey, Mikhail Romanyuk,
Aizada Shakir, Nafisa Shekhova, Mar tha Sipple, Rober t Sorbo

Photo credits:

24

2 0 1 2 A G A K h a n F o u n da t i o n U S A A n n ual R e p o r t

AGA KHAN FOUNDATION U.S.A.

AGA
KHAN
FOUNDATION
An
agency
of the Aga
Khan DevelopmentU.S.A.
Network
An agency of the Aga Khan Development Network

1825 K Street, N.W.

Suite 901
Washington, DC 20006
Telephone (202) 293-2537
Facsimile (202) 785-1752
Email
info.akfusa@akdn.org
www.akdn.org
www.PartnershipsInAction.org