The Coffee Trust

“Client Note 1 - Continued: Schedule A, Part IV, Explanation - How the Organization meets the facts and circumstances test:Mark Griffith is a member of the board. He is currently the board secretary. Mark is not a major funder to TCT, however, Mark brings over 30 years of non-profit management to the organization. **Sources of Support and Accountability: TCT accepts contributions from private foundations and from public support. TCT accepts no government funding at all. Private foundations are provided a detailed budget, a mid-year report and an end-of-the-year report. The year-end report is accompanied by a monitoring and evaluation guide. This informs the donors of the progress and challenges faced by the project. TCT makes public a monthly report on its web site. **Programs and Facilities are made available to the general public and the organization's definitive program to accomplish its charitable work: TCT works in one of the most impoverished coffee-producing regions in the world, the Ixil region of Guatemala. The deeply indigenous Ixil region has faced generations of poverty. It has been ravaged by Guatemalas 36-year brutal civil war. After the war ended in 1996, the area was flooded with well-intended, but ill-informed NGOs who provided give-away program fro the people. The unintended consequences of their actions were to create a culture of dependency out of a strong people who had somehow managed to survive poverty and war for generations. **Programs and Facilities are made available to the general public and the organization's definitive program to accomplish its charitable work (continued): San Gaspar Chajul is where the lions share of our work in the Ixil region takes place. In San Gaspar Chajul half their population was murdered during the war. Since the war ended, the population has rebounded. However, now half the population is under 20 years old without any jobs, skills, or opportunity. The options for young people are severely limited, leaving them little choice but to abandon failing family coffee farms and looking for a better life north across the border to the United States. In addition to problems caused by the civil war, the region faces debilitating respiratory illnesses caused by inefficient, unventilated, in-home wood stoves causing fatalities for Ixil mothers and stunted brain development for children. Chronic food shortages remain a serious problem resulting in hunger as a common occurrence after the coffee harvest. Almost completely dependent upon coffee as a sole source of income, the Ixil people are almost completely vulnerable to price drops, and losses in productions, which can be devastating. A lack of knowledge about appropriate agriculture leaves the Ixil farmers vulnerable to blights, insect infestations, and natural disasters. Recently, the region has been struck by a fungus that has destroyed over 75% of its coffee production. EDUCATION: TCTs comprehensive, integrated development effort provides funding for the maintenance and support of the only local library in San Gaspar Chaul serving students from as young as 5 ears old through high school. TCT also provides scholarships to deserving, middle school and high school students and to students to attend technical school at nearby Rafael Landivar University in Quiche. TCT has also provided university scholarships to students to attend University del Valle de Guatemala in Solola and to Rafael Landivar University in Queztalenango. Conditions for scholarships are for graduating students to remain at home for at least 5 years to work in the region. The goal of this project is provide capable Ixil youth with an opportunity to gain employment at home in the Ixil region, and apply their skills in their own community. ECONOMIC DIVERSIIFCATION: TCTs economic diversification program is designed to provide alternative income for Ixil families so they are no longer dependent upon coffee, a volatile crop at best, as a sole source of income and to provid”

“Client Note 2 - Continued from Schedule O, Form 990-EZ, Part III, Line 28 - Statement of Program Service AccomplishmentsPump delivery: Asociacin Chajulense decided to give pumps to the associates. Since they had given pumps before, they only gave to the ones who hadn't received them. The people complained about the unequal distribution. Lack of microorganism application: In commercial farms they usually apply chemical products 3 times for la roya control; however, la roya will not be controlled with 3 microorganism application, it is necessary to understand that at least 5 applications will be needed. Lack of trimming: The associates still do not understand the benefit of trimming. We are trying to promote among the associates the trimming of at least 10% of the coffee plants older than10 years. Dishonesty: We found that some promoters are not visiting the associates as they should. In the future we will call monthly, 10% of the associates to follow up the promoter's work, as well as the field visits of the technicians. On the other hand, one promoter was expelled from the program because he was found applying herbicides. Attention of beneficiaries: In 2016, it is expected that each promoter attends 50 associates.Microorganism production using local materials: In order to reproduce the microorganisms using local products an experiment has been carried out using banana and ashes instead of molasses. It has been called Local Effective Microorganisms (MEL for its initials in Spanish). Until now, the tests are promising, it has good fermentation and has good flavor. We will see how it works in the field. 3.2 Food Sovereignty, with Asociacin Chajulense de MujeresActivitiesPersonnelAdvisor:An advisor with experience in development and community health projects entered the Food Sovereignty Program this year. She visits the program twice a month. Coordinator:Since the former coordinator, Loyda Cobo resigned, a young determined woman with leadership skills was hired for the position. Technicians:Two new technicians were incorporated to the program; one will be in charge of the Sotzil supervision and the other of Chel.Promoters:The 5 Sotzil promoters continue to visit twice a month an average of 20 beneficiaries each, making a total of 100 beneficiaries. It has been detected that some promoters do not comply their task. ComponentsTrainings:Training workshops are delivered to the beneficiaries twice a month and weekly to promoters. The training topics have been mainly about the components, the importance of adding eggs to the diet, and lately, on chicken farming.Stoves:The first 168 beneficiaries still have their stoves; however, 55 left the program for different reasons, the main of which is that they do not want to attend the trainings, so they are not receiving follow-up. An important approach of the program is that in Chel community the stoves will be the last component to be implemented since the beneficiaries are going to pay for them with the money they earn through the other components. We are waiting to decide whether we stay with the same stove model or implement a new one.ChickensThere have been a lot of improvements in this component and the most important one has been de decrease of chicken mortality, which is now in 36%. Although it is still high, the annual pest which caused most of the mortality has been avoided. However, women still have to learn how to use EM more efficiently since currently they are benefiting from using them for healing instead of taking advantage of their preventive use. The second improvement is the support we are receiving from an expert from the Ministry of Agriculture, Roberto Mendizbal, BSc, who is helping to implement an excellent and efficient model for chicken breeding. Chicken yards with the capacity to hold up to 82 animals (2 roosters, 20 hens, 20 chickens from 0 to 1 month old, 20 chickens from 1 to 2 months old and 20 chickens from 2 to 3 months old) have been built in a four square mete”

“Class of Activity: Secondary Scholarships | Donee's Name: Horizontes Sin Limites IXIL | Cash Amount Given: $10000”

“Class of Activity: Economic Development | Donee's Name: Asociacion Chajulense De Mujeres | Cash Amount Given: $63915”

“Class of Activity: Economic Development | Donee's Name: Asociacion Chajulense La Union | Cash Amount Given: $57529”

“Class of Activity: Economic Development | Donee's Name: Universidad del Valle de Guatemala | Cash Amount Given: $12104”

“Class of Activity: Economic Development | Donee's Name: Copichajulense R.L. | Cash Amount Given: $10000”

“Advertising and Promotion $61699”

“Office Expenses $2053”

“Information Technology $345”

“Travel $30238”

“Depreciation $510”

“Amortization $13222”

“Insurance $1851”

“Bank Service Charges $2910”

“Equipment Rental $1498”

“Supplies $1334”

“Dues and Membership Fees $1244”

“License and fees $75”

“Miscellaneous $7”

“Miscellaneous - Beginning $1525 Miscellaneous - Ending $1015”

“Accounts Receivable - Beginning $0 Accounts Receivable - Ending $620”

“Pledges and Grants Receivable - Beginning $94050 Pledges and Grants Receivable - Ending $2000”

“Prepaid Expenses and Deferred Charges - Beginning $900 Prepaid Expenses and Deferred Charges - Ending $3842”

“Intangible Assets - Beginning $19829 Intangible Assets - Ending $17207”

“Accounts Payable and Accrued Expenses - Beginning $10203 Accounts Payable and Accrued Expenses - Ending $16111”

“Unsecured Notes and Loans Payable - Beginning $1952 Unsecured Notes and Loans Payable - Ending $53038”

“Name Change from the Global Community Trust to The Coffee Trust. Copies of documents previously submitted to the IRS are attached.”