2020 ANNUAL REPORT SPIRIT OF AMERICA
1 | Spirit of America
CITIZENS SERVING THE NATION Citizens created the United States of America to make the dream of a free and better life a possibility for all. Our government of the people, by the people, for the people — a novel concept at the time — was built on citizen participation. We have relied on citizens doing their part throughout our history. From the Revolutionary War, to supporting World War II by planting victory gardens, to marching during the civil rights movement, to sewing masks for our doctors and nurses on the front lines of the coronavirus, it has been ordinary citizens working together who have fueled our progress. Without citizen service, there would be no America today. Spirit of America is a nonprofit citizen service organization founded in response to the attacks of 9/11. Our mission is to engage citizens in preserving the promise of a free and better life. We are officially approved by Congress and the Department of Defense to work alongside deployed US troops and provide assistance to meet the local needs they identify. We fill the gaps between what’s needed on the front lines and what the government can do. And, with private-sector resources, speed, and flexibility, we deliver exactly the assistance that is needed. As it has been since America’s founding, our citizens must participate to preserve the promise of a free and better life. To strengthen our security, and to bring the entire world closer to the shared values we uphold, we need to work together. It is time for all of us to serve the nation.
No endorsement of Spirit of America by the US Department of Defense, of State, or US personnel is intended or implied. 2Department | Spirit of America
A MESSAGE FROM OUR CEO
Dear Friends and Supporters, 2020 will always be remembered for the global pandemic. It was an extraordinarily difficult year for people everywhere — here in America and around the world. As in every challenging time, there are citizens who stepped up to help and serve their communities. America’s men and women deployed abroad continued to serve the nation, and Spirit of America continued our work — implementing 116 projects in support of their missions in 2020. Each project was developed in response to needs identified by US military and Department of State personnel serving abroad. Each project supported the initiative of the local people and partners who are key to the stability and betterment of their communities. It is a testament to our team’s entrepreneurial problem solving and to the relationships we’ve built over the years that our operations could continue despite limitations on travel and movement that hobbled many other organizations. Beyond the pandemic, our country continues to face significant challenges to our security, prosperity, and way of life. When I founded Spirit of America, our focus was helping our troops reduce the threat of terrorism. Terrorism persists. In addition, the aggression and malign behavior of Russia and the Chinese Communist Party have emerged as significant and growing threats. They represent an authoritarian model that would extinguish the freedoms and values that generations of Americans have fought to defend. The magnitude of these challenges can be overwhelming. In the face of such complexity, it is important to remember a simple truth: our security is strongest when people choose to be friends and partners of the United States. This depends on America’s power of attraction, or as our Advisory Board member General Jim Mattis puts it, America’s “power of inspiration.” That’s where Spirit of America plays a unique and critical role. We make America’s value proposition — the promise of a free and better life — real and tangible. Powered by citizens and citizen service, we demonstrate that the United States is a friend to all who seek a better life. This is one of the reasons former Chairman of the Joint Chiefs of Staff, Marine General Joe Dunford, says, “your support of Spirit of America is important to our country’s future.” Your support is the foundation of everything we do. Thank you for being part of the Spirit of America team.
RALUCA BUCUR
Jim Hake Chief Executive Officer
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IMPACT
RESPONDING WITH SPEED AND FLEXIBILITY TO EMERGING NEEDS At the start of 2020, Spirit of America’s focus remained supporting US efforts to protect our security, values, and position in the world. Then, the coronavirus pushed the world into lockdown.
“Short of picking up arms and joining us hand in hand, there is no better way to support the troops.”
In early March 2020, we brought our field operations team home from overseas. However, the team’s work continued uninterrupted. America’s men and women remained deployed around the world, and Spirit of America helped them respond to urgent coronavirus-related —SPECIAL FORCES MASTER SERGEANT AARON ZWOSTA needs. US missions around the world looked to UNITED STATES ARMY, RETIRED Spirit of America to provide critical protective equipment and resources to America’s friends, allies, and partners. These donations demonstrated US commitment to, and solidarity with, those countries and their people. In the last months of 2020, we adjusted our field operations strategy to increase our impact on the safety and success of US troops and diplomats. Our support to US missions and counterterrorism operations in conflict zones remains our priority. Beyond this traditional focus, Spirit of America began shifting to a “deeper impact” strategy in which we will focus our resources on the top US priorities. This means we will put “more wood” behind “fewer arrows.” This is perfectly aligned with the needs and interests of our US military and State Department partners: they want us to have a greater impact on their most important priorities, particularly countering the challenges of Chinese and Russian malign behavior. And, this shift in strategy will allow more time to develop projects that have a greater impact and will provide more resources to execute those initiatives without sacrificing our hallmark speed and flexibility.
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2020 HIGHLIGHTS
116 PROJECTS
46
COUNTRIES
8,506
TOTAL IMPACTED US FORCES 36% INCREASE FROM 2019
972,695
TOTAL IMPACTED LOCAL CIVILIANS
115,016
TOTAL IMPACTED PARTNER FORCES
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AREAS OF IMPACT “The speed Spirit of America can operate at is unmatched, and their impact is tremendous just when we needed to earn trust with locals while trying to achieve national objectives.” —US SPECIAL FORCES SOLDIER
EUROPE
Bosnia and Herzegovina Bulgaria Estonia Georgia Kosovo Latvia Montenegro Ukraine LATIN AMERICA
Belize Colombia Curacao Guatemala Honduras Panama Trinidad and Tobago
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MIDDLE EAST & CENTRAL ASIA
Afghanistan Bahrain Iraq Jordan Lebanon Syria Tajikistan Uzbekistan Yemen ASIA PACIFIC
Federated States of Micronesia Fiji Indonesia Laos Maldives Marshall Islands Palau Philippines Thailand Timor Leste Vietnam
AFRICA
Burkina Faso Mali Mauritania Mozambique Niger Nigeria Senegal Sierra Leone Somalia Tunisia Uganda
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FEATURED PROJECTS
SAVING LIVES AND PROTECTING HEALTH DURING A GLOBAL PANDEMIC As the coronavirus spread, America’s men and women remained deployed around the world. Spirit of America responded quickly to urgent coronavirus-related local needs that troops and diplomats identified, saving lives and demonstrating friendship to partners and allies. Through more than 40 projects in 26 countries, Spirit of America supported the US response to the pandemic and filled critical gaps no one else could address.
“It’s important to mobilize the whole country to meet our nation’s challenges. That’s what Spirit of America is so good at.”
These projects helped prevent the transmission —MICHÈLE FLOURNOY of the coronavirus among FORMER UNDER SECRETARY vulnerable populations, OF DEFENSE FOR POLICY and they reduced the health risks to US troops and diplomats as well as America’s local partners. The value of these projects wasn’t limited to their short-term impacts. Demonstrating solidarity with and steadfast support for our friends, partners, and allies is crucial to preserving American leadership and influence during — and after — times of global crisis.
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Here are a few examples of the locally sourced supplies we provided to America’s partners and friends: › › › › ›
4,900 face masks and 30,000 disposable gloves for Iraqi partner forces 6,000 face masks, 25,000 disposable gloves, and 200 kgs of bleach for partners in Tajikistan 2,500 viral test kits and 2,500 sterile swabs to improve Laos’ testing capacity 280 face shields for partners in Bosnia and Herzegovina 337,000 disposable gloves for partners in Lebanon
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STRENGTHENING THE US-MONTENEGRO RELATIONSHIP To demonstrate American friendship to Montenegro and to help families experiencing hunger because of the COVID-19 pandemic, Spirit of America developed the Montenegro Seed Project with the US Embassy and two local organizations. Spirit of America provided $20,000 of agricultural assistance, including almost 30 types of locally sourced seeds, to help sustain 68 families in vulnerable rural communities. The seeds helped these families grow their own food and feed their communities — over 6,500 pounds of food harvested were donated to public kitchens.
“Spirit of America’s willingness to reach out to citizens and enlist their participation is crucial to the fundamental essence of American democracy.”
Based on the project’s success, the US Embassy gave a $130,000 grant to the two local organizations to scale the project. “This is what the US-Montenegrin partnership looks like,” said US Ambassador to Montenegro Judy Rising Reinke, who visited some of the families and championed the project in interviews with local media.
—AMBASSADOR RYAN CROCKER
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BUILDING SUPPORT FOR US TROOPS IN IRAQ To bolster local support for the presence of US troops in Iraqi Kurdistan — who continue to fight the remnants of ISIS — and to strengthen the vital partnership between Americans and Iraqi Kurds, Spirit of America provided 700 student backpacks to four schools in Iraqi Kurdistan. The backpacks, each filled with school supplies, were distributed to low-income children by members of the US military and Ministry of Peshmerga Affairs, fostering goodwill within the community.
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SUPPORTING SOLDIERS IN UKRAINE’S WAR ZONE To strengthen US-Ukraine relations during COVID-19 and to counter Russian anti-American misinformation and propaganda, Spirit of America partnered with the US embassy in Ukraine to protect Ukrainians in the eastern conflict zone. Spirit of America provided funding for a women’s veteran organization to sew 2,100 face masks for troops and civilians. This project also helped —GENERAL JOSEPH F. DUNFORD JR. a vulnerable veteran UNITED STATES MARINE CORPS, RETIRED population during an FORMER CHAIRMAN, JOINT CHIEFS OF STAFF uncertain time.
“Spirit of America represents a new capability — not just another nonprofit.”
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SUPPORTING AMERICA’S RESPONSE TO THE LEBANON BLAST
“I’ve seen you in action and know you can make a difference. Godspeed!” —BORIS G., FALLS CHURCH, VIRGINIA
In early August, an explosion ripped through the streets of Beirut, the capital of Lebanon. The impact was immediate and catastrophic: 4,000 wounded, over 200 dead, countless buildings damaged or destroyed, billions of dollars in damage, and 300,000 people homeless. To demonstrate American friendship to an important US partner in the Middle East, Spirit of America provided $56,000 in disaster relief assistance. In coordination with the US embassy, Spirit of America worked with a Beirut humanitarian organization, Baytna Baytak, to bring damaged neighborhoods back to life. Spirit of America’s support funded the inspection and repairs of more than 900 homes and provided pro bono legal representation for 150 low-income individuals.
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REINFORCING AN IMPORTANT RELATIONSHIP WITH VIETNAM The relationship between the US and Vietnam has become increasingly cooperative since formal diplomatic relations began 25 years ago. This relationship is crucial today in the face of an increasingly aggressive China that is undermining regional security. To demonstrate America’s commitment to the future of Vietnam, Spirit of America worked with the US embassy in Hanoi to fund the travel and lodging of American Vietnam War veterans for a highly publicized event with Vietnamese Vietnam War veterans. In June, US Ambassador to Vietnam Daniel J. Kritenbrink and six American veterans met with Vietnamese veterans at the Thanh Hoa Bridge, a frequent target during the war. The event reflected on the history of the two nations and highlighted how former adversaries can become partners and friends.
“Thank you for all you do, for your clear priority to help our servicemen and women help others and themselves, and for allowing us to help in some small way.” —SUSAN H., IDAHO FALLS, IDAHO
US Ambassador to Vietnam Daniel J. Kritenbrink, right, meets with Vietnam War veterans in an event marketing 25 years of normalizing diplomatic relations with Vietnam. Spirit of America provided travel and lodging for six US veterans to attend. 12 | Spirit of America
IN MEMORIAM
GEORGE SHULTZ In February 2021, Spirit of America lost a friend — and the nation lost a great leader — when former Secretary of State George Shultz passed away. A Marine Corps veteran who served in the administrations of three US presidents, Shultz joined the Spirit of America Advisory Board in 2010. He was appreciative of Spirit of America’s action orientation and our ability to get things done. And, he loved the idea of getting citizens involved in strengthening our security and preserving our freedom. Over the years, Shultz gave his time and service to Spirit of America on many occasions. He participated in events, met with our Board and staff, and supported our efforts to gain Congressional recognition and approval of Spirit of America’s partnership with the US military. Shultz said: “Spirit of America helps our troops and diplomats produce results. Results build momentum, and changes in momentum can change the course of history.” George Shultz knew about changing the course of history. He was one of the most influential statesmen and policymakers of all time. Spirit of America will remember him with great fondness, respect, gratitude, and love.
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FEATURED MEDIA COVERAGE
COVER STORY IN PHILANTHROPY MAGAZINE In late 2019, Karl Zinsmeister of the Philanthropy Roundtable spent 10 days embedded with Spirit of America and our US military partners in the Republic of Georgia, Iraqi Kurdistan, and Serbia. He saw firsthand how our all-veteran team works with US troops and diplomats to keep them safe, promote American values, and strengthen America’s security. Zinsmeister’s experience with Spirit of America is chronicled in the cover story for the Spring 2020 edition of Philanthropy Magazine. The article is a strong validation of Spirit of America, our work, and the impact we achieve with your support.
“In many of these cases, it is local hearts and minds that are being appealed to. ‘The future of war is winning people, not territory,’ suggests John Phelan, a financier who donates to Spirit of America, in explaining why he thinks the group serves our national interest. Much of what Spirit of America does can be viewed as trust-building. That is often a precondition for improving security today. And it is something that everyday citizens can help with.”
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“The tale will carry you through war-wracked countries so you can observe the work of an innovative charity that is tightly focused on national security. The story suggests one of the best ways we can win friends and influence enemies around the world is through decentralized human-to-human philanthropy — taking advantage of grassroots American inventiveness and the capacity of our values to inspire others. This narrative documents a practical working model, not a theory.”
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GOVERNANCE
Board of Directors Chairman of the Board Bob Oster Former CFO, Oracle Corp. Independent Board Member Since 2017 Michael Bigham CEO, Paratek Pharmaceuticals Independent Board Member Since 2014
Natalie Cryer Vice President, The Cambria Group Independent Board Member Since 2019
Fred Khosravi Chairman and CEO, Imperative Care Inc. Independent Board Member Since 2017
Jim Hake CEO, Spirit of America Board Member Since 2004
John Phelan Co-Founder and Co-Managing Partner, MSD Capital, LP Independent Board Member Since 2018
Board of Advisors Amb. Rick Barton Department of State, Retired John Bellinger Partner, Arnold & Porter Amb. Barbara Bodine Department of State, Retired Colonel Stu Bradin US Army, Retired CEO, Global SOF Foundation
Hon. Joseph Felter Former Deputy Assistant Secretary of Defense for South and Southeast Asia Dr. Edwin Feulner Founder, Heritage Foundation Michèle Flournoy Former Under Secretary of Defense for Policy
General Phil Breedlove US Air Force, Retired
Richard Fontaine President, Center for a New American Security
Ellyn L. Brown Corporate and Securities Attorney
Major General J. Marcus Hicks US Air Force, Retired
Dr. James Jay Carafano Vice President, The Heritage Foundation Lt. General Charles Cleveland US Army, Retired Amb. Ryan Crocker Department of State, Retired Amb. Kelley Currie Former US Ambassadorat-Large for Global Women’s Issues Commander Rorke Denver US Navy, Retired Founder, Ever Onward General Joseph F. Dunford Jr. US Marine Corps, Retired
Lt. General Ben Hodges US Army, Retired Hon. Jeh Johnson Former US Secretary of Homeland Security General James Jones US Marine Corps, Retired Dr. Kimberly Kagan President, Institute for the Study of War
Clare Lockhart Co-Founder and Director, Institute for State Effectiveness Rear Admiral Brian Losey US Navy, Retired Lt. Colonel Scott Mann US Army, Retired Hon. James N. Mattis Former US Secretary of Defense US Marine Corps, Retired Colonel David Maxwell US Army, Retired General Stanley McChrystal US Army, Retired CEO, McChrystal Group Lt. General H.R. McMaster US Army, Retired Nicco Mele Managing Director, Draper Richards Kaplan Foundation
General Jack Keane US Army, Retired
Dr. John Nagl Senior Fellow, Center for a New American Security
Dr. David Kilcullen President CEO, Cordillera Applications
Amb. Ronald E. Neumann President, American Academy of Diplomacy
Lt. General Dan “Fig” Leaf US Air Force, Retired Managing Director, Phase Minus 1
Lt. General Lawrence Nicholson US Marine Corps, Retired
Major General Jim Linder US Army, Retired 16 | Spirit of America
Hon. James Locher III Former Assistant Secretary of Defense for Special Operations
Admiral Eric Olson US Navy, Retired
General Jay Paxton US Marine Corps, Retired Linda Robinson Senior International Policy Analyst, Rand Corporation Admiral Gary Roughead US Navy, Retired Daniel F. Runde Senior Vice President, CSIS General Curtis Scaparrotti US Army, Retired Dr. Nadia Schadlow Former Deputy National Security Advisor Dr. Kori Schake Director of Foreign and Defense Policy Studies, American Enterprise Institute Tom Schurr Media Consultant, Entrepreneur, and Investor General Gordon Sullivan US Army, Retired Admiral Scott Swift US Navy, Retired Admiral Kurt Tidd US Navy, Retired Matt Turpin US Army, Retired
FINANCIAL SUPPORT
Spirit of America is a privately funded 501c3 nonprofit organization. We are supported entirely by private contributions from citizens, foundations, and businesses. We do not receive, and would not accept, government funding. For 2020, total net assets were $8,491,578. Total liabilities and net assets were $9,057,479.
2020 Revenue n Contributions n Donated Goods & Services n Investment Income
$2,844,727 $144,972 $23,035
Total
$3,012,734
94% 5% 1%
2020 Expenses n Program Services n Management & General n Fundraising
$2,973,059 $662,714 $470,916
Total
$4,106,689
72% 16% 11%
Historical Average Expenses* n Program Services n Management & General n Fundraising
78% 13% 9%
*Averages reflect Spirit of America’s independently audited financial statements since 2008.
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3033 Wilson Blvd., Suite 700 Arlington, VA 22201 +1.571.970.1370 spiritofamerica.org SpiritAmerica No endorsement of Spirit of America by the US Department of Defense, Department of State, or US personnel is intended or implied.
Tax ID 20-1687786 | CFC #52009