Dear Friends of Village Children's Fund:

Due to recent economic conditions, we have concluded the VCF charity model of building small schools has become untenable, and we have been seeking to continue helping Chinese rural education by leveraging our efforts with a better resourced organization. To this end, VCF directors Michael Wong and Rodney Amen held several meetings with Evergreen Educational Foundation President, Faith Chao, which culminated in their April 10, 2011 proposal to, and acceptance by, the Evergreen Educational Foundation Board, to join this larger non-profit, and to close down the VCF entity.

Over the past two years, there have been some developments that have made the VCF charity model of funding small rural Chinese schools unsustainable. The Chinese government has developed a school strategy toward larger and centralized schools; as you know VCF built small (6 classroom) schools in remote locations. Another challenge has been the global macroeconomic situation. Inflation has increased in rapidly growing China driving up their quoted construction costs almost 100%, and the Dollar-Yuan exchange rate is 75% of the rate in 2006. This situation has caused the US dollar to buy much less in China. The US recession has significantly reduced the VCF donations. The VCF board has been contemplating our response to these challenges. However, being a very small organization, VCF lacks the resources to fully investigate and pursue different charity models.

In joining Evergreen, we can reach far beyond what we were able to do with VCF alone. Evergreen has much deeper resources in both the US and China with an annual budget of close to $180,000. Faith Chao, Evergreen's Founder and President, is a very enlightened and visionary person, and we believe she will be an exceptional mentor for us as we continue to pursue our quest to help rural Chinese schools.

Here are some highlights of Evergreen Educational Foundation's charity model:

• Started nearly 10 years ago by overseas Chinese and Americans in San Francisco with the goal to help China establish vibrant "Modern Libraries". Has a presence in 7 provinces and is involved in over 40 libraries and engaged in numerous projects benefitting rural communities.

• The Evergreen model starts with high school libraries. Datong, Qinghai was the site of the first library. The schools are large: 1,000 - 5,000 students, purchased about 4,000 books to start. Sponsors scholarships for student library volunteers. They provide computers, Library Management software and training for librarian staff. Providing workshops for teachers and librarians.

• Next: Evergreen encourages school libraries doing projects: science projects, book exhibitions, book reports and competitions.

• Expanding services to families of students: sponsoring a Community Center in Tianzhu and a Health Education program on Tongwei.

• Expanding Services to Farms: for example, sponsoring the "Barefoot Librarians" visiting farms in Quinhai.

• Expanding to Public Libraries: Evergreen supports five public libraries in Gansu, Shaanxi, Shanxi and Yunnan.

• Won the Access to Learning award in 2004 given by the Bill and Melinda Gates Foundation .

• Collaborates with International Library and Educational Experts. Evergreen participates and presents at international conferences.

We believe that VCF will provide complementary resources to Evergreen's existing expertise. The VCF volunteers bring a strong background in engineering, manufacturing and technology management. Our network in the technology industry in the US and China will also benefit Evergreen by opening future collaboration possibilites. VCF Director, Rodney Amen, is currently leading an Evergreen project developing a simple solar powered desk lamp and getting it manufactured in China; this solar lamp will be shipped as a kit to schools in rural China where high school students will final assemble it as part of a classroom lesson. Students will take the completed lamp home to use in their typical off-the-grid home. VCF Directors Michael Wong, Chee Fong and Jeffrey Teh are also contributing on this project.

VCF will be donating the balance of our assets (approximately $35,000) to Evergreen Education Foundation, after a small expense for the closure of the VCF legal entity. The funds will be allocated by Evergreen to fund the Solar Lamp project and future to-be-determined educational projects. Lastly, VCF Director Rodney Amen was accepted as a member of the Evergreen Board of Directors.

We want to express our deepest appreciations for your past generous support in providing the education needs of the children in rural China. The cause endures and the work goes on. We strongly encourage your continued support of rural Chinese education by supporting the Evergreen Education Foundation (青树教育基金会). (US Tax ID #68-0474814).

Donations can be sent to: Evergreen Education Foundation
•••••••••••••••••••••••••••P.O. Box 5131
•••••••••••••••••••••••••••Richmond, CA 94805
•••••••••••••••••••••••••••USA

Any questions you might have can be sent to
villagechildrensfund@gmail.com