Gifts and Graces

Fair Trade
Foundation
 OUR VISION

Gifts and Graces will reduce

poverty by transforming
livelihood programs of 1000
NGOs to become self-
sufficient. We are targetting
40 NGOs by 2012.

OUR MISSION
To improve the quality of life
of marginalized members of
society, by providing product
development, technical
training on enterprise
management, and global
market access to livelihood
communities under the Gifts
and Graces brand.
 Without the capability building support from Gifts and
Graces , livelihood programs are unable to grow and
develop to self-sufficient enterprises.
----------------------------

Without the marketing support from Gifts and Graces,

livelihood programs are unable to access markets
which will give them the volume
required to earn significant income.

For the beneficiaries of the livelihood programs,

increased and sustained income from the livelihood
enterprise means
1. having food on the table
2. sending their children to school
3. gaining pride and self-esteem
Addressing the Philippine poverty situation
• 40% of the population live on $2 a day or less
• 4000 NGOs registered
Marginalized NGOs G&G Partners
Segment
Urban poor 1000 6
Rural poor 500 3
Women 900 1
Street children 500 1
Former prison inmates 50 1

Youth 1000 1
Persons with disabilities 260 1

Migrant workers 40 1
Trafficked individuals 42 1
Indigenous groups 50 2
Artisans 3 1
Special Needs 20 1
Individuals
 1000 NGOs organize groups into livelihood programs
• Involving small-scale production
• Lack the systems, long term planning,
entrepreneurial attitude
• Lack financial and human resources needed

Characteristics Needs
Handmade production. Improved production process for cost
Production of 2-100 products/day efficiency, standardization, quality

Annual sales of USD 2,000 - Market access

50,000 spread unevenly

Dependent on grants Self-sufficiency

5-25 beneficiaries involved Increase outreach and penetration

Producer beneficiaries
Value Chain
Alliance Partners
NGO
Microfinance

Volunteers
Products

Corporate
Consultancy Capacity Clients
Building & Training

Retail Clients

Products & Services

Training Content Gifts
Giftsand Graces
& Graces
Wholesale
& Delivery
Clients
Partners

Online Sales

Advertising, PR,
Customers/Clients Branding
Funders
 Critical Success Factors

INCOME
1. Gifts and Graces will expand from corporate giveaways market to the wholesale
and retail market
2. Gifts and Graces must maintain total customer satisfaction
1.) Quality products
2.) On-time delivery
3.) Value for money
3. Financial liquidity
4. Strong Gifts and Graces brand

EXPENSES
1. Infrastructure
2. Operational efficiency
3. Strong alliances
 Environmental Enablers & Obstacles
CONSULTANCY/TRAINING

Enablers (Opportunities) Obstacles (Risks)

1. Livelihood programs all over the
Philippines
2. Increased awareness of
importance of community building
3. Desire of communities for
empowerment
1. Possible resistance from
NGOs
2. Competition
3. Lack of organizational
entrepreneurial attitude

MARKET
Enablers (Opportunities)
1. Increased awareness
and interest in fair
trade
2. Increased desire to get
involved
3. Interest in Philippine-
made products
Obstacles (Risks)
1. Global economic crisis
2. Competition
3. Lag between ramped up
productivity and market
demand
Competitive Analysis and Market Positioning
  Mark Benefits to Users Why Gifts and Graces is
et Better
Share
   
Gifts and Graces (G&G) access to corporate clients,
Provide product 2% product development  
development, market input, network with other
access, enterprise G&G partners
management training

Echo Store Gifts and Graces pays full

Provides some shelf space
in a retail store, also 2%
provides product
development
retail store is visible price for community's
resulting in high sales products. Corporate
/distributor clients gives
communities large bulk
orders

Other Fair Trade

organizations - CCA, SAFFY Gifts and Graces works
market access to export 6% communities access export with NGO communities
markets/May be accessed market
by organizations with
export capabilities
Non-Consumption
Organization runs livelihood   G&G provides expertise
program on their own - 90% beneficiaries learn new on product development
Organization staff in charge skills and market access,
of livelihood, usually partnering with G&G
involves skills training means access to markets
requiring large volumes
 Financial Projections
2007 2008 2009 2010 2011 2012

Beginning Cash $ 5,918 $ 36,928 $ 26,338 $ 43,109 $ 25,891 $ 77,763

Earned Income:

Product Sales $ 42,803 $ 77,872 $ 104,167 $ 125,000 $ 166,667 $ 250,000

Services $ 38,333 $ 55,000 $ 125,000

Total Earned Income $ 42,803 $ 77,872 $ 104,167 $ 163,333 $ 221,667 $ 323,333

Expenses:

Costs of Product Sold $ 31,045 $ 60,809 $ 71,354 $ 74,688 $ 89,583 $ 128,125

Payroll Related $ 12,223 $ 15,896 $ 28,739 $ 31,613 $ 34,775 $ 38,252

Other $ 6,451 $ 16,350 $ 14,490 $ 61,083 $ 71,686 $ 91,616

Total Expenses $ 51,120 $ 95,138 $ 117,083 $ 170,134 $ 201,045 $ 263,493

Net Income $ (8,317) $ (17,266) $ (12,917) $ (6,801) $ 20,622 $ 59,841

Investment Activity

Cash used for Purchases $ - $ - $ 1,563 $ 41,667 $ - $ 50,000

Cash from Grants/Investments/Fundraising $ 39,327 $ 6,675 $ 31,250 $ 31,250 $ 31,250 $ 10,417

Ending Cash $ 36,928 $ 26,338 $ 43,109 $ 25,891 $ 77,763 $ 98,020

 Cash Flow

$110

$90
d
n
u
h
o
T
a
s

$70

$50

$30

$10

$(10)2006 2007 2008 2009 2010 2011 2012 2013

$(30)

With Grant Without Grant

 Metrics Dashboard
Business Metrics
2009 2010 2011 2012
Increase in sales 104,167 125,000 166,667 250,000
Operational sustainability 91% 98% 112% 124%
Financial sustainability 88% 96% 110% 122%

Social Impact Metrics

2009 2010 2011 2012
Number of partner communities 20 24 30 38
Number of producer beneficiaries 500 630 750 985

Production Output % increase 15 20 25

Management Team & Organization

Hiring Needs
 FAMILIES AND CHILDREN FOR EMPOWERMENT AND
DEVELOPMENT FOUNDATION INC.

August 12, 2009

THE SELECTION PANEL Asia 21 Public Service Award

Warm greetings from FCED Foundation!

I have the honor to formally express our support for the nomination of Gifts and
Graces Fair Trade Foundation, Inc. for the Asia 21 2009 Public Service
Award.

Gifts and Graces has been a major partner of FCED Foundation, Inc. for two years
now in providing livelihood support to about 80 urban poor families
distributed in 10 barangays in Paco and Pandacan in the city of Manila.

The assistance provided by Gifts and Graces to FCED Foundation and to its
program beneficiaries has brought significant improvements in the lives
of these families who belong to urban poorest of the poor and do not
have a regular source of income. Their earnings from their production
has enabled them to provide for their basic needs, with a significant
percentage being able to send their children to school. At the same time,
Gifts and Graces also assist in providing training and seminars to
program beneficiaries to help them become self-sustaining.

With the continued support of Gifts and Graces, we believe that FCED will be able
to reach out to more of our families and their children living in the slum areas
and help them to rebuild their dreams and their lives.

Thank you so much and we wish you success in your programs.

Ms. Teresita L. Silva

President/Executive Director