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Rainforest Alliance Inc.
665 Broadway, Ste 500 New York, NY 10012 U.S.A. |
(212) 677-1900
www.ra.org Founded in 1987 |
The 25-member Board of Directors includes five people from business world, two who combine business with writing/editing, an investment analyst, three writers and a biologist/journalist, three attorneys, two physicians, a photographer, a banker, an actress, a graduate student (science), a former World Bank advisor, and a former United Nations program director, and a former real estate agent.
WHAT DO THEY DO?
WHAT HAVE THEY ACCOMPLISHED?
The organization was a pioneer in sustainable agricultural certification, and RA says it now certifies 15 percent of the international market of bananas (65% of all bananas Chiquita gets from independent suppliers are certified), along with coffee, cocoa, citrus, ferns and cut-flowers.
RA says it has recently conserved two-million acres of forestland, and enrolled 40 new coffee and banana farms in its sustainable agriculture program. RA also developed certification systems for its tourism program, and it has disseminated best management practices to more than 25 tourism operators in four "biodiversity hotspots."
FINANCIAL DATA
| FISCAL YEAR | rounded to million (M) or thousand (K) |
percent of total expenses |
||
(ending June 30, 2003) |
$6.98M
$7.69M $2.46M
|
------------------ |
||
(ending June 30, 2002) |
$6.11M
$6.61M $2.40M
|
------------------ |
||
(ending June 30, 2001) |
$M
$5.25M $2.33M
|
------------------ |
||
| NOTES: | ||||
| Source: IRS Form 990 (courtesy of www.guidestar.org). | ||||
| Assets: in the most recent year (2002-2003), the
main components
were: | ||||
| Liabilities: in the most recent year
(2002-2003), the main
components were: | ||||
| The figure for wages/benefits is the amount across all 3 categories (program, administrative and fundraising) as a percent of total expenses. Likewise for professional/consulting/contract fees. | ||||
| Revenue Category | |
| Program service revenue (including government contracts) | |
| Private individuals, companies, foundations1 | |
| Other2 | |
| Government grants | |
| Membership dues | |
| Net investment income & interest |
The Rainforest Alliance did give a breakdown of program spending by program in its latest IRS Form 990. We will ask the organization for that information.
| Compensation | Number of individuals | Job title(s) |
| $134,160 | 1 | Executive Director |
| $117,480 | 1 | Director of SmartWood certification program |
| $100,152 | 1 | Associate Director |
Compensation for outside professional services was very minor (just $56,317 for fundraising consultants).
HOW DO THEY RAISE MONEY?
Major corporate donors ($100,000 to $250,000) in 2003 included
MEDIA AND PUBLIC DISCUSSION OF THE ORGANIZATION
Discussion of the relationship between Rainforest Alliance and Chiquita described problems and shortcomings but indicated that significant progress has been made, particularly with regard to the environmental impacts of banana farming. Another source said that the relationship has improved working conditions but not workers' rights, and that this has strained relations between the NGO and "various stakeholders", particularly trade union organizations.
A 1998 Cincinnati Enquirer article (since retracted) described Chiquita's unsafe use of toxic chemicals and
disregard for workers' safety and alleged that Rainforest Alliance was effectively involved in
The book Environmental And Social Standards, Certification And Labelling For Cash Crops
(by Cora Dankers, Food and Agriculture Organization of the United Nations, Rome, 2003)
reviews standards for organic and fair-trade cash crops in developing countries, including an
assessment of the economics of Rainforest Alliance's Sustainable Agriculture program.
An article
in The Guardian points to an upsurge in RA coffee certification relative to (British-based)
Fairtrade Foundation certification, which is attributes to the lower costs for buyers. (Fairtrade
guarantees a very generous price for coffee, has a 5-cent "social premium" to invest in community
projects regardless of whether the market price is currently high or low, and charges a licence fee of
2% to use the Fairtrade logo.)
An online article
compares the similarly named Fair Trade certification (by Transfair USA) with coffee certification by
Rainforest Alliance. The former is more prevalent, covering about 300 cooperatives and half a million
farmers, and standards differ, but the article suggests that the two systems complement each other.
On its website,
Kraft Foods discusses the partnership between itself and the Rainforest Alliance in the marketing of
certified coffees.
The book Green Gold: On Variations of Trush in Plantation Forestry by P. Romeijn
(reviewed here and
here) described a
"international collusion" around a teak plantation scheme in Costa Rica owned by a Dutch citizen.
The investment opportunity was heavily promoted as a business opportunity and as having
conservation benefits. It had unrealistic stated expectations and yet was endorsed by WWF (World
Wide Fund for Nature), Rainforest Alliance, and the Forest Stewardship Council, to the discredit of
each.
Finally, there is an argument that ecotourism promoted by NGOs like the Rainforest Alliance has
opened the doors to more destruction of natural resources and ecosystems, disrupted community life
in affected areas, and in some cases, forced indigenous people out of their traditional lands.
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