• Sweat equity

• Almost impossible without a loan

• The majority world has little access to capital or collateral

• There is little security for any capital that does exist

• Loan sharks are the only option

http://www.youtube.com/watch?v=FZblPaIXiTs

Levels of Poverty

• Living on less than $1/day: 1.2 billion

• Living on $1-2/day: 1.6 billion

Women & Children

• The majority of those in poverty

• Have a more difficult time making money

• Exploitation of Children

• More than 100 million children are at risk of being stunted physically & mentally due to

malnutrition

• Most people are donors

• The hugeness of the nonprofit sector – 2 million registered in the U.S. alone!

• The $900 billion black hole

• Cycle of aid-driven poverty

• Intelligent giving

• Alternatives to harmful aid

• Giving cautiously

• Have a bottom line

• Measure success

• Support what works

• Have expectations

• Ask questions

• Define success

• Ask more questions

• Figure out your objectives

• Figure out indicators of results

• Investigate

• Proactive rather than reactive

• What about foreign aid?

• Appropriate technology over advanced techniques

• Take the “searcher” approach

• “Development pornography”

Microcredit

• Cash only

• Microenterprise

• Both physical & abstract benefits

Barefoot Banking

• The Mao Zedong model

• Much more relaxed than the typical image of a bank

• Called community or village banks

How It Works

• Central bank with branches

• Travelling bankers

• Weekly meeting & finance lessons

• Establishing trust is establishing dignity

Best Community Banks

• Small loans

• Small groups

• Short terms

• Frequent payments

• Potential future, larger loans

Interest

• Interest is critical to the sustainability of the microcredit organization

• Microcredit organizations are far safer, more honest, and cheaper than commonplace loan

sharks

• Decapitalizing the system will lead to failure

Savings

• Savings may be the only safety net for the poor

• Not always capital

• Revolutionary idea of getting paid to save

Microcredit Plus

• Lagniappe

• More than just the experts – it’s the people

• Hunger & Nutrition

• Business Training

• Medical Care

• Preserving the Environment

• Women

How to Put Your Money to Work

• Put it in an underdeveloped country

• Use for short terms – faster turnover rates, more people have access to the same

money

• Give with caution

The Downside

• Clients don’t always pay back

• Local corrupt governments, organizations & loan officers

• The poorest of the poor are not eligible for loans

• Donors must know their own personal and financial resources

Donor Options

• Give to grassroots organizations

• The MicroCredit Solutions Fund

• Give to an International Organization

• Give your Skills & Money

• Give Your Time Along with Everything Else

• Start a Microcredit Program

What’s in it for you?

• Investment return

• Power to change countless lives with a small amount of money

• Joy!

Where do I start?• MicroCredit Solutions Fund (www.genevalglobal.com)

• Microcredit Clearinghouse (www.microcreditclearinghouse.org)• ACCION International (www.accion.org)

• ASA (www.asabd.org)• CARE (www.care.org)

• Esperanza (www.esperanza.org)• FINCA International (www.villagebanking.org)

• Fonkoze (www.fonkoze.org)• Freedom from Hunger (www.freefromhunger.org)

• Grammen Bank (www.grameen-info.org)• HOPE International (www.hopeinternational.org)

• MEDA (www.meda.org)• Opportunity International (www.opportunity.org)

• SKS Microfinance (www.sksindia.com)• Unitus (www.unitus.com)

• Women’s World Banking (www.swwb.org)• World Concern (www.worldconcern.org)

• World Relief (www.wr.org)• World Vision (www.worldvision.org)

Meet Some Borrowers

CesielynFarming

Philippines

Maria JuanaAgriculture

Ecuador

Shanaz’s GroupAgriculture/Animal Sales

Pakistan