Gearbox International Foundation

What it reported doing in 2018

The organization supports and facilitates the creation and operation of "makerspaces" in developing regions of the world that are empowering local communities to develop tools and technologies that serve the needs of the poor. Over the course of 2018, the organization delivered programs providing ongoing technical, management, and financial support to a makerspace in nairobi, kenya, that helped them both improve their internal operations and significantly scale up their training and outreach activities.we managed three technical support programs in partnership with the autodesk foundation and stanford university. Via their impact residency program, we sent one of the makerspace's lead engineers to autodesk's pier 9 facility in san francisco for four months, where he learned how to run a world-class prototyping facility. While there, he also developed a low-cost, easy to maintain cnc pipe bending machine that is accessible to kenya's informal manufacturers. These artisans make up over 70% of non-agricultural employment in kenya, and most earn less than $2 per day and have little or no education. Use of this new machine became part of a training program at the makerspace that reached 250 artisans in its pilot phase. We also organized a four week placement that sent a stanford graduate school of business mba candidate to nairobi to help the makerspace understand and develop their revenue model, and we collaborated with a stanford class in management science & engineering whose students analyzed the makerspace's user interactions to identify areas for improved service delivery.working with the lemelson foundation and kpmg, we helped the makerspace conduct a full systems audit to improve their internal processes and financial management. We also provided direct consulting to the makerspace on accounting, legal structure, and board composition. Working with nation of makers, the umbrella group representing makerspaces across the united states, we helped form a data working group to develop impact metrics and reporting tools designed specifically for makerspaces that can be adapted globally.we devoted significant time and resources to researching and developing a new blended finance model for funding capital intensive projects like makerspaces in developing countries that can provide the necessary real estate and equipment infrastructure in a way that maintains nonprofit ownership of community assets. We also made $93,049 in grants to support the mission and operations of the makerspace in nairobi.with the help of this funding, the makerspace was able to serve 41 regular members. They also launched a new training program called gearbox academy with 76 students. This is a mastery-based program introducing kenyan makers to new workshop technologies, robotics, automation, and digital design, among other topics. They also launched a training program called 2jiajiri specifically to conduct outreach to low-income, informal artisans and manufacturers who may not be able to access the makerspace otherwise. Alongside training in design and fabrication (some of which is provided onsite via a mobile classroom), this program provides training in life skills, business, and access to finance to allow participants to grow their incomes, with a focus on women-led microenterprises. The program launched with 250 participants in its initial pilot, and is engaged to continue with 500 more in 2019.in addition to working directly with low-income users, the makerspace's mission is to help designers and engineers develop tools and technologies that serve the needs of the poor. Fifteen teams were granted access to the makerspace to develop their prototypes, including a glove that translates sign language to audible speech, a system of flashing lights that can protect livestock from lions, a chicken brooder than provides updates on a farmer's flock via sms, a milk chiller that runs on biogas, a technique to convert water hyacinth to clean cooking fuel, a sola

Financial Efficiency

• Mission deployment rate: 75.3%; rating input score 75
• Program expense ratio: 65.2%; rating input score 65
• Fundraising efficiency: $11.46 raised per $1 spent on fundraising; rating input score 45; 45th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: 2 of 8 controls in place; rating input score 25
  • Claims monitoring procedures: Pass
  • Requires narrative reports: Fail
  • Conducts field audits: Fail
  • May suspend future funding: Fail
  • Requires financial reports: Fail
  • Conducts site visits: Pass
  • Requires grant agreements: Fail
  • May require repayment: Fail
• Grant itemization coverage: 100%; rating input score 100; 79th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 5 of 8 controls in place; rating input score 62
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: -15.5%; rating input score 16; 16th percentile among comparable filings
• Total-asset coverage ratio: 0.09; rating input score 6; 6th percentile among comparable filings
• Liabilities to assets ratio: 0.54; rating input score 12; 12th percentile among comparable filings
• Officer compensation ratio: 22.2%; rating input score 17; 17th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 72.7% per year; rating input score 100; 99th percentile among comparable filings
• Asset growth: -63.6% per year; rating input score 0; 1st percentile among comparable filings