One Acre Fund

Hungry Farm Families Growing Their Way Out of Poverty

Spring 2010 Performance Report 1

One Acre Fund Semi-Annual Performance Report
November 2009 – April 2010

Friends – Greetings from the One Acre Fund

family!

I wanted you to meet Gorette (left), one of

Rwandan field officers, and Bernadette (right),
one of her farmers. We first met Gorette as a
farmer, two years back. We immediately
recognized her as a leader in her community,
and hired her as a field officer. She quickly
became one of our star field officers—she
establishes close ties with her farmers, including
Bernadette, and is respected by her fellow field
officers for her ability to share what she learns in
the field and coach her peers. Gorette
understands the many challenges that her
farmers face because she is one of them.

Gorette is a story of human potential. We firmly believe that all of the people that we serve have the
human potential to achieve far more in their lives – but unfortunately they are stunted by poverty.
One Acre Fund makes a big effort to make sure that we recruit true local people – our field staff are
actual farmers who come from the very communities that they serve.

Our program continues to grow rapidly, with your generous support. This is our seventh 6-monthly
report, which offers a frank look at hard metrics, which we use to guide every step of our operations.
From November 2009 – April 2010, we:
● Grew program size from 12,000 farm families to 23,000 farm families, serving more than
92,000 children
● Had our seventh harvest, increasing take-home farm income by 100% per acre, with
99% of farmers repaying program fees
● Covered 60% of our field costs through farmer repayments, which will continue to
improve over time

This report briefly concludes with our vision for the future, which we are truly excited about. Our
momentum continues to build at a terrific pace, and we are on track to create life change for 85,000
families in the next 36 months. This growth is largely due to you, our loudest supporters. On behalf of
the children and families that we serve: Thank You.

Andrew Youn Matt Forti

Founder, One Acre Fund Board Chair, One Acre Fund

Governing Board Members: Joel Ackerman, Anne Marie Burgoyne, Jason Maga, John Wood
Fundraising Board Members: Chris Addy, Chris Ashley, John Brothers, Taira Hall, Amy Hsiao, Diana Lee,
Briehan Lynch, Jason Maga, Jason Miller, Bhavan Suri, James Wesner, Meredith Wilson, Paul Wormley,
John Yi

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One Acre Fund: Core Values and Program Model

Our mission: We empower hungry farm families to grow their own way out of poverty.

Core values:
● Empower, don’t give – we empower our farmers to change their own lives.
● Serve the poorest of the poor – our solution includes tools, training, and market access –
making it realistic for someone starting from nothing to grow enough to feed her family.
● Provide measurable impact – we rigorously measure our exact client impact. We make it
realistic for someone starting from nothing to double their farm profit per acre.
● Dream big – limitless human need demands an ambitious response. 75% of the extreme poor
in the world are farmers, and we must aggressively scale to meet demanding milestones.
● Remain 100% accountable – we openly discuss both the good and the bad. If we are not
improving the lives of children, we are failing, and must find a way to improve.

One Acre Fund’s “Market Bundle”

1) Group formation: One Acre Fund meets 2) Farm inputs: One Acre Fund finances and
existing women’s self-help groups, and organizes delivers all of the planting materials that our
them into a producer group. farmers need to increase their yields.

3) Education: One Acre Fund field officers deliver 4) Market access: One Acre Fund offers a
trainings on planting, weeding, and fertilizer harvest buyback program to its farmers, and
application to groups in their fields. trains them on crop storage.

None of the individual pieces of our model is particularly new – but the combination of them is
extremely unique. Our ―market bundle‖ is an innovative new tool in the world’s fight against hunger
and poverty among the rural poor.

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 Review of Program Metrics: November 2009 – April 2010

++ = Met/Exceeded Goal + = Additional Opportunity - = Did not meet goal

HOW MANY PEOPLE DID WE REACH? Program grows to 23,000 farmers (92,500 children)
Scalability Previous
May 09-
New goal
Nov 09-
Actual
Nov 09-
Rating Rationale
Oct 09 Apr 10 Apr 10

- # Families Reached 12428 20000 23126 ++ - Nearly doubled program size to 23,126 farm families
- # Children Enrolled 49712 80000 92504 ++ - Increased program coverage to 92,504 children
- # Acres under 5812 10000 11563 ++ - Placed 11,563 acres under cultivation
Cultivation

FUTURE ACTIONS:
- Continue a sustained scale-up phase over the next two years
- We are on track to meet or exceed our target of 50,000 families in the next 12 months

WHAT WAS OUR QUALITY OF IMPACT? Farm income doubles

Impact Previous New Actual Rating Rationale
goal
- Increased Size of Harvest 3x 3x 3x ++ - Raw harvest increased by 3x (estimate)
(year-on-year)
- Increase in Farm Income 2x 2x 2x ++ - Farm income increased by 2x, after program
(year-on-year) repayment (estimate)
- Reduction in child death 50% 50% 45% + - We estimate a 45% reduction in child deaths, based
rate on a sample survey
FUTURE ACTIONS:
- Farm income targets are on track. We plan to have district-level impact data by the end of 2010.

HOW MUCH DID IT COST? Program improves to 63% sustainability

Financial Return Previous New Actual Rating Rationale
goal
- Repayment Rate 98% 95% 98% ++ - 98% of farmers repaid, well above target of 95%.

- Field cost Per Family $120 $110 $120 + - We were slightly high on field staff transport, and will
improve
- Infrastructure investment $800k $1.1mil $1.1mil + - Strong donations allowed us to invest more

- % of Donations to 100% 100% 100% ++ - 100% of individual donations went directly to

Program Services program; overhead covered by foundation grants
- Program Sustainability 45% 60% 63% + - Farmer repayments covered 63% of field costs
FUTURE ACTIONS:
- Our target is to cover 70% of our field expenses through farmer repayments by the end of this year.

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Management Discussion

1. Reaching Operational Sustainability

At One Acre Fund, we have set an ambitious yet achievable goal of reaching 1 million farm families
in the next ten years. That will require a significant financial investment, and we are working hard to
earn as much as possible from our field operations. We have already made big steps forward – in
2008 and 2009, we made an impressive jump from 30 percent to 50 percent financial sustainability of
our field operations.

Going forward, we expect to continue rapid progress on this front. Over the next 24 months, we are
engaged in a variety of operating initiatives to make that happen. For example, we are hoping to
increase the number of farmers served by each of our field officers – making them far more
productive. To do this without sacrificing program quality, we are a) doing more to empower
volunteer leaders among our farmers with specific tools and small incentives, b) improving group
cohesion amongst our farmers so that they can teach each other more, and c) creating a new
performance-based salary structure for our field officers, to motivate the top performers. These
initiatives will take time to roll out over hundreds of staff, but we have already started making strong
progress!

2. What is U.S. Policy on Global Agriculture and Food Security?

After two decades of neglect, the global aid community is expressing renewed interest in agriculture
development and food security. Following the spike in global food prices in 2008, in July 2009, U.S.
President Barack Obama spearheaded a new global food security and agriculture initiative at the
L’Aquila G-8 Summit. Countries pledged $20 billion to support the initiative, with the United States
pledging $3.5 billion over the next three years.

Since then, policymakers across the U.S. government have been busy formulating the details of the
new initiative. It promises to focus on smallholder farmers, the importance of women in agriculture,
the use of science and technology to improve crop yields, and increasing access to financial
services in rural areas. The United States will disperse funding through USAID, as well as through a
World Bank administered ―multidonor trust fund.‖ In sub-Saharan Africa, the first countries to receive
bilateral funding will be Ghana, Mali, Rwanda, Senegal, and Tanzania. According to the top State
Department official on Africa, global agriculture and food security is the ―signature initiative‖ of
Obama’s Africa policy. Here at One Acre Fund, we are thrilled to see U.S. policymakers realizing the
importance of boosting agriculture yields in Africa.
5
Meet Our Farmers in Lutacho Village

< Input Delivery

The last week in February, all

our Kenyan farmers received
their seed and fertilizer at
market points less than 2
kilometers from their homes.
In Lutacho Village, over 130
farmers showed up to pick
up their inputs. Before
handing out seed and
fertilizer, the farmers prayed
together for a good harvest.

< Kennedy and Anne >

Kennedy is the field officer in
Lutacho. Before he was hired, he
was the leader of an OAF group.
When he became a field officer,
his wife Anne took his place in the
group. Many of our field officers
were once OAF farmers.

Planting >

Kennedy was incredibly busy in

early March walking all over
Lutacho and monitoring his
farmer groups to see if they
were planting correctly. Aggrey
Muliro, the owner of this farm, is
wearing the yellow shirt.
Members of his group, including
Pentitah Kubati, helped him
plant. Digging holes for maize
seeds with the jembe blade is
the hardest part of planting.
6
Meet Our Farmers in Lutacho Village

< Germination

A few weeks after planting,

Kennedy visited his farmers
to check their maize
germination rates. He
counted germination in
three different parts of their
fields, and then took the
average. If germination was
below 70 percent, Kennedy
advised transplanting maize
from the small nurseries each
farmer was taught to make.

< Dorcas and Judas >

Dorcas Chosoli and Judas
Kisiangani are two of the star
farmers in Lutacho. They both
finished repaying their loans by the
middle of March, a full six months
early. They were the first farmers to
finish repayment in the entire
district! Flexible repayment is an
important part of our program.

Weeding >

We advise our farmers to

weed at least twice during
the season. The dark soil in
the photo has been weeded,
while the light soil has not.
This farm belongs to Joseph
Namikoye, a new farmer. Last
year he only received 4 bags
of maize from ½ acre of land;
a good harvest is 12-16 bags.
If Joseph follows the OAF
method, he should double to
triple his harvest this year.
7
Vision for the Future
Can our model be scaled into a major force against world hunger?

We have proven our program model, and we need to reach as many needy people as possible!

We have set an ambitious goal …

We have set an extremely ambitious goal for the next 36 months: to begin expanding a program
model that we have proven. Our milestones in the next three years are to:

1) Create a 100% gain in farm income and a 50% reduction in child deaths
2) For 85,000 families
3) At 80%+ financial sustainability (farmer repayments covering 80% of field expenses)

We believe that if we can create a program model that achieves all of these goals, we will be in a
position to grow to serve millions of lives in the coming decades. Millions of hungry farm families,
feeding themselves – the hungry feeding the hungry.

We have a realistic plan …

These are not idealistic words – they are carefully constructed milestones, supported by our current
field experience, and the advice of dozens of prominent advisers.

Annual milestones
2009 2010 2011 2012
Scale 12,000 families 30,000+ families 50,000+ families 85,000+ families

Impact 100% average gain in 100% average gain in 100% average gain in 100% average gain in
farm income farm income farm income farm income

Financial 50% cost recovery on 65% cost recovery on 75% cost recovery on 80% cost recovery on
field programs field programs field programs field programs
sustainability

… And your support makes it happen

Your support makes this possible! We need to raise a total of $8.0 million dollars over the next three
years to execute this plan, and every dollar matters. Maybe you are donating $240 a year to support
two families in our program. Those families matter. Maybe you are donating $10,000 a year to help
support an entire village of farm families. That village matters. Maybe you are donating $50,000 a
year to help us make key infrastructure investments. These investments matter.

Your donation matters for real people. Every dollar empowers a hungry person to feed her own
family, and every dollar helps us invest for the future. We will continue to strive to report exactly how
much social impact your investments are making for our families, and please, never hesitate to write
to us with questions and comments.

On behalf of our children and families: THANK YOU.

8
One Acre Fund By The Numbers
One Acre Fund continues its strong growth, evidenced by the numbers below. In particular, the increase in
staff members reflects our desire to build infrastructure to support our anticipated growth to 30,000 families by
year end.

Metrics As of As of Percent growth,

10-31-09 4-30-10 last six months
# Unique Donors 2,081 2,185 5%
# Investment Council Members 718 689 (4%)
# Staff Members 230 324 12%

Donors (for the twelve months ending 4-30-2010)

One Acre Fund measures its success not only by the impact we have on the ground in Africa, but also by our
ability to attract and retain donors. The extraordinary individuals who donate to One Acre Fund represent a
group committed to ending hunger through empowerment. We can’t thank you enough for your support.

Fellow Farmers ($500,000 and up)

• The Pershing Square Foundation

Partners ($100,000 - $499,999)

• Anonymous
• Ackerman Charitable Fund and Coventry Health Care
• Jasmine Charitable Trust
• Mulago Foundation
• The Peery Fund
• Skoll Foundation
• David Weekley Family Foundation

Honorary Advisory Board ($25,000 - $99,999)

• Anonymous (3)
• Casten Family Fund
• Combe Family
• Draper Richards Foundation
• Horace W. Goldsmith Foundation
• Prana Foundation
• Rock Paper Scissors Foundation / Katie and Keith
• Satter Foundation

Leadership Circle ($10,000 - $24,999)

• Anonymous (2) • Dining for Women

• AllPeopleBeHappy Foundation • Liberty Foundation
• Thomas and Analisa Barrett • Sarah Jeon and Charles McGarraugh
• Greg and Rita Bustamente • The Rohatyn Group
• Code Family Foundation • Yum! Brands Foundation
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 • Construction for Change

Major Supporters ($5,000 - $9,999)

• Anonymous • Linville Family Foundation

• Mike and Carol Anderson • Lombard Odier Darier Hentsch & Cie
• Muffy, Andy and Megan DiSabatino • Robert and Mary Mersky
• Deborah and Cody Engle • Andy Pickard
• Clifford Frey • Barbara and Walter Scott Charitable Fund
• The International Foundation • Tim and Carrie Sellner
• Miles Lasater • Stephen and Susan Wilson

Investment Council Members

Investment Council members donate $20 or more per month or $240 or more one-time in the past year

Amy Abeling Jessica Bonjorni Serena Chu Laura DeMay

Denny Addis Amit Bouri Benjamin J. Chuba Jodi Dent and Dave
Mary Ellen Addy Ben Bove Ed Chung Dent
Chris Addy Jacob Brauner Leonard Chung Lawrence Detmer
Dorothy F. Adkins Dave Britton Ed Chung David Diamond
Patricia Adkins Noah Brown Church of Corpus Susan Diamond
Robert Albright Maureen Brudzinski Christi Vincent DiGiorno
Gad Allon and Revital Anne Bubb Maya Clem Scott Dilloff
Allon Steven Bull Kimberly Coday Ellen Donahoe
Young An Brett Burgess Celeste Colson Nicole Dorn and
Mark Anderson Charles Burhans Jim Colten and Sue Kevin Dorn
Hans Anderson Margaret Busse Colten Andrew M. Doucette
Mary Andrews Clinton Campbell Cameron Combe William Dowd
Applied Safety and Bryan Campbell Keech Combe and Edward Driesse and
Ergonomics Jean Capizzi Akshay Shetty Brooke Driesse
Christopher Ashley Rhona Carmody Adrian Coppel Calvo Janet Duchossois and
Ryan K. Askew and Julie Carrier Sara Cotter Craig Duchossois
Heather V. Askew Bernadette Cascio Charles B. Jameson Jennifer Duda
Avon Lake Benjamin Case and Anne T. Jag Duggal
Presbyterian Church Barbara Case Coughlan John Eastman
Jian Bao Gillian Casten Terry H. Coyne Heather Ebert
Joy Barbre Sean And Kara Matthew Craighead Parham Eftekhari
Ryan Barrows Casten Ken Crea Danelle Egan
Max Barry John Cavanagh Lesley Crosby Michael Elliott
Derek Beaty David Cavanaugh Ashley Crossan S Cody Engle
Raymond Beck Allie Cecich Dr Andrew Curtain Megan Eno
Alan Becker Chris Cerf Custom House Chris Enock
Nancy Beeson Michael Chandler Michael Cygan Dana Erato
Ben and Kim Olds Pongkeun Chang Steve Daley Sam Evans
Benjamin and M Yvonne Chao Joe Danon Kevin Evans
Jennifer Fritz James Chasia Jerome S. Darby and Alexander Evis
Charitable Gift Fund Andy Cheek Lora L. Darby Michael Fairchild
William Bennett Jennifer Chin David and Joanne Abby Falik
Brandon A. Benson Jennifer Chiu Mullen Charitable Gift Timothy A. Fallon and
Thomas Bergstrom Hyung Joon Cho Fund Patricia Fallon
Robert Bergstrom Lynn Chodos Natasha Davidson Oluwarotimi Familusi
Tiffany Bernal Dana Chodos Katarina Davos Michael Fang
Sharad Bhargava Elizabeth Choe John De Planque Raymond Fecteau
Shalini Bhatia Han Choong Craig Delaurier Tim Feddersen
Erin Blake Stephana Choong Dominic and Diane Rodrigo Fernandez
Dave Blanchard Andrew Choquette DeMain Varela Carral
Christina Blodgett Katherine Lei Choy Kimberly DeMaio Marisa Flanigan
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Beverly Flinn Maurice Hearne Pat Kahng William Lee and Jean
Steve Florsheim and Julia Heidenreich Richard Kalich Lee
Jenny Florsheim Ann Heider and Lauren Karp Ken Lee
Ken Flottman David Heider Sam Kasle Diana Lee
Leo Flynn Dawn Henn Larry Kaufmann Vivian Lee
Gerard Folz Joshua Hershman Nsesa Kazadi David Lehman
Jim Forbes Kerry Hess Craig Keillor Helen Leis
Art Formento Gordon Hilbun Alex Keisner Julie Lepinard
Matthew Forti Roxanne Hill Michaeleen Aron Levin
Tracy Foster Megan Hitchner Kelzenberg Alissa Leviness
Judith Casten Jannie Ho Annabel Khouri Anwei Li
Stephanie Franklin David Hobbet Miroo Kim Elizabeth Liebert
From Age To Age Ronald Hoch Thomas Kim Ellen Lindgren
Choral Ensemble Kitt Hodsden Suzanne Kim Erin Linville and
Ryan Fuller James Hogan Robert Kim Jordan Linville
Timothy Gange Ruth M. Hoglund Joe and Abby Matthew Littell
David Gardner Brett Holcomb Kirchofer Casey Littell
Matthew Garman Lori Opsal Kirk and Kate Kramer Audrey Liu
and Shanti Garman Stephen Holliday Charitable Fund Ann Longfellow
Angela Gaynor Mahri Holt Ann Klefstad Heidi Lubin
Barbara Geluda Kevin Hoo Rebecca Kline Deborah Lucas
Paul Gempler Roxanne Hori Craig Koester Nathan Lucht and
Jeremy Gilbert Roxanne Hori and Uri Kogan Mistie Lucht
Elizabeth Gipson Robert Felsenthal Howard Konowitz Petronella Lugemwa
Susan Goetz Daniel J. Hosler and Rae Koo and Howard Zachary Lulloff
Mkdu Nathalie Shilpa B. Hosler Y. Koo Megan Lyons
Gogue Robin Howard Robert Korajczyk Deborah Mack
Goldman Sachs Kara Howard Megan Kormi Hilary Macleod
Julie Gordon Amy Hsiao Suveer Kothari Karen Macmurdo
Lee Gorman Robert Hudnut Kovler Family Anita Madhav
Alisa and Michael Paul Hudnut Foundation Joyce Maga
Greco Keith Hug Catherine Kozen Jason Maga
Melissa Griffith Daniel Huggins April Kozen Raheel Malik
Chris Grisanti John P. Hughes Harry and Julie Amy Bates and Ben
Genevieve E. Thomas and Virginia Kraemer Markham
Gudebski Hughes Hadar Kramer Marquette Associates
Joseph Guertin I Do Foundation Patrick Krolak Bradley Martens
Ryan Gunderson Janine Iamunno Amar Kuchinad Marcia Martin
Todd Haberkost Income Research & Dennis Kudzy Katherine Martin
Ralph Haberli Management Donna S. Kuehn Regina Maruca
Hadley Capital Kevin Irwin Adi Kuruganti Benjamin Mathes
Taira Hall Brian Irwin Josh and Jane Kwan Peter Mattox
John Hammerschlag Robert Jackson Yilaap Lai Shane Mcbride
Matthew Hamory Allana Jackson Hannah Lakin Michael McCaskey
Judy Hangartner Matt James Adil Lalani Michelle McDaniel
Hangers Unlimited Larry Janousek C. Edgar Lalanne Martin Mcdonnell
Dean Hanson and Bree Januhowski Bill Lambert Peggy A Mcgarry
Mary Hanson Michael Jensen Gail P. Landy and Kieran McGrath
Karma Hara Ernest Jenson Macreay J. Landy Julie McGrath
Mary Harper Karen Johnsen Fran and Bob Shawn McMahon
Sean Harper Andrea Johnson Langewisch David Mcmillan
Grayce Hartman Jamie Jones Ashley Lawrence Michael McNerney
Gay Harwin Judith Jonsson Matthew LeBlanc and Joan McNutt
Peter Hawkins and JSRM Foundation Sabrina LeBlanc Heather A. McQueen
Kathy Hawkins Mary A. Jungmann Young hee Lee Julia Meek
Alistair Hay Nathan Kadish Teena Lee Jenny Mehlman
Gareth Hayes Cornelius Kaestner Alissa Menovich

11
Barry Merkin Karen J. Oslund Maria Florencia Shankar Swamy
Mesirow Financial Jeannie Pae Scarfone Jessica Swift
Katherine Meyrick William B. Michael Scheirey Anna Taboada
Microcredit Club, Palamountain and Margaret Schilling Xiangyu Tang
Hinsdale Township Paula Palamountain Dorothy Scholtz Athena Tapales
High School Kara Palamountain Todd and Kelli Debra Thieschafer
Raj Midha Ralph Pamperin Schrade Brian Thome
Lauren Mikulski Carolyn Panning Kelly Schultz Kathleen Toland
Matt Milanovich Stephen Pawelski Lynn White and Mary David Tomback
David Milestone David Perry Bradford-White Louise A. Town
Jason Miller Ilkka Anhava Bruce Schwenger and Patty Tushie
Dawn H. Miller Rev K. Jeanne Person Lesley Schwenger Alice Tybout
David Cameron Miller and Dr. Kamal F. Oteng Sebonego Abhi Uppal
Peter Mitchell Abdullah Joel Segre Renee Valois
Jennifer Moisi Mitchell Petersen Boudhayan Sen Maria Vasilakis
Kevin Mole Abby Phelps Joaquin Sena Rajan Vatassery
Martha Montague Jack Philbin Servants Encouraging Sharon Venturi
Hannah Yang Moore Diane Phillips Cassetta Enterprise Clayton Virgil
Robert Morgan Don Phillips Development David Volk
Edmund Morgan Kendra Phillips Jordan Shields George Wadleigh
Satyajit Mujumdar Andy Phipps Christie Shoemacher Melissa Walker
Patricia A. Murphy Linda Pohlman Susan Shore Lynn Walters
Micah Murphy Carlo Polacco Jeff Shumway Aaron Walters
Carolyn Murphy Caroline Pollak Joshua Siegel Jay Walters and
Andrew Murray Norval Poulson Guilherme Silva Monique Walters
Eugene Natali Jr Andrea M. Powers Pj Silver MacKenzie Warren
Julia Navarre Joanne Pringle Stephen Silzer Sarajane
Joshua Neiman Mary Quinlivan Kelley Sims Portano Milder/Washington
Joanne Nelson Cactus Raazi Alok Sindher Women's Foundation
Keith Nelson Brad Rager Paul Slater John Waychowsky
Sandra Neren Anita Rajeswaren Chris Slaughter Craig Weber
Craig Nerenberg Jennifer Ransom Lisa Slouffman Bruce Weber and
David Neville Michael Recht Bobby Smith Alisa Weber
Alanna Nielsen Raeschel Reed Daniel Smith Derek Webster
Kailung Nien Shelly Reid Dan Smith Eric and Nancy
Hilary Nindorf Doug and Connie Sandi Smith Weinstein
Samantha Nobles Richardson Hugh W. Smith and Paul Welvang
Prithvi Nobuth Joseph Riehle Marsha A. Smith Richard Wenkel and
Clint Nohavec Barbara Ritchie Alejandro Solis Nancy Wenkel
Maire Nolan James Roberts Yamuni James Wesner
Northern Trust Jason Roeder Amanda Solomon Dylan Westfall
Investments, Inc Cindy Rohde and Ameet Soni Ryah Whalen
Northwestern Daniel Rohde Mary Ellen Sparrow Joyce and ralph
University Ron and Linda Jennifer Splansky Whalen
Pamela Nygren McGimpsey William D. Spring Tamarco White
Brian O 'Malley Foundation Supriya Srinidhi Jediah White and
Maureen O 'Neill Jeff Ross Greg Stace Sharon White
James O 'Sullivan Michael Rosskamm Brian Starr Mark Widdel
Steve Ober Miriam Rothstein Kevin Starr James Williams
Ann Obrien Jack Ru Sarah Stein Jason Williams
Brad Odell Jen Ruijssenaars and Steinback Family Meredith Wilson
Gwynneth Odonnell Rob Ruijssenaars Charitable Lead Trust Steve Windfedlt
Stefanie Offit Matthew Runkle Ann Stelmach Fred Winker
Claire Ogilvie Carlos Ryerson Mary J Stoffer Allen Wo
Daniel O'Malley Saint Lazare USA, Inc. Kyle Stout Sharon Wolfson
Wendy Omeara David Sanders Anna Sussman James Wormley and
Keiko Ono Michael Swaintek Cheryl Wormley

12
Paul Wormley and John Yi Kristin Zandstra Cindy Zwart
Rosemary Wormley Heekyung Youn Duke Zandstra
Steve Yang Paul Youn Jill Zeldin
Iris Yen Ryan Young Carol Zsolnay

Special Acknowledgement
A special thanks to the following people who have graciously given their time to One Acre Fund

The Anderson Family Kyle Lamb

Dave Betts Sarah Jeon and Charles McGarraugh
Greg Casagrande Miles Lasater
Casten Family Pauline Lee
The Combe family Richard Leftley
Julie Daniels Brenda McDaniel
Dev Ghosh Shashi Menon and his consulting team
Deb Grant Sam Pilling
Echoing Green Jeff and Linda Pohlman
Martin Fisher Wally Scott
Willy Foote Joel Segre
Sarah and Emily Forti Chuck Slaughter
Margaux Hall Kevin Starr
Laura Hattendorf Nick Tosti
Chris Herron Liz and Shravan Vidyarthi
Lyndsay Anne Holley Martin and Lora Weinstein
Mahri Holt Ryah Whalen
Roxanne Hori and Robert Felsenthal Scott Whitaker
I Do Foundation Jeanne Wussler
Dipak Jain Joseph, Paul and Teresa Youn
Pati and Oliver Kalm
Kit and Sam Kollmeyer

Your Feedback
Your candid feedback matters immensely to us. Please contact us at
[email protected] with your comments, questions, or suggestions

13
One Acre Fund’s Field Leadership

Rwanda

Jean-Baptiste Kagabo, Field Director

Jean-Pierre Kanyemera, Field Director
Jonas Ndarihoranye, Field Director

Venuste Bizimana, Motorcycle Manager Jean de Dieu Ntahomvukiye, Field Manager

Emmanuel Habineza, Innovation Manager Agnes Nyirahabyarimana, Field Manager
Fiston Habinshuti, Field Manager Marcelline Nyirakamanzi, Field Manager
Thomas Hafashimana, Field Manager Eline Nyiramwiza, Field Manager
Theodosie Imanirahari, Field Manager Claver Rugirangoga, Field Manager
Jacques Mudakikwa, Logistics Manager Theodores Rwagasore, Field Manager
Aaron Mundanikure, M&E Manager Speciose Uwimana, Field Manager
Charite Nirere, Field Manager M. Therese Uwingabiye, Field Manager
Gaudence Niyompatsi, Field Manager Francoise Yankurije, Field Manager
Martha Niyonshuti, Seed Manager

Kenya

John Gachunga, Regional Director, Western Kenya

Patrick Keya, Field Director

Daniel Okongo, Field Director
Isaac Misko, Field Director
Alex Mungaru, Field Director
Gladys Musyoka, Field Director

Jacinta Barasa, Child Health Manager Meshack Mocho, Field Manager

Timothy Chole, Horticulture Manager Millicent Mwugusi, Field Manager
Evans Libeya, Nursery Manager Alfred Shitendesa, Field Manager
Absalom Lipeya, Field Manager Phoebe Siketi, Field Manager
Joan Lirhu, Assistant Field Director Kassim Simiyu, Field Manager
Patyster Lusweti, Field Manager Robert Sitati, Field Manager
Betty Luvuga, Child Health Manager Patrick Siundu, Field Manager
Dorica Manuni, Field Manager Julius Vigadzi, Field Manager
Everlyne Mamai, Field Manager Festus Wabwile, Field Manager
Margaret Makari, Child Health Manager Protus Wanguche, Field Manager
Samuel Masinde, Field Manager Pauline Wanjala, Field Manager
Vincent Mateyi, Field Manager Andrew Wanyonyi, Logistics Manager
Francis Wefwafwa, Field Manager
Scholastica Wekesa, Field Manager
Sylvanos Yabwetsa, Field Manager

14
2009 Financial Results and Management Discussion

To our Donors, Stakeholders, and Colleagues:

2009 was a year of growth One Acre Fund, thanks in large part to your support.
We started to scale our program, tripling our program size from 4,000 to 12,000
farm families, while maintaining program quality and effectiveness.

Your generous support not only enabled us to grow – you enabled us to invest in
our future. We have increased our next year’s projection (2010) from 25,000 farm
families to 30,000 farm families, based on our strong operating results and a
transformative grant from the Pershing Square Foundation.

Revenue: Despite uncertain economic times, our supporters increased their

generosity by 50% in 2009, growing from $2 million in 2008 to $3.1 million in 2009. In
addition to this, our farmer revenues nearly tripled in size, from $160,000 in 2008 to
$440,000 in 2009 – a number we expect will continue to grow quickly.

Expenses: Although we tripled our number of farmers served, our expenses grew
less than double, as we kept a constant eye on cost-effectiveness. Expenses
grew from $1 million in 2008, to $1.95 million in 2009. As with last year, the bulk of
our expenditures were for purchase and delivery of life-changing farm inputs
(35%) and for staff (37%).

The Future: As we grow, we will continue to balance cost-effectiveness together

with making aggressive investments in our future. Those investments are paying
off. Our growth projection for 2010 has increased from 25,000 to 30,000 farm
families. As we continue to build our organization’s capacity, we will continue to
look for opportunities to serve more farmers, and to serve them more effectively.

In a time of financial uncertainty, our supporters rallied together to build a solid

financial foundation for enormous growth in the coming years. Thank You. We
increasingly feel that we have only begun to grow – there are about 100 million
subsistence farm families in the world, and our ambition is to serve as many as we
can.

Together, we serve!

Andrew Youn

15
 ONE ACRE FUND, INC.
REPORT ON THE EXAMINATION
OF THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED
DECEMBER 31, 2009 AND 2008
 ONE ACRE FUND, INC.
TABLE OF CONTENTS
Page(s)
Independent Auditors’ Report 2
Statements of Financial Position 3
Statement of Activities
For the Year Ended December 31, 2009 4
For the Year Ended December 31, 2008 5
Statement of Functional Expenses
For the Year Ended December 31, 2009 6
For the Year Ended December 31, 2008 7
Statements of Cash Flows 8-9
Notes to the Financial Statements 10 - 16

Page 1
 INDEPENDENT AUDITORS’ REPORT

To the Board of Directors

One Acre Fund, Inc.

We have audited the accompanying statements of financial position of One Acre Fund,
Inc. (an Illinois not-for-profit corporation) as of December 31, 2009 and 2008 and the
related statements of activities, functional expenses, and cash flows for the years then
ended. These financial statements are the responsibility of One Acre Fund, Inc.’s
management. Our responsibility is to express an opinion on these financial statements
based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in

the United States of America. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

We did not observe the physical inventory taken as of December 31, 2009 and
December 31, 2008 to verify the quantity of inventory items.

In our opinion, except for the effects on the financial statements of any adjustments that
might have resulted had we been able to observe the physical inventory at December
31, 2009 and 2008, or to otherwise satisfy ourselves as to quantities at those dates, as
discussed in the preceding paragraph, the financial statements referred to in the first
paragraph present fairly, in all material respects, the financial position of One Acre
Fund as of December 31, 2009 and 2008, and the results of its operations and its cash
flows for the years then ended in conformity with accounting principles generally
accepted in the United States of America.

August 30, 2010

Page 2
 ONE ACRE FUND, INC.
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2009 AND 2008

ASSETS
2009 2008
CURRENT ASSETS
Cash $ 1,010,918 $ 756,720
Cash Reserved for Crop Insurance Fund 540,292 500,000
Grants Receivable (Net of Allowance for Doubtful
Accounts of $0, Respectively) 1,075,000 500,000
Employee Advances (Net of Allowance for Doubtful
Accounts of $6,214 and $0, Respectively) 37,913 0
Inventory 759,892 302,590
Prepaid Expenses 21,875 24,840
TOTAL CURRENT ASSETS 3,445,890 2,084,150
FIXED ASSETS
Vehicles 291,815 146,773
Land 59,875 4,952
Buildings 26,815 0
Equipment 21,985 13,323
400,490 165,048
Less -- Accumulated Depreciation 61,905 19,902
TOTAL FIXED ASSETS 338,585 145,146

TOTAL ASSETS $ 3,784,475 $ 2,229,296

 LIABILITIES AND NET ASSETS
2009 2008
CURRENT LIABILITIES
Accounts Payable $ 16,031 $ 7,265
Note Payable 100,000 0
TOTAL CURRENT LIABILITIES 116,031 7,265
LONG TERM LIABILITIES
Refundable Crop Insurance Funds 500,000 500,000
Note Payable 0 100,000
TOTAL LONG TERM LIABILITIES 500,000 600,000
TOTAL LIABILITIES 616,031 607,265
NET ASSETS
Unrestricted 2,918,444 1,093,031
Temporarily Restricted 250,000 529,000
TOTAL NET ASSETS 3,168,444 1,622,031

TOTAL LIABILITIES AND NET ASSETS $ 3,784,475 $ 2,229,296

See Accompanying Notes To The Financial Statements.

Page 3
 ONE ACRE FUND, INC.
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2009

TEMPORARILY PERMANENTLY
UNRESTRICTED RESTRICTED RESTRICTED TOTAL

PUBLIC SUPPORT AND

REVENUES
Grants and Donations $ 2,582,519 $ 590,000 $ 0 $ 3,172,519
Program Fees 435,667 0 0 435,667
Donated Services 49,071 0 0 49,071
Interest 15,066 0 0 15,066
Miscellaneous 6,806 0 0 6,806
Donated Investments 3,683 0 0 3,683
Special Events (Net of Direct
Benefits to Donors of $713) 470 0 0 470
Net Assets Released
from Restrictions 869,000 (869,000) 0 0

TOTAL PUBLIC SUPPORT

AND REVENUES 3,962,282 (279,000) 0 3,683,282

FUNCTIONAL EXPENSES
Functional Expenses
Program Services 1,745,847 0 0 1,745,847
Management and General 218,497 0 0 218,497
Fundraising 35,839 0 0 35,839
Total Functional Expenses 2,000,183 0 0 2,000,183
Remeasurement Loss 135,114 0 0 135,114
Loss on Disposal of Fixed Assets 1,532 0 0 1,532
Loss on Sale of Investments 40 0 0 40

TOTAL FUNCTIONAL
EXPENSES AND LOSSES 2,136,869 0 0 2,136,869

CHANGE IN NET ASSETS 1,825,413 (279,000) 0 1,546,413

NET ASSETS,

BEGINNING OF YEAR 1,093,031 529,000 0 1,622,031

END OF YEAR $ 2,918,444 $ 250,000 $ 0 $ 3,168,444

See Accompanying Notes To The Financial Statements.

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 ONE ACRE FUND, INC.
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2008

TEMPORARILY PERMANENTLY
UNRESTRICTED RESTRICTED RESTRICTED TOTAL

PUBLIC SUPPORT AND

REVENUES

Grants and Donations $ 1,503,786 $ 535,000 $ 0 $ 2,038,786

Program Fees 158,149 0 0 158,149
Donated Services 60,500 0 0 60,500
Special Events (Net of Direct
Benefits to Donors of $19,886) 31,925 0 0 31,925
Interest 7,852 0 0 7,852
Miscellaneous 3,599 0 0 3,599
Net Assets Released
from Restrictions 8,000 (8,000) 0 0

TOTAL PUBLIC SUPPORT

AND REVENUES 1,773,811 527,000 0 2,300,811

FUNCTIONAL EXPENSES
Functional Expenses
Program Services 1,019,079 0 0 1,019,079
Management and General 100,087 0 0 100,087
Fundraising 34,367 0 0 34,367
Total Functional Expenses 1,153,533 0 0 1,153,533
Remeasurement Loss 18,462 0 0 18,462

TOTAL FUNCTIONAL
EXPENSES AND LOSSES 1,171,995 0 0 1,171,995

CHANGE IN NET ASSETS 601,816 527,000 0 1,128,816

NET ASSETS,

BEGINNING OF YEAR 491,215 2,000 0 493,215

END OF YEAR $ 1,093,031 $ 529,000 $ 0 $ 1,622,031

See Accompanying Notes To The Financial Statements.

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 ONE ACRE FUND, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2009

MANAGEMENT
PROGRAM AND
SERVICES GENERAL FUNDRAISING TOTAL

Accounting $ 0 $ 4,723 $ 0 $ 4,723

Bad Debts 0 6,214 0 6,214
Bank and Credit Card Fees 0 12,834 0 12,834
Business Development 77,973 19,494 0 97,467
Consulting 22,737 7,579 0 30,316
Crop Insurance Fees 0 5,453 0 5,453
Depreciation 39,033 3,636 0 42,669
Employee Benefits 7,898 878 0 8,776
Farming Supplies 503,149 0 0 503,149
Farming Transportation 173,562 0 0 173,562
Farming Warehouse Costs 13,384 0 0 13,384
Insurance 3,351 3,351 0 6,702
Interest 0 4,992 0 4,992
Legal Fees 0 27,277 0 27,277
Marketing and Promotions 0 16,625 4,156 20,781
Miscellaneous 16,054 11,891 0 27,945
Occupancy 16,259 761 761 17,781
Payroll Taxes 26,117 2,902 0 29,019
Postage and Shipping 798 1,863 0 2,661
Printing and Publications 27,541 1,530 1,530 30,601
Recruiting and Training 27,522 9,791 0 37,313
Salaries and Wages 626,148 63,688 2,974 692,810
Supplies 25,627 2,848 0 28,475
Technology and Internet 15,922 1,447 724 18,093
Telephone 26,420 2,297 0 28,717
Travel 96,352 6,423 25,694 128,469
$ 1,745,847 $ 218,497 $ 35,839 $ 2,000,183

See Accompanying Notes To The Financial Statements.

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 ONE ACRE FUND, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2008

MANAGEMENT
PROGRAM AND
SERVICES GENERAL FUNDRAISING TOTAL

Accounting $ 0 $ 2,000 $ 0 $ 2,000

Bank and Credit Card Fees 0 14,482 0 14,482
Business Development 38,737 0 0 38,737
Consulting 14,400 0 0 14,400
Depreciation 17,127 0 0 17,127
Employee Benefits 21,380 2,375 0 23,755
Farming Supplies 295,541 0 0 295,541
Farming Transportation 121,462 0 0 121,462
Farming Warehouse Costs 2,345 0 0 2,345
Insurance 4,307 0 0 4,307
Interest 0 1,777 0 1,777
Legal Fees 0 17,632 0 17,632
Marketing and Promotions 0 0 5,219 5,219
Miscellaneous 1,532 12,260 1,532 15,324
Occupancy 8,980 0 0 8,980
Payroll Taxes 34,394 3,822 0 38,216
Postage and Shipping 0 2,040 0 2,040
Printing and Publications 10,557 0 0 10,557
Recruiting and Training 10,618 0 0 10,618
Salaries and Wages 353,814 39,313 0 393,127
Supplies 10,904 2,726 0 13,630
Technology and Internet 11,845 623 0 12,468
Telephone 19,711 1,037 0 20,748
Travel 41,425 0 27,616 69,041
$ 1,019,079 $ 100,087 $ 34,367 $ 1,153,533

See Accompanying Notes To The Financial Statements.

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 ONE ACRE FUND, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Received from Donors and Grantors $ 3,041,175 $ 2,252,345
Interest Received 15,066 7,852
Paid to Suppliers and Employees (2,387,648) (1,438,983)
Interest Paid (4,992) (1,777)
Income Taxes Paid 0 0
NET CASH PROVIDED BY OPERATING
ACTIVITIES 663,601 819,437
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for Purchase of Property (237,640) (123,295)
Proceeds from the Sale of Investments 3,643 0
NET CASH USED IN INVESTING ACTIVITIES (233,997) (123,295)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Long-Term Debt 0 100,000
NET CASH PROVIDED BY FINANCING ACTIVITIES 0 100,000
Effect of Exchange Rate Changes on Cash (135,114) (18,462)
NET INCREASE IN CASH AND CASH
EQUIVALENTS 294,490 777,680
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 1,256,720 479,040
END OF YEAR $1,551,210 $ 1,256,720

NON-CASH INVESTING ACTIVITIES

Donated Investments $ 3,683 $ 0

See Accompanying Notes To The Financial Statements.

Page 8
 ONE ACRE FUND, INC.
STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

2009 2008
RECONCILIATION OF CHANGE IN NET ASSETS
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Change in Net Assets $ 1,546,413 $ 1,128,816
Adjustments to Reconcile Net Cash Provided by
Operating Activities:
Remeasurement Loss 135,114 18,462
Depreciation 42,669 17,127
Allowance for Doubtful Accounts 6,214 0
Donated Investments (3,683) 0
Loss on Disposal of Fixed Assets 1,532
Loss on Sale of Investments 40 0
Changes in Certain Assets and Liabilities:
Grants Receivable (575,000) (500,000)
Employee Advances (44,127) 0
Inventory (457,302) (302,590)
Prepaid Expenses 2,965 (24,840)
Accounts Payable 8,766 (17,538)
Refundable Crop Insurance Funds 0 500,000
Total Adjustments (882,812) (309,379)
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 663,601 $ 819,437

See Accompanying Notes To The Financial Statements.

Page 9
 ONE ACRE FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES

A) Organization and Nature of Activities

One Acre Fund, Inc. (the Organization) is an Illinois not-for-profit organization that
was incorporated in December 2005 and operates primarily in Kenya and Rwanda.
The mission of One Acre Fund is to empower chronically hungry farm families in
East Africa to lift themselves out of hunger and poverty. The Organization’s
method is to work through self-help groups in rural villages to deliberately reach
the most severely hunger affected.

B) Method of Accounting

The Organization’s accounts are maintained on the accrual basis of accounting.

Grants and other contributions are reported as temporarily restricted support if they
are received with stipulations that limit the use of the funding. When the restriction
expires, that is, when a stipulated time restriction ends or purpose restriction is
accomplished, temporarily restricted net assets are reclassified to unrestricted net
assets and reported in the statement of activities as net assets released from
restrictions. Expenses are recorded when incurred.

The Organization has adopted FASB Accounting Standards Codification (ASC)

958, Not For Profit Entities . Under ASC 958, contributions received are recorded
as unrestricted, temporarily restricted, or permanently restricted support depending
on the existence or nature of any donor restrictions. Under ASC 958, the
Organization is required to report information regarding its financial position and
activities according to three classes of net assets: unrestricted net assets,
temporarily restricted net assets, and permanently restricted net assets. As
permitted by the statement, the Organization does not use fund accounting.

C) Accounting Policies

Cash and Cash Equivalents - For purposes of reporting cash flows, cash is defined
as cash on hand, amounts held at financial institutions, and short-term highly liquid
investments that are readily convertible to known amounts of cash. Investments
with an original maturity of three months or less are considered short-term for
these purposes.

Page 10
 ONE ACRE FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

C) Accounting Policies (Continued)

Grants Receivable and Employee Advances - Grants receivable and employee

advances are stated at the amount management expects to collect from
outstanding balances. Management provides for probable uncollectible amounts
through bad debt expense and an adjustment to a valuation allowance based on
its assessment of the current status of individual receivables from employees,
grants, contracts, etc. Balances still outstanding after management has used
reasonable collection efforts are written off through a charge to the valuation
allowance and a credit to the applicable employee or grants receivable account.
The allowance for doubtful employee advances receivable at December 31, 2009
and 2008 is $6,214 and $0, respectively. The allowance for doubtful grants
receivable at December 31, 2009 and 2008 is $0, respectively.

Inventory - Inventory is valued at the lower of cost or market with cost determined
on a weighted average basis. Inventories consist of seed and fertilizer for use in
the Organization’s programs and maize kept for sale.

Fixed Assets - Property and equipment are recorded at cost when purchased,
while donated fixed assets are recorded at their estimated fair value on the date of
donation. Expenditures for repairs and maintenance are charged to expense as
incurred, whereas renewals and betterments that extend the lives of fixed assets
are capitalized. Depreciation is computed on the straight-line method over various
useful lives. Depreciation expense for the years ended December 31, 2009 and
2008 amounts to $42,669 and 17,127, respectively.

Donated Services - Donated services are recognized as revenues at their

estimated fair value when they create or enhance nonfinancial assets or they
require specialized skills which would need to be purchased if they were not
donated. For the years ended December 31, 2009 and 2008, donated
professional services consist of legal, accounting, and program-related services
with estimated fair value of $49,071 and $60,500, respectively. These amounts
are reflected in the statements of activities as donated services revenue and in the
statements of functional expenses as salaries and wages, and legal expenses.
For the year ended December 31, 2009 the Organization received a significant
amount of other donated services from volunteers who assist with the operations.
No amounts have been recognized in the accompanying statement of activities for
these volunteer services because the criteria for recognition of such volunteer
effort under ASC 958 have not been satisfied.

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 ONE ACRE FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

C) Accounting Policies (Continued)

Income Taxes - The Organization is a not-for-profit organization that is exempt

from income taxes under Section 501(c)(3) of the Internal Revenue Code.
Accordingly, a provision for income taxes has not been made on the financial
statements. It is also classified as other than a private foundation. The
Organization has no unrelated business income during the years ended December
31, 2009 and 2008, and therefore, no provision for federal or state income taxes
has been made in the accompanying financial statements.

In June 2006, the FASB issued Financial Interpretation 48, “Accounting for
Uncertainty in Income Taxes” (FASB Accounting Standard Codification (ASC) 740,
Income Taxes) which clarifies the accounting uncertainty in income taxes
recognized in an organization’s financial statements in accordance with SFAS No.
109, “Accounting for Income Taxes” (“SFAS 109"). ASC 740 provides that a tax
benefit from an uncertain tax position may be recognized when it is more likely
than not that the position will be sustained upon examination, including resolutions
of any related appeals or litigation processes, based on technical merits. Income
tax positions must be a more likely-than-not recognition threshold at the effective
date to be recognized upon the adoption of ASC 740 and in subsequent periods.
This interpretation also provides guidance on measurement, derecognition,
classification, interest and penalties, accounting in interim periods, disclosure and
transition. The Organization adopted ASC 740 for the year ended December 31,
2009. The adoption of ASC 740 had no impact on the Organization’s financial
position or results of operations.

Use of Estimates - The preparation of financial statements in conformity with

accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

Page 12
 ONE ACRE FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 2 - CONCENTRATION OF CREDIT RISK

The Organization has deposits in foreign financial institutions not covered by federal
insurance of approximately $311,000 and $229,000 at December 31, 2009 and 2008,
respectively. The Organization also has deposits in domestic financial institutions in
excess of FDIC insurance limits of approximately $623,000 and $656,000 at December
31, 2009 and 2008, respectively. The Organization has not experienced any losses in
such accounts and believes it is not exposed to any significant credit risk on cash and
cash equivalents.

NOTE 3 - CASH RECEIVED FOR CROP INSURANCE FUND

In December, 2008 the Organization received $500,000 of refundable advances for the
establishment of an endowment fund for the Organization’s harvest insurance
programs. The entity providing these funds has placed certain restrictions and has
reserved the right to withdraw these funds from One Acre Fund and redirect them to
another charitable organization after five years. The term endowment agreement
provides that the principal, along with all premiums received under the Organization’s
harvest insurance programs be invested in a designated fund account, from which
disbursements can be made upon the occurrence of specified insurance events. No
such events occurred during the years ended December 31, 2009 and 2008.

During the year ended December 31, 2009, the Organization received a temporarily
restricted grant of $10,000 for the Crop Insurance Fund. The Organization also made
voluntary transfers to the fund totaling $31,971. As of December 31, 2009 and 2008
the fund’s balance is $540,292 and $500,000, respectively and is fully invested in a
money market account.

NOTE 4 - NOTE PAYABLE

Notes payable consist of the following at December 31:

2009 2008
Note payable of $100,000 to FJC, secured by the
balance in the crop insurance fund account, with
floating interest of prime plus three percent, payable
semi-annually, starting July 31, 2009. The principal
was due February 28, 2010 and was repaid in full when
due. 100,000 100,000
Total Debt 100,000 100,000
Less - Current Portion 100,000 0
Total Long-Term Portion $ 0 $ 100,000

Page 13
 ONE ACRE FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 5 - CONCENTRATION OF FUNDING SOURCES

The Organization receives a major portion of its revenues from foundation grants. The
level of services available in the future could be impacted if the Organization were to
lose a major grant.

NOTE 6 - FUNCTIONAL CURRENCY, FOREIGN CURRENCY TRANSLATION AND

CURRENCY EXCHANGE RATE EXPOSURE

Based on several factors, including the dominant role of the U.S currency in the funding
of the Organization’s programs, management considers the U.S. dollar to be the
Organization’s functional currency. As such, the Organization’s monetary assets and
liabilities held in foreign currencies are remeasured using the current rate at the balance
sheet date, while nonmonetary assets and liabilities are remeasured using historical
exchange rates. Most revenues and expenses that occur during a period are
remeasured for practical purposes using a weighted average exchange rate for the
period. However, revenues and expenses that represent the allocations of historical
balances, such as depreciation, are remeasured using the same historical exchange
rates as used for the underlying items on the balance sheet.

The Organization regularly transfers cash from its domestic accounts to its foreign
accounts to cover expenses, translating its foreign transactions into U.S. dollars using a
weighted average exchange rate. During the year ended December 31, 2009 all
operations and all cash accounts in Uganda were closed. However, the Organization
has remaining significant deposits in foreign financial institutions and petty cash held in
the local currencies of Kenya and Rwanda. The Organization has other assets and
liabilities originally denominated in foreign currencies. This results in an exposure to
currency exchange gains and losses at the time assets are disposed of and liabilities
are settled, as well as during year-end foreign currency translation into U.S. Dollars. In
any particular year, currency exchange rate fluctuations may have a significant impact
on the Organization’s financial results.

The foreign currency translation gains and losses are recorded on the Organization’s
Statements of Activities as a net remeasurement gain or loss . For the years ended
December 31, 2009 and 2008, the Organization recognized remeasurement loss of
$135,114 and $18,462, respectively.

NOTE 7 - DONATED INVESTMENTS

During 2009 the Organization received donations of stocks and mutual funds valued at
$3,683. It is the Organization’s policy to liquidate donated securities immediately upon
their receipt. The Organization sold these donated investments during 2009 for a total
of $3,643, recognizing a loss of $40.

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 ONE ACRE FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 8 - NET ASSET RESTRICTIONS

Net assets are temporarily restricted for the following purposes at December 31:

Purpose 2009 2008

Taking Prototype District to Scale 150,000 0
Webuye District 50,000 23,000
Program Support 40,000 0
Crop Insurance Fund 10,000 0
Farm Input Loans 0 500,000
Children Health Program 0 6,000
Total Temporarily Restricted Net Assets $ 250,000 $ 529,000

Net assets were released from donor restrictions by incurring expenses satisfying the
purpose restrictions specified by donors during the years ended December 31:

2009 2008

Purpose Restriction Accomplished

Program Expansion in Rwanda $ 300,000 $ 0
Support for Women’s Farm Groups 30,000 0
Program Support 10,000 0
Children Health Program 6,000 6,000
Webuye District 23,000 2,000
Total Restrictions Released $ 369,000 $ 8,000

In addition, $500,000 of net assets, temporarily restricted for farm input loans as of
December 31, 2008 were released for unrestricted use during 2009 with the donor’s
consent.

Page 15
 ONE ACRE FUND, INC.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008

NOTE 9 - LEASE COMMITMENTS

The Organization leases office and warehouse space and housing for its workforce in
Africa under multiple operating leases expiring on various dates through October, 2014.
The Organization also leases trial plots of land used for testing of new crops, fertilizer,
seeds and betterment of farming practices under multiple operating leases expiring on
various dates through October, 2011. Total rent expense under all leases is $17,781
and $8,980, for the years ended December 31, 2009 and 2008, respectively.

Minimum future rental payments are as follows:

For the year ended December 31, 2010 $ 5,462

2011 4,926
2012 4,850
2013 3,941
2014 2,697
$ 21,876

NOTE 10 - SUBSEQUENT EVENTS

The date to which events occurring after December 31, 2009, the date of the most
recent balance sheet, have been evaluated for possible adjustment to the financial
statements or disclosure is August 30, 2010, which is the date on which the financial
statements were issued.

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