SOME say. m i c r o c r e d i t e n t e r p r i s e s is a 501(c)(3) n o n-pr o f i t.

Transcription

1 SOME say nothing can be done about Global poverty. m i c r o c r e d i t e n t e r p r i s e s is a 501(c)(3) n o n-pr o f i t.

2 But nothing can go a long way. w e a r e a no t - f o r - p r o f i t t h a t is r e d u c i n g p o v e r t y w i t h l o a n g u a r a n t e e s n o t c a s h d o n a t i o n s. a lo a n g u a r a n t e e l e a v e s y o u r a s s e t s in y o u r o w n h a n d s, w h i l e e n a b l i n g n e i g h b o r h o o d l e n d e r s in d e v e l o p i n g c o u n t r i e s t o m a k e t h o u s a n d s o f t i n y l o a n s t o t h e m o s t i m p o v e r i s h e d. w h e n y o u b e c o m e a gu a r a n t o r w i t h u s, it c a n f e e l l i k e n o t h i n g ha p p e n e d t o y o u r p o r t f o l i o, b u t t h e p o s i t i v e i m p a c t is f e l t w o r l d w i d e. Gary Ford Pro Bono Chief Executive Officer, MicroCredit Enterprises

3 m i c r o c r e d i t e n t e r p r i s e s gu a r a n t o r m o d e l e n a b l e s m e t o u s e m y a s s e t s t o h e l p s o m e o f t h e p o o r e s t p e o p l e in t h e w o r l d w h i l e re taining a n d m a n a g i n g m y p o r t f o l i o. i am f o r t u n a t e t o b e a p a r t o f t h i s u n i q u e g r o u p o f individual s, w h o s e g e n e r o s i t y r e a c h e s s o m a n y p e o p l e w i t h s u c h i m p a c t. Gregory S. Ledford Managing Director, The Carlyle Group, Washington, DC Using an innovative financial model that mobilizes idle capital to guarantee loans, MicroCredit Enterprises builds on the success of microfinance as a proven international poverty reduction strategy to help those with the most extreme needs around the world. High-Impact Poverty Reduction MicroCredit Enterprises is uniquely focused on families living in remote areas and in extreme poverty often on $1 per day or less. We have reduced poverty for tens of thousands of the most impoverished women around the globe, ensuring food security for their children and sustainable futures for their families with a guarantee, not a check. Now, we want to reach millions of the world s poorest: with your help. Our private-sector program leverages passive capital of high net worth individuals and entities to make tiny loans to poor women in developing countries. Rather than focusing on donations, MicroCredit Enterprises uses a Guarantor s credit and financial strength to borrow money commercially to fund loans. Guarantors Make This Innovative Model Possible The MicroCredit Enterprises Guarantors are extraordinary people. From diverse backgrounds, they share a common goal: to use their good standing to leverage maximum good. The current Guarantors high net worth individuals, non-profit institutions, corporations and foundations provide over $40 million in guarantees. But our goals are higher: to find more like-minded individuals and institutions looking for an innovative model to reduce poverty. Without making a donation or a social investment, or moving funds to a special account, each Guarantor positively impacts 15,000 desperately poor people in the developing world. become a guarantor: impact thousands your guarantee = FOOD SECURITY FOR 15,000 PEOPLE This publication is made possible by the generosity of Hunter Douglas and the MicroCredit Enterprises Guarantors. 1

4 how microcredit enterprises works The Guarantors of MicroCredit Enterprises use their good credit ratings to provide capital to trustworthy, poor women to start and expand cottage businesses such as making soap, raising pigs and weaving. The Guarantee Starting with a guarantee of $1 million from each Guarantor, MicroCredit Enterprises borrows $500,000. The pool of guaranteed funds are then distributed in 15 countries across four continents. Our Priority: More Than Just a Loan MicroCredit Enterprises gives priority to the following: Reaching the rural poor. Providing the lowest interest rates possible. Supporting the whole person, by combining microfinance with health and human services, education, women s empowerment, financial literacy training and more. MicroCredit Enterprises is one of the only microfinance lenders that actively and aggressively score local lender applications for inclusion of health care and health education programs. Lean, Cost-Effective Operations Our organization is almost entirely composed of pro bono executives, and we maintain a virtual operation without traditional brick and mortar overhead costs. This allows MicroCredit Enterprises to keep its overhead extraordinarily low: Compared with other not-for-profits that run at 6% 12%, we run at just 3% of loans issued. a hi g h n e t w o r t h individual o r f o u n d a t i o n, w i t h o u t m o v i n g a n y m o n e y, c a n p r o v i d e a ha l f - m illion d o l l a r s wo r t h o f l e n d i n g t o t h e d e v e l o p i n g w o r l d. t h a t m e a n s a h a l f - m illion d o l l a r s g o i n g t o h a r d - w o r k i n g m i c r o - e n t r e p r e n e u r s a n d m i c r o - b o r r o w e r s w h o n e e d it m o s t. Dorothy Largay Founder and Chief Executive Officer, Linked Foundation 2

5 a s a gu a r a n t o r, i am d r a w n t o m i c r o c r e d i t e n t e r p r i s e s su c c e s s a t a c h i e v i n g a s l o w a n o v e r h e a d a s p o s s i b l e. in m y r o l e a s p r o b o n o c h i e f o p e r a t i n g o f f i c e r, it m e a n s e n s u r i n g w e c o n t i n u e t o p u t c a p i t a l o u t in t h e f i e l d t w o o r t h r e e t i m e s m o r e efficiently t h a n o t h e r s i m i l a r o r g a n i z a t i o n s. o u r g o a l is t o e n s u r e e a c h g u a r a n t e e is b e i n g e f f e c t i v e l y a n d efficiently m a n a g e d. William Way Pro Bono Chief Operating Officer, MicroCredit Enterprises Former Senior Partner, Accenture Minimizing Risk The MicroCredit Enterprises Board of Directors and Loan Committee are composed entirely of Guarantors, and our CEO and COO are both Guarantors. The poor women who are the beneficiaries of our loans are trustworthy and repay loans at a 97% rate. But MicroCredit Enterprises goes further to control the risk and exposure of its Guarantors with the following practices: Applying state-of-the-art due diligence to loan applicants. Spreading the risk of a default over the entire pool of Guarantors on an equitable, pro rata basis. In the event of an overseas financial loss, each Guarantor bears the loss on a tax-deductible basis (consult your tax advisor). Upon reaching its goal of 100 Guarantors, MicroCredit Enterprises will grow to a $100 million guarantee pool, translating to only a 1% risk exposure per Guarantor. Diversifying its loans worldwide and limiting its exposure in any one region of the world. Our Track Record Launched in 2006 with seven Guarantors, MicroCredit Enterprises now has over 40 Guarantors backing 42 loans to a portfolio of local finance organizations, providing food security for hundreds of thousands of women and children. During MicroCredit Enterprises' more than four years of operations spanning the 2008 financial crisis, our borrowers have a near-perfect record of repaying their loans. As we grow larger, we reach more people and minimize risk. Expanding Reach Minimizing Risk This publication is made possible by the generosity of Hunter Douglas and the MicroCredit Enterprises Guarantors. 3

6 helping women and families worldwide Women make up 88% of individual borrowers served by local banks in MicroCredit Enterprises portfolio. Accounting for 70% of the world s poor, women immediately use profits from their micro-businesses to feed, clothe and educate their children. They are also a driving force for community change once empowered, and have a higher repayment rate than men. MicroCredit Enterprises focuses its lending in rural areas because that is where the most isolated and desperately poor women reside. microcredit enterprises reaches the most impoverished in the most remote regions of the world. 4 Continents. 15 Countries. ARMENIA azerbaijan bolivia CAMBODIA ECUADOR GEORGIA HONDURAS INDONESIA KYRGYZSTAN MOZAMBIQUE NICARAGUA NIGERIA PERU TAJIKISTAN VIETNAM r e p r e s e n t i n g a f a m i l y f o u n d a t i o n c o m m i t t e d t o a l l e v i at i n g g l o b a l p o v e r t y, i w a s c o m p e l l e d b y m i c r o c r e d i t e n t e r p r i s e s c o m b i n a t i o n o f a n a l y t i c a l m i n d s a n d c o m p a s s i o n a t e h e a r t s. t h e i r m o d e l r e a c h e s h u n d r e d s o f t h o u s a n d s o f t h e w o r l d s p o o r e s t, g i v i n g t h e m a c c e s s t o c a p i t a l t o g r o w t h e i r b u s i n e s s e s a n d s u s t a i n t h e i r fam ilie s. Josh Kwan Director of International Giving, David Weekley Family Foundation 4

7 jasih s story indonesia Living on $1 per day by selling fried rice, Jasih struggled to feed her three children. With a $50 loan, she now also sells basic goods from her home, doubling her income and moving above the poverty line. dali s story georgia A mother of five with a small produce store, Dali was able to expand her inventory and buy in bulk with the support of a small loan. With new items, expanded inventory and displays in her stall, she is attracting more customers and creating a better future for her family. irma s story peru Irma, desperate to buy food for her children, began a crafts business to earn income. With coaching and financial support, she is now feeding her family and looking toward a brighter future. This publication is made possible by the generosity of Hunter Douglas and the MicroCredit Enterprises Guarantors. 5

8 GUARANTORS LIVES POSITIVELY IMPACTED nothing really can go a long way Backed by the financial stability and strength of a select group of individuals and organizations providing a financial guarantee rather than a donation, MicroCredit Enterprises is helping hundreds of thousands of the most impoverished worldwide to build family businesses and achieve food security. This publication is made possible by the generosity of Hunter Douglas and the MicroCredit Enterprise Guarantors. Help us reach our goal of 100 Guarantors. Photography courtesy of Robin Saidman, Bill Kizorek and Pro Mujer. m c e n t e r p r i s e s.or g m i c r o c r e d i t e n t e r p r i s e s is a 501(c)(3) n o n-pr o f i t.