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Dear Friends of the Near East Foundation,
Welcome to the story of the Near East
Foundation's 89th year. Like the others before it, this
year was filled with tugs and pulls, complications and
complexities, satisfactions and frustrations —
all put in perspective by the rewards of helping people
build the better futures they have chosen for themselves.
Many of you who read this report can take satisfaction
in knowing that your support of NEF's work gives you
a share in having made this good news possible, in a
world that often seems full of only bad news.
As you peruse these pages, you will learn a great deal
about the details of NEF's programs spread through a
dozen countries of the Middle East and Africa.
These are the stories of people, action and accomplishment,
the most important things we have to tell you about.
For my part, however, I would like to explain something
about the general context and overall design of our
work — less important, but relevant to those who
care about and support this organization and its important
work.
It has become a well-worn cliché that "everything
changed for Americans on September 11, 2001."
Of course, the words mean different things to different
people with contexts ranging from issues of security
to economics, personal relationships, human rights,
and international relations. I want to describe
how the environment has changed for the Near East Foundation
and what we do.
All NEF operations are in developing countries and most
of them in Arab and Islamic countries. Being an
American organization, NEF's approach is necessarily
affected by what the United States does with relation
to the places where we work.
The greatest challenges for NEF have involved our ability
to find funding for our projects — a very critical
matter. The declining economy diminished the resources
available to the individuals and foundations on whom
we count for support. Even in a time when improving
the futures of the most disenfranchised people in the
Middle East and Africa stands out in sharp relief as
the basis for the future security of the entire globe,
funds have been directed elsewhere. With no new
money appropriated by major funders like the U. S. government,
existing funds were moved from projects just beginning
to take hold to new priorities. Free trade and
urban slums, for example, became more important in the
administration's plan for Morocco than the mountain
villages where NEF has been operating.
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Further complicating things, the U.S.
government has sought cost-effectiveness by issuing
very large contracts, putting organizations like NEF
out of the running. Most such contracts are now
awarded to for-profit organizations and corporations.
Anti-terrorist financing rules and concerns enacted
since 9/11 have created a threat of intrusive investigations,
deterring many international Arab donors from supporting
programs of American private voluntary organizations.
Why go through the hassles when you can avoid them simply
by keeping your money?
As always since 1915, NEF's small donors rose
to the occasion in 2004. When national philanthropic
giving grew less than 4%, donations by individuals to
NEF's annual fund increased just under 50%. And
as we have tried hard to give greater visibility to
our work, the number of individual donors has risen
50% — half again as many people gave gifts to
support NEF's overseas programs this year as last.
Still, it will take many years of such increases before
the annual fund can sufficiently support our current
efforts. A look at NEF's financial statements
will show you that the organization has chosen to use
its dwindling reserves to meet the costs of programs
rather than abandoning those who depend upon our work.
The complex current situation I have described has encouraged
NEF's board and staff leadership to take some bold moves
to position the organization for its second century
of service. A restructuring of how we administer
our work is underway with the goal of making NEF more
streamlined, more cost effective, and better fit for
the current environments in which we operate.
All in all, our intention is to maintain our focus on
our mission while enhancing our ability to accomplish
it. Over the next months you will get more details about
the changes we have begun to make. I think you will
be pleased to find that this venerable 90-year-old foundation
remains a youthful trendsetter and agile risk taker,
adjusting to the world as it is now.
We thank you for your continuing faith in NEF and your
continuing support. You are helping us create
bright spots in places that often look dreary!
Sincerely,
Ryan A. LaHurd, Ph.D.
President
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