ANNUAL REPORT 2011

A MESSAGE From the Founders Dear Friends: .

The Cigar Family Charitable Foundation believes in the value of providing hope. We are committed to nurturing growth through education and empowerment, and offering services for healthy communities, advocating on behalf of those most in need and partnering with others to bring about change.

Carlos Fuente, Jr.

Eric Newman

As we close another year, the Foundation recommits itself to these efforts and to carrying out the work began just 10 short years ago. What began as a dream to add a wing onto a local school has grown into a 23 acre complex that truly is making a difference. Today, the Cigar Family Community Complex serves more than 5,000 Dominican families living in the 13 surrounding communities, which for generations have been some of the most impoverished areas of the country. It wasn’t that long ago that going to school beyond 6th grade was almost unheard of – and now kids from these same families have graduated from high school and are going to college. This is an accomplishment for which we should all be especially proud of and would have been impossible without your help. From the bottom of our hearts we want to thank you for truly making a difference in these communities. Through your support, we are committed to continue Changing the World…One Child at a Time. Sincerely,

Carlos Fuente, Jr. Co-Founder

Eric Newman Co-Founder

WHO WE ARE The Cigar Family Charitable Foundation (CFCF) began in 2001 when long time cigar industry business partners, the Fuente and Newman families, formalized the dream of improving people’s lives in the mountainous Bonao region of the Dominican Republic. By focusing on families, they hoped to give the children in this cigar producing region an opportunity for a better future. Consisting of five rural communities, the region suffers from extreme poverty, an overcrowded and inadequate educational system, poor water quality which greatly affects the population’s health and little or no means of transportation for sustainable employment in the area. The Foundation partnered with the Instituto Dominicano de Desarrollo Integral (IDDI), a Dominican-based nonprofit organization who for the past 30 years has been fighting poverty by providing training and the skills necessary to make a positive change for those living in both urban and rural regions of the Dominican Republic. What began as a plan to add a wing onto an existing school has grown into the 23 acre Cigar Family Complex. The Complex includes a primary and secondary school, a health center, an organic farming program as well as a sports and recreational facility.

BOARD OF DIRECTORS Carlos Fuente, Jr. President Carlos Fuente, Sr. Vice President Robert C. Newman Vice President Eric M. Newman Secretary/Treasurer Luis Garcia Cynthia Fuente-Suarez Lyris Newman David Luther

OFFICE

Through the Cigar Family Complex, children and families are being provided with the resources and tools they need to help themselves create opportunities for their future.

Physical Location: 2701 N. 16th Street Tampa, FL 33605

The founding families are committed to ensuring a positive and productive future for the children of the area. That commitment translates to 100% of the administrative costs being underwritten by the Fuente and Newman families, allowing the Foundation to say with complete confidence that all contributions made to CFCF will go directly to those children and families served; a statement few charities can make.

Mailing Address: P.O. Box 2030 Tampa, FL 33601

MISSION To provide a significant humanitarian impact to communities in the Dominican Republic resulting in a better quality of life to those who experience a lack of education, poor access to health care and nutrition, and who have little or no sustainable employment.

(813) 248-2124 [email protected]

THE WAYS WE SERVE Education The Cigar Family Community School provides a free education to over 400 students, preschool through twelfth grade in the Bonao community. The school also gives students a nutritious breakfast and lunch at no cost. To attract the best teachers, the Cigar Family Charitable Foundation partnered with the Ministry of Education to supplement teacher salaries. The Foundation also supplies students with school uniforms, including book bags, shoes, t-shirts and jeans. Classes in English and French are taught, with many students becoming bilingual upon graduation. Other classes in mathematics, sciences, computer and the arts provide a well rounded curriculum rivaling many American schools. Through their core education and extracurricular activities at the complex such as the sports programs, organic farming and vocational training, students are learning how to fend for themselves and create opportunities – thus breaking the cycle of poverty that has been prevalent in this area for so long.

Healthcare Opened in 2006, the Health Center at the Cigar Family Complex provides an array of services to students as well as those in the community. Services include OB/Gyn, pediatrics, laboratory testing, dentistry, pharmacy and emergency services supported by an on-site ambulance. The center provides care for over 300 patients a month with problems ranging from malnutrition to cavity work to the prevention and early detection of cervical cancer. Since its opening, once deadly diseases in the region have been diminished through immunizations, malnutrition has been nearly wiped out and at least the lives of 7 women have been saved thanks to early detection and regular cancer screenings.

The Cigar Family School has a 1% absenteeism rate

0% drop out rate

100% graduation rate

THE WAYS WE SERVE Water Purification Prior to the help of the Cigar Family Charitable Foundation, children had to walk miles to the nearest river to collect unsanitary water for their family to drink. After installing water stations through the communities and holding massive water filter drives, these same children now have access to clean sanitary drinking water. We continue our efforts by repairing broken stations, inspecting in-home filters and distributing filters to new families in surrounding communities.

Organic Agriculture Including a fish pond, fresh seasonal vegetables and fruit as well as honey bees, our organic agriculture section of the Complex helps us not only feed the students balanced meals but educate them through vocational training. Students assist in the agricultural process while learning the value of the earth and the importance of protecting the environment.

Community Development During the planning stages, it was recognized that we have a responsibility to educate not only the children but also the parents. You cannot effectively educate the children unless you educate the parents on the importance of education. The children would bring home books and the parents would tell their children to get rid of the books and go to work. The result was a strong focus on community development and empowerment. When the parents understand educating their children is better for the community in the long term and they get involved in the process, they are less resistant. We have organized one of the first Parent Teacher Associations in the Dominican Republic. The parents have really bought in to what we are trying to do, they know that we have created something very special. In addition, adults in the community are encouraged to attend lessons on creating a micro-business. Upon completion, they are allowed to sell a portion of the honey harvest to nearby markets.

The Project was declared a model charity by the United Nations and received the Global Compact recognition.

THE WAYS WE SERVE Athletics Sports programs serve as a healthy outlet for youth. Whether it is the nationally recognized CFCF baseball team or the inspirational martial arts program, the Foundation offers children the opportunity to escape the stresses of daily life, while providing a structured environment. Volleyball, baseball and basketball teams compete in regional and national tournaments, holding highly ranked titles in their respective divisions. The Dominican Republic is known for producing some of the best baseball players in the world. In keeping with this tradition, the Cigar Family Baseball Academy seeks to provide over 130 boys and girls with the opportunity to participate in a team while getting the best sports training available. Thanks to Cigar Aficionado Magazine, a beautiful stadium provides the Cigar Family team with a place to practice as well as locker rooms and a dugout. Teams from around the region compete against each other, encouraging good sportsmanship and healthy competition. The Cigar Family Complex basketball court provides students and parents the opportunity to socialize and participate in a team sport. Tournaments encourage teamwork, as well as instill pride in the students for their school and community. Martial Arts helps children learn goal setting skills and improves their ability to focus. Taught by Master Tony Kattengell, this training gives Cigar Family Complex students the opportunity to learn discipline and self control.

“The Martial Arts Program builds confidence, self esteem, self discipline, character and leadership skills.” - Master Tony Kattengell

COMMUNITY EVENTS Toast Across America The Toast Across America, first debuting in 2003, provides a unique opportunity for cigar retailers, customers and employees to unite for one cause while enjoying specially made cigars. Each fall, generous retailers across the country provide Toast Across America packs, including 2 limited edition cigars, to their customers and donate the proceeds back to the Cigar Family Charitable Foundation. Since the beginning, Toast Across America has been the main source of funding for CFCF. In 2011, the Toast fundraiser raised nearly $400,000.

Chicago Cigar Dinner Inspired by their experience in the Dominican Republic, a group of 7 men offered to throw a Cigar Dinner to benefit Cigar Family Charitable Foundation in Chicago. Over 100 guests met at the riverfront restaurant, Chicago Cut, for fine cigars, great food and a worthy cause. Overall the night raised over $100,000.

Saks & Cigars This second annual event saw tremendous growth in 2011 from around 150 guests in 2010 to over 400 in 2011. Saks Fifth Avenue opened their doors to host this private event that included shopping, food donated from The Palm, fine cigars and great raffle prizes. Overall the night raised nearly $25,000 dollars.

“

Since I have come to this school I have been very happy because I am treated very well and have learned many languages. I am very proud to be a member of this fantastic school.” - Emely Ramirez Mejia

FINANCIALS: Balance Sheet ASSETS

2011

Cash and Cash Equivalents

$700,008

Accounts Receivable—Founding Families* Gift Receivables

11,299 165,151

Pledge Receivables

76,718

Computer Equipment, net

363 Total Assets:

$953,539

LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable

$43,739 Total Liabilities:

$43,739

Net Assets Unrestricted

$654,137

Temporarily Restricted

207,288

Permanently Restricted

48,375 Total Net Assets:

$909,800

Total Liabilities and Net Assets:

$953,539

*All administrative, legal, accounting, office, website and general marketing costs are completely underwritten by the founding Fuente and Newman corporate families. A receivable is accrued monthly based on the expenses incurred by the Foundation. Through an underwritten agreement, the expense reimbursements are shared equally between the two families. Additional contributions have been made by the founding families to support other programs throughout the year.

Students at the Cigar Family School have been banned from some regional competitions, including English competency, because of their superiority over the other schools.

FINANCIALS: Income Statement SUPPORT AND REVENUES

Year End 12/31/2011

Contributions Founding Families

$58,451

Unrelated Contributors

1,137,106

Founding Families—Promotion, Management and General reimbursement* Total Support and Revenue:

83,407 $1,278,964

EXPENSES Program Services—Contributions to Support the Cigar Family Complex

$807,552

Fundraising—Special Events

115,219

Promotion, Management and General*

83,407

Total Expenses:

$1,006,178

Change in Net Assets:

$272,786

*All administrative, legal, accounting, office, website and general marketing costs are completely underwritten by the founding Fuente and Newman corporate families. A receivable is accrued monthly based on the expenses incurred by the Foundation. Through an underwritten agreement, the expense reimbursements are shared equally between the two families. Additional contributions have been made by the founding families to support other programs throughout the year.

Because of the Fuente and Newman’s generous decision to underwrite 100% of the administrative costs, the Foundation can say with complete confidence that every dollar donated to CFCF will go directly to those children and families served; a statement few charities can make.