We are pleased to share with you our 2013 annual report. Inspiteofadifficulteconomicenvironment,oursalesincreasedmodestlyin2013andwereportedasmallsurplus.Wewereparticularlypleasedwithan8%increaseinourcataloganddirect-to-consumersales. However,wedonotmeasureoursuccesssolelybysalesrevenue.Ourtruesuccessisincreatingopportunityforlow-incomeandmarginalizedartisansaroundtheglobe.Thefairtrade values we have espoused for over 60yearsareincreasinglyembracedbythemainstreammarket,providingnew opportunities for artisans and smallfarmers.Yetstrongereffortsarenecessarytoensurethatartisans,farmers,workers,andconsumersaretreatedfairlythroughouttheglobalsupplychain. Wearegratefulforthesupportofourcustomersanddonorsaswellasourhighlydedicatedboard,staffandvolunteersinourownfacilitiesandstores,andinfairtradestoresandreligiousinstitutionsacrossthecountry,whogotheextramiletocreateamorejust world.

Thankyou,

BobChasePresident/CEO

Safe Jobs Save Lives Inthe65yearssinceourmodestbeginning,SERRVhassupportedhundreds of thousands of artisans and theirfamiliesacrosstheglobe.Eachpersonemployedbyourpartnersisonefewerwhocouldbeexposedtoexploitativeanddangerouslaborpracticescommoninmainstreamsupplychains. Inthespringof2013,theworldwasoverwhelmedwiththetragedyoftheBangladeshgarmentfactorycollapse,whereover1,000peoplelosttheirlivesandthousandsmorewereinjured.Theincidentpromptedmanycorporationstorethinktheirbusinessethicsandbroughtpublicawarenesstotheimportanceofsocialresponsibility,particularlyinthefashionindustry.Thoughtragic,theincidentactedasacatalystforchangenotonlyinBangladesh,butinfactoriesaround the world. SERRV’spartnersin32countriesarechangingthestatusquobyrequiringsafeworkingconditionsfortheiremployees.Toexpandtheimpactoffairtrade,weworkdiligentlytoassistour

partnersingrowingtheirbusinesses. Forexample,weinvestheavilyinproductdevelopmentsoourpartnerscanlearntodesignforaWesternmarket.LastSeptemberSERRVhostedaDesignCampinMadison,Wisconsin(seepage3),andinOctoberheldanotherinDhaka,Bangladesh.ProductDesignerAnneBradytraveledwithprobonoprofessionaldesignerDanaMoralestoBangladeshtofacilitatethethree-daydesigncamp.Despitecivilunrestandprotestsofupcomingelections,participantsfromallfourofourpartnersinBangladeshattendedsafelyandtheeventwasasuccess. Danashares,“Ibelievedesignerslikemyselfshouldassumetheresponsibilityofmakingadifferencethroughmeaningfuldesign,andbecomeinstrumentsforsocialchange.” OurpartnersinBangladeshofferanalternativetodangeroussweatshopsbygivingartisans,especiallywomen,anopportunitytosafelyandsustainablyliftthemselvesoutofpoverty.

Dear Friends,

2013ANNUALREPORT

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®

Sales of fairly traded handcrafts and food 10,019,503Partial reimbursement of shipping costs 678,919

Contributions 195,152Other non-operating income 37,325

GROSS REVENUE 10,930,899

Credit card, bank fees, and other cost of sales (181,852)Contract services (784,579)

Payments to producers for goods sold (3,684,996)NET REVENUE $6,279,472

Program salaries and benefits 1,900,678Postage and outbound shipping costs 1,288,326

Payment of international shipping for producers 464,192Promotion 464,948

Occupancy including warehouse rent 399,578Program supplies 333,316

Consultants to assist producers, other services 176,477Interest on advances to producers and inventory 119,954

Donations to partner organizations 69,022Miscellaneous program expenses 6,957

Volunteer expenses and contract labor 147,868Telephone 31,043

Travel 46,583Grants to producers, producer development, and special projects 47,134PROGRAM EXPENSES SUBTOTAL 5,496,076

Administrative and fundraising 753,729TOTAL EXPENSES $6,249,805

CHANGES IN NET ASSETS $29,667

For a complete copy of our audited financial statements, please contact us at 410.635.8755.

Cash and cash equivalents 1,964,651Accounts receivable 674,685

Allowance for doubtful accounts (12,858)Inventories 1,380,117

Reserve for obsolete inventory (75,000)Advances to producers and partners 255,489

Prepaid supplies and miscellaneous accounts 243,791Equipment and leasehold improvements 116,101

TOTAL ASSETS $4,546,976

Inventory financing payable 1,759,377Accounts payable 284,976

Accounts payable inventory 13,883Payable to partner organizations 73,117

FASB 106 obligation 13,985Notes payable 1,259,000

Miscellaneous liabilities 99,563TOTAL LIABILIIES $3,503,901

FUND BALANCE $1,043,075

Income Statement for 2013REVENUE

EXPENSESLIABILITIES

ASSETS

Balance Sheet as of 12/31/13

Jero Sandat and her husband own a workshop in Indonesia with SERRV

partner Mitra Bali. Jero shares, “I have learned that there is no

difference between men and women. Like all mothers in the world, I want my children to have a better

life, health, and success with their careers. There is no reason for customers not to choose fair trade products -- it helps people like us and many others, and fair trade

products can connect us for a better planet.”

“I didn’t go to school, yet I learned a job that I can do with my hands. I weave myself. I have my own income. I can help take care of my family and my three children can go to school. Fair trade has improved our community -- more children are in school and stay longer because we are able to afford to pay for primary and junior high school.”

-Apana AmyogpokaTrade Aid Integrated,

Ghana

PHO

TO: Alsy Acevedo, C

RS

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Total 2013 Purchases Listed by CountryAfghanistan 3,718Bangladesh 182,191Cambodia 58,807Cameroon 39,999Canada 64,517Chile 21,922China 16,418Ecuador 26,039El Salvador 7,452Ghana & Germany 554,466Ghana 39,967Guatemala 6,483Haiti 91,342India 601,585Indonesia 212,543Kenya 74,130

Madagascar 1,580Mali 18,349Mexico 33,760Nepal 119,827Nicaragua 7,235Pakistan 20,468Palestine 107,136Peru 126,941Philippines 114,688Rwanda 6,140Sri Lanka 9,702Swaziland 60,315Uganda 22,055USA 156,768Vietnam 175,898GRAND TOTAL $2,982,436

● DonatedfundsonbehalfofthoseaffectedbytyphoonHaiyaninthePhilippines.WorkingincooperationwithPreda,SERRVsupportedsixmonthsofadvocacywork,communityoutreach,andtraining.

● DonatedfundstoKumbeshwarTechnicalSchoolinNepal,whosefacilitiesexperiencechronicpowershortages.ThroughSERRV’sinvestmentinsolarpoweredequipment,KTShasinstalledlightinginthreeoftheirworkshopsaswellasintheiron-siteorphanage.

● Providedfundingtoconstructdormitoriesandtoiletsforwomenrecoveringfromobstetricfistulasurgery.DeltaSurvie,ourpartnerinMali,wasforcedtorelocateandrebuildtheircenteraftercivilunrestmadetheiroriginallocationunsafe.

● HostedoursecondsuccessfulFairTradeRetailerRetreatinMadison,Wisconsin,bringingstoremanagerstogethertodiscussbestpractices,offerpracticalsupport,andbuildthemarketforfairtrade.

● Hostedour4thannualDesignCampinMadison,Wisconsin,wherewewereexcitedtowelcomeourfirstguestfromAfrica.MerchandisingDirectorsfromKenya,Vietnam,andIndiajoinedusforpeerandcustomerproductcritiques,competitiveshopping,trendreports,homestays,anddesignworkshopsinMadisonandChicago.

● SupportedprobonoprofessionaldesignerJamieHayestodevelopnewdesignsandcreatesampleswithartisangroupsinChinaandPeru.

● Introducedthreenewpartnergroups:OjalainNicaragua,AllpainPeru,andUnduguinKenya.

● Facilitatedathree-dayDesignCampinBangladesh.ParticipantsfromfourlocalartisangroupsattendedandworkedwithprobonoprofessionaldesignerDanaMoralesandSERRVProductDesignerAnneBrady.

● SupportedprofessionaldesignerandSERRVboardmemberFrankMillero’svolunteertriptoNepal.Duringhisstay,Frankcollaboratedwithourartisanpartnerstodevelopnew,uniqueproducts,includingaholidaycollectionoffeltornaments.

Development Highlights in 2013

The amounts shown are the sums of spring and fall purchase orders and are not calendar-year based.

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PHO

TO: Joseph de Leo

OPERATIONS CENTER 500 Main Street

PO Box 365 New Windsor, MD 21776

410.635.8750

ADMINISTRATIVE OFFICE122 State Street, Ste 600

Madison, WI 53703608.251.3766

SERRV International®2013 Board of Directors

Many Thanks

Colin Crawford, Board ChairJulie Danis

Cathy DowdellTom Greenwood

Matt GregetWilliam Gordon

Brad HamrlikJacqui MacDonald

Tim McElweeFrank Millero

Bob Chase (nonvoting member)

Wecannotdoourworkaloneandwouldliketoexpressoursinceregratitudetothosewhohavehelpedmake2013asuccessfulyear.

OUR ARTISAN & FARMER PARTNERS Yourcreativity,productquality,enthusiasm,andresilienceinthefaceofadversity is inspirational!

OUR CUSTOMERSYourcontinuedsupportofourmissionandourpartnersiswhatmakeseverythingwedopossible.Thankyouforincorporatingfair trade into your daily life.

INVESTORSThankyoutotheSharedInterestSocietyoftheUKandallofourSERRVLoanFundinvestorsforyourinvestmentswhichsupportourfairtradework.

DONORSWeappreciateyourwillingnesstogive.Yoursupportallowsustoprovideneededservicestolowincomeandmarginalizedpeopleinareaswhereitisoftendifficulttodobusiness.

CATHOLIC RELIEF SERVICES, LUTHERAN WORLD RELIEF, AND THE UNITED METHODIST COMMITTEE ON RELIEFManythanksforyouradvocacy,yourworktosupporteconomicempowerment,andyoureffortstogrowthedemandforfairlytradedhandcraftsandfood.

VOLUNTEERSThankstothousandsofyouforgivingyourtimeanddedicationinourNewWindsorandMadisonfacilities,andatstoresandinchurchesacrossthecountry.

BOARD OF DIRECTORS & STAFF Thankyouforthetimeandskillyouputtowardsfulfillingourmission.Yourenergyandenthusiasmsetthecourseforabetterfuture!

serrv.org1.800.423.0071

O U R M I S S I O N to eradicate poverty wherever it resides® by providing opportunity and support to

artisans and farmers worldwide

FOUNDING

M E M B E R

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