SAFE WATER BLESS-A-CHILD DISASTER RELIEF MICROENTERPRISE HUNGER RELIEF MEDICAL AID ANNUAL REPORT

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SAFE WATER BLESS-A-CHILD DISASTER RELIEF MICROENTERPRISE HUNGER RELIEF MEDICAL AID ANNUAL REPORT 2017

If you spend yourselves in behalf of the hungry and satisfy the needs of the oppressed, then your light will rise in the darkness, and your night will become like the noonday. ISAIAH 58:10

dear friends & partners, It is an honor to share Operation Blessing s 2017 annual report with you. In the past year, your support has allowed us to share God s love and compassion with millions around the world. With highly effective programs targeting those in the greatest need in 39 countries, including the U.S., Operation Blessing is able to translate every precious partner gift into maximum impact. In the Middle East, Operation Blessing has been there for persecuted Christian refugees seeking a new beginning after violence forced them from their homes. Across Latin America, OBI continues to provide families with the help they need to build a brighter future for themselves and their children. In the U.S., Operation Blessing has provided essential hunger relief for those struggling to get by and responded to devastating disasters, giving desperate families hope in their darkest hour. In all, your support allowed us to touch the lives of over 12 million people in fiscal year 2017. As I reflect on all that we ve faced and accomplished in the past year, I m grateful to God for the generosity and selflessness of every single one of our faithful partners. I thank each and every one of you from the bottom of my heart. With your ongoing support, Operation Blessing will continue to share God s love and bless the lives of the poor around the world. May God bless you, Bill Horan, President Operation Blessing International

aid the persecuted Standing with the persecuted church When ISIS invaded Iraq, many Christians were forced to flee from the violence that descended on their nation. In particular, the citizens of Qaraqosh, one of the oldest Christian communities in the world, left their homes as ISIS took over. Their advance brought the Iraqi Christian church to the brink of extinction. Those that remained in the country sought safety in IDP (Internally Displaced Person) camps. Operation Blessing reached them with food, supplies, and even psychological therapy for the children. Many Iraqi and Syrian Christian refugees fled into neighboring Jordan. There, OBI partnered with the local Jordanian church to provide essential aid including food, medical care, and even a Christian school. Thanks to the faithfulness of Operation Blessing s supporters, we ve been able to share God s love with our Middle Eastern brothers and sisters in Christ and let them know they are not alone and not forgotten. We are hard pressed on every side, but not crushed; perplexed, but not in despair; persecuted, but not abandoned; struck down, but not destroyed. 2 CORINTHIANS 4:8-9

CLUB bless Club Bless partners bring God s blessings to the least of these Operation Blessing s monthly partnership program, Club Bless, enables OBI to respond quickly and efficiently to the most urgent needs of the poor and suffering around the world. Whether the problem is unsafe water in Latin America, a refugee crisis in the Middle East, or hunger in the U.S., OBI s Club Bless monthly partners make sure that essential relief is available immediately to those who need it most. Club Bless is the most effective way to ensure that Operation Blessing teams in the field have the resources they need to share God s love and blessings with the desperate and vulnerable. And do not forget to do good and to share with others, for with such sacrifices God is pleased. HEBREWS 13:16 helped 12 million

disaster & emergency relief volunteers in the U.S. 6,680 Operation Blessing responds with immediate aid in times of crisis During an intensely rainy 2016, Operation Blessing s U.S. Disaster Relief teams spent a continuous eight months deployed to multiple significant flooding events. In Robert, La., the local river rose 20 feet in 24 hours, and in West Virginia 44 out of 55 counties were declared to be in a state of emergency. In each case, Operation Blessing partnered with local churches to efficiently leverage our resources and target those most affected and most vulnerable with essential aid. Operation Blessing s U.S. Disaster Relief teams also responded following devastating tornadoes and the impact of Hurricane Matthew in both Virginia and North Carolina. Internationally, Operation Blessing was there when earthquakes rocked Ecuador and Japan, as well as after Hurricane Matthew s landfall in Cuba and Haiti. In the United States and around the world, Operation Blessing met the needs of thousands of disaster victims with food, water, emergency supplies, and immediate, hands-on help. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. MATTHEW 7:25 domestic 94,282 international 326,319

mosquitoes & disease By women. For women. Fighting the world s deadliest creature In many ways, Monte Verde, Honduras, is a typical Latin American village. Here, the public water supply is only turned on for one hour every eight days. During that precious hour, the residents collect as much water as they can, storing it in a wide variety of open containers the perfect breeding grounds for mosquitoes. The Aedes aegypti mosquito often carries some of the deadliest and most debilitating diseases known to man, including malaria and Zika. In fact, it is by far the most dangerous animal on earth, responsible for an untold amount of human suffering. In Monte Verde, Operation Blessing is conducting a pilot project to study the use of biological methods of mosquito control that have none of the adverse side affects of harmful chemicals. The program is safe for humans and the environment, and uses God s creatures, like fish, turtles, and tiny crustaceans called copepods, to fight mosquitoes and alleviate human suffering. Every day, women in impoverished areas struggle to provide for themselves and their families. Through our Chicks2Chicks initiative, Operation Blessing is empowering women in the United States, and elsewhere, to share their blessings with their sisters in impoverished nations. By providing microenterprise programs, health care, safe water, agricultural assistance, and more, Chicks2Chicks is leveraging resources to make a real impact in the lives of vulnerable women around the world. She opens her arms to the poor and extends her hands to the needy. PROVERBS 31:20

anti-trafficking Working to rescue and restore victims of modern day slavery Actual victim not shown. At a home for trafficked girls in Siem Reap, Cambodia, Operation Blessing has partnered with Apple of God s Eyes to establish a cosmetology and sewing center. Here, young girls rescued from trafficking situations can learn vocational skills as they recover from all they ve been through. These skills will ensure that they will be able to earn a living for themselves, and never again have to turn to traffickers for shelter and food. Operation Blessing also provided the girls with beds, sofas, curtains, and more to make them feel at home. From children forced into slave labor in Ghana to women and girls sold for sex in Cambodia, to trafficking hot spots around the world, Operation Blessing is committed to fighting human trafficking on every level from prevention to rescue and recovery. Speak up for those who cannot speak for themselves, for the rights of all who are destitute. Speak up and judge fairly; defend the rights of the poor and needy. PROVERBS 31:8-9 9 COUNTRIES with anti-trafficking programs helped 23,340

safe water Operation Blessing s safe water solutions are changing lives wells built 731 gallons of chlorine distributed 32,740 19 COUNTRIES with ongoing water programs helped 317,291 est. For many in the developing world, safe water is the most precious of all commodities. A huge amount of time and resources are devoted to simply retrieving and transporting water by foot from sources far away. Even so, the water is often not fit to drink, leading to waterborne disease and needless death. All over the world, Operation Blessing is working to implement innovative safe water solutions that dramatically improve the health and quality of life for entire communities. These efforts include chlorine production and distribution, water filters, catchment systems, and deep water wells. Resources utilized include the MSR SE200 and H2gO chlorine generators, and OASIS and Kohler Clarity water filters. Operation Blessing s safe water programs are literally transforming lives, and entire communities, while helping break the destructive cycle of poverty. The poor and needy search for water, but there is none; their tongues are parched with thirst. But I the Lord will answer them; I, the God of Israel, will not forsake them. ISAIAH 41:17 SAFE WATER TRANSFORMS HONDURAN COMMUNITY It had been 50 years since the residents of El Campanario, Honduras, last had access to safe water. The only source was high in the mountains, and many kids had to miss school in order to retrieve water for their families. Not only was the water hard to reach, it was also unsafe, causing the children to suffer from stomachaches, diarrhea, and parasites. Operation Blessing partnered with the community to construct a brand new water system, providing the engineering, materials, and project management while local volunteers helped with labor. Today, each house in El Campanario has its own faucet where safe water is ready to drink!

hunger relief Operation Blessing brings food and relief to those in greatest need Across East Africa, a crippling drought withered crops, parched the land, and brought widespread famine to the region. Food prices soared and many struggling families wondered how they would afford their next meal. Operation Blessing moved quickly to begin emergency food distribution in both South Sudan and Kenya, targeting the relief to children, widows, and those in the most desperate need. In Peru, Operation Blessing expanded the school nutrition program that helps prevent malnutrition and anemia in young children from impoverished areas. And, in the United States, Operation Blessing s fleet of tractor-trailers shipped over 22,000 tons of food to our network of faith-based distribution partners across the country. With your ongoing support, Operation Blessing will continue fulfilling the Biblical mandate to feed the hungry throughout the world and right here at home. United States Hunger Relief helped 4,054,354 food pantries, soup kitchens, homeless shelters, churches and more 5,119 pounds of food distributed 45,795,590 The generous will themselves be blessed, for they share their food with the poor. PROVERBS 22:9

bless-a-child Orphans & Vulnerable Children Care Fighting poverty with education 28 COUNTRIES with vulnerable children programs Nine-year-old Kimberly from Honduras is one of many children in Latin America and around the world who face having to drop out of school simply because their families can t afford uniforms, supplies, or school fees. Without an education, children like Kimberly have few prospects and opportunities, which helps perpetuate the cycle of poverty for themselves, their families, and their communities. Raised by a single mother, Kimberly was on the brink of losing her chance to get an education when Operation Blessing stepped in to provide her with a school scholarship and all the supplies she needed to attend class. I really love my new backpack and all the supplies you gave me, she said. With a quality education, students like Kimberly have the opportunity to make a better life for themselves and the generations to come. Operation Blessing works to not only provide education, but also nutrition, medical care, family support, and more to orphans and vulnerable children around the world. Children are a heritage from the Lord, offspring a reward from him. PSALM 127:3 helped 26,998

health & medical care Transforming lives and mending hearts Little Fito from El Salvador was born with a hole between the upper two chambers of his heart. Without surgery, the toddler was at risk for heart failure and stroke. Unable to afford the surgery their son so badly needed, Fito s parents turned to Operation Blessing for help. Through a partnership with Health City Cayman Islands, Operation Blessing flew Fito, and four other children, to the Cayman Islands for surgery. Fito s surgery was a success, and his overjoyed parents exclaimed, We thank you for all the support so that our child can have a normal and peaceful life! For families like Fito s in the developing world, medical emergencies can seem utterly hopeless. Quality health care is often unavailable, and, even if it is available, few can afford it. That s why Operation Blessing s Life-Changing Surgeries program is committed to making essential surgeries like Fito s possible. Thanks to your support, Operation Blessing is meeting the medical needs of the impoverished through life-changing surgeries, medicines, dental care, eye examinations, community health workers, and many more health care programs. anti-parasite pills distributed 2,208,509 life-changing surgeries 3,696 medical clinics 845 helped 2,519,508 wheelchairs distributed 7,020

microenterprise Providing the tools hardworking families need to put food on the table Because of the oppressive caste system where they live in Nepal, Sushila and her husband struggled to find work. With five children to support, Sushila was desperate to find a way to help her family. When Operation Blessing invited Sushila to attend a sewing workshop, she jumped at the opportunity. Along with nine other women, Sushila soon graduated from the workshop and was given her own sewing machine and supplies. She now has the tools and skills she needs to overcome the caste system and provide for her family. You are coming and giving us the chance to learn new things, to have new opportunities, and you don t care about my caste or my condition, she said. You just want to help me because you know I needed it. Operation Blessing s microenterprise programs are making an impact in the lives of families like Sushila s, helping to break cycles of poverty and oppression across the globe. helped 17,127

PROCUREMENT & CORPORATE RELATIONS FINANCIAL STEWARDSHIP Our Finances: Condensed Financial Information for the fiscal year ending March 31, 2017 92.9% Gifts in Kind 7.0% Contributions 0.1% Other Revenue REVENUES: Contributions... $ 24,320,614 Gifts in Kind... $ 322,127,667 Other Revenue... $ 154,354 Total Revenues... $ 346,602,635 98.8% Programs 0.8% Fundraising 0.4% General & Administrative EXPENSES: Programs... $ (341,415,256) Fundraising... $ (2,788,672) General and Administrative... $ (1,506,585) Total Expenses... $ (345,710,513) Gains and Losses... $ 114,400 Increase in Net Assets... $ 1,006,522 For Operation Blessing International s complete financial statements audited by KPMG LLP, please visit www.ob.org/financials or request a hard copy by emailing operation.blessing@ob.org or writing us at 977 Centerville Turnpike, Virginia Beach, VA 23463. Operation Blessing is committed to building relationships with socially responsible corporate partners in order to further expand our ability to reach the poor and vulnerable with essential aid. These partners include pharmaceutical companies, grocery chains, distributors, manufacturers, and production facilities. Our partners provide OBI with everything from medicine and food supplies to mosquito nets, water filters, and more. These items are then used in Operation Blessing s medical, disaster, and hunger relief efforts both internationally and here at home. These gifts allow us to reach those in need quickly and effectively. In turn, Operation Blessing provides companies with the opportunity to showcase how their goods and products can make a positive impact on the world. Medicine and medical supplies received as gifts-in-kind allow Operation Blessing to bring healthcare services to those in remote and impoverished communities through medical brigades, rural clinics, and local hospitals. MEDICAL BRIGADES Too sick to travel or lacking reliable transportation, many patients in remote regions depend on treatment from Operation Blessing medical brigades staffed with physicians, nurses, and other medical professionals. RURAL CLINICS Underfunded and without basic medicines, many small, local clinics lack the resources they need to care for their patients. Operation Blessing provides these rural outposts with medicines and supplies that allow them to continue their essential services. IN-COUNTRY HOSPITALS Operation Blessing supplies many hospitals with donated medicine that helps lower their operating costs, allowing them to continue providing quality medical care to the communities they serve. Consumer s Digest named OBI one of America s Top Charities Board Members: Dr. M.G. Robertson Virginia Beach, VA A.E. Robertson Virginia Beach, VA Gordon Robertson Norfolk, VA William Horan Virginia Beach, VA David Melilli Laguna Hills, CA William Dooner Memphis, TN Thomas Daugherty, M.D. Winchester, VA Robert Fanning Virginia Beach, VA Cheryl McLeskey Virginia Beach, VA Forbes ranked OBI as one of America s Most Efficient Charities with 100% rating in fundraising efficiency Officers & Leadership Team: Dr. M.G. Robertson, Chairman William Horan, President and Chief Operating Officer James Barr, Jr., Vice President and Chief Financial Officer Randy Morell, Secretary Steven O Grady, Vice President of Operations and Logistics Pamela Erickson, Vice President of Procurement and Corporate Relations Deborah Bensen, Vice President of Media and Development David Darg, Vice President of International Operations Jody Herrington-Gettys, Vice President of U.S. Disaster Relief and Programs Ronda Sherman, Vice President of Philanthropy OBI is a member in good standing of the Evangelical Council for Financial Accountability (ECFA)

SAFE WATER BLESS-A-CHILD DISASTER RELIEF MICROENTERPRISE HUNGER RELIEF MEDICAL AID BLESS THE POOR operationblessing.org P.O. Box 2636, Virginia Beach, VA 23450 (800) 730-2537