2012 ANNUAL REPORT

It’s not just bricks and mortar... we build buildings that change lives, inspire hope, and create opportunity.

Letter from Founder

Dear Supporters,

It was not long ago that Construction for Change existed merely as a vision to bring opportunity to those most in need. The hard work and overwhelm-ing generosity of those involved has now made this vision a reality. With the beginnings of our organization starting in 2007, the past 5 years were not without challenges. Faced with much economic uncertainty and the realities of constructing buildings in developing countries, the work before us has been difficult and will continue to be. Fortunately, where there are great challenges, there are also great opportunities.

It is my pleasure to say that our organization has been up to the task and met all of the challenges head on, much of the time with great success. 2012 has been a monumental year for CfC. We saw increased success in fundraising from 2011 which resulted in CfC building a hospital, two schools, and the first phase of a clinic. Also, we refined our partnership development process, we changed to a new website design for the first time since our inception, and saw the successful and safe return of five project managers. We also signifcantly increased our impact through the efficient use of funds and emphasis on partnership funding. Most importantly to us, we continued to construct buildings that significantly affect peoples lives in a positive way.

2012 also brought a new addition to the CfC team. We are all very excited to welcome Shelby Port to the team as the new Executive Director. CfC’s success and growth has put the organization in a position where it needs a full-time employee to usher it into the next stage of its growth and Shelby is exceptionally qualified to do just that. As part of the hire, we will reorganize and I will transition to Chairman of the Board, a position that highlights my strengths and provides a platform for CfC to take big steps in the near future.

It has been a busy 2012; and 2013 will be no different. It is imperative that you know that we do not ac-complish any of this without our supporters. The accomplishments are yours to celebrate and we hope you do so with great joy. Your continued support has defined our organization and for that we are ever grateful. We look forward to what we can accomplish together in 2013!

Warmest Regards,

Co-founderChairmanBoard of Directors

Nick Tosti

Dear Supporters,

I am honored to serve as the new Executive Director for Construction for Change. Each and every day on the job, I have been amazed and inspired by the people behind this organization and the work they are doing. CfC is investing in quality, sustainable infrastructure in some of the poorest, most isolated villages in the world. Without reliable infrastructure, these communities are affected on a daily basis – children walk miles to school or stop going altogether, mothers give birth at home without adequate medical care, farmers cannot increase food production because they lack irrigation, drought-tolerant seeds or training, and preventable and treatable diseases take the lives of their loved ones. There is much work for us to do and no time to waste.

Looking to 2013, CfC is working vigorously to scale up our efforts and increase our capacity to help these communities. We are presented with a number of requests to build schools, hospitals and other critical infrastructure every year, but currently lack the financial and human resources to take on all of these projects. However, as we work to diversify our sources of funding and increase visibility, we hope to increase our project capacity from the current level of 3 - 4 projects to 8 – 10 projects per year by 2015.

Personally, I am confident that we can reach this goal for one main reason – the people who make up this organization. Our founders, volunteers, donors, and board members are some of the most talented and self-sacrificing individuals I have known. You give your time, expertise and financial contributions so that CfC can continue to build where no one else is building. Thank you. I look forward to seeing what we can achieve together.

Letter from Director

Kind Regards,

Executive Director

Shelby Port

IMPACT

Potential partner organizations apply to CfC with information about organization andconstruction project.

A second review further researches the organization to gauge their long-term sustainability, commitment to the cause, financial responsibility, andfuture plans.

3. Research Organization

CfC first reviews applications to determine if their work and project aligns with the CfCmission and goals; and the project’simpact based on the UN MillenniumDevelopment Goals.

2. Initial Review

CfC announces new project partnersand begins collaboration to start thefundraising, design and constructionof the project.

4. Establish Partnership

How to Partner with CfC

1. Partners Apply

What we provide...

Fundraising

Design

Capacity Building

Construction Management

CfC generally provides up to $50,000. Our contribution is dependent upon project size and the organization’s ability to raise funds.

CfC hires all local labor. Our Project Managers train local residents in construction related trades and skills that will allow them to provide for their families and give back to their community.

CfC partners with pro bono architects and engineers if partner requires de-sign assistance. CfC designs take into account local resources, topography and climate to create an efficient and sustainable structure that meets the needs of the local community.

CfC provides all management necessary to complete the construction project. 1-2 project managers volunteer to go live in the community for the duration of the project and supervises all scheduling, budgeting, procurement, quality control and value engineering. CfC utilizes all local methods and materials.

2012 PROJECT OVERVIEWS

Hospital for Hope

Cura Secondary School

Mentee Education Foundation

MED 25

Location: Jharkhand, IndiaType: HospitalStatus: Under constructionInvestment in economy: $94,000People impacted: 90,000*Project Managers: Mert Meeker & Martha Kerr

Location: Cura, KenyaType: SchoolStatus: Complete August 2012Investment in economy: $70,000People impacted: 5,278*Project Manager: WIlliam Fort

Location: Kakata, LiberiaType: SchoolStatus: Complete March 2012Investment in economy: $45,000People impacted: 6,038*Project Managers: Tim Hickory & Justin Pratt

Location: Mbita, KenyaType: ClinicStatus: Under ConstructionInvestment in economy: $320,000People impacted: 60,682*Project Managers: Mari Anderson & Terri Green

*People impacted is projected over building lifetime (30 years)

Past ProjectsCommunity School

STEP Kindergarten

U District Foodbank

One Acre Fund

Location: Limulunga, ZambiaType: SchoolStatus: Completed Feb 2012Investment in economy: $150,000People impacted: 3,638*Project Managers: Tyler Nelsen, Eric Hardie, Dan Wachtler, and Kyle Parrish

Location: Kampong Cham, CambodiaType: SchoolStatus: Completed Nov 2010Investment in economy: $52,000People impacted: 2,663*Project Manager: Dan Wachtler

Location: Seattle, WA, USAType: Food BankStatus: Completed Nov 2010Investment in economy: $9,000People impacted: 825,010*Project Manager: Andy Marshall

Location: Bungoma, KenyaType: Office ComplexStatus: Completed April 2011Investment in economy: $175,000People impacted: 320,630*Project Managers: Dave Betts & Connor Dinnison

*People impacted is projected over building lifetime (30 years)

Letter from CFO

Over the last four years Construction for Change has partnered with nearly a dozen communities and managed more than a half million dollars in infrastructure projects. We are pleased with the organization’s trajectory and continue to focus on effectively meeting the needs of impoverished communities around the world. As you can imag-ine, there is much work to be done. With each successful project, we are approached by new communities andnon-profit organizations in need of a school, clinic, or other critical infrastructure. We

are encouraged that the demand for our services and expertise continues to rise. To meet that need, we made the necessary decision to hire our first Executive Director only a few short months ago. The impact has been immediate: long-term strategic plans, multi-year budgets and corporate sponsorship strategies that we are happy to discuss in further detail. Needless to say, the CfC team is excited about 2013 and beyond. We continue to meet our construction goals in a most prudent manner. We are proud that almost 90% of each dollar donated goes directly to our projects and we strive to keep this ratio as high as possible. To date, we have built 4 schools, 2 office headquarters, and 2 medical facilities on a budget of roughly $500,000 and, until now, no full-time staff. Construction for Change has reached the next stage of development and we know our model is scalable. We also realize that the number of communities we can reach is directly correlated to our fund-raising effort. As a result, our goal in 2013 is to broaden our donor base and increase recurring donations so we can reach more people in need. We feel that with our full-time Executive Director, a successful project portfolio and fantastic supporters who have been with us over the last four years, we will reach this goal.

Financial Highlights*Over $100,000 raised for the fourth year in a row;*Maintained under 3% overhead;*More than doubled the number of monthly donors;* Hired first full-time employee.

Thank You,

Chief Financial Officer

Jamey Stoner

Donations

Expenses

FINANCIALS

How to get involved

Still cannot decide what to get friends and family for Christmas? How about a brick, window or door donated in their name?

CfC Online Catalog

The Brick Club

Volunteer

A monthly giving program that sponsors local construction workers in the rural communities where we work. By giving just $50 per month, you support a fair annual wage and the livelihood of their families.

There are exciting new volunteer opportunities at CfC. Visit our website for more information.

Keep CfC in mind for your year-end donations. Giving online is now easier than ever on our Donate Now page.

Connect CfC with a foundation, corporation or other potential supporter.

Write about CfC in your local newspaper or Alumni magazine.

Share information about CfC to your book club, church, or other social groups you belong to.

CfC TeamExecutive Director

Volunteer Staff

Board of Directors

Shelby Port

Andy Marshall Jenny KoenigDan Wachtler Julie LewisJames Stoner

Nick Tosti, Chairman Sarah OlinBarry Alavi Tom JohnstonKelly Baker Victoria BergsagelMatt Lambert

A Special ThanksThe construction of much needed facilities around the world would not be possible without our generous supporters. Countless individuals have given to our cause and volunteered their time. Foundations have believed in our efforts and bestowed us with the financial resources to operate. And corporations have either sponsored us directly or matched employee contributions to Construction for Change. These supporters enable Construction for Change to grow as an organization and expand its capacity to build quality infrastructure throughout impoverished communities. We thank you for your continued support!

Alex TostiBarakett FoundationBarry AlaviBill & Jennifer StauffacherBill & Melinda Gates FoundationBill WachtlerBrian RabinBruce GryniewskiCatherine MillerCraig & Kay StonerDanny & Whitney KruseDave BettsGlenn Cribbs ConstructionHilti North AmericaJason & Jenny KoenigJeff & Tricia RaikesJill CohnJim & Patty TostiJohnston Family FoundationKeith & Stephanie ReimerKelly BakerKen & Marcia TankKen Edgar

Kit & Sam KollmeyerLKY School of Public PolicyLookout Mountain ChurchMarch & Marsha McBrideMarisa CusackMarji LykeeMark & Pamela GrindstaffMark WilkersonMatt & Ginger KopickyMatt & Jen ChestnutMatt & Theresa MarcusMatt LambertMike & Kathleen LambertNick KotNigel KeamPeter & Elizabeth LindquistPR PetroleumRich & Linda MacIntoshRichard & Janet OlinRiggs KubiakRob & Meg KilcrupRoger BlierRW Anderson Homes

Sarah OlinScott & Angela ChapmanScott & Julie LewisScott & Mackenzie TewelShawn HardyShiv BatraSteve KlimekTenor WinesTim & Marcia McEvoyTom & Mary HercheTom & Michelle KruseTom FarrellTom JohnstonTosti & AssociatesToughbuilt ToolsValencia FoundationVictoria BergsagelWachtler Marshall Inc.Windward Real Estate Services

Elijah Grindstaff, Co-FounderMike McEvoy, Co-FounderNick Tosti, Co-Founder

Photography by Jason Koenig, J.Koe Photography

Graphic Design by Alex Tosti, Chrystabel Photography