2011-10-28T17:44:20-05:00 2010-12-31 ARMANINO MCKENNA LLP 12667 ALCOSTA BOULEVARD SUITE 500 SAN RAMON CA 945834427 990 2010-01-01 411848081 TRANSFAIR USA TRAN 5106635260 1500 BROADWAY NO 400 OAKLAND CA 94612 TODD STARK 5106635260 2011-10-27 1 BARBARA CYPHERS 9257902600 2010 2016-03-07 17:11:31Z FAIR TRADE USA TODD STARK 1500 BROADWAY NO 400 OAKLAND CA 94612 8758065 0 X WWW.FAIRTRADEUSA.ORG X 1996 MN ENABLE SUSTAINABLE DEVELOPMENT & COMMUNITY EMPOWERMENT BY CULTIVATING AN EQUITABLE GLOBAL TRADE MODEL 10 9 77 30 0 0 2752477 1841703 7010644 6909187 12774 7175 0 0 9775895 8758065 127044 82118 0 0 5173811 5095587 0 0 611765 4152491 4497644 9453346 9675349 322549 -917284 6431994 5513420 6511208 6509918 -79214 -996498 X FAIR TRADE USA ENABLES SUSTAINABLE DEVELOPMENT AND COMMUNITY EMPOWERMENT BY CULTIVATING A MORE EQUITABLE GLOBAL TRADE MODEL THAT BENEFITS FARMERS, WORKERS, CONSUMERS, INDUSTRY AND EARTH. WE ACHIEVE OUR MISSION BY CERTIFYING AND PROMOTING FAIR TRADE PRODUCTS. 0 0 1901257 82118 1784256 BUSINESS DEVELOPMENT: TO EARN THE LICENSE FROM FAIR TRADE USA TO USE THE FAIR TRADE CERTIFIED LABEL ON THEIR PRODUCTS, BUSINESSES MUST BUY FROM FAIR TRADE CERTIFIED FARMS, PAY FAIR TRADE PRICES AND COMMUNITY DEVELOPMENT PREMIUMS, AND SUBMIT TO A RIGOROUS SUPPLY CHAIN AUDIT. FAIR TRADE USA'S OVER 700 BUSINESS PARTNERS RANGE FROM SMALL, MISSION-DRIVEN COFFEE ROASTERS TO SOME OF THE LARGEST INTERNATIONAL CORPORATIONS IN THE WORLD.IN 2010, FAIR TRADE USA'S BUSINESS PARTNERS ONCE AGAIN DROVE RECORD IMPORTS TO SATISFY THE GROWING U.S. CONSUMER DEMAND FOR THE MORE THAN 9,500 FAIR TRADE CERTIFIED PRODUCTS AVAILABLE IN 60,000 RETAIL LOCATIONS AROUND THE COUNTRY. THESE FAIR TRADE PRODUCTS WERE IMPORTED INTO THE U.S. FROM 330 PRODUCER ORGANIZATIONS IN COUNTRIES ACROSS AFRICA, ASIA, AND LATIN AMERICA.FOR THE FIRST TIME IN A SINGLE YEAR, COMMUNITY DEVELOPMENT PREMIUM PAYMENTS TO FAIR TRADE PRODUCERS BROKE THE $14 MILLION MARK IN 2010 AND INCREASED FIVE PERCENT YEAR-OVER-YEAR. IN THE TWELVE YEARS SINCE FAIR TRADE USA STARTED CERTIFYING FAIR TRADE PRODUCTS IN 1998, FAIR TRADE FARMERS AND WORKERS AROUND THE WORLD EARNED OVER $56 MILLION IN COMMUNITY DEVELOPMENT PREMIUMS. FAIR TRADE STANDARDS REQUIRE THAT FAIR TRADE COOPERATIVE MEMBERS OR LABOR WORKERS COLLECTIVELY DECIDE HOW TO INVEST THE PREMIUMS. SOME OF THE PROJECTS THAT THE 330 PRODUCER ORGANIZATION MEMBERS VOTED FOR IN 2010 INCLUDED BUILDING SCHOOLS, FUNDING SCHOLARSHIPS, FINDING WAYS TO BE ENVIRONMENTALLY SUSTAINABLE, IMPROVING BUSINESSES, PROVIDING HEALTH CARE, AND FINANCING MICRO-CREDIT PROGRAMS. 1628821 1374623 MARKETING, COMMUNICATION, AND EDUCATION:FAIR TRADE USA WORKS TO INCREASE U.S. CONSUMER DEMAND FOR FAIR TRADE CERTIFIED PRODUCTS BY EDUCATING CONSUMERS ABOUT THE IMPORTANCE OF BUYING FAIR TRADE PRODUCTS AND GROWING THE FAIR TRADE MOVEMENT.FAIR TRADE USA'S ANNUAL FAIR TRADE MONTH BRINGS TOGETHER BRANDS, RETAILERS, CONSUMERS, AND MEDIA FOR A MONTH-LONG CAMPAIGN TO PROMOTE FAIR TRADE. GRASSROOTS EVENTS, PRODUCER TOURS, MEDIA RELATIONS, ONLINE MARKETING CAMPAIGNS, AND DISTRIBUTER PROMOTIONS COMBINED TO GALVANIZE SUPPORTERS AND BUILD AWARENESS. OCTOBER 2010 MARKED THE SEVENTH ANNUAL FAIR TRADE MONTH IN THE UNITED STATES, COMMEMORATED WITH A MAJOR ONLINE COMMUNITY-BUILDING CAMPAIGN. BY THE END OF 2010, FAIR TRADE USA'S SOCIAL NETWORKS HAD OVER 50,000 FANS ON FACEBOOK AND OVER 10,000 FOLLOWERS ON TWITTER. THESE ONLINE COMMUNITIES PLAY A CRITICAL ROLE IN FAIR TRADE USA'S EFFORTS TO RAISE DEMAND FOR FAIR TRADE CERTIFIED PRODUCTS.FAIR TRADE USA LAUNCHED THE FAIR TRADE TOWNS CAMPAIGN IN 2009 TO MOBILIZE CITIES AND TOWNS ACROSS THE COUNTRY TO RAISE CONSUMER AWARENESS, INCREASE SALES OF FAIR TRADE PRODUCTS, AND PROMOTE FAIR TRADE VIA LOCAL MEDIA. BY THE END OF 2010, THERE WERE OVER 20 DECLARED FAIR TRADE TOWNS AND OVER 50 ACTIVE FAIR TRADE TOWNS CAMPAIGNS IN THE U.S. OUR FAIR TRADE UNIVERSITIES CAMPAIGN IS A NATURAL OUTGROWTH OF THE FAIR TRADE TOWNS CAMPAIGN AND ENCOURAGES STUDENTS TO RAISE AWARENESS ABOUT FAIR TRADE ON THEIR COLLEGE CAMPUSES. 2809859 2436007 CERTIFICATION: BOTH NEW AND EXISTING FAIR TRADE PRODUCT CATEGORIES EXPANDED IN 2010, REVEALING INCREASED DEMAND IN THE U.S. MARKET FOR FAIR TRADE ITEMS ACROSS THE BOARD. A FEW OF THE NEW PRODUCTS INCLUDED GARMENTS, GREEN PEPPERS, VODKA, AND A WIDE ARRAY OF HERBS, SPICES, AND EXTRACTS. IN 2010, FAIR TRADE USA WAS PROUD TO PUBLISH THE WORLD'S FIRST STANDARDS FOR FAIR TRADE CERTIFIED GARMENTS. GARMENTS LABELED WITH THE FAIR TRADE CERTIFIED LOGO WILL BE THE FIRST-EVER FAIR TRADE PRODUCT TO DELIVER PREMIUMS TO PRODUCERS AT TWO LEVELS OF THE SUPPLY CHAIN: ORGANIC COTTON FARMERS AND FACTORY WORKERS.FAIR TRADE USA DROVE STRONG GROWTH IN SEVERAL KEY PRODUCT CATEGORIES IN 2010.FAIR TRADE USA CERTIFIED MORE THAN 100 MILLION POUNDS OF FAIR TRADE COFFEE, WITH 60 PERCENT OF THOSE IMPORTS ALSO CERTIFIED ORGANIC. THE MAJORITY OF FOOD CATEGORIES SHOWED IMPRESSIVE GROWTH YEAR-OVER-YEAR, INCLUDING COCOA (67%), TEA (38%), SUGAR (60%), VANILLA/SPICES (97%), GRAINS (13%), AND HONEY (267%).FAIR TRADE CERTIFIED SUGAR REACHED A MILESTONE IN 2010 WITH OVER 50 MILLION POUNDS BEING IMPORTED INTO THE UNITED STATES SINCE 2005. THIS VERSATILE PRODUCT CONTINUES TO INCREASE ITS MARKET PRESENCE AS PACKAGED SUGAR AND AS A SWEETENER IN AN EVER GROWING NUMBER OF CONSUMER PACKAGED GOODS SUCH AS CHOCOLATE BARS, BOTTLED BEVERAGES, JAMS, SPREADS, ICE CREAM, AND FROZEN DESSERTS. 1570651 1314301 PRODUCER TECHNICAL ASSISTANCE AND MARKET LINKAGE:FAIR TRADE USA DEVOTES SIGNIFICANT RESOURCES TO TECHNICAL AND MARKET LINKAGE ASSISTANCE FOR FAIR TRADE PRODUCERS TO HELP THEM IMPROVE THEIR BUSINESS OPERATIONS AND BECOME MORE COMPETITIVE IN COMPLEX, INTERNATIONAL MARKETS. FAIR TRADE USA ALSO RECRUITS NEW PRODUCERS INTO THE FAIR TRADE SYSTEM TO BENEFIT FURTHER FARMING COMMUNITIES AND TO CONNECT U.S. BUSINESSES WITH A STABLE AND GROWING SUPPLY OF FAIR TRADE PRODUCTS.FAIR TRADE USA STAFF AND PARTNERS ASSIST FAIR TRADE PRODUCERS IN IMPROVING PRODUCT QUALITY, GAINING BETTER ACCESS TO PRE-HARVEST AND LONG-TERM CREDIT, MAKING CONNECTIONS WITH U.S. BUSINESSES, AND INSTITUTING BETTER FINANCIAL AND COOPERATIVE SELF-MANAGEMENT PRACTICES. WE HAVE WITNESSED THE SUSTAINABLE EFFECTS OF THIS SUPPORT IN COUNTRIES INCLUDING RWANDA AND HAITI, WHERE THERE ARE SERIOUS ISSUES OF POVERTY, ENVIRONMENTAL DEVASTATION, AND DISTRUST BETWEEN CITIZENS. MOST NOTABLY, FAIR TRADE USA TRAINING AND INTERVENTION FOR BRAZILIAN FAIR TRADE COFFEE FARMERS OVER THE LAST SEVERAL YEARS HAS PRODUCED INCREDIBLE IMPROVEMENTS IN COFFEE QUALITY, PRODUCER INCOME, AND ENVIRONMENTAL SUSTAINABILITY.IN 2010, FAIR TRADE USA COORDINATED THE PARTICIPATION OF NEARLY 200 FAIR TRADE PRODUCERS AT THE SPECIALTY COFFEE ASSOCIATION OF AMERICA (SCAA) CONFERENCE AND TRADE SHOW IN ANAHEIM, CA. THIS ANNUAL EVENT PROVIDES INVALUABLE OPPORTUNITIES FOR PRODUCERS TO CONNECT WITH POTENTIAL BUYERS, LEARN MORE ABOUT THE U.S. COFFEE INDUSTRY, AND ATTEND EDUCATIONAL WORKSHOPS. FAIR TRADE PRODUCERS CAME FROM 22 COUNTRIES ACROSS LATIN AMERICA, AFRICA, AND ASIA AND REPRESENTED 90 DIFFERENT COFFEE COOPERATIVES. IN CONJUNCTION WITH SCAA, FAIR TRADE USA HOSTED OUR HIGHLY POPULAR PRODUCER FORUM - A WHOLE DAY'S WORTH OF DISCUSSIONS ON TOPICS CRITICAL TO FAIR TRADE PRODUCERS, SUCH AS CLIMATE CHANGE AND THE GLOBAL ECONOMIC CRISIS. 1570651 1314301 7910588 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 1 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 20 0 1 77 1 0 1 CJ 0 0 0 0 0 0 0 0 X 10 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA MN X X DAVID KRIER VP FINANCE AND ADMIN 5108441677 1500 BROADWAY 400 OAKLAND CA 94612 MICHAEL CONROY 3.00 X 0 0 0 CARLOS A VARGAS LEITON 2.00 X 0 0 0 FRANK TSAI 2.00 X 0 0 0 RICK LARSON 2.00 X 0 0 0 SUSAN CLARE 2.00 X 0 0 0 THOMAS BULLOCK 2.00 X 0 0 0 RON CORDES 2.00 X 0 0 0 THERESA FAY BUSTILLOS 2.00 X 0 0 0 WILLIAM ROSENWEIG 2.00 X 0 0 0 PAUL RICE 40.00 X X 194375 0 31231 KENNETH BEEBY 2.00 X X 0 0 0 TODD STARK 40.00 X 175030 0 8374 JOAN BRAUN 40.00 X 151975 0 32995 STEVEN SCHWARTZ 40.00 X 58445 0 4106 LYNNELL LOHR 40.00 X 135899 0 22930 CHISARA EHIEMERE 40.00 X 106166 0 13572 821890 0 113208 5 0 1 0 EXPONENT PARTNERS 901 MISSION ST SAN FRANCISCO CA 94103 SOFTWARE DEVELOPMENT 135510 1 1841703 209706 1841703 LICENSE FEES 900099 6701496 6701496 OTHER INCOME 900099 186451 186451 TRADE SHOW SUPPORT 900099 21240 21240 6909187 7175 7175 8758065 6909187 0 7175 35030 35030 47088 47088 656532 334442 259065 63025 3621356 2825595 478594 317167 104265 81272 13859 9134 382925 298560 50821 33544 330509 245528 55651 29330 6270 3589 2681 28015 28015 815592 805962 6547 3083 94081 91634 116 2331 33414 22684 8468 2262 360829 268885 64758 27186 567772 422163 93674 51935 403515 353798 26401 23316 114549 112599 139 1811 186686 153207 22374 11105 58050 38096 16263 3691 FLO MEMBERSHIP FEES 1304142 1304142 FLO CERTIFICATION FEES 220579 220579 MISC ADMINISTRATIVE 158405 116735 17288 24382 TELECOMMUNICATIONS 83765 70609 7374 5782 BAD DEBT EXPENSE 61980 61980 9675349 7910588 1152996 611765 653323 1098618 1411667 609481 1952672 1625382 1842441 1625064 89795 2350 145322 83396 577424 158645 286424 418779 50350 50350 6431994 5513420 1028801 1112134 5290000 5220000 192407 177784 6511208 6509918 X -2347479 -2331326 2268265 1334828 -79214 -996498 6431994 5513420 -917284 0 X X 0 1 1 X 0 X 685026 2390280 3273512 2752477 1841703 10942998 4591444 5007553 5807445 7010644 6909187 29326273 5276470 7397833 9080957 9763121 8750890 40269271 100000 1193843 2313038 2048109 967280 6622270 2710129 2509037 2867542 3618734 3480684 15186126 2810129 3702880 5180580 5666843 4447964 21808396 18460875 54620 72620 62285 12774 7175 209474 54620 72620 62285 12774 7175 209474 -1222 -1222 5331090 7469231 9143242 9775895 8758065 40477523 0.45610 0.62100 0.00520 0.00600 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 50440 20343 30097 363772 72669 291103 163212 65633 97579 418779 DEFERRED LEASE INCENTIVE 177784 177784 8758065 9675349 -917284 0 -917284 9157929 399864 399864 8758065 0 8758065 10075213 399864 399864 9675349 0 9675349 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION RECOGNIZES THE EFFECTS OF ITS INCOME TAX POSITIONS ARE MORE LIKELY THAN NOT OF BEING SUSTAINED. THE ORGANIZATION HAS EVALUATED ITS TAX POSITIONS AND HAS CONCLUDED AS OF DECEMBER 31, 2010 AND 2009, THAT THE ORGANIZATION DOES NOT HAVE ANY SIGNIFICANT UNCERTAIN TAX POSITIONS FOR WHICH A RESERVE WOULD BE NECESSARY. 1 SOUTH AMERICA 0 0 PROGRAM SERVICE & GRANTS COOPERATIVE DEVELOPMENT 149382 SUB SAHARA AFRICA 0 0 PROGRAM SERVICE & GRANTS COOPERATIVE DEVELOPMENT 55464 CARIBBEAN 0 0 PROGRAM SERVICE & GRANTS COOPERATIVE DEVELOPMENT 5385 0 0 0 210231 0 210231 X SOUTH AMERICA COOPERATIVE DEVELOPMENT 8320 WIRE TRANSFER SOUTH AMERICA COOPERATIVE DEVELOPMENT 5033 WIRE TRANSFER SOUTH AMERICA COOPERATIVE DEVELOPMENT 15000 WIRE TRANSFER 0 3 0 0 0 0 0 0 OTHER INFORMATION SCHEDULE F, PART V MONITORING THE USE OF GRANTS OUTSIDE THE US TAKES PLACE THROUGH CONTRACTUALLY OBLIGATED NARRATIVE AND FINANCIAL PROGRESS REPORTS VALIDATED THROUGH REGULAR SITE VISITS CONDUCTED BY PROGRAM MANGEMENT CONTRACTORS BASED IN THE COUNTRY. 1 ARCHDIOCESE OF LOS ANGELES 3424 WILSHIRE BLVD LOS ANGELES CA 90010 951642382 501(C)(3) 6500 DEVELOP FAIR TRADE TOWNS DEVELOP FAIR TRADE TOWNS 1 0 OTHER INFORMATION: PART IV: ORGANIZATION HAS ESTABLISHED GUIDELINES AND HAS REQUIRED REPORTS OUTLINING ACCOMPLISHMENTS. IN MOST CASES THE ORGANIZATION HAS PARTICIPATED IN THE EVENT FOR WHICH THE GRANT WAS GIVEN. X X X 0 0 0 1 0 0 0 1 0 PAUL RICE 169200 0 25175 0 0 0 7835 0 23396 0 225606 0 0 0 TODD STARK 154030 0 21000 0 0 0 0 0 8374 0 183404 0 0 0 JOAN BRAUN 136230 0 15745 0 0 0 6129 0 26866 0 184970 0 0 0 LYNNELL LOHR 119266 0 16633 0 0 0 5391 0 17539 0 158829 0 0 0 PART I, LINE 5 THE CEO, THE CFO AND THE COO EARN BONUSES TIED TO REVENUE. PART I, LINE 7 BONUSES FOR VICE PRESIDENTS WERE BASED ON QUANTIFIABLE OPERATIONAL GOALS. X SOFTWARE 2 209706 FMV 0 0 0 NAME DESCRIPTION: ON OCTOBER 1, 2010, TRANSFAIR USA BEGAN DOING BUSINESS AS FAIR TRADE USA. INCORPORATED IN MINNESOTA UNDER 501(C)(3) STATUS IN APRIL 1996, THE ORGANIZATION'S PRINCIPAL PLACE OF BUSINESS IS IN OAKLAND, CALIFORNIA. FORM 990, PART VI, SECTION B, LINE 11 THE DRAFT FORM 990 IS DISTRIBUTED TO THE FULL BOARD THEN REVIEWED AND FORMALLY APPROVED BY THE AUDIT COMMITTEE BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C ONCE EACH YEAR THE ORGANIZATION DISTRIBUTES A LIST OF VENDORS AND BUSINESS PARTNERS (FEE FOR SERVICE) TO THE BOARD. AFTER REVIEWING THE LIST THE BOARD IS REQUIRED TO SIGN A CONFLICT OF INTEREST POLICY COMPLIANCE STATEMENT. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION RECENTLY HIRED A THIRD PARTY COMPENSATION FIRM TO PREPARE A COMPENSATION COMPARABILITY REPORT. THE DATA IN THE REPORT HAS BEEN UPDATED BASED ON INFORMATION AVAILABLE FROM SEVERAL THIRD PARTIES. THE DATA IS USED BY THE BOARD'S COMPENSATION COMMITTEE WHICH MEETS FORMALLY TO SET COMPENSATION LEVELS FOR THE CEO, CFO AND COO. THAT DATA IS ALSO USED TO SET COMPENSATION LEVELS FOR OTHER KEY OFFICERS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION POSTS ANNUAL REPORTS, AUDITED FINANCIAL STATEMENTS WITH AUDITOR'S REPORT, AND FORM 990 ON ITS WEBSITE. THESE DOCUMENTS ARE ALSO PROVIDED UPON REQUEST. 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR.