To a child living

in poverty, this is more

than just a warm coat.

OperatiOn Warm, inc. 2012/2013 AnnuAl RepoRt

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R www.operationwarm.org

In low-income and poor families, parents

struggle with choices every day: Food or

electricity? Clothes or rent? The gift of a new

winter coat to a child in need is one easy

choice, and it warms the body and soul.

It supercharges the recipient’s self-esteem

and helps him arrive at school warm, on time,

and ready to learn. The new coat reminds

the child that he is important.

Every 34 seconds, a child is born

into poverty in America. There are more than

16,400,000 children in this country

who struggle to survive without even the basic necessities.

Executive Management richard D. SanfordFounder and Chairman

carey palmquistexecutive Director

Stephanie cohenChief Financial officer

Board of Trustees richard D. Sanford

Barry abelson

Basil anderson

mati Bonetti de Buccini

J.B. Doherty

William H. iredale

Wilson King

mrs. J. maxwell “Betty” moran

William c. pickett, iii

Gregory pratt claire reid

Geoffrey rogers

michael J. Walker

George a. Weymouth

Mr. and Mrs. Francis H. Abbott, Jr. Mr. and Mrs. Barry M. Abelson, Esq. AnonymousMr. Alan Batkin Mr. and Mrs. Chris Buccini Ms. Mary Chang Ms. Paula Clarkin Mr. and Mrs. Stephen Conway Mr. Patrick Coyne Mr. and Mrs. John B. Doherty Mr. and Mrs. Robert Duprey Ms. Brenda Flick Mr. Gregory C. Frane Ms. Le Ann Friesen Ms. Gail Gittleson Mr. Peter Grandich Dr. Richard E. Grant, M.D. Mr. David Griffin Ms. Misty Harms Ms. Deborah Hartnett Mrs. Gordan Hattersley Mr. and Mrs. Pierre duPont Hayward Mr. and Mrs. William H. Iredale Ms. Elizabeth Keatley Mr. and Mrs. Wilson King Mr. and Mrs. H.F. (Gerry) Lenfest Ms. Elizabeth Maas Ms. Mary Alice Malone Ms. Sharon MandleyMs. Tanya McCann and Ms. Cindy Henserling Mrs. Alice Kerr Moorhead

Ms. Caroline A. Moran Mrs. J. Maxwell “Betty” Moran Mr. and Mrs. Michael J. Moran Mr. and Mrs. Ranney R. Moran Ms. Deborah Nutley Mrs. Jacqueline Ohrstrom Mr. Ronald Pierce Mr. Gregory Pratt Mrs. Claire J. Reid Mr. and Mrs. Geoffrey M. Rogers Mr. Michael Rubin Mr. and Mrs. Richard D. Sanford Mr. Mark R. SchwartzMr. Alain R. Singer, Jr. Dr. Dianne Farina Sisofo Mr. and Mrs. James W. Stewart III Mr. Howard B. Stoeckel III Dr. and Mrs. Joseph D. Stokes Mr. and Mrs. John C. SundquistMr. Alan Syphers and Ms. Saly Glassman Mr. and Mrs. Brock Vinton Mr. Charles Vite Mr. George A. Weymouth Ms. Mary E. Whealy Mr. and Mrs. Norman T. Wilde, Jr. Ms. Sue Wilson Mr. and Mrs. William R. Wister

Individual Gifts of $1,000 or above Foundation or Corporate Gifts of $5,000 or above

25th Century FoundationAEO Foundation, Eagles in the Region ProgramAnonymousAssistance League of Salt Lake CityAuto Dealers Caring for Kids FoundationThe B and B Stern Foundation, Inc.Bank of America Bank of New York MellonThe Bank of New York Mellon Charitable Foundation Basil Anderson Educational FundBlue Cross Blue Shield of IllinoisBrighter Days FoundationCarnival Cruise LinesCarpentersville-Morning Rotary ClubChicago Community TrustCIGNA FoundationCitizens Charitable FoundationCoat-A-Kid, Inc. Colonial Oaks FoundationComEdCommunity Action Agency Coats for KidsComprehensive Health Management Inc.Crestlea Foundation, Inc.Cruise Industry Charitable FoundationCrystal TrustCVR Associates, Inc.

The Davenport Family FoundationDominion FoundationDouglas LaboratoriesEQT FoundationExelon CorporationGolden State Foods FoundationThe Harry and Zoe Poole FoundationHighmark Blue Cross Blue Shield H.J. Heinz Company FoundationHorizon Services, Inc.JOY for Our Youth, Inc.Junior League of AustinJunior League of Worcester, Inc.JPMorgan Chase & Co.The Laffey-McHugh FoundationLongwood Foundation, Inc. The Max and Victoria Dreyfus Foundation Inc.Mississippi Bend Area Education AgencyMorgan Stanley FoundationNan McKay & Associates, Inc.Northeast Ohio Ford Dealers Advertising Association, Inc.Otto Bremer FoundationPat’s Coats for Kids Inc.Pennsylvania Department of Public WelfarePennsylvania Harness Horsemen’s AssociationPhilip L. Graham Fund

PNC FoundationThe Quaker Oats CompanyRenton RotaryRotary Club of Orange, CTRotary District 7190 of New York StateSalvation Army-Twin CitiesScaife Family FoundationThe Scholler FoundationSouth East Minnesota Citizens Action CouncilTaylor MI Rotary ClubThe Springbank Foundation Stephen & Mary Birch Foundation, Inc.The RJM FoundationThe TJX FoundationTrenton Rotary FoundationTsunami FoundationUnited States Steel Foundation, Inc.UR Special MinistriesWashington Hancock Community AgencyWaterloo Downtown RotaryWawa, Inc.Wells Fargo WhiteWave Foods CompanyWoodinville Rotary ClubThe W.W. Smith Charitable TrustThe Xerox Foundation

Bank of America Combined Express Federal Express Ironlinx Mr. Mark Lazur New Century Transportation, Inc. Office Basics Office Movers Pilot Freight Services

In-kind Giving

ConTrIBuTIons: Our gratitude goes out to all of those who made gifts this year of their time, talent, or treasure.

For a complete listing of donors, please go to: www.operationWarm.org/donors*

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From our Executive Director

I have the honor to lead operation Warm into

its next decade of service. Certainly when

Dick Sanford began this organization in 1998

none of us would have imagined what would

occur in this country relative to unemployment

and poverty. While extending a hand to those less fortunate is

something many of us do without hesitation, the need to help

has never been more profound. With mere dollars, you are able

to turn a child’s outlook from despair to hope. I challenge us

all to subscribe to the notion that each one of us can make a

difference in the life of a child. I’ve seen firsthand the delight

and joy an operation Warm coat brings a child. I’ve also quietly

witnessed the tears of gratitude when a parent acknowledges

that his or her child will be warm in winter. Meeting the basic

needs of children is the first step in a long journey to health,

wellness, and hope. I thank you sincerely for your support

as we strive to reach our next million children.

WARMest regards,

carey m. palmquist

Executive Director

From our Founder and Chairman

people often ask me why I began operation

Warm, and my answer is always the same:

Why not? In 1998 I discovered the profound

need to help at-risk children in my community

stay warm in winter. What began (with 58 coats)

as a simple gesture motivated by concern and sadness has

become my passion and mission through operation Warm.

I hold firm the conviction that children born to poverty have a

less than fair chance to one day thrive as productive citizens.

Giving a child a new winter coat is a simple act of kindness

that we have learned has immeasurable impact on a child.

through our years of service we have been educated by our

beneficiaries as to the many layers of significance the coat

brings not only to the children, but also to their families:

pride in ownership (often the only new thing the child has ever

received); a tangible boost in self-esteem and well-being; the

impetus for improved school attendance (education being

among the most important keys to breaking the cycle of

poverty); the desire and ability for healthy, outdoor play; a

likelihood of two nutritious meals at school through the Free

and Reduced lunch program; relief for the family in their

decision-making related to stretching limited funds for clothing,

food, heat, or rent. By reaching into 37 states, operation

Warm has touched the lives of more than one million children

to date. our mission is simple though extraordinarily impactful.

With your help, we have made the commitment to help

children not just survive, but thrive.

With sincere gratitude,

richard D. Sanford

Founder and Chairman

Managing Expenses Growing net Assets

$378,242 in 2002

$2,439,799in 2012

Total number of Children served

58 in 1998

1,000,000in 2012

97%program Services

3%Support Services

“ Operation Warm’s efforts spell out, “You are special!” Indeed, all children are special, and some just need to be reminded.” Saly Glassman, Managing Director–Investments, Merrill Lynch Wealth Management

Increasing revenue

$617,796in 2002

$11,122,099in 2012

97% of all money raised goes directly to

the new coat program. The other 3% covers support services.

We currently operate in 37states.

One of our founding principles is our

unwavering commitment to ensure

funds remain in the communities where

they are raised, fostering grass-roots

community outreach.

Over 1,000,000

children have received the gift of warmth since

Operation Warm’s origin in 1998.

Coats for Kids Foundation is operation Warm’s primary brand for cause related marketing initiatives. through this unique and descriptive marque, joint funding and promotional strategies can be designed to easily link operation Warm’s charitable mission with a product brand. As a revenue source, these cause marketing campaigns culminate with a percentage of sales to operation Warm. the Coats for Kids Foundation Brand was used in 2012/13 by broadcast networks to inspire giving and build listener loyalty for hundreds of radio stations. Additionally, International Delight®, and Groupon™ utilize this marque for successful cause marketing initiatives to improve brand loyalty and raise money for operation Warm.

At Operation Warm, our simple mission is to provide at-risk, U.S. children with new winter coats.

Each year more U.S. children are living without basic needs. But Operation Warm understands that a new winter coat can do more than keep a child warm and dry. We passionately believe that the gift of a new coat can give children an opportunity to not just survive but to thrive, warming hearts as well as bodies. Since the beginning of Operation Warm in 1998, more than one million children have received the gift of warmth. Our work is made possible thanks to the foundations, corporations, and many individuals who share our belief that no child should be left in the cold.

CoATs For KIDs FounDATIon AuTo DEAlErs CArInG For KIDs FounDATIon

Since 2003, the mission of the Auto Dealers CARing for Kids Foundation (ADCK) is to enhance and enrich the lives of children and youth in the communities where its dealer members work and live, providing access to and supporting excellence in the institutions and programs that serve these children. the ADCK vision is that its dealer members are recognized for their impact on the lives of children in their communities. 2011 marked the fourth year of the ADCK’s Driving Away the Cold program, and 22,548 underprivileged children received the gift of a new coat via this special effort. the operation Warm coats were delivered by the Auto Dealers CARing for Kids Foundation to local YMCAs and other nonprofit organizations that serve youth at risk. With support from more than 160 new car dealerships in pennsylvania’s Delaware Valley, Driving Away the Cold has given the gift of warmth to more than 79,000 children since 2008 and plans to serve its 100,000th child this fall—an extraordinary milestone! the Auto Dealers CARing for Kids Foundation is directly touching the lives of thousands of children and fulfilling a need so basic that most of us take it for granted.

At Operation Warm, our simple mission is to provide at-risk, U.S. children with new winter coats.

Each year more U.S. children are living without basic needs. But Operation Warm understands that a new winter coat can do more than keep a child warm and dry. We passionately believe that the gift of a new coat can give children an opportunity to not just survive but to thrive, warming hearts as well as bodies. Since the beginning of Operation Warm in 1998, more than one million children have received the gift of warmth. Our work is made possible thanks to the foundations, corporations, and many individuals who share our belief that no child should be left in the cold.

AuTo DEAlErs CArInG For KIDs FounDATIon

Since we began, operation Warm has worked closely with Rotary clubs. When operation Warm’s founder Dick Sanford bought his first 58 coats in 1998, his local longwood Rotary Club assisted him in the first coat distribution at a nearby school serving children in need. over the next few years, other clubs joined the effort, helping expand fund-raising and assisting with more coat distributions. today, over 100 Rotary clubs in more than 28 states partner with operation Warm to conduct service projects that provide new winter coats to children in their communities. In fact, Rotary clubs have provided over 55,000 children all over the country with new winter coats, helping us impact communities we could never reach on our own, from new Hampshire to texas, and the pacific northwest to Michigan, in large cities and many small towns. each club identifies its own beneficiary organization(s), typically local schools or youth services agencies, and raises funds locally to support its project. operation Warm provides Rotary clubs a great avenue for practicing Service Above Self.

operation Warm received an exciting endorsement from the International Association of Firefighters (IAFF) comprised of over 300,000 full time north American Firefighters and paramedics who protect over 85 percent of the nation’s population. In a collaborative partnership, the newly formed Firefighters Coats for Kids Foundation is designed to directly benefit children in need in our communities throughout north America. the Firefighters Coats for Kids Foundation promotes trust and recognition of firefighters, creates jobs (by bringing coat manufacturing back from China), and inspires hope for needy children and their families. Community outreach has a long-term and lasting impact on the communities IAFF members serve and protect. our vision is that every child wearing a brand new, American-made winter coat is healthy, able to attend school regularly, develops strong self-esteem and enhanced well-being. By embracing Firefighters Coats for Kids with operation Warm, IAFF and its members together have the opportunity to become acclaimed as the largest national donor of new winter coats to children in poverty and in great need. Firefighters Coats for Kids Foundation is a division of operation Warm.

roTAry CluBs FIrEFIGhTErs CoATs For KIDs FounDATIon

New coats contribute to building self-esteem

and confidence. luz moved with her mother to this country just before winter. With very few belongings, luz was living in a room with her cousin, sharing a mattress on the floor. Coming from South America as a refugee, she and her mother did not have the proper clothes they needed for their first winter in the uSA. Her mother approached the instructor in her civic education program to ask for help. the instructor connected her with the local community center, which specialized in services for new immigrants and was holding a coat distribution. With a new operation Warm coat, luz will be warm for her first winter in north America.

New coats help families free up money for

other basic necessities. Justin’s mother saw the Coats for Kids Foundation logo on an International Delight Coffee Creamer package at her local grocery store. As a single mother whose only income is $315 per month through welfare, she was desperate for warm winter coats for Justin and his younger brother. She also was pregnant with a little girl, due in three months. She contacted operation Warm about her struggles and her need for assistance. Happily, we could tell her that her local Salvation Army chapter was holding a coat distribution with operation Warm coats. operation Warm answered her prayers for the holiday season.

1998The first 58 new coats...

Operation Warm has reached an important milestone serving one million children in need. Please help to provide for the next million children.

New coats help inspire happiness and a sense of pride.

Vickie comes to her church’s food bank with her children. Many families wait outside in all kinds of weather until the staff can open the doors to let them in. the food bank would love to provide coats to these children but couldn’t do it alone. With help from operation Warm, the food bank was able to give coats to Vickie’s children this year. this was a step in the right direction to help the needy children in the city.

New coats promote greater school attendance

in cold weather. Douglas attends an elementary school of 600 children, nearly all of whom live in public housing. His family struggles to supply even basic needs, including coats. A school volunteer was at a loss when she saw Douglas without a warm and fitting coat to see him through winter’s freezing temperatures. She told the school’s parent and Community Coordinator about operation Warm, who reached out to us for help. As it turned out, operation Warm had a partnership with the housing authority to distribute coats, and together we were able to help all the children in need at the school this year.

tomorrowThe next million!

2012One million coats...