Microfinance
Providence International has matching fund agreements with five revolving loan agency affiliates around the world. All Providence microfinance donations are matched at least once by Providence’s partner affiliates, and often by foundations, trusts, and business partnerships as well. Recently, Providence received a $10,000 challenge grant from a Trust Fund that has given thousands of individuals and families the dignity of lifetime livelihoods through microfinance loans. Challenge grants like this with your gifts are now matched twice: once by the Trust, and once by our partner agencies' constituencies.
The Human Value
For Bertha, a single-mother living in Sub-Saharan Africa, a microfinance livelihood loan meant independence and freedom. In a community where loan sharks own the majority of food carts and produce, street vendors such as Bertha are often indentured servants for life. Yet, thanks to Providence International, Bertha now owns her own cart, and is able to buy her own produce from wholesalers, allowing her to feed her family, improve their diet, and educate her young, illustrating the human value of a microfinance loan.
Creating an Opportunity
For Moldova's Vasan Group a single $15,000 livelihood loan created an opportunity to operate a sausage factory with 28 employees earning nearly $536 apiece. In addition, a portion of the loan's interest supports a local orphanage.
Donor Contribution....................................$3,750
Providence Matching Grant.....................$3,750
Livelihood Loan + Bus Network..............$3,750
Total Revolving Capitalization..............$15,000
Multiplying Contributions
Your $100 contribution is multiplied at least twice by foundations and partner agencies. Deposited in a revolving loan fund, managed by one of Providence’s partner agencies, your $100 does the work of $400 each year: $100 x 2 = $200/six months or $400/year. Discounting 3% for unrepaid loans (bad debt), your $100 feeds approximately 39 five-person families or 200 family members. Over 10 years, your $100 contribution amounts to $4,000 at a rate of $0.52 per person or $2.56 per five-person family.
Cost Benefit
Conservative Cost to benefit Calculation: Your $100 feeds five to six persons per family or 40 families (240 people) over 10 years. Your cost per beneficiary is $0.42 cents per person or $2.52 per family. We call it optimal stewardship in an investment that will yield a generational life and game changing legacy. Livelihood micro-loans and savings programs give people the dignity of solving their own problems and having a future with hope.
Compelling Reasons
One of the most compelling reasons for being a Providence EndPovertyZone Champion is that your contribution is 100% reserved for the revolving loan funds that go on in perpetuity. Administrative and fundraising costs are covered by designated pledges and gifts of Providence Board of Directors and Advisory and our affiliate partners.
Worldwide Partnerships
Providence International works closely with partner agencies around the world to deliver microfinance livelihood loans to individuals and families living in poverty. Our partners include the following organizations: