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Thanking Mary is easy, and I do so emphatically. Describing her countless contributions Sincerely,
to InterAction is tougher and would take much more space than I have been given here.
Please know that we have been lucky to have her at the helm. Daniel E. Pellegrom, Chair
2
President’s Note
I write this just prior to stepping down as the president and We face an increasingly complex terrain around security, humanitarian space and civil-
CEO of InterAction, where I have been privileged to serve military relations in the face of terrorism and the governmental response to it around
for a truly rich and rewarding four years. Leaving InterAction the world. Even as our humanitarian groups must continue to grapple with the need to
has been a difficult decision, given the special opportunity I protect their independence and impartiality, we must recognize and address the various
have had to work on issues of such critical importance, with factors that make this increasingly difficult—the blurring of the lines between military and
people whose commitment and dedication I so respect. civilian relief functions on the ground and grave threats to staff security. Besides helping
our members step up their staff security efforts, we worked together to analyze and adapt
I came to InterAction because I sincerely believe in our our approaches, and are taking advantage of every opportunity to engage our civilian and
powerful mission to overcome poverty, exclusion and suf- military leaders to secure policy changes that respect our commitment to humanitarian
fering by advancing social justice and basic dignity for all. principles and do not undermine our humanitarian work.
What could be more important than seeking to make our
own small contributions towards easing the suffering and An external environment and debates in various quarters increasingly challenge the unique
oppression that billions experience every day? role, independence and accountability of the nongovernmental organization sector. In
2004, we continued to counter those critiques by responding effectively to governmental
In that spirit, I hope you agree that together—our staff, board and membership at InterAc- regulations and policies that failed to recognize our independence or the critical role of
tion—have accomplished a great deal in renewing the alliance in recent years by bringing it NGOs in relief and development. We further strengthened our efforts to assess and
higher profile and stronger voice; creating new programs, while honing the focus of ongoing improve our own programmatic effectiveness and accountability by honing and scaling up
initiatives; increasing our resources; realigning our organizational governance; and refurbish- our work on areas such as InterAction’s standards, and on evaluation.
ing our internal systems. We enjoy very good financial and programmatic health and I am
proud to pass on InterAction’s stewardship to our new CEO, Dr. Mohammad Akhter. InterAction’s work on standards was particularly relevant to the external environment.
Compliance to private voluntary organization standards was strengthened through two
Our governance changes almost three years ago brought a new board of directors that is pilot efforts. For the past five years, our members with child sponsorship programs have
able to bring meaningful focus to issues of concern and effectively govern the organization. undergone a rigorous audit of their programs by an outside firm, which by next year
I owe a special thanks for the service of our two board chairs during my tenure—Nancy should result in accreditation. Building on the child sponsorship initiative, 20 members
Aossey, who provided never failing support, counsel and leadership in the early years; and launched a process for enhanced self-regulation, called Self-Certification-Plus, which adds
to Dan Pellegrom, who readily took on the challenge over two years ago of inspiring and new rigor and uniformity to compliance with InterAction standards.
guiding our newly created board in a most challenging time.
Among the many humanitarian crises our alliance has addressed in 2004, Sudan’s Darfur
As I reflect on the past year, our agenda was as full and ambitious as ever. We formally in- region, resulting in 1.5 million displaced people and 200,000 refugees in Chad, captured
corporated advancement of the Millennium Development Goals as an overall long-term the avid attention of our members and of the international community. I traveled to
objective into our advocacy and education campaign, the Global Partnership for Effective Darfur to witness the crisis. Our public advocacy effort through the media and with the
Assistance. We worked in numerous ways with the administration and Congress to administration continues.
secure passage of the Millennium Challenge Account and to increase the core humani-
tarian and development assistance accounts. Our membership now is seizing on several With our new leader, the expertise of our superb staff, the sound oversight of our board
key events during 2005 when global attention will focus on fighting poverty, hunger and of directors, and the hearty engagement of our membership, I know that InterAction will
disease, and on achieving the Millennium Development Goals. We joined forces with continue on full force, each year stronger than the last. I leave InterAction with a pro-
other campaigns and partners at home and abroad to build constituencies in support of found admiration for our members who pursue this honorable calling with such passion
our goals and to urge President Bush and other world leaders to take bold steps, meeting and commitment, and deep gratitude for our allies and friends who work with us to bring
and building on their promises for overseas assistance. We also have worked with our a better life to people in need around the world.
board and membership to create two new initiatives on trade policy and on debt relief to
complement our advocacy on effective assistance to fight poverty. Mary E. McClymont
3
Humanitarian Policy &
Practice
...provides member
organizations with a
framework for
consultation,
coordination and
advocacy on behalf of
people forcibly
displaced or
otherwise affected by
conflict, natural
disasters and
oppression...
Responding to Humanitarian Crises Refugees and Migration
The Committee on Humanitarian Policy and Practice provides member or- The Protection Working Group published “Making Protection a Priority: Integrating Protection
ganizations with a framework for consultation, coordination and advocacy on behalf and Humanitarian Assistance” and produced a tool to assist members in building data collection
of people forcibly displaced or otherwise affected by conflict, natural disasters and during humanitarian emergencies entitled: Data Collection in Humanitarian Response: A Guide
oppression. It addresses issues relating to the protection and assistance needs of refu- for Incorporating Protection. Group members focused particular attention in their advocacy and
gees and internally displaced persons, as well as operations, security and coordination programs on gender-based violence in several ongoing crises, including Darfur and Liberia.
in disaster response.
InterAction delegations to three sets of meetings in Geneva were fielded by the U.N. High
In 2004, the Humanitarian Policy and Practice unit and its committee members: Commissioner for Refugees’ Partnerships Working Group. There they met with senior UN-
HCR officials to discuss and advocate on issues of concern to the membership. The work-
• Pressed the administration, Congress and the United Nations to provide ing group also surveyed UNHCR implementing partners and identified gaps in the agency’s
relief to Sudanese forced to flee their homes in the country’s western Darfur grants management process that are the basis for ongoing discussions with UNHCR staff.
region by what the State Department and Congress both labeled genocide.
Worked with members deploying to the region to overcome obstacles to their ac- Disaster Response
cess. Fought successfully for a supplemental appropriation. Encouraged financial and
material support for African Union ceasefire monitors and their protection force. In- The Civil-Military Task Force hammered out a consensus position for discussions with se-
terAction President Mary McClymont undertook a mission to Darfur in October dur- nior U.S. military leaders in an effort to reach a better understanding of how humanitarian
ing which she met with members operating in the area as well as with senior United and military personnel will relate to each other while the military is engaged in combat or
Nations, U.S. government and Sudanese officials. in occupation of foreign territory.
• Saw pressure on the administration to expand the presence of NATO The unit’s security coordinator conducted security assessments in Darfur, Chad and Liberia
troops in Afghanistan succeed and some military disengagement from activi- and formulated with members of the Security Working Group an initial draft of minimal
ties that blurred the lines between them and NGOs. However, increased attacks operating security standards for InterAction members. Working with members’ lawyers,
on humanitarians limited their operations in some parts of the country. Meanwhile, InterAction persuaded USAID to replace counterterrorism certification language to which
targeting of aid workers in Iraq resulted in the withdrawal of most international staff. members objected with an acceptable formulation. Unit staff and members collaborated
Pressed the U.N. system to respond more adequately to the protection and assis- with other philanthropic organizations on developing alternative language to the U.S. Trea-
tance needs of internally displaced persons given the evident failure of the institution’s sury’s anti-terrorism financing guidelines.
collaborative approach. Initiated procedures to track and account for the $1.l billion
the American private sector contributed to InterAction members for their relief and The Transition, Conflict and Peace Working Group established a quarterly series of USAID/Inter-
recovery programs in countries affected by the tsunami. Action conflict early warning meetings aimed at improving early warning and identifying windows
of opportunity in crisis-prone countries for early action to help avoid or prevent a resurgence of
violence. The TCP also participated in a series of feedback sessions to provide USAID with input
in drafting sector-specific toolkits intended to help USAID mission staff and external partners
identify and address linkages between conflict dynamics and particular sectors.
Photo: John Stephens
5
The Committee on Development Policy and Practice facilitates dialogue, com- • Initiated InterAction’s work on trade policy by building on regional devel-
munication and action at program and policy levels on priority development concerns opments being addressed by the Inter-American Development Bank working
of InterAction members and their Southern partners in reducing poverty and promoting group and by InterAction’s support of the Millennium Development Goals. Dur-
equitable and effective development. ing the year, a trade task force was formed and several meetings, educational events, and
an InterAction Forum session were held to highlight the nexus between development
In 2004, the Committee on Development Policy and Practice unit and its members: and trade policies. The unit and task force have begun to craft positions on discrete
aspects of the trade agenda relevant to InterAction members and a policy paper on trade
• Convened over a several month period a series of meetings with high-level capacity-building assistance was produced. This paper and others will provide the basis
World Bank and Treasury Department officials on the IDA-14 replenishment. for advocacy on trade policy aimed at U.S. policy and eventually multilateral institutions.
These engagements and discussions within InterAction’s World Bank working group led
to an InterAction letter to Treasury Secretary John Snow on the eve of the G-7 finance • Scaled up work relating to HIV/AIDS including advocacy aimed at the Office of
ministers meeting outlining InterAction’s position on IDA and debt. In the letter, InterAc- the Global AIDS Coordinator and at improving member practices. Co-hosted with
tion discussed the progress that has been made through debt relief but noted that many the Horizons Project a series of research-based learning sessions and co-facilitated with the
poor countries still spend more on debt service than on health and education combined, International Red Cross a review of a proposed code of practice for NGOs responding to
pointing to the need for debt cancellation and increased grant financing. Though the G-7 the HIV/AIDS crisis. As a result of InterAction’s efforts, OGAC has established a civil society
finance ministers failed to agree on 100 percent debt cancellation, it is anticipated that the liaison office.
issue of debt will be taken up in 2005. InterAction will continue to advocate debt cancel-
lation and will publish a position paper on debt early in the new year. During the course • Formed a new working group on evaluation and program effectiveness to en-
of the IDA-14 replenishment negotiations, InterAction submitted detailed comments on hance InterAction members’ abilities to use evaluation to articulate, demonstrate
the draft text reflecting members’ commitments to growth beneficial to the poor and and improve the effectiveness of their projects, programs and organizations. The
urging, among other things, increased transparency and participatory development on working group comprises InterAction member CEOs, program and policy coordinators and
the part of the World Bank. In what may be an unprecedented outcome, many of these evaluation specialists and has worked to develop a common position on “U.S. NGO-relevant”
comments were reflected in the World Bank’s replenishment text. evaluation principles and practices in response to pressures from various global constituencies.
An evaluation learning series designed as practical discussions on important topics related to
• Organized a well-attended session at the annual meetings of the World Bank effectiveness was launched. In the coming year, the working group will start to communicate
and IMF at which the evaluation offices of both institutions presented findings and advocate with key stakeholders on evaluation for program effectiveness.
from their independent assessments of the Poverty Reduction Strategy Paper
(PSRP) process. The event addressed the next steps for the PRSP, including how the • Monitored USAID management reforms against a 12- point advocacy agen-
recommendations would be implemented in future assistance programs and also the da of the USAID Management Reform working group. Progress was made in
relevance of the findings to other country-owned processes such as those envisioned in nine of the identified areas including new agency policies or guidance on the choice of
the Millennium Challenge Account. During the annual meetings, InterAction members appropriate delivery mechanisms. InterAction members continued their participation in
held a working meeting with World Bank President James Wolfensohn and InterAction the agency’s quarterly partner day meetings which are a result of InterAction advocacy,
hosted a session to launch the 2004 edition of The Reality of Aid, the only North-South held a session on member operational and management concerns at a global meeting of
international nongovernmental initiative focusing on analysis and lobbying for poverty USAID contracts officers, established a Web database on USAID operations, and began
eradication in international aid. to monitor proposed changes in USAID’s branding requirements.
Formed in 2002, the Diversity Initiative encourages and aids member agencies to take ef- • Continued building the Diversity Working Group into a forum that allows for in-
fective action to increase the representation of people of color on their staffs and boards, depth discussions around diversity and the opportunity to leverage the knowledge
as well as to adopt inclusive policies and practices that will enable them to reap the full and expertise that is found within the InterAction membership. The working group
benefits of a multicultural workforce. includes 155 members who represent 85 InterAction member organizations.
In 2004, the Gender and Diversity Unit with InterAction members: • Convened InterAction’s first diversity conference, “Global Diversity: Ensur-
ing Effectiveness through Inclusion” in October. Over 80 participants attended
• Convened two Gender Audit training courses in the United States and Asia the two-day event, from over 40 nongovernmental organizations, government agencies
for participants from 7 InterAction member agencies, including Lutheran World and educational groups. Exemplary keynote speakers, an extensive choice of high-quality
Relief, Mobility International, Solar Cookers International, 9 Heifer International country workshops and networking opportunities provided participants with the opportunity to
offices, 13 Plan International country offices, as well as 5 other including Asian NGOs, broaden their capabilities for advancing diversity and to make connections with colleagues
U.N. agencies, and USAID’s Kenya mission. The CAW’s Gender Audit Facilitator’s Train- doing similar work.
ing Course enables participants to carry out an organizational self-assessment and action
planning process in their own organizations. • Offered a range of technical services for diversity to InterAction members,
including conference calls with experts on key issues, an online interactive com-
• Produced Gender Mainstreaming in Action: Innovative Successful Innova- munity, and workshops on building inclusive organizations and on CEO leader-
tions from Asia and the Pacific in collaboration with the International Institute ship for diversity.
for Rural Reconstruction, an InterAction member based in the Philippines. The
publication is a collection of 18 case stories highlighting innovative practices from 17 orga-
nizations in 10 countries. Cast in simple language and illustrations, the collection features
practical experiences in gender mainstreaming at the grassroots, program and institutional
levels and concise lessons and recommendations.
In 2004, InterAction’s Public Policy unit and its committee members: • Organized four congressional staff briefings aimed at informing congressional
staff and members of Congress about issues related to international humanitar-
• Distributed InterAction’s 2004 calendar and a letter introducing InterAction ian and development assistance. The briefings were on the FY 2005 international
to all congressional offices. Organized Advocacy Day in conjunction with the InterAc- affairs budget request, protection of refugees and the internally displaced, basic education,
tion Forum 2004 which drew a record crowd of nearly 140 participants who met with and on integration of gender into development programs.
approximately 55 congressional offices and culminated in a reception on Capitol Hill in
which over 40 congressional staff joined members of Congress and hundreds of Forum- • Organized two town hall meetings to raise awareness and support among the
goers to celebrate InterAction’s 20th birthday. U.S. public for humanitarian and development assistance. In May, held a town hall
meeting on child survival issues, entitled “Development through the Eyes of a Child: U.S.
• Provided ongoing budget analysis and information on the fiscal year 2005 International Assistance Programs and the World’s Children,” in conjunction with the Yale
international affairs budget. Met with key congressional and administration staff to University Chapter of the Student Campaign for Child Survival. The event featured Carol
press for, at a minimum, President Bush’s request on the international affairs budget, to Bellamy, director of UNICEF, Sam Gejdenson, former U.S. representative from Connecticut’s
highlight the need for higher funding levels for seven key development and humanitarian 2nd district, and Adam Taylor, executive director of Global Justice. The next town hall meeting
assistance accounts and full funding for the MCA and HIV/AIDS initiatives. Advocacy ef- was held in October in Seattle on the Millennium Challenge Account in conjunction with the
forts included a coordinated grassroots mobilization around the FY 2005 budget using the Initiative for Global Development and the University of Washington’s Daniel J. Evans School
Humanitarian Action Network, InterAction’s online advocacy tool. of Public Affairs. The event, “Fighting Global Poverty In the New Millennium,” featured Paul
Applegarth, chief executive of the Millennium Challenge Corporation, Ambassador Amidou
• Continued last year’s work on the Millennium Challenge Account by expanding Lamine Ba of Senegal, and Richard Stearns, president and chief executive of World Vision.
the MCA working group’s focus to the issues surrounding implementation of the
new initiative. Through the working group, InterAction solicited and compiled feedback • Launched a new working group on outreach and communications. This work
from initial Millennium Challenge Corporation teams to selected MCA countries, submitted is headed by a new staff person, Jennifer Kurz, associate for mobilization and outreach,
comments to the Millennium Challenge Corporation on MCA fiscal year 2005 eligibility and helps coordinate members’ grassroots efforts as well as builds InterAction members’
criteria as well as met regularly with officials from the Government Accountability Office, capacities for public outreach.
U.S. Agency for International Development, the Office of Management and Budget and the
Millennium Challenge Corporation on implementation issues. The working group also had • Began preparations for a 2005 campaign on the Millennium Development
meetings with congressional staff on MCA-related issues and offered questions for the con- Goals by becoming an active participant in the ONE Campaign in the United
firmation hearing for Paul Applegarth as CEO of the Millennium Challenge Corporation. States and the Global Call to Action Against Poverty. InterAction involvement in
these two complementary campaigns aims to provide information and facilitate the par-
ticipation of InterAction members.
Photo: Najibullah Musafer
10
Public Policy
...aims to educate
policymakers, opinion
leaders, the media
and the public on
international develop-
ment, refugee and
relief programs and
policies...
American Council for Voluntary International Action
Statements of Activities and Changes in Net Assets for the Years Ended December 31, 2004 and 2003
2004 2003
CURRENT ASSETS
Cash $ 350,677 $ 469,646
Investments 2,236,555 2,293,033
Accounts receivable 82,887 21,317
U.S. government grants receivable 46,440 42,365
Prepaid expenses 60,913 25,555
OTHER ASSETS
Security deposits 18,694 18,694
CURRENT LIABILITIES
Accounts payable $ 20,598 $ 666
Accrued employee benefits 335,963 233,322
Deferred membership dues 94,172 86,294
TOTAL CURRENT LIABILITIES 450,733 320,282
NET ASSETS
Unrestricted 1,651,140 1,507,170
Temporarily restricted 706,130 1,046,468
12
American Council for Voluntary International Action
Statements of Activities and Changes in Net Assets for the Years Ended December 2004 and 2003
2004 2003
TEMPORARILY TEMPORARILY
UNRESTRICTED RESTRICTED TOTAL UNRESTRICTED RESTRICTED TOTAL
REVENUE
Grants from U.S. government $ 1,409,228 $ - $ 1,409,228 $ 1,246,832 $ - $ 1,246,832
Foundation awards - 1,440,553 1,440,553 - 1,856,440 1,856,440
Member contributions 189,062 - 189,062 62,811 - 62,811
Membership dues 1,402,019 - 1,402,019 1,413,074 - 1,413,074
Publications 314, 924 - 314, 924 265,923 - 265,923
Forum, meetings, and workshops 138,877 - 138,877 121,474 - 121,474
Interest and investment income 36,346 289 36,635 74,587 928 75,515
Other income 12,979 - 12,979 25,625 - 25,625
Net assets released from
restrictions 1,781,180 (1,781,180) - 1,667,232 (1,667,232) -
TOTAL REVENUE 5,284,615 (340,338) 4,944,277 4,877,558 190,136 5,067,694
EXPENSES
Program services:
Member services $ 1,079,709 $ - $ 1,079,709 $ 991,041 $ - $ 991,041
Federal & non-federal awards 3,190,408 - 3,190,408 2,914,064 - 2,914,064
Legislative activities 168,306 - 168,306 160,362 - 160,362
TOTAL PROGRAM SERVICES 4,438,423 - 4,438,423 4,065,467 - 4,065,467
Support services:
General and administrative 681,956 - 681,956 601,522 - 601,522
Fundraising 54,918 - 54,918 61,712 - 61,712
TOTAL SUPPORT SERVICES 736,874 - 736,874 663,234 - 663,234
TOTAL EXPENSES 5,175,297 - 5,175,297 4,728,701 - 4,728,701
Changes in net assets before other item 109,318 (340,338) (231,020) 148,857 190,136 338,993
OTHER ITEM
Unrealized gain (loss) on investments 34,652 - 34,652 (7,784) - (7,784)
Changes in net assets 143,970 (340,338) (196,368) 141,073 190,136 331,209
Net assets, beginning of year 1,507,170 1,046,468 2,553,638 1,366,097 856,332 2,222,429
NET ASSETS, END OF YEAR $ 1,651,140 $ 706,130 $ 2,357,270 $ 1,507,170 $ 1,046,468 $ 2,553,638
13
2004 InterAction Photo Contest Winners
InterAction’s annual photo contest was created to raise awareness about the work of our members, by bringing together powerful
images that show the benefits of assistance that works, in support of InterAction’s multi-year Global Partnership for Effective Assis-
tance campaign. The campaign aims to save lives and build self-sufficiency by increasing development and humanitarian assistance,
improving aid effectiveness, and building international partnerships. The following are the 2004 photo contest winners.
Cambodian School
Photo by Karl Grobl
Category: Basic Education
Water Magic
Photo by Nicky Lewin for CARE
Grand Prize Winner! Category: Disaster Response and
Fields of Gold Rice Harvest Refugees
Photo by Jeffrey Austin/ZUMA Press
Category: Reducing Hunger
14
Women’s Literacy in Guatemala
Photo by Lynn Curtis for ProLiteracy Worldwide
Category: Women and Girls
Hermelil
Photo by Claire Thomas, Freedom from Hunger
Measuring Health Category: Jobs/Skills Peace Process – The Hands of Youth
Photo by David Snyder, Catholic Relief Photo by Jeffrey Austin/ZUMA Press
Services Category: Peace and Democracy
Category: Health Care
Email: ia@interaction.org
Web: www.interaction.org
Phone: (202) 667-8227