Foundation implemented health, education and social welfare projects throughout Mongolia’s Dornogobi province, placing a strong emphasis on the Gobi Desert region.

However, by 2007, Batsuuri realized the needs of Mongolia’s Gobi Desert villages far greater than what his small foundation’s budget could handle. The hospitals needed labs—and the Dornogobi Foundation didn’t have the funds.

Enter International Aid.By the grace of God, Batsuuri

stumbled across our website in 2007 and was able to read about our Lab-in-a-Suitcase program. The Lab-in-a-Suitcase (LIS) is a portable medical lab that is used to diagnose patients accurately and timely, giving patients the greatest chance for survival. Our labs enable health professionals serving in remote areas to perform the majority of

standard diagnostics tests most frequently requested by field physicians.

Believing this lab was the answer to his problem, Batsuuri got in contact with our organziation. For three years, we worked with the Dornogobi Foundation and Mongolia’s Ministry of Health to secure the funds needed to send 14 labs to Mongolia.

“These Labs-in-a-Suitcase will be very helpful to the herders who live in remote areas of my country,” Batsuuri said. “It will save their health, lives and money.”

Praise God for the work He has done through the Dornogobi Foundation, and for the work our two ministries will be able to accomplish in Mongolia’s Gobi Desert region!

18

As of Oct. 4, 2011 the official death toll attributed to the cholera outbreak in Haiti was over 6,400, with nearly 500,000 confirmed cases in Haiti since October 2010. The epidemic spread throughout the small nation, and some of our partners in the country reported that patients walked nearly 100 miles to reach their clinics in search of available medicines.

Cholera is a contagious bacterial disease that causes severe vomiting, diarrhea and dehydration. This drastic loss of body fluids ravages the body, and—according to the World Health Organization—can sometimes kill the patient within hours if left untreated.

The key to treating cholera is the prompt rehydration of the patient.

While this can be done with oral rehydration salts, the especially severe cholera cases require IV administration of fluids. Without these fluids, the sickest patients cannot survive.

In January 2011, International Aid shipped products that helped rehydrate our partners’ most dire patients. These shipments included the fluids needed to rehydrate the patient as well as the tools necessary to administer the hydration products (i.e., tubes, IVs, etc.).

The January shipment was just one many shipments International Aid has recently sent to Haiti. Since the January 2010 earthquake, International Aid has shipped millions of dollars worth of medical equipment and supplies to our partners in Haiti, with three advanced

HAITI CHOLERA OUTBREAK

PART OF THE BODY • IN THE FACE OF DISASTER

19

clinics arriving a few months before the cholera outbreak occurred.

While our partners ask for help (and we are working to meet their needs), many are asking for prayer. Please continue to pray for healing of the sick; for strength and perseverance for those who are treating the sick; and for prevention of further spread of the disease.

20

On the morning of March 11, 2011, a massive 9.0-magnitude earthquake occurred off the shore of Japan, igniting a devastating tsunami that wreaked havoc on the island nation. Towns were flooded, fields were destroyed and thousands were killed.

The flood waters also compromised one of the nation’s nuclear plants, forcing whole neighborhoods to evacuate and crippling the economies of fishing communities in Northern Japan.

Once International Aid heard the news of the disaster, the ministry urgently began preparing disaster relief shipments. The American people also responded, and—over the course of several months—International Aid

received over $150,000 in donations for the hardest hit areas of Japan.

Looking back, International Aid is incredibly thankful to God for how He enabled our ministry to bring healing and restoration to the Japanese people.

Here is a look at some of the ways the ministry responded to this disaster:

• International Aid shipped thousands of dollars of medications, hygiene products, blankets and flashlights to partners working on the ground in Japan.

• International Aid coordinated an effort to supply numerous families who lost their homes with “start-up” kits that included items such as appliances and furniture.

JAPAN • MARCH 11, 2011

21

• Our ministry purchased two vans that enabled partners to both transport supplies to affected areas and evacuate people living in locations with high radiation levels.

• We funded food packets that were distributed to Japanese people living in some of Japan’s hardest hit areas.

While God has opened many doors for International Aid to respond to this disaster, the work is not over. Please continue to pray that God will guide this ministry so that International Aid can continue to bring relief to the Japanese people.

22

They knew the storm was coming, but they had nowhere to go.

The family of eight—including multiple children and a grandparent—was too large to move quickly, and the F5 tornado was already destroying parts of their town. As a last-ditch effort, the family huddled inside a small closet, held each other and prayed.

The tornado bore down on their neighborhood, ripping it apart. The family’s roof tore off of their house, and the inside of their home was nearly gutted.

But the closet stood, and the family was left unharmed.

After the storm and rain subsided, the family painted the message “WE LIVED! GOD SAVES!” across the side of their house.

With those four words, the family let all who came through their town know to whom they owed their lives.

The family’s house was one of the few homes left standing after the F5 tornado went through the Northern Alabama city of Hackleburg in late April. Five of the town’s seven churches were destroyed, and 30 of the 31 businesses in town were wiped out.

“No one should have survived, but God just had His hand on this town,” said Judy Wolf, a tornado survivor and a friend of the family.

In April 2011, a massive system of tornadoes and violent storms unleashed destruction upon several Southern U.S. states, killing over 300 people and leaving entire neighborhoods in ruin. Fatalities occurred in Alabama, Tennessee, Mississippi, Georgia, Virginia and Arkansas.

Some of the hardest hit areas in Alabama were small towns like Hackleburg and neighboring city Phil

ALABAMA • APRIL 27-28, 2011

23

Campbell. Many families in these towns lost their homes, their possessions and even some of their loved ones.

While International Aid also sent relief supplies to larger Alabama cities such as Birmingham, our ministry was dedicated to serving these smaller towns.

Working through a network of churches and Christian ministries in Alabama, International Aid delivered two shipments of relief to help cities like Hackleburg and Phil Campbell rebuild. The first shipment included chainsaws, water, gas cans, hygiene kits, tarps, work gloves and other relief items. The second shipment was composed of three semis that contained over blankets donated by West Michigan organizations, medicines, tarps, 5,850 pounds of hygiene kits, blankets, diapers, bread, eggs and other relief items. The trucking, gas and drivers were donated by a West Michigan moving company.

Praise be to God for the generosity of International Aid’s donors, and for the opportunities IA had to serve in response to this devastating tornado outbreak!

24

On May 22, an EF-5 tornado ripped through Joplin, Missouri, causing mass destruction and damaging nearly a third of the city. Roughly 2,000 buildings were affected, dozens of people are missing and over 130 people were killed—making the storm one of the deadliest U.S. tornadoes in over half a century and the single costliest tornado in U.S. history.

International Aid worked with Convoy of Hope, a relief organization based 75 miles east of Joplin, to bring relief to those affected by the tornado. Through this partnership, International Aid was able to respond quickly and appropriately to this disaster.

The West Michigan community used International Aid as a mechanism to

help those affected by this disaster, and many churches and ministries donated thousands of assembled hygiene kits that were distributed to individuals and families in Joplin’s hardest-hit areas.

JOPLIN • MAY 22, 2011

25

A FOCUSED MINISTRY

WHO WE ARE 5

WHAT WE DO 7

MULTIPLYING DONATIONS 9

ACCOUNTS OF FAITHFULNESS

IN OUR NATION 11

IN OUR WORLD 15

IN THE FACE OF DISASTER 19

MINISTRY BY NUMBERS

STATISTICS 27

CONSOLIDATED STATEMENTS 29

LEADERSHIP

26

TOTAL VALUE OF RELIEF SHIPPED DURING FY2011.AVERAGE FOR PREVIOUS SIX YEARS: $56 MILLION

$116MILLION

PERCENTAGE INCREASE OF RELIEF SENT DURING FY2011 COMPARED TO PREVIOUS SIX YEARS.

107PERCENT

NUMBER OF MINISTRIES AND NONPROFITS SERVING THE POOR WORLDWIDE THAT RECEIVED SHIPMENTS OF IA AID IN FY2011.

300+ORGANIZATIONS

$123FOR EVERY $1

THE LEVERAGE RATIO IA GIVES ITS DONOR BASE. FOR EVERY $1 DONATED, $123 WORTH OF AID WAS SHIPPED ABROAD DURING FY2011.

2,252PALLETS

THE NUMER OF PALLETS OF AID INTERNATIONAL AID SHIPPED ABROAD DURING FY2011.

98.5PERCENT

THE PERCENTAGE OF PUBLIC SUPPORT (INCLUDING GIK DONATIONS) THAT WENT DIRECTLY TO THE FIELD.

27

ARGENTINABRAZILBOLIVIABANGLADESHBELIZECAMEROONCENTRALAFRICANREPUBLICCHADCHILEDEMOCRATICREPUBLICOFTHECONGOCOSTARICACHINACUBACOLUMBIACAMBODIADOMINICANREPUBLICECUADORETHIOPIAELSALVADORERITREAFIJIGHANAGUATEMALAGEORGIAGUINEAGUAMHAITIHONDURASINDONESIAISRAELINDIAJAPANJAMAICAKENYALIBERIALAOSMALAWIMEXICOMONGOLIAMYANMARMADAGASCARMOZAMBIQUEMALINEPALNIGERNIGERIANORTHKOREANICARAGUAPANAMAPAPAUNEWGUINEAPAKISTANPARAGUAYPERUPHILIPPINESRWANDAROMANIASENEGALSIERRALEONESUDANSOMALIATANZANIATOGOTANZANIATANZANIA UGANDAUKRAINEUNITEDSTATESOFAMERICAVIETNAMAMERICAAMERICA ZAMBIAZIMBABWE

THE NUMBER OF COUNTRIES WORLDWIDE THAT RECEIVED SHIPMENTS OF AID FROM INTERNATIONAL AID BETWEEN JULY 1, 2010 AND JUNE 30, 2011.

68COUNTRIES

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ANNUAL FINANCIAL STATEMENTS 2010-2011

FINANCIAL COMPARISONS FROM 2005-2011

$0

$3

$6

$9

$12

2005 2007 2009 20112005 2007 2009 2011$0

$35

$70

$105

$140

2005 2007 2009 20112005 2007 2009 2011

Monetary Contributions(in millions)

Operating Costs(in millions)

Value of GIK Shipped(in millions)

2011 2010Support and Revenue:

Public support:

Gifts-in-kind revenue $130,748,998 $71,238,902

Gifts-in-kind expense ($130,748,998) ($71,238,902)

Monetary Contributions $938,240 $1,275,365

Program service revenue:

Medical equipment revenue $529,097 $542,955

Health product revenue $439,899 $378,407

Shipping fees $90,850 $155,110

Other revenue:

Other $544,644 $32,911

Gain on disposition of assets $125

Loss on sale of assets — ($7,456)

TOTAL SUPPORT AND REVENUE $2,542,855 $2,377,292

Operating Expenses:

Salaries and benefits $1,030,560 $835,081

Purchased goods $276,860 $230,273

Freight $139,753 $197,728

Depreciation and amortization $119,293 $170,923

Occupancy $92,359 $63,528

Travel $56,958 $31,285

Relief supplies $56,602 $34,666

Printing and media $43,399 $10,215

Professional and contract services $40,876 $362,669

Insurance $33,695 $34,981

Communication $25,757 $25,440

Supplies $22,110 $21,839

Postage and shipping $21,511 $12,476

Public relations $12,673 —

Meetings and conferences $2,277 $899

Vehicle and equipment expense $2,178 $2,192

Other $19,987 $38,988

TOTAL OPERATING EXPENSES $1,996,848 $2,073,183

LOSS FROM DISCONTINUED PROGRAMS — $73,894

CHANGE IN NET ASSETS $546,007 $230,215

$0

$2

$5

$7

$9

2005 2007 2009 20112005 2007 2009 2011

29

STATEMENT OF FINANCIAL POSITION 2011

$0

$1,750,000

$3,500,000

$5,250,000

$7,000,000

2005 2007 2009 20112005 2007 2009 2011$0

$500,000

$1,000,000

$1,500,000

$2,000,000

2005 2007 2009 20112005 2007 2009 2011

Net Assets Liabilities

ASSETSCURRENT ASSETS:

Cash $906,294 $282,304

Accounts receivable (less allowance for uncollectibles of $1,500 and $5,000, respectively) $77,463 $29,253

Pledges receivables $25,025 $200

Other receivable — $4,342

Inventory $76,074 $93,084

Prepaid expenses $47,931 $34,966

TOTAL CURRENT ASSETS $1,132,787 $444,149

PROPERTY AND EQUIPMENT:Land and improvements $199,633 $199,633

Buildings and building equipment $2,279,981 $1,782,871

Transportation equipment $108,167 $108,167

Furniture and fixtures $172,552 $172,552

Computer equipment $441,569 $444,364

$3,201,902 $270,768

Less Accumulated Depreciation $2,091,409 $1,980,372

NET PROPERTY AND EQUIPMENT $1,110,493 $727,315

OTHER ASSETS:Cash surrender value of life insurance — $19,675

Trademarks, net of accumulated amortization $21,815 $24,974

TOTAL OTHER ASSETS $21,815 $44,649

TOTAL ASSETS $2,265,095 $1,216,113

LIABILITIESCURRENT LIABILITIES:

Accounts payable $69,672 $36,389

Customer deposits $52,496 $49,350

Accrued payroll and payroll taxes $50,541 $48,679

Accrued vacation and sick pay $20,126 $17,710

Deferred revenue $50,000 —

Other liabilities $6,035 $8,657

TOTAL CURRENT LIABILITIES $248,870 $160,785

DEFERRED REVENUENet of current portion $414,890 —

TOTAL LIABILITIES $663,760 $160,785

NET ASSETS:Unrestricted $1,481,240 $897,898

Temporarily restricted $120,095 $157,430

TOTAL NET ASSETS $1,601,335 $1,055,328

TOTAL LIABILITIES AND NET ASSETS $2,265,095 $1,216,113

30

A FOCUSED MINISTRY

WHO WE ARE 5

WHAT WE DO 7

MULTIPLYING DONATIONS 9

ACCOUNTS OF FAITHFULNESS

IN OUR NATION 11

IN OUR WORLD 15

IN THE FACE OF DISASTER 19

MINISTRY BY NUMBERS

STATISTICS 27

CONSOLIDATED STATEMENTS 29

LEADERSHIP

31

James R. Batten, CPA, is the Executive Vice President of Convoy of Hope. Mr. Batten served as Chief Operations Officer and Executive Vice President of AG Financial Solutions from September 2007 through March 2009. Mr. Batten served as the Executive Vice President of Finance, Chief Financial Officer and Treasurer of O’Reilly Automotive, Inc. from January 1993 through March 2007. Prior to joining O’Reilly, Mr. Batten was employed by the accounting firms of Whitlock, Selim & Keehn, from 1986 to 1993 and Deloitte, Haskins & Sells from 1984 until 1986. Mr. Batten is a member of the board of Foundation Capital Resources and Treasurer of Hope Community Church. Mr. Batten is a former member of the NASDAQ Issuer Affairs Committee. He has also served on a number of other professional and civic boards including the Springfield Area Chamber of Commerce, Big Brothers Big Sisters of the Ozarks and New Covenant Academy.

Brian Anderson has worked for International Aid for three years and currently serves as its CEO. Prior to joining IA, he ran his own consulting company which specialized in helping healthcare organizations address financial and operational issues. Other experiences include working for physical therapy staffing companies, physician groups, and manufacturing concerns. Brian received his Bachelor’s degree in Accounting at

Central Michigan University and holds a Master of Public Administration from Western Michigan University. A resident of Western Michigan most of his life, he lives in Grand Haven with Julie, his wife of 11 years. Most of all, he loves the Lord.

Roger W. Spoelman is the President and CEO of Mercy Health Partners (Trinity Health) in Muskegon, Mich., and has been involved with creating a healthier community and region in West Michigan for nearly three decades. As Regional Market Executive for Trinity Health, Mr. Spoelman oversees the advancement of a collaborative business strategy for Trinity Health’s healthcare organizations within West Michigan, including physician alignment and accountable health network development across the region. Mr. Spoelman’s strong passion for missions is demonstrated through his volunteer service, which includes serving on the boards of CURE International, International Aid, Michigan State University College of Osteopathic Medicine, Munson Healthcare, Saint Mary’s Health System, Open Doors USA and Point Loma Nazarene University Presidents Advisory Board. Mr. Spoelman is a 1974 graduate of Trinity International University in Deerfield, Ill., which named him a Distinguished Alumnus in 2006. He and his wife live in Muskegon.

BOARD OF DIRECTORS

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Dr. Thomas Carter practices cardiothoracic surgery. After receiving his medical degree from Jefferson Medical College in Philadelphia, Dr. Carter completed a general surgery internship and residency, as well as two research fellowships (American Heart Association and general surgery) at the Thomas Jefferson University Hospital, where he also served as chief resident. His cardiothoracic surgery residency was taken at Thomas Jefferson University Hospital. He then completed a post-doctoral fellowship in pediatric cardiac surgery at Children's Heart Hospital and Health Center in San Diego. Dr. Carter has been a committed Christian for decades, and has a passion for missions. He and his wife, Deb (a cardiac OR nurse), live in Rockford, Ill.

Luke Nieuwenhuis is the Director of Global Strategic Planning for Amway. His responsibilities include implementing capabilities to further develop, integrate and refine the enterprise plan to drive long-term strategic and financial health. During his seven years at Amway, Luke has held leadership positions in Strategic Planning, Procurement and Supply Chain Planning. Prior to joining Amway, Luke worked in Property Development, Business Planning and Supply Chain at Meijer, Inc., a regional supercenter retailer. He received a Bachelor of Science degree in Geology and a Bachelor of Arts degree in International Business from Calvin College. He received a Master of Business Administration degree with concentrations in Supply Chain and Finance from Michigan State University. Luke and his wife, Janine, three biological children - two boys, and a girl - ages 6, 4, and 2 are anxiously awaiting the arrival of their adopted daughter from Ethiopia. In addition to spending time with family, Luke enjoys outdoor sports, volunteering in the community, and participating in church activities.

Michael D. Messner founded Michael Messner Consulting, Inc. and The Mobius Group, LLC in 2006 after 30 years of church service in roles including church, para-church and denominational headquarters. This included serving as Executive Pastor at James River Assembly in Ozark, MO—a contemporary church of about 8,000 worshippers each Sunday. Early in their ministry career, Mike and his wife of thirty-four years, Sandi, worked with Dick Eastman teaching the Change the World School of

Prayer. Other roles Mike filled throughout his career include law enforcement chaplaincy, local television station general manager and general manager of a commercial real estate development company. He holds a Bachelor of Science degree in Business Administration from Evangel University, Springfield, MO.! Mike and Sandi have two grown children: David and Jennifer. David is married to Kara and have a 5-year old daughter, Makenna and 2-year old son, Michael. Jennifer is married to Sean Walker.

Mike Houskamp received his business degree from Calvin College and has been in sales and marketing his whole life. He is a small business owner and, presently, he is an associate broker with Coldwell Banker Woodland Schmidt in Residential and Commercial Real Estate. Mr. Houskamp was born in Chicago then moved to Grand Rapids, Mich., where he was raised. In 1993, he moved to Spring Lake, Mich., where he now resides with his wife Lori of 20 years and daughters Christa, 14, and Jenna, 9. Unfortunately, tragedy struck their household in 2002 when his oldest daughter Katelyn died of leukemia at the age of 8 years. Mike’s family life keeps him very busy – they enjoy many water activities and spend a lot of time together. He is also very active in his church.

Michael L. Kern, III, CFA, is President and Chief Operating Officer of Stout Risius Ross, Inc., a financial advisory services firm. Mr. Kern joined the firm in 1996 as an Analyst and, five years later, was appointed a Managing Director in the Valuation & Financial Opinions Group. He was the first employee to rise from an Analyst level position to Managing Director. Then, in October 2008, he was named President of the firm. Mr. Kern devotes a significant amount of time to philanthropic activities. In addition to serving on the Board of International Aid, he serves as a Director on the Boards of Convoy of Hope (a humanitarian organization that responds to national and worldwide disasters), Aletheia International, and the Skyline Club. He is also actively involved in his church. In 2006, at the age of 33, Mr. Kern was recognized by Crain’s Detroit Business as one of Detroit’s “40 Under 40,” an honor given to 40 Detroit-area professionals under the age of 40 who have demonstrated strong leadership abilities and who have already achieved many accomplishments in their career.

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17011 Hickory • Spring Lake, MI 49456www.internationalaid.org • (800) 968-7490