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NONPROFIT  INVESTOR 
            I N D E P E N D E N T   R E S E A R C H   F O R   P H I L A N T H R O P Y 
                                                                
                                                               SUMMARY 
    One Acre Fund                                              One Acre Fund, (“OAF”), was founded to address the crisis of hunger 
     
    Nonprofit Investor Rating:                                 in  Africa.    OAF  concentrates  on  serving  small‐scale  farmers  in  Africa 
                                                               by providing them with the comprehensive “market bundle” program 
    BUY                                                        so that farmers can lift themselves out of poverty and can send their 
                                                               children to school.  Since inception in January 2006, OAF’s impact has 
    Mission Statement                                          grown to helping over 130,000 farm families as of April 2012. 
    One Acre Fund aims to make more farmers more 
                                                                STRENGTHS  
    prosperous  by  providing  them  the  knowledge, 
                                                               ▲ Semi‐annual  performance  reporting.    OAF employs 100 full‐time 
    materials,  and  support  necessary  to  satisfy  their 
    basic needs. Their vision is to become one of the          monitoring  and  evaluation  staff  to  survey  an  average  of  1,500  test‐
    world’s  most  impactful  organizations  and  to           and‐control  clients  per  year  to  measure  the  change  in  farm  income 
    serve millions of farmers.                                 per  acre,  size  of  harvest  per  acre,  and  the  number  of  active  OAF 
                                                               members.  As  OAF  continues  to  expand  memberships,  they  foresee 
                                                               hiring more M&E to match the size of their growth. 
    Financial Overview                                         ▲ High  loan  repayment.    OAF’s  comprehensive  loan  program,  the 
    $ in MM, Fiscal Year Ended December 31, 
                                                               “market  bundle,”  has  achieved  repayment  rates  of  around  98%.  
                                2009       2010     2011 
                                                               OAF’s risk of loan defaults is very low because they engage farmers to 
        Revenue and Support     $3.7       $4.9     $18.7 
        Operating Expenses      $2.1       $4.7      $9.9      only loan sizes that are manageable and repayable.  
                                                               ▲ Robust  partnerships  and  financial  support.    OAF  leadership’s 
        % of Total:                                            strong  connections  with  trust  funds,  academia,  foundations,  and 
           Program Expenses    81.7%      84.5%    89.1%       large corporations which have allowed OAF to increase support from 
           G&A                 10.2%       6.7%     6.2% 
                                                               $2MM in 2008 to $12.7MM in 2011.   
           Fundraising          1.7%       5.3%     2.7% 
                                                               CAUTIONS 
         
    Year Founded:  February 2006                               ●   In‐office  staff  may  be  too  lean.    OAF  employs  1,000  local 
                                                               employees  and  10  expatiates  in  rural  Africa,  and  6  US  office  staff. 
                                                               With  its  lean  in‐office  staff,  OAF  is  unable  to  always  meet  their 
     
                                                               commitment  to  respond  to  questions  within  3‐5  business  days.  This 
    Contact Details 
                                                               may  leave  prospective  donors  with  open  questions  and  cause 
    One Acre Fund 
                                                               misinterpretation  of  OAF’s  financial  statements  and  performance 
    1954 First St. #183 
    Highland Park, IL 60035                                    reports  until  questions  are  answered.  Over  the  past  three  months, 
    (617) 840‐7634                                             the "Contact Us" page on OAF's website has been largely inaccessible.  
                                                                
    http://www.oneacrefund.org                                 RECOMMENDATION:  BUY 
                                                                
    EIN: 20‐3668110                                            One Acre Fund continues to meet or exceed defined program metrics 
                                                                
                                                               in  their  mission  to  eliminate  poverty  in  Africa  through  thoughtful 
    Analyst:  Rainbow Wong                                     business practices and operational efficiency.  Because OAF's program 
                                                                
    Peer Review:  Jenny Qian, Kent Chao                        metrics and financial statements are not entirely explained by public 
                                                                
                                                               documentation,  NPI  recommends  that  OAF  either  publish  more 
    Publication Date                                            
                                                               detailed  explanations  of  survey  methods  and  financial  statements  or 
    September 14, 2012 
                                                               provide access to OAF staff. 
         
                                                                                    Nonprofit Investor Research | nonprofitinvestor.org
       
OVERVIEW OF ONE ACRE FUND’S ACTIVITIES 
Program overview 
One Acre Fund is concentrated on one‐acre subsistence farmers in Sub‐Saharan Africa.  OAF believes that providing food 
aid  or  giving  handouts  are  only  a  temporary  solution  to  world  hunger.    Therefore,  OAF’s  programs  are  designed  to 
provide farmers with all necessary tools to lift themselves out of poverty.  OAF’s core program, the “Market Bundle”, 
introduces five components to its members:  

         Group  formation  –  provides  a  platform  for  existing  self‐help  groups,  mainly  women  farmers,  to  economically 
         interact with markets.  
         Education – the field officers teach members the latest agrarian practices. 
         Seed and fertilizer – the planting materials and fertilizer that the members receive are improved from the older 
         methods of food kernels used for seed.  OAF provides professionally graded planting materials and fertilizer that 
         replenish the malnutrition soil.  
         Market facilitation – field officers provide training to members about post‐harvest handling and storage so that 
         farmers have a stock of harvest to sell during less abundant seasons for higher prices. 
         Crop insurance – farmers are entitled to crop insurance that pays farmers in the event of a significant drought or 
         disease.  

Market  bundles  are  individual  contracts  between  OAF  and  farm  families.    OAF  first  measures  the  size  and  potential 
productivity of farmers’ land to determine the size of the market bundle loans.  The average size of the market bundle is 
$75, which includes seed and fertilizer, farm education, crop insurance and storage.  Farmers are committed to repaying 
loans by harvest time, between four to six months.  Farmers also have the flexibility to make repayments before harvest 
time.    OAF  has  maintained  an  average  of  98%  repayment  rate  since  2009  as  its  market  bundles  truly  increase  farm 
productivity, household income, and are of manageable sizes for farmers to repay.   
 
PROGRAM RESULTS AND EFFECTIVENESS 
With  a  sophisticated  impact  model,  the  market  bundle  effectively  increases  small‐scale  farming  families’  household 
income and has more than doubled in membership every year.  As local farming leaders teach members about farming, 
cultivation,  trading,  and  harvesting,  members  are  able  to  internalize  their  newly  learnt  skills  to  increase  their  family 
income from selling their harvests.  OAF’s performance reports indicate that they have doubled farm families’ income 
per acre and tripled the size of harvest per acre.  Seen in its performance reports, OAF continues to improve operations 
costs at the district level in order to reduce its market bundle cost per family.  OAF aims to increase loan repayments for 
program cost ratio to 83% in 2012.  As OAF sets sustainability goals in the coming years, they envision increasing this 
percentage to 100%, in which loan repayment revenues will cover all program costs. 
Since 2010, OAF has purchased a weather‐indexed insurance product called kilimo salama (which means safe farming in 
Swahili) from the Syngenta Foundation for Sustainable Agriculture.  This insurance covers losses due to extreme drought 
and excess rain.    Effectively, this insurance provides OAF farmers with a greater safety net and  gives  way to  teaching 
farmers about the importance of insurance.  
 
 
 
 
 
 

                                                                       One Acre Fund | Nonprofit Investor Research  2 
 
Families Reached by OAF (Fall 2006 ‐ Spring 2012)                                                                                              Children Enrolled in OAF (Fall 2006 ‐ Spring 2012) 

     150,000                                                                                                                                        600,000
     125,000                                                                                                                                        500,000
     100,000                                                                                                                                        400,000
      75,000                                                                                                                                        300,000
      50,000                                                                                                                                        200,000
      25,000                                                                                                                                        100,000
          ‐                                                                                                                                              ‐
               Fall‐06
                         Spring‐07
                                     Fall‐07
                                               Spring‐08
                                                           Fall‐08
                                                                     Spring‐09
                                                                                 Fall‐09
                                                                                           Spring‐10
                                                                                                       Fall‐10
                                                                                                                 Spring‐11
                                                                                                                             Fall‐11
                                                                                                                                       Spring‐12




                                                                                                                                                                                 Spring‐07


                                                                                                                                                                                                                Spring‐08


                                                                                                                                                                                                                                               Spring‐09


                                                                                                                                                                                                                                                                              Spring‐10


                                                                                                                                                                                                                                                                                                             Spring‐11


                                                                                                                                                                                                                                                                                                                                            Spring‐12
                                                                                                                                                                  Fall‐06


                                                                                                                                                                                                 Fall‐07


                                                                                                                                                                                                                                Fall‐08


                                                                                                                                                                                                                                                               Fall‐09


                                                                                                                                                                                                                                                                                              Fall‐10


                                                                                                                                                                                                                                                                                                                             Fall‐11
                              # Families Reached                                                            Target                                                                      # Children Enrolled                                                                                         Target
                                                                                                                                                                                                                                                                                                                                                         
Source: OAF semiannual performance reports 
 
 Acres under Cultivation by OAF (Fall 2006 ‐ Spring 2012)                                                                                               Field Cost per Family (Fall 2006 ‐ Spring 2012) 

     120,000                                                                                                                                         $500

     100,000                                                                                                                                         $400
      80,000
                                                                                                                                                     $300
      60,000
                                                                                                                                                     $200
      40,000
      20,000                                                                                                                                         $100

          ‐                                                                                                                                            $0
                         Spring‐07


                                               Spring‐08


                                                                     Spring‐09


                                                                                           Spring‐10


                                                                                                                 Spring‐11


                                                                                                                                       Spring‐12




                                                                                                                                                                            Spring‐07


                                                                                                                                                                                                           Spring‐08


                                                                                                                                                                                                                                          Spring‐09


                                                                                                                                                                                                                                                                         Spring‐10


                                                                                                                                                                                                                                                                                                        Spring‐11


                                                                                                                                                                                                                                                                                                                                       Spring‐12
               Fall‐06


                                     Fall‐07


                                                           Fall‐08


                                                                                 Fall‐09


                                                                                                       Fall‐10


                                                                                                                             Fall‐11




                                                                                                                                                              Fall‐06


                                                                                                                                                                                             Fall‐07


                                                                                                                                                                                                                            Fall‐08


                                                                                                                                                                                                                                                           Fall‐09


                                                                                                                                                                                                                                                                                          Fall‐10


                                                                                                                                                                                                                                                                                                                         Fall‐11
                         # Acres under Cultivation                                                               Target                                                                      Cost per Family                                                                                   Target
                                                                                                                                                                                                                                                                                                                                                         
Source: OAF semiannual performance reports 
 
TRANSPARENCY 
One  Acre  Fund  shows  a  strong  commitment  in  maintaining  transparency,  providing  audited  financial  statements, 
performance reports and IRS Form 990s on a timely basis. 
OAF’s semi‐annual performance reports are based on results collected by a full‐time M&E (monitoring and evaluation) 
team.  These downloadable reports on its website provide key metrics to measure the quality of their program in Africa, 
introduce  stories  of  featured  farm  families  who  became  OAF  members,  and  track  program  results.    The  performance 
reports  tracks  key  metrics  such  as:  families  reached,  children  enrolled,  acres  cultivated,  increased  size  of  harvest, 
increase in farm income, repayment rate, field cost per family, and infrastructure investment.  These survey results are 
comparisons of a randomized sample of more than 1,000 farm families: test samples of farm families who are enrolled 
and  planting  and  control  samples  of  farm  families  who  are  enrolled  and  not  yet  planting.    The  test‐control  sample 
methodology  is  put  in  place  to  eliminate  selection  bias,  which  proves  that  OAF  reporting  is  true  to  its  impact  results.  
OAF’s performance reports include metrics that have been consistently tracked and disclosed since 2006.   

                                                                                                                                                   One Acre Fund | Nonprofit Investor Research  3 
 
FINANCIAL OVERVIEW 
One  Acre  Fund’s  support  and  revenues  have  increased  significantly  over  the  past  five  years.  Publicity  through  the 
Stanford  Social  Innovation  Review,  Foreign  Affairs,  and  PBS  NewsHour  has  increased  OAF’s  exposure  and  ability  to 
attract more donors.  Since 2009, OAF’s support and revenues have increased by 6.9 times.  In 2010, OAF was invited by 
the Rwanda’s Ministry of Agriculture to implement the agricultural program and was given $100 million land for a new 
project called “LWH” that is supported by the World Bank, USAID, and CIDA.  Nonetheless, OAF’s operations and donor 
network continues to grow rapidly, a reason why its support and revenues have been increased significantly.  
While Grants and Donations declined slightly in 2010, “Program Fees” grew by $1.2MM (2.8x) from 2008‐2010 as the 
market bundle program continues to grow and farm families continue to make consistent repayments.  Now accounting 
for 34% of total support and revenues, OAF has demonstrated great progress towards self‐sustainability.  
Moreover,  the  $123,957  seed  and  fertilizer  sales  in  2011  suggests  two  key  developments  of  the  core  market  bundle 
program: (1) members have developed sophisticated understanding about loan repayments through credit or sales, (2) 
the sales of seed and fertilizer seen in 2011 has created another form of cash flow.     
                         Support and Revenues Mix Over Time                                           2010 Support and Revenues Mix 
$ in MM                                                                                                                           
      $20.0                                                                                                                 2%
                                                                        $18.1 
      $18.0 
      $16.0 
      $14.0                                                                                                27%

      $12.0 
      $10.0 
       $8.0 
                                                          $4.9 
       $6.0 
                                        $3.7 
       $4.0         $2.3 
       $2.0                                                                                                                                     71%
       $0.0 
                    2008                2009               2010         2011

               Grants and Donations              Program Fees        Other
                                                                                                          Grants and Donations       Program Fees   Other
                                                                                                                  
Program service expenses have represented an average of 97% of total expenses over the past four years, highlighting 
the high impact of donors’ funds and OAF’s commitment to invest in the program. 

                                                         Annual Expense Breakdown 
$ in MM 

                          $12                                                                                    99%
                                                           98.2%
                                                                                               $17.9             98%
                          $10
                                                                                                                 97%
                            $8                                                                 97.3%
                                      97.0%
                                                                                                                 96%
                            $6
                                                                             $4.8                                95%
                            $4
                                                                         94.5%                                   94%
                                                           $3.7 
                            $2         $2.3                                                                      93%

                            $0                                                                                   92%
                                      2008                 2009              2010              2011
                                      Program Services                           Management and General
                                      Fundraising                                Remeasurement Loss
                                      Program Expense % of Total
                                                                                                                         
                                                                         One Acre Fund | Nonprofit Investor Research  4 
 
Detailed Financial Information 
            Fiscal Year Ended December 31,                         2008                   2009                 2010                  2011


       Public Support and Revenues (GAAP Accounting Basis)
             Special Event Revenue                                $51,811                          $470        $123,316             $201,720
             Less: Costs of Direct Benefit to Donors               (19,886)                           ‐                    ‐           (13,038)
             Grants and Donations                              2,038,786                 3,172,519            3,016,380          12,767,284
             Interest                                                  7,852                   15,066                 9,401                7,778
             Program Fees                                         158,149                   435,667           1,665,778            4,967,221
             Donated Property                                               
                                                                           ‐                          ‐             70,000                      ‐
             Donated Services                                       60,500                     49,071                      ‐             13,405
             Seed and Fertilizer Sales (net of COGS)                        
                                                                           ‐                          ‐                    ‐           123,957
             Miscellaneous                                             3,599                     6,806              14,871                      ‐
             Donated Investments                                            
                                                                           ‐                      
                                                                                                 3,683                 
                                                                                                                      2,936                 
                                                                                                                                           4,954
             Gain on Sale of Fixed Assets                                   
                                                                           ‐                          ‐                    ‐                   274
          Total Support and Revenues                        $2,300,811                $3,683,282           $4,902,682          $18,073,555
             % Growth                                               158.4%                       60.1%                33.1%             268.6%

       Expenses and Losses
          Functional Expenses
            Program Services                                       $1,019,079 $1,745,847 $3,978,177 $8,855,376
            Management and General                                       100,087           218,497              314,111              618,282
            Fundraising                                                     34,367           35,839         249,261         264,497
            Loss on Disposal of Fixed Assets                                       
                                                                                  ‐              
                                                                                                1,532           14,340                  ‐
            Loss on Sale of Investments                                            
                                                                                  ‐                    
                                                                                                      40                    
                                                                                                                           21                    
                                                                                                                                                93
            Remeasurement Loss                                              18,462         135,114              152,978              197,913
           Total Functional Expenses:                              $1,171,995 $2,136,869 $4,708,888 $9,936,161
            % of Revenue                                                     50.9%              58.0%                96.0%                55.0%

           Change in Net Assets                                  $1,128,816           $1,546,413              $193,794          $8,137,394  
Source: Audited Financial Statements (GAAP) 
 
 
 
 
 
 
 
 
 
 
 
 


                                                                     One Acre Fund | Nonprofit Investor Research  5 
 
Key Balance Sheet Information 
          Fiscal Year Ended December 31                                   2008                   2009                   2010                 2011
             Cash and Cash Equivalents                                    $756,720           $1,010,918                 $616,776           $2,539,994
             Cash Reserved for Crop insurance Fund                           500,000                540,292                         ‐                      
                                                                                                                                                          ‐
             Grants Receivable, net                                          500,000            1,075,000                  553,230            3,491,016
             Accounts Receivable, net                                                 ‐                      ‐             176,863                
                                                                                                                                                 803,071
             Employee Advances, net                                                   ‐               37,913                 33,051                 85,152
             Inventory                                                       302,590                759,892                738,144            3,473,531
             Prepaid Expenses                                                  24,840                 21,875               592,819                
                                                                                                                                                 568,188
            Total Current Assets                                      $2,084,150             $3,445,890             $2,710,883           $10,960,952
            Fixed Assets
              Vehicles                                                    $146,773               $291,815               $380,814               $460,777
              Land                                                                
                                                                                 4,952                59,875               114,053                
                                                                                                                                                 115,093
              Buildings                                                               ‐               26,815               293,688                
                                                                                                                                                 551,363
              Construction in Process                                                 ‐                      ‐             123,689                         
                                                                                                                                                          ‐
              Equipment                                                        13,323                 21,985                 30,001                 31,022
              Less: Accumulated Depreciation                                  
                                                                             (19,902)                
                                                                                                    (61,905)             (122,974)              (223,591)
            Total Fixed Assets                                            $145,146               $338,585               $819,271               $934,664
            Other Assets                                                                0                      0                  0          2,420,975
            Total Assets                                              $2,229,296             $3,784,475             $3,530,154           $14,316,591
                                                                                                                                                               
Source: Audited Financial Statements (GAAP) 
 
OTHER THIRD PARTY RATINGS 
One Acre Fund has been received acclaim from PBS NewsHour, the Stanford Social Innovation Review, Harvard Business 
School Review, Foreign Affairs, and many foundations. 
GreatNonprofits  rates  OAF  5  out  of  5  stars  based  on  1  user  review.    The  rating  is  based  on  the  quality  of  the  OAF’s 
mission  statement  and  the  reviewer’s  experience  in  hearing  local  OAF  volunteers  speak  at  Chicago’s  “Lunch  N  Learn” 
forum.  
GiveWell states that, “We contacted One Acre Fund in August 2011 because it was recommended by other funders. We 
did not complete a full review because One Acre Fund declined to participate in our review process at this time.” 
 

GET INVOLVED 

One Acre Fund welcomes various ways to get involved:  
                            Ways to Support                                                                               Website 
Become a staff member ( in rural Africa, New York, or Washington D.C.)                http://www.oneacrefund.org/get_involved/careers 
Make donations (monthly support, sponsorships, large gifts, gifts of stock)           https://www.oneacrefund.org/donate 
Attend events (galas, auctions, presentations)                                        https://www.oneacrefund.org/get_involved/events 
Join a chapter (in New York, Boston, San Francisco, Chicago)                          https://www.oneacrefund.org/get_involved/chapters 
Become a fundraiser                                                                   https://www.oneacrefund.org/get_involved/become_a_fundraiser 

 

 
                                                                                 One Acre Fund | Nonprofit Investor Research  6 
 
DISCLOSURES 
Rainbow  Wong  certifies  that  she  does  not  have  any  affiliation  with  One  Acre  Fund  and  has  never  made  a  donation  to  the 
organization. Additionally, Rainbow Wong has not supported directly competing organizations in a greater capacity than a nominal 
donation. NPI analysts and NPI as an organization do not receive any form of compensation from reviewed charities. 
This report is for informational purposes only and does not constitute a solicitation for donations. While the reliability of information 
contained  in  this  report  has  been  assessed  by  NPI,  NPI  makes  no  representation  as  to  its  accuracy  or  completeness,  except  with 
respect to the Disclosure Section of the report. Any opinions expressed herein reflect our judgment as of the date of the materials 
and  are  subject  to  change  without notice. NPI  has  no  obligation  to update,  modify  or  amend  any  report  or  to  otherwise  notify  a 
reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes 
or subsequently becomes inaccurate, or if research on the subject organization is withdrawn.   
Opinions  and  recommendations  in  our  reports  do  not  take  into  account  specific  reader  circumstances,  objectives,  or  needs.    The 
recipients of our reports must make their own independent decisions regarding any organization mentioned by NPI. 
 

ABOUT NONPROFIT INVESTOR 
Nonprofit  Investor  is  a  nonprofit  organization  with  the  mission  of  improving  philanthropic  capital  allocation  and  nonprofit 
effectiveness  through  research  and  analysis.  NPI  brings  together  volunteers  with  professional  due  diligence  skills  to  produce 
independent,  in‐depth  evaluations  of  nonprofits.  NPI  research  is  available  for  free,  public  download  here: 
www.nonprofitinvestor.org/research.  To  suggest  a  charity  for  NPI  to  review  or  to  apply  as  a  volunteer,  please  contact  us: 
www.nonprofitinvestor.org/contact.  NPI  is  a  tax‐exempt  charity  under  section  501(c)(3)  of  the  Internal  Revenue  Code  (EIN:  45‐
3627609). Follow Nonprofit Investor on Twitter: @nonprofitinvest 
 
 




                                                                            One Acre Fund | Nonprofit Investor Research  7 
 

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NPI Evaluation of One Acre Fund

  • 1. NONPROFIT  INVESTOR  I N D E P E N D E N T   R E S E A R C H   F O R   P H I L A N T H R O P Y    SUMMARY  One Acre Fund  One Acre Fund, (“OAF”), was founded to address the crisis of hunger    Nonprofit Investor Rating:  in  Africa.    OAF  concentrates  on  serving  small‐scale  farmers  in  Africa  by providing them with the comprehensive “market bundle” program  BUY  so that farmers can lift themselves out of poverty and can send their    children to school.  Since inception in January 2006, OAF’s impact has  Mission Statement  grown to helping over 130,000 farm families as of April 2012.  One Acre Fund aims to make more farmers more   STRENGTHS   prosperous  by  providing  them  the  knowledge,  ▲ Semi‐annual  performance  reporting.    OAF employs 100 full‐time  materials,  and  support  necessary  to  satisfy  their  basic needs. Their vision is to become one of the  monitoring  and  evaluation  staff  to  survey  an  average  of  1,500  test‐ world’s  most  impactful  organizations  and  to  and‐control  clients  per  year  to  measure  the  change  in  farm  income  serve millions of farmers.  per  acre,  size  of  harvest  per  acre,  and  the  number  of  active  OAF    members.  As  OAF  continues  to  expand  memberships,  they  foresee    hiring more M&E to match the size of their growth.  Financial Overview  ▲ High  loan  repayment.    OAF’s  comprehensive  loan  program,  the  $ in MM, Fiscal Year Ended December 31,  “market  bundle,”  has  achieved  repayment  rates  of  around  98%.     2009  2010  2011  OAF’s risk of loan defaults is very low because they engage farmers to  Revenue and Support  $3.7  $4.9  $18.7  Operating Expenses  $2.1  $4.7  $9.9  only loan sizes that are manageable and repayable.           ▲ Robust  partnerships  and  financial  support.    OAF  leadership’s  % of Total:        strong  connections  with  trust  funds,  academia,  foundations,  and     Program Expenses  81.7%  84.5%  89.1%  large corporations which have allowed OAF to increase support from     G&A  10.2%  6.7%  6.2%  $2MM in 2008 to $12.7MM in 2011.       Fundraising  1.7%  5.3%  2.7%  CAUTIONS    Year Founded:  February 2006  ● In‐office  staff  may  be  too  lean.    OAF  employs  1,000  local    employees  and  10  expatiates  in  rural  Africa,  and  6  US  office  staff.  With  its  lean  in‐office  staff,  OAF  is  unable  to  always  meet  their    commitment  to  respond  to  questions  within  3‐5  business  days.  This  Contact Details  may  leave  prospective  donors  with  open  questions  and  cause  One Acre Fund  misinterpretation  of  OAF’s  financial  statements  and  performance  1954 First St. #183  Highland Park, IL 60035  reports  until  questions  are  answered.  Over  the  past  three  months,  (617) 840‐7634  the "Contact Us" page on OAF's website has been largely inaccessible.       http://www.oneacrefund.org  RECOMMENDATION:  BUY    EIN: 20‐3668110  One Acre Fund continues to meet or exceed defined program metrics      in  their  mission  to  eliminate  poverty  in  Africa  through  thoughtful  Analyst:  Rainbow Wong  business practices and operational efficiency.  Because OAF's program    Peer Review:  Jenny Qian, Kent Chao  metrics and financial statements are not entirely explained by public      documentation,  NPI  recommends  that  OAF  either  publish  more  Publication Date    detailed  explanations  of  survey  methods  and  financial  statements  or  September 14, 2012  provide access to OAF staff.      Nonprofit Investor Research | nonprofitinvestor.org    
  • 2. OVERVIEW OF ONE ACRE FUND’S ACTIVITIES  Program overview  One Acre Fund is concentrated on one‐acre subsistence farmers in Sub‐Saharan Africa.  OAF believes that providing food  aid  or  giving  handouts  are  only  a  temporary  solution  to  world  hunger.    Therefore,  OAF’s  programs  are  designed  to  provide farmers with all necessary tools to lift themselves out of poverty.  OAF’s core program, the “Market Bundle”,  introduces five components to its members:   Group  formation  –  provides  a  platform  for  existing  self‐help  groups,  mainly  women  farmers,  to  economically  interact with markets.   Education – the field officers teach members the latest agrarian practices.  Seed and fertilizer – the planting materials and fertilizer that the members receive are improved from the older  methods of food kernels used for seed.  OAF provides professionally graded planting materials and fertilizer that  replenish the malnutrition soil.   Market facilitation – field officers provide training to members about post‐harvest handling and storage so that  farmers have a stock of harvest to sell during less abundant seasons for higher prices.  Crop insurance – farmers are entitled to crop insurance that pays farmers in the event of a significant drought or  disease.   Market  bundles  are  individual  contracts  between  OAF  and  farm  families.    OAF  first  measures  the  size  and  potential  productivity of farmers’ land to determine the size of the market bundle loans.  The average size of the market bundle is  $75, which includes seed and fertilizer, farm education, crop insurance and storage.  Farmers are committed to repaying  loans by harvest time, between four to six months.  Farmers also have the flexibility to make repayments before harvest  time.    OAF  has  maintained  an  average  of  98%  repayment  rate  since  2009  as  its  market  bundles  truly  increase  farm  productivity, household income, and are of manageable sizes for farmers to repay.      PROGRAM RESULTS AND EFFECTIVENESS  With  a  sophisticated  impact  model,  the  market  bundle  effectively  increases  small‐scale  farming  families’  household  income and has more than doubled in membership every year.  As local farming leaders teach members about farming,  cultivation,  trading,  and  harvesting,  members  are  able  to  internalize  their  newly  learnt  skills  to  increase  their  family  income from selling their harvests.  OAF’s performance reports indicate that they have doubled farm families’ income  per acre and tripled the size of harvest per acre.  Seen in its performance reports, OAF continues to improve operations  costs at the district level in order to reduce its market bundle cost per family.  OAF aims to increase loan repayments for  program cost ratio to 83% in 2012.  As OAF sets sustainability goals in the coming years, they envision increasing this  percentage to 100%, in which loan repayment revenues will cover all program costs.  Since 2010, OAF has purchased a weather‐indexed insurance product called kilimo salama (which means safe farming in  Swahili) from the Syngenta Foundation for Sustainable Agriculture.  This insurance covers losses due to extreme drought  and excess rain.    Effectively, this insurance provides OAF farmers with a greater safety net and  gives  way to  teaching  farmers about the importance of insurance.               One Acre Fund | Nonprofit Investor Research  2   
  • 3. Families Reached by OAF (Fall 2006 ‐ Spring 2012)  Children Enrolled in OAF (Fall 2006 ‐ Spring 2012)   150,000  600,000  125,000  500,000  100,000  400,000  75,000  300,000  50,000  200,000  25,000  100,000  ‐  ‐ Fall‐06 Spring‐07 Fall‐07 Spring‐08 Fall‐08 Spring‐09 Fall‐09 Spring‐10 Fall‐10 Spring‐11 Fall‐11 Spring‐12 Spring‐07 Spring‐08 Spring‐09 Spring‐10 Spring‐11 Spring‐12 Fall‐06 Fall‐07 Fall‐08 Fall‐09 Fall‐10 Fall‐11 # Families Reached Target # Children Enrolled Target   Source: OAF semiannual performance reports     Acres under Cultivation by OAF (Fall 2006 ‐ Spring 2012)  Field Cost per Family (Fall 2006 ‐ Spring 2012)   120,000 $500  100,000 $400  80,000 $300  60,000 $200  40,000  20,000 $100  ‐ $0 Spring‐07 Spring‐08 Spring‐09 Spring‐10 Spring‐11 Spring‐12 Spring‐07 Spring‐08 Spring‐09 Spring‐10 Spring‐11 Spring‐12 Fall‐06 Fall‐07 Fall‐08 Fall‐09 Fall‐10 Fall‐11 Fall‐06 Fall‐07 Fall‐08 Fall‐09 Fall‐10 Fall‐11 # Acres under Cultivation Target Cost per Family Target   Source: OAF semiannual performance reports    TRANSPARENCY  One  Acre  Fund  shows  a  strong  commitment  in  maintaining  transparency,  providing  audited  financial  statements,  performance reports and IRS Form 990s on a timely basis.  OAF’s semi‐annual performance reports are based on results collected by a full‐time M&E (monitoring and evaluation)  team.  These downloadable reports on its website provide key metrics to measure the quality of their program in Africa,  introduce  stories  of  featured  farm  families  who  became  OAF  members,  and  track  program  results.    The  performance  reports  tracks  key  metrics  such  as:  families  reached,  children  enrolled,  acres  cultivated,  increased  size  of  harvest,  increase in farm income, repayment rate, field cost per family, and infrastructure investment.  These survey results are  comparisons of a randomized sample of more than 1,000 farm families: test samples of farm families who are enrolled  and  planting  and  control  samples  of  farm  families  who  are  enrolled  and  not  yet  planting.    The  test‐control  sample  methodology  is  put  in  place  to  eliminate  selection  bias,  which  proves  that  OAF  reporting  is  true  to  its  impact  results.   OAF’s performance reports include metrics that have been consistently tracked and disclosed since 2006.    One Acre Fund | Nonprofit Investor Research  3   
  • 4. FINANCIAL OVERVIEW  One  Acre  Fund’s  support  and  revenues  have  increased  significantly  over  the  past  five  years.  Publicity  through  the  Stanford  Social  Innovation  Review,  Foreign  Affairs,  and  PBS  NewsHour  has  increased  OAF’s  exposure  and  ability  to  attract more donors.  Since 2009, OAF’s support and revenues have increased by 6.9 times.  In 2010, OAF was invited by  the Rwanda’s Ministry of Agriculture to implement the agricultural program and was given $100 million land for a new  project called “LWH” that is supported by the World Bank, USAID, and CIDA.  Nonetheless, OAF’s operations and donor  network continues to grow rapidly, a reason why its support and revenues have been increased significantly.   While Grants and Donations declined slightly in 2010, “Program Fees” grew by $1.2MM (2.8x) from 2008‐2010 as the  market bundle program continues to grow and farm families continue to make consistent repayments.  Now accounting  for 34% of total support and revenues, OAF has demonstrated great progress towards self‐sustainability.   Moreover,  the  $123,957  seed  and  fertilizer  sales  in  2011  suggests  two  key  developments  of  the  core  market  bundle  program: (1) members have developed sophisticated understanding about loan repayments through credit or sales, (2)  the sales of seed and fertilizer seen in 2011 has created another form of cash flow.      Support and Revenues Mix Over Time  2010 Support and Revenues Mix  $ in MM    $20.0  2% $18.1  $18.0  $16.0  $14.0  27% $12.0  $10.0  $8.0  $4.9  $6.0  $3.7  $4.0  $2.3  $2.0  71% $0.0  2008 2009 2010 2011 Grants and Donations Program Fees Other Grants and Donations Program Fees Other     Program service expenses have represented an average of 97% of total expenses over the past four years, highlighting  the high impact of donors’ funds and OAF’s commitment to invest in the program.  Annual Expense Breakdown  $ in MM  $12 99% 98.2% $17.9  98% $10 97% $8 97.3% 97.0% 96% $6 $4.8  95% $4 94.5% 94% $3.7  $2 $2.3  93% $0 92% 2008 2009 2010 2011 Program Services Management and General Fundraising Remeasurement Loss Program Expense % of Total              One Acre Fund | Nonprofit Investor Research  4   
  • 5. Detailed Financial Information  Fiscal Year Ended December 31, 2008 2009 2010 2011 Public Support and Revenues (GAAP Accounting Basis) Special Event Revenue $51,811 $470 $123,316 $201,720 Less: Costs of Direct Benefit to Donors (19,886)                  ‐                  ‐ (13,038) Grants and Donations           2,038,786     3,172,519     3,016,380   12,767,284 Interest 7,852 15,066 9,401 7,778 Program Fees 158,149 435,667 1,665,778 4,967,221 Donated Property                         ‐                  ‐ 70,000                  ‐ Donated Services 60,500 49,071                  ‐           13,405 Seed and Fertilizer Sales (net of COGS)                         ‐                  ‐                  ‐         123,957 Miscellaneous 3,599 6,806 14,871                  ‐ Donated Investments                         ‐               3,683               2,936               4,954 Gain on Sale of Fixed Assets                         ‐                  ‐                  ‐                 274 Total Support and Revenues $2,300,811 $3,683,282 $4,902,682 $18,073,555 % Growth 158.4% 60.1% 33.1% 268.6% Expenses and Losses Functional Expenses Program Services $1,019,079 $1,745,847 $3,978,177 $8,855,376 Management and General 100,087 218,497 314,111 618,282 Fundraising                 34,367           35,839         249,261         264,497 Loss on Disposal of Fixed Assets                         ‐               1,532           14,340                  ‐ Loss on Sale of Investments                         ‐                     40                     21                     93 Remeasurement Loss 18,462 135,114 152,978 197,913 Total Functional Expenses: $1,171,995 $2,136,869 $4,708,888 $9,936,161 % of Revenue 50.9% 58.0% 96.0% 55.0% Change in Net Assets $1,128,816 $1,546,413 $193,794 $8,137,394   Source: Audited Financial Statements (GAAP)                          One Acre Fund | Nonprofit Investor Research  5   
  • 6. Key Balance Sheet Information  Fiscal Year Ended December 31 2008 2009 2010 2011 Cash and Cash Equivalents $756,720 $1,010,918 $616,776 $2,539,994 Cash Reserved for Crop insurance Fund         500,000         540,292                  ‐                     ‐ Grants Receivable, net         500,000     1,075,000         553,230       3,491,016 Accounts Receivable, net                  ‐                  ‐         176,863            803,071 Employee Advances, net                  ‐           37,913           33,051             85,152 Inventory         302,590         759,892         738,144       3,473,531 Prepaid Expenses           24,840           21,875         592,819            568,188 Total Current Assets $2,084,150 $3,445,890 $2,710,883 $10,960,952 Fixed Assets Vehicles $146,773 $291,815 $380,814 $460,777 Land               4,952           59,875         114,053            115,093 Buildings                  ‐           26,815         293,688            551,363 Construction in Process                  ‐                  ‐         123,689                     ‐ Equipment           13,323           21,985           30,001             31,022 Less: Accumulated Depreciation           (19,902)           (61,905)       (122,974)         (223,591) Total Fixed Assets $145,146 $338,585 $819,271 $934,664 Other Assets 0 0 0 2,420,975 Total Assets $2,229,296 $3,784,475 $3,530,154 $14,316,591   Source: Audited Financial Statements (GAAP)    OTHER THIRD PARTY RATINGS  One Acre Fund has been received acclaim from PBS NewsHour, the Stanford Social Innovation Review, Harvard Business  School Review, Foreign Affairs, and many foundations.  GreatNonprofits  rates  OAF  5  out  of  5  stars  based  on  1  user  review.    The  rating  is  based  on  the  quality  of  the  OAF’s  mission  statement  and  the  reviewer’s  experience  in  hearing  local  OAF  volunteers  speak  at  Chicago’s  “Lunch  N  Learn”  forum.   GiveWell states that, “We contacted One Acre Fund in August 2011 because it was recommended by other funders. We  did not complete a full review because One Acre Fund declined to participate in our review process at this time.”    GET INVOLVED  One Acre Fund welcomes various ways to get involved:   Ways to Support  Website  Become a staff member ( in rural Africa, New York, or Washington D.C.)  http://www.oneacrefund.org/get_involved/careers  Make donations (monthly support, sponsorships, large gifts, gifts of stock)  https://www.oneacrefund.org/donate  Attend events (galas, auctions, presentations)  https://www.oneacrefund.org/get_involved/events  Join a chapter (in New York, Boston, San Francisco, Chicago)  https://www.oneacrefund.org/get_involved/chapters  Become a fundraiser  https://www.oneacrefund.org/get_involved/become_a_fundraiser      One Acre Fund | Nonprofit Investor Research  6   
  • 7. DISCLOSURES  Rainbow  Wong  certifies  that  she  does  not  have  any  affiliation  with  One  Acre  Fund  and  has  never  made  a  donation  to  the  organization. Additionally, Rainbow Wong has not supported directly competing organizations in a greater capacity than a nominal  donation. NPI analysts and NPI as an organization do not receive any form of compensation from reviewed charities.  This report is for informational purposes only and does not constitute a solicitation for donations. While the reliability of information  contained  in  this  report  has  been  assessed  by  NPI,  NPI  makes  no  representation  as  to  its  accuracy  or  completeness,  except  with  respect to the Disclosure Section of the report. Any opinions expressed herein reflect our judgment as of the date of the materials  and  are  subject  to  change  without notice. NPI  has  no  obligation  to update,  modify  or  amend  any  report  or  to  otherwise  notify  a  reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes  or subsequently becomes inaccurate, or if research on the subject organization is withdrawn.    Opinions  and  recommendations  in  our  reports  do  not  take  into  account  specific  reader  circumstances,  objectives,  or  needs.    The  recipients of our reports must make their own independent decisions regarding any organization mentioned by NPI.    ABOUT NONPROFIT INVESTOR  Nonprofit  Investor  is  a  nonprofit  organization  with  the  mission  of  improving  philanthropic  capital  allocation  and  nonprofit  effectiveness  through  research  and  analysis.  NPI  brings  together  volunteers  with  professional  due  diligence  skills  to  produce  independent,  in‐depth  evaluations  of  nonprofits.  NPI  research  is  available  for  free,  public  download  here:  www.nonprofitinvestor.org/research.  To  suggest  a  charity  for  NPI  to  review  or  to  apply  as  a  volunteer,  please  contact  us:  www.nonprofitinvestor.org/contact.  NPI  is  a  tax‐exempt  charity  under  section  501(c)(3)  of  the  Internal  Revenue  Code  (EIN:  45‐ 3627609). Follow Nonprofit Investor on Twitter: @nonprofitinvest      One Acre Fund | Nonprofit Investor Research  7