Keeping what you have C E L MARCH/APRIL 2006 B) a type of savings account with a low minimum balance C) insurance policies designed for poor people who are vulnerable to catastrophic losses to the needs of the poor by providing microfinance programs that also offer: microsavings, microinsurance and remittances. A) small loans and business training for struggling entrepreneurs to start or expand a business Remittance program to support hardworking Filipinos. F) ALL OF THE ABOVE Microfinance is:
2 5 6 A s members of the Orphan Caring Group gather for their weekly Trust Bank meeting in Nsike, Uganda, they join together for more than loan repayments and business training. Of course, members want to build small businesses through loans from Opportunity International. But since they have joined together in order to care for 43 AIDS orphans, their concerns go far beyond merely business issues. Caring for orphans as well as one’s own family — in a country with as many challenges as Uganda — is an immense undertaking. It involves being concerned about everything related to life and health as well as growing a strong business. Credit alone cannot move poor entrepreneurs across the poverty line. More tools are needed. So these Trust Bank members are grateful that their relationship with Opportunity International goes beyond a series of loan cycles. The world’s poor have long been ignored by mainstream financial institutions and thought incapable of benefiting from choices that better- off consumers have. But Opportunity International has always been about economic, social and spiritual transformation of the whole person. By listening closely to clients to understand their needs, Opportunity has built upon its solid foundation to address long-term transformation in new ways. Opportunity’s vision is to create full-service microfinance banks that meet all the financial needs of impoverished entrepreneurs and their families. Opportunity has listened and has responded to the needs of the poor by providing microfinance programs that also offer: microsavings, microinsurance and remittances. MICROSAVINGS: Keeping what you have B asic money management begins with avoiding unnecessary expenses and then keeping what is left in a safe place. But poor people are frustrated by the hurdles of traditional banks’ minimum-balance requirements and onerous paperwork, as well as business hours and locations that are hopelessly out of touch with a poor person’s work day. Realistic alternatives are few and far It is estimated that 2.7 billion people live on less than $2 a day. (World Bank) A publication of Opportunity International www.opportunity.org Microfinance is .... Test your knowledge of microfinance by completing this sentence: Microfinance is: A) small loans and business training for struggling entrepreneurs to start or expand a business B) a type of savings account with a low minimum balance C) insurance policies designed for poor people who are vulnerable to catastrophic losses D) remittance services that allow migrant workers to send money home safely and economically E) self-help networks that empower poor entrepreneurs to create a better future for their families F) ALL OF THE ABOVE The correct answer is: F (continued on page 2) Much more than microcredit New approaches give new tools for fighting poverty Orphan Caring Group Trust Bank PHOTOGRAPH BY BRUCE STRONG 2 Security for Poor Families Microinsurance provides a safety net for poor families. 3 Money From Abroad Remittance program to support hardworking Filipinos. 5 The Power of Trust Banks Trust Banks provide economic, social and spiritual development. 6 A Week Focused on Family Family Week – global poverty insights for the whole family. IMPACT C E L E B R A T I N G Y E A R S Serving Poor F amilies with Microfinance I N S I D E MARCH/APRIL 2006
Transcript
WOMEN’S OPPORTUNITY FUND BOARD OF GOVERNORS
22
55
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As members of the Orphan Caring
Group gather for their weekly Trust
Bank meeting in Nsike, Uganda,
they join together for more than loan
repayments and business training. Of
course, members want to build small
businesses through loans from Opportunity
International. But since they have joined
together in order to care for 43 AIDS
orphans, their concerns go far beyond
merely business issues.
Caring for orphans as well as one’s
own family — in a country with as many
challenges as Uganda — is an immense
undertaking. It involves being
concerned about everything related to
life and health as well as growing a
strong business.
Credit alone cannot move poor
entrepreneurs across the poverty line.
More tools are needed. So these Trust
Bank members are grateful that their
relationship with Opportunity
International goes beyond a series of
loan cycles.
The world’s poor have long been ignored by
mainstream financial institutions and thought
incapable of benefiting from choices that better-
off consumers have. But Opportunity
International has always been about economic,
social and spiritual transformation of the whole
person. By listening closely to clients to
understand their needs, Opportunity has built
upon its solid foundation to address long-term
transformation in new ways. Opportunity’s
vision is to create full-service microfinance
banks that meet all the financial needs of
impoverished entrepreneurs and their families.
Opportunity has listened and has responded
to the needs of the poor by providing
microfinance programs that also offer:
microsavings, microinsurance and remittances.
MICROSAVINGS: Keeping what you have
Basic money management begins with
avoiding unnecessary expenses and then
keeping what is left in a safe place. But poor
people are frustrated by the hurdles of traditional
banks’ minimum-balance requirements and onerous
paperwork, as well as business hours and locations
that are hopelessly out of touch with a poor person’s
work day. Realistic alternatives are few and far
It is estimated that 2.7 billion people live on less than $2 a day. (World Bank)
A publication of Opportunity International
www.oppor tuni ty.org 6 www.oppor tuni ty.org
Every day, in thousands of locations
worldwide, Opportunity International helps
transform lives — economically, socially and
spiritually. This holistic transformation is a vital
component of Opportunity’s microfinance
programs — empowering clients to become
agents for their own freedom and growth. The
primary avenue for this transformation is the
Trust Bank. Each such gathering of
hardworking small-business owners combines
life and skill training with community-building,
in a way that miracles are possible:
• For the first time, a financial institution
extends trust to the hardworking poor. This
boosts their confidence in their own skills and
dreams. Thus empowered, clients grow their
businesses and diversify, improving their
standard of living and that of others.
• This growth brings personal dignity and
hope, as well as respect from relatives,
neighbors and community members.
• Respect increases as women clients take on
leadership roles that are typically relegated to
men in their culture: president or treasure of the
bank, as well as organizer of community activism.
Overall, Trust Banks offer peer support and
accountability, affirmation, and valuable training
for business as well as life to many who previously
had only an informal education and few
marketable skills. Trust Banks transform lives. ●
5 IMPACT | March/Apri l 2006
IMPACT is a bimonthly publication of
Opportunity International, 2122 York Road,
Suite 340, Oak Brook, IL 60523
800.793.9455 www.opportunity.org
EDITOR Laura Reilly
DESIGN & PRODUCTIONJourney Group, Inc.
THE OPPORTUNITY MISSION is to
provide opportunities for people in chronic
poverty to transform their lives.
OUR STRATEGY is to create jobs, stimulate
small businesses and strengthen
communities among the poor.
OUR METHOD is to work through
indigenous partner organizations that
provide small business loans, training and
counsel.
OPPORTUNITY INTERNATIONAL’SCOMMITMENT is motivated by Jesus
Christ’s call to serve the poor.
STATEMENT OF INTENT REGARDINGPOVERTY AND WOMEN Opportunity International–U.S. strives to
reach the world’s poorest people through its
microenterprise development programs.
Recognizing that the large majority of the
world’s poorest are women and that they
contribute decisively to the well-being of
their families, Opportunity makes it a
priority to support programs that serve the
particular needs of women.
OPPORTUNITY INTERNATIONALSERVES women and men of any faith and
no faith.
OPPORTUNITY INTERNATIONAL HASPARTNERS in Albania, Bulgaria, China,
the lives of their families as well. Often, clients are
the sole support of their children, siblings and
parents. Their business success ensures the health
and education of their loved ones.
In their wholehearted commitment to the
well-being of their families, Opportunity clients
are no different from Opportunity supporters.
Seven members of the Opportunity
International Board of Governors and their
families had a unique chance to experience
these similarities firsthand last June during the
Board of Governors Family Week Insight Trip.
For six days, seven families joined
Opportunity in Honduras for the vision trip of a
lifetime. Like other Opportunity Insight Trips,
this one involved meeting clients and their
families, visiting Trust Banks, and watching
transformation at work.
The trip was made unique by educational
components geared directly at young people and
families. After breaking the ice with an interactive
global village simulation that helped the entire
family visualize poverty, travelers visited an
elementary school to interact with clients’ children
and see their needs up close. They also took a
“poverty drive” through the communities where
clients and their families live, work and play.
Although most of the Opportunity Board of
Governor members and their children did not
speak Spanish, language barriers vanished as the
young people laughed and played together.
Board of Governor member Randy Haykin
traveled to Honduras with his 15-year-old
daughter, Elise. Watching her connect with the
children of Opportunity clients gave him a new
perspective on the impact of Opportunity’s work in
poor households. “The value of allowing families
to come was incredible,” Randy said, “and a huge
selling point for Opportunity donors — a chance to
educate their children while giving.”
Mike and Amy Macari had recently joined
Opportunity’s Board of Governors when they
traveled to Honduras with 17-year-old son,
Marshall, and 19-year-old daughter, Alison.
“You can never know the impact this trip had on
our family,” Mike said. Together, the Macaris
learned about poverty and gained a new
appreciation for the dignity and beauty of the
people Opportunity serves.
Opportunity staff members watched the week
unfold with enthusiasm. According to host and
director of the Board of Governors Wendy Cox,
“This was a trip that people will never forget —
an amazing experience for all.”
Learn more about the next Family Week,
coming up June 18-24, 2006, in Honduras. Share
with your children the passion you feel toward
transformation through Opportunity International.
Contact Wendy Cox, director of the Board of
Governors, at 800-793-9455 x4180. ●
For more information about the Women’s Opportunity Fund, visit www.womensopportunityfund.org
A “Family Week” they’ll never forget
Microfinance is....Test your knowledge of microfinanceby completing this sentence:
Microfinance is:
A) small loans and business training forstruggling entrepreneurs to start orexpand a business
B) a type of savings account with a lowminimum balance
C) insurance policies designed for poorpeople who are vulnerable tocatastrophic losses
D) remittance services that allowmigrant workers to send money homesafely and economically
E) self-help networks that empowerpoor entrepreneurs to create a betterfuture for their families
F) ALL OF THE ABOVE
The correct answer is: F
For more information about the Board of Governors, visit www.opportunity.org/BOG
“We make a living by what we get,
we make a life by what we give.”
- Sir Winston Churchill
Since Opportunity International’sinception in 1971, its work hasbeen funded in large part by the
generosity of individuals whose charitablegifts have transformed not only their ownlives, but also those of countless poorfamilies in the developing world.
And throughout its history, the vastmajority of charitable gifts toOpportunity have been made in the formof cash. But Opportunity’s board ofdirectors has determined that in order toachieve the aggressive goals that it hasset for reaching 2 million poorentrepreneurs a year by 2010, it mustencourage charitable gifts of all types,especially the giving arrangements thatprovide the greatest tax benefits to itssupporters.
Therefore, Opportunity now accepts,along with cash, gifts of publicly tradedsecurities, closely held stock, real estateof all types, life insurance, and personalproperty such as artwork and collectibles.In addition, Opportunity provides donorswith expertise in the full array of“planned gifts,” including gifts throughone’s will or living trust, gifts of IRAassets, and the giving arrangements thatprovide lifetime income back to thedonor, such as charitable gift annuitiesand charitable remainder trusts.
It is through these gifts that the poorwill be served for decades to come, andcountless more lives transformed alongthe way.
For more information about benefitingfrom planned gifts, contact Chuck Day,director of Planned Giving, at (800) 793-9455, x4136. Or go to www.opportunity.orgunder “Give Now/ Planned Giving.”
Changing times, changing needs
Elise Haykin, right, daughter of Board of Governormember Randy Haykin
Francis Gutierrez, loan officer, provides training at the Building for a Future Trust Bank meeting.
(continued on page 2)
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Much more than microcreditNew approaches give new tools for fighting poverty
Transformation through Trust Banks
I N S I G H T T R I P 2 0 0 6 C A L E N D A R
Partners with the Poor Insight Trip to Nicaragua May 21-25, 2006Governors Family Week, Honduras June 18-24, 2006Governors Insight Trip to Ghana September 8-16, 2006
For more information, contact Wendy Cox at 800-793-9455 x4180
Do you know a marketing or sales professional with a heart for the poor? Would thisperson like to use his or her expertise to make a difference in the world?
Below is a list of positions available at Opportunity International:
•Controller (Oak Brook, Ill.)•Director of Marketing – Major Gifts Fundraiser (Los Angeles, Calif.)•Director of Marketing – Major Gifts Fundraiser (Phoenix, Ariz.)•Program Officer (Oak Brook, Ill.)•Private Funding Projects Manager (Oak Brook, Ill.)
For full job descriptions, visit our Web site (www.opportunity.org) under “Get Involved.”
Employment Opportunities
Orphan Caring Group Trust Bank
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2 Security for Poor FamiliesMicroinsurance provides
a safety net for poor families.
3 Money From AbroadRemittance program to support
hardworking Filipinos.
5 The Power of Trust BanksTrust Banks provide economic,
social and spiritual development.
6 A Week Focused on FamilyFamily Week – global poverty
insights for the whole family.
IMPACT
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Serving Poor Families with Microfinance
I N S I D E
MARCH/APRIL 2006
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more than $10 billion of remittances funds in
2005, representing 10.5% of GDP.
The program is now available to customers of
Opportunity’s three largest programs in the
Philippines, serving nearly 330,000 clients. The
product is also available to any interested
Filipino family, including those affiliated with
other microfinance institutions. “The
Opportunity Card represents a major step in our
work to address the needs of the poor,” said
David Stiller, Opportunity International
Network board chair.
A key feature of this remittance product is its
www.oppor tuni ty.org 3
From the CEO’s desk BIOMETRICS: Automated methods of
recognizing a person based on a physiological
or behavioral characteristic, such as face,
fingerprints, hand geometry, handwriting, iris,
retina, vein and voice. Opportunity uses
biometric technology as a secure identification
and personal verification solution.
CLIENT IMPACT MONITORING SYSTEM(CIMS): Using a simple survey, CIMS
enables Opportunity’s programs to gather
information about its clients to assess the
transformational impact that microfinance is
having on their lives.
CONSULTATIVE GROUP TO ASSIST THEPOOR (CGAP): A consortium of 31 public
and private development agencies working
together to expand access to financial
services for the poor in developing countries.
CGAP is housed at the World Bank but
operates as an independent entity.
FINANCIAL SUSTAINABILITY: The ability
of a microfinance institution (MFI) to cover its
lending expenses and its cost of capital, usually
expressed as a percent. Financial Sustainability
takes into account the cost of the funds that it
lends to customers as if they were obtained
from commercial sources, rather than grants or
government subsidies. When this ratio exceeds
one hundred percent, the organization is
earning a surplus and is able to grow.
FORMAL FINANCIAL INSTITUTION(FFI): A microfinance institution (MFI) that
is for-profit and is supervised by a central
government agency such as a superintendent
of banks. Supervision and regulation usually
entail a minimum capital requirement,
adherence to set standards in areas of risk
management and auditing, and strict
reporting procedures.
GROUP LENDING METHODOLOGY:Opportunity International’s Trust Bank model
offers small business loans, training and
other financial services to 15-40 members of
a group who cross-guarantee each other’s
loans. If an individual member defaults on his
or her loan, the other members of the group
are required to cover the shortfall.
MICROFINANCE INSTITUTION (MFI): An
NGO or for-profit organization that provides
credit and other financial services to the poor.
LOAN SHARK: Moneylenders who lend
money to individuals at exorbitant rates of
interest. These rates can be as much as 10 to
15 percent per day, with annual rates running
as high as 2,000 percent. In some poor
communities this is the only source of
borrowed funds.
NONGOVERNMENTAL ORGANIZATION(NGO): Similar to a nonprofit organization in
the United States. International NGOs such
as Opportunity International may be further
identified as “INGOs.”
OPERATIONAL SUSTAINABILITY:The ability of the MFI to cover its lending
expenses with the income earned by its lending
operations, usually expressed as a percent. At
one hundred percent, the organization earns
from lending money exactly what it spends.
This calculation does not take into account
inflation nor the cost to borrow the money that
it lends at market interest rates.
PORTFOLIO AT RISK (PAR): The outstanding
balance of loans with at least one payment
overdue by the specified number of days.
PORTFOLIO IN ARREARS: The total value
of loan payments that are overdue by the
specified number of days.
TRANSFORMATION: The holistic change in
the life of the client encompassing economic,
social and spiritual factors.
UNITED STATES AGENCY FORINTERNATIONAL DEVELOPMENT(USAID): The main federal government
agency that extends assistance to countries
recovering from disaster, trying to escape
poverty and engaging in democratic reforms.
Opportunity International receives funding
from USAID for its programs.
WORKING CAPITAL: Current assets (cash,
inventory, etc) of a business enterprise that
can be applied to fund its operations. The
difference between a firm’s current assets and
current liabilities is its working capital.
Entrepreneurs who do not have enough cash
(current assets) to pay their obligations to
vendors who supply raw materials for their
business (current liabilities) may borrow these
funds on a temporary basis and repay the loan
when inventory is sold (working capital loan).
A guide to microfinance terminology
www.oppor tuni ty.org 42 IMPACT | March/Apri l 2006
More than loans (continued from page 1)
between, whether clients live in urban slums or
remote villages. For far too many, a savings account
is a spot under the mattress or a hole dug outside,
and their savings are too easily lost to desperate
neighbors, dishonest relatives or thieves.
Poor people need a safe, simple way to save
for lifecycle needs, emergencies, businesses and
opportunities.
For many impoverished people, accessing
financial services is impeded by their inability to
prove who they are. In addition to not being able
to read, many poor people do not have a proper
birth certificate and a driver’s license or
passport can be too expensive.
Today, however, lack of identity and illiteracy
are no longer barriers for many Opportunity
clients. Thanks to technological advancements
such as biometric “fingerprint” technology, poor
people can identify themselves using their
fingerprint embedded in a credit-card-sized
identification card. This “smart card” is
scanned at the local microfinance bank to give
poor people the ability to make financial
transactions and keep their money safe.
Opportunity clients have access to technological
advancements that do not exist at a typical
American bank. For example, a client in Malawi
can place a finger on a specially designed keypad
that reads fingerprints and automatically brings up
account information on a teller’s screen.
By combining high-tech solutions with
savings programs already in place, Opportunity
clients finally have a path toward a more
secure future.
MICROINSURANCE:Stability in times of crisis
Some 80 percent of people in the
developing world work in the informal
economy without the social safety net
provided by traditional employment. Without
the stability and benefits familiar to most
workers in the United States, the world’s poor
are especially vulnerable to hazards outside
their control, such as death or natural disaster.
Catastrophic losses are disturbing for any
business, but for poor entrepreneurs, they can
wipe out a lifetime of work, leaving them
without help and without hope.
This is why loans for microenterprise
development are not always enough to fuel a
permanent escape from poverty. Credit enables
poor entrepreneurs to generate income, but —
as seen in the tragic aftermath of the Asian
tsunami in 2004 — they are vulnerable to
disastrous events that eliminate that source of
income. Without tools to minimize these risks,
many impoverished families fall into still deeper
poverty when crises strike.
Microinsurance can mitigate financial shocks
to poor households, yet it is still a largely
untapped market in the developing world. Of the
2.7 billion people who live on less than $2 a day,
fewer than 10 million currently have access to
insurance — says the Munich Re Foundation,
the charitable arm of Munich Re Group, one of
the world’s largest reinsurers and the second-
largest primary insurer in Germany.
Opportunity International is emerging as the
leading global provider of insurance to
microentrepreneurs, helping the poor build a
more secure future. Currently, policies cover
CHRISTOPHER A. CRANE President &Chief Executive Officer
more than 2.6 million people in Ghana, Malawi,
Uganda, Zambia, Zimbabwe, Colombia, Mexico,
West Timor and the Philippines.
Responding to the tremendous need created by
the HIV/AIDS pandemic, Opportunity’s programs
in Africa provide coverage for death following
AIDS. With this help, those left behind can begin
to rebuild their lives. Opportunity’s microinsurance
products help poor families other ways:
Philippines: Clients invest a relatively small
amount for a great deal of security: One dollar
per month for life insurance provides a benefit of
$2,000 if the client dies, $1,000 if a spouse dies
and $500 for each child.
Mexico: A client’s loan is cleared upon her
death so that the family is not burdened with the
repayment of debt on top of their loss.
Uganda: A client who loses a business to a
disaster does not lose everything. Insurance
covering both life and property helps the client
rebuild a source of income.
Opportunity has committed to establishing
dedicated insurance brokerages for the poor that
will provide access to many more low-income
clients and a wider range of products. The first
local agency was established in Uganda, which
will work with multiple microfinance
organizations, unions, cooperatives and church
groups to extend affordable life and healthcare
insurance to more than 1 million people over the
next two years.
REMITTANCES: Fueling local economies from afar
The hidden engine of development around
the world is the personal passion and
hard work of poor people who leave their
borders in search of steady work. They invest
that passion abroad and then send funds home
for their families. Poor households use this
money for basic needs such as food, education
and health care. According to the United
Kingdom’s Department for International
Development, remittances through formal
channels exceeded $250 billion in 2005, with at
least the same estimated amount sent through
informal channels. Remittances are a major
source of cash flow for households that receive
them, accounting for as much as half of their
annual income.
Opportunity International desires to help
these dispersed workers send as much of their
pay home as they can, avoiding the loss of large
portions of it in exorbitant fees. Therefore,
Opportunity and HSBC, the world’s second-
largest bank, are piloting a groundbreaking
project — the Opportunity Card in the
Philippines. Filipino workers in the U.S. are
able to transfer funds from a bank account or
credit card to an ATM card. Beneficiaries in the
Philippines with an Opportunity Card can then
withdraw the funds from any of 3,000 ATMs
nationwide that are linked to Cirrus® or
MasterCard®. The Philippines benefited from
Clients make loan repayments, insurance payments and savings deposits during their weekly Trust Bank meetings.
The news from Malawi lately has beenuniversally bad. Already one of the poorestnations on earth, this sliver of a country insoutheastern Africa has been hard hit by adrought that has resulted in widespread foodshortages. Hunger, HIV/AIDS and povertyhave wreaked havoc on this nation of 12million, with many children now sufferingfrom the effects of all three.
A glimmer of hope has emerged,however, in the form of a weather-insuranceproduct that could help improve the lives ofthousands of Malawians.
A new pilot program developed byOpportunity International and the WorldBank aims to help Malawi’s small groundnutfarmers access agricultural loans paired withdrought coverage, boosting their ability torecover from weather-related shocks. “Theinsurance will help farmers obtain thefinancing necessary to obtain certified seeds,which produce increased yields and revenues[and have] greater resistance to disease,”the World Bank said in a statement.
Previously, banks were not willing to lendto farmers, mainly due to the risk ofnonpayment if there were a drought thatdestroyed their crops. Farmers could notafford to purchase superior, certified seed
Weather insurance offers hope in Malawiwithout financing. So their only option wasseed that fared poorly against drought anddisease. Now, because of the new insurance,farmers’ creditworthiness increases, andthey are able to borrow to purchase thecertified seed.
“Opportunity International has enjoyedproviding technical insurance expertise andproject-management skills to the verysuccessful test pilot in Malawi,” saysChristopher Crane, president and CEO,Opportunity International. “We lookforward to a continued relationship with theWorld Bank and hope to extend this offeringto other countries in Africa and beyond.
One of the most appealing aspects of thisprogram is that it proactively addressesMalawi’s chronic food shortages in a waythat encourages self-sustainability. As UlrichHess, senior economist of the World Bank,confirms, “This unsubsidized transactionshows that sustainable development canhappen when the right technology meets theright people supported by the right technicalassistance.”
For more information, visit
www.opportunity.org under “Media Center/
Press Releases.”
The power of microcredit has been
proven again and again in the lives of
hundreds of thousands of clients around
the world for three-and-a-half decades.
Small loans at market interest rates have
ignited the entrepreneurial power and
initiated the transformation of countless
lives. But microcredit alone is not enough.
At Opportunity International, we are
committed to staying true to the heritage
of innovation that has always marked our
organization. That’s why we are
pioneering efforts to provide savings,
insurance and remittance programs, both
for our clients and for poor families
throughout the developing world. With
these enhanced microfinance services,
we are overcoming yet another barrier to
the economic, social and spiritual
transformation of impoverished people
throughout the world.
Thank you for your faithful and shared
vision in serving the poor in such
powerful ways through the work of
Opportunity International.
competitive pricing. With conventional means of
sending money, fees can go as high as 20
percent. By charging the sender $6.95 for bank-
account transfers and $7.95 for credit-card
transfers, the Opportunity Card offers one of the
lowest-priced remittance services around. It is
also one of the fastest ways of sending money:
When transferring from a credit card,
beneficiaries can get their funds in a matter of
minutes. Linking remittances with other
microfinance services offers the opportunity for
the recipients to use the funds they receive for
their businesses and investments.
BEYOND THE LOAN
A t each meeting of the Orphan Caring
Group Trust Bank in Uganda, loan
repayments also include small savings
deposits and microinsurance payments. As
Opportunity’s microfinance offerings continue to
expand, so will the ability to serve people like
the members of the Orphan Caring Group, as
well as the children under their care.
The modern microfinance movement is built
on the simple truth that lacking capital is a
business challenge, not a character issue. In
fact, the daily realities of poverty in the
developing world often develop the kinds of
skills — such as strong work ethic, practical
focus and thrift — that are essential for
success as an entrepreneur. With access to
small loans, poor entrepreneurs can begin the
process of building better lives for themselves
and their families.
As it was 35 years ago, Opportunity
International is again a pioneer, bringing new
approaches and new tools into the battle against
world poverty — and the ongoing transformation
of poor families throughout the world. ●
“Poor people can save and want tosave, and when they do not save it isbecause of lack of opportunity ratherthan lack of capacity.”
— S T U A R T R U T H E R F O R D The Poor and Their Money
“We cannot stop natural calamities,but we can and must better equipindividuals and communities towithstand them. Those most vulnerableto nature’s wrath are usually thepoorest, which means that when wereduce poverty, we also reducevulnerability.”
— U . N . S E C R E TA R Y G E N E R A L K O F I A N N A N
“In 2004, recorded remittances werethe second largest source of externalfinancing in developing countries,after foreign direct investment, andamounted to more than twice the size ofofficial aid.”
— D I L I P R AT H A , SENIOR ECONOMIST, WORLD BANK
“We believe that to help people withtheir businesses is wonderful. They’llincrease their own incomes for theirfamilies, and they’ll create jobs fortheir neighbors. But we have a uniquechance to then add two more types ofcapital to their lives. We’re addingwhat we call social and spiritual capitalinto the mix when we get peopletogether on a weekly basis.”
— Dennis Ripley, senior vice president
for programs, Opportunity International
Holistic TransformationThe power of OpportunityInternational Trust Banks
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more than $10 billion of remittances funds in
2005, representing 10.5% of GDP.
The program is now available to customers of
Opportunity’s three largest programs in the
Philippines, serving nearly 330,000 clients. The
product is also available to any interested
Filipino family, including those affiliated with
other microfinance institutions. “The
Opportunity Card represents a major step in our
work to address the needs of the poor,” said
David Stiller, Opportunity International
Network board chair.
A key feature of this remittance product is its
www.oppor tuni ty.org 3
From the CEO’s desk BIOMETRICS: Automated methods of
recognizing a person based on a physiological
or behavioral characteristic, such as face,
fingerprints, hand geometry, handwriting, iris,
retina, vein and voice. Opportunity uses
biometric technology as a secure identification
and personal verification solution.
CLIENT IMPACT MONITORING SYSTEM(CIMS): Using a simple survey, CIMS
enables Opportunity’s programs to gather
information about its clients to assess the
transformational impact that microfinance is
having on their lives.
CONSULTATIVE GROUP TO ASSIST THEPOOR (CGAP): A consortium of 31 public
and private development agencies working
together to expand access to financial
services for the poor in developing countries.
CGAP is housed at the World Bank but
operates as an independent entity.
FINANCIAL SUSTAINABILITY: The ability
of a microfinance institution (MFI) to cover its
lending expenses and its cost of capital, usually
expressed as a percent. Financial Sustainability
takes into account the cost of the funds that it
lends to customers as if they were obtained
from commercial sources, rather than grants or
government subsidies. When this ratio exceeds
one hundred percent, the organization is
earning a surplus and is able to grow.
FORMAL FINANCIAL INSTITUTION(FFI): A microfinance institution (MFI) that
is for-profit and is supervised by a central
government agency such as a superintendent
of banks. Supervision and regulation usually
entail a minimum capital requirement,
adherence to set standards in areas of risk
management and auditing, and strict
reporting procedures.
GROUP LENDING METHODOLOGY:Opportunity International’s Trust Bank model
offers small business loans, training and
other financial services to 15-40 members of
a group who cross-guarantee each other’s
loans. If an individual member defaults on his
or her loan, the other members of the group
are required to cover the shortfall.
MICROFINANCE INSTITUTION (MFI): An
NGO or for-profit organization that provides
credit and other financial services to the poor.
LOAN SHARK: Moneylenders who lend
money to individuals at exorbitant rates of
interest. These rates can be as much as 10 to
15 percent per day, with annual rates running
as high as 2,000 percent. In some poor
communities this is the only source of
borrowed funds.
NONGOVERNMENTAL ORGANIZATION(NGO): Similar to a nonprofit organization in
the United States. International NGOs such
as Opportunity International may be further
identified as “INGOs.”
OPERATIONAL SUSTAINABILITY:The ability of the MFI to cover its lending
expenses with the income earned by its lending
operations, usually expressed as a percent. At
one hundred percent, the organization earns
from lending money exactly what it spends.
This calculation does not take into account
inflation nor the cost to borrow the money that
it lends at market interest rates.
PORTFOLIO AT RISK (PAR): The outstanding
balance of loans with at least one payment
overdue by the specified number of days.
PORTFOLIO IN ARREARS: The total value
of loan payments that are overdue by the
specified number of days.
TRANSFORMATION: The holistic change in
the life of the client encompassing economic,
social and spiritual factors.
UNITED STATES AGENCY FORINTERNATIONAL DEVELOPMENT(USAID): The main federal government
agency that extends assistance to countries
recovering from disaster, trying to escape
poverty and engaging in democratic reforms.
Opportunity International receives funding
from USAID for its programs.
WORKING CAPITAL: Current assets (cash,
inventory, etc) of a business enterprise that
can be applied to fund its operations. The
difference between a firm’s current assets and
current liabilities is its working capital.
Entrepreneurs who do not have enough cash
(current assets) to pay their obligations to
vendors who supply raw materials for their
business (current liabilities) may borrow these
funds on a temporary basis and repay the loan
when inventory is sold (working capital loan).
A guide to microfinance terminology
www.oppor tuni ty.org 42 IMPACT | March/Apri l 2006
More than loans (continued from page 1)
between, whether clients live in urban slums or
remote villages. For far too many, a savings account
is a spot under the mattress or a hole dug outside,
and their savings are too easily lost to desperate
neighbors, dishonest relatives or thieves.
Poor people need a safe, simple way to save
for lifecycle needs, emergencies, businesses and
opportunities.
For many impoverished people, accessing
financial services is impeded by their inability to
prove who they are. In addition to not being able
to read, many poor people do not have a proper
birth certificate and a driver’s license or
passport can be too expensive.
Today, however, lack of identity and illiteracy
are no longer barriers for many Opportunity
clients. Thanks to technological advancements
such as biometric “fingerprint” technology, poor
people can identify themselves using their
fingerprint embedded in a credit-card-sized
identification card. This “smart card” is
scanned at the local microfinance bank to give
poor people the ability to make financial
transactions and keep their money safe.
Opportunity clients have access to technological
advancements that do not exist at a typical
American bank. For example, a client in Malawi
can place a finger on a specially designed keypad
that reads fingerprints and automatically brings up
account information on a teller’s screen.
By combining high-tech solutions with
savings programs already in place, Opportunity
clients finally have a path toward a more
secure future.
MICROINSURANCE:Stability in times of crisis
Some 80 percent of people in the
developing world work in the informal
economy without the social safety net
provided by traditional employment. Without
the stability and benefits familiar to most
workers in the United States, the world’s poor
are especially vulnerable to hazards outside
their control, such as death or natural disaster.
Catastrophic losses are disturbing for any
business, but for poor entrepreneurs, they can
wipe out a lifetime of work, leaving them
without help and without hope.
This is why loans for microenterprise
development are not always enough to fuel a
permanent escape from poverty. Credit enables
poor entrepreneurs to generate income, but —
as seen in the tragic aftermath of the Asian
tsunami in 2004 — they are vulnerable to
disastrous events that eliminate that source of
income. Without tools to minimize these risks,
many impoverished families fall into still deeper
poverty when crises strike.
Microinsurance can mitigate financial shocks
to poor households, yet it is still a largely
untapped market in the developing world. Of the
2.7 billion people who live on less than $2 a day,
fewer than 10 million currently have access to
insurance — says the Munich Re Foundation,
the charitable arm of Munich Re Group, one of
the world’s largest reinsurers and the second-
largest primary insurer in Germany.
Opportunity International is emerging as the
leading global provider of insurance to
microentrepreneurs, helping the poor build a
more secure future. Currently, policies cover
CHRISTOPHER A. CRANE President &Chief Executive Officer
more than 2.6 million people in Ghana, Malawi,
Uganda, Zambia, Zimbabwe, Colombia, Mexico,
West Timor and the Philippines.
Responding to the tremendous need created by
the HIV/AIDS pandemic, Opportunity’s programs
in Africa provide coverage for death following
AIDS. With this help, those left behind can begin
to rebuild their lives. Opportunity’s microinsurance
products help poor families other ways:
Philippines: Clients invest a relatively small
amount for a great deal of security: One dollar
per month for life insurance provides a benefit of
$2,000 if the client dies, $1,000 if a spouse dies
and $500 for each child.
Mexico: A client’s loan is cleared upon her
death so that the family is not burdened with the
repayment of debt on top of their loss.
Uganda: A client who loses a business to a
disaster does not lose everything. Insurance
covering both life and property helps the client
rebuild a source of income.
Opportunity has committed to establishing
dedicated insurance brokerages for the poor that
will provide access to many more low-income
clients and a wider range of products. The first
local agency was established in Uganda, which
will work with multiple microfinance
organizations, unions, cooperatives and church
groups to extend affordable life and healthcare
insurance to more than 1 million people over the
next two years.
REMITTANCES: Fueling local economies from afar
The hidden engine of development around
the world is the personal passion and
hard work of poor people who leave their
borders in search of steady work. They invest
that passion abroad and then send funds home
for their families. Poor households use this
money for basic needs such as food, education
and health care. According to the United
Kingdom’s Department for International
Development, remittances through formal
channels exceeded $250 billion in 2005, with at
least the same estimated amount sent through
informal channels. Remittances are a major
source of cash flow for households that receive
them, accounting for as much as half of their
annual income.
Opportunity International desires to help
these dispersed workers send as much of their
pay home as they can, avoiding the loss of large
portions of it in exorbitant fees. Therefore,
Opportunity and HSBC, the world’s second-
largest bank, are piloting a groundbreaking
project — the Opportunity Card in the
Philippines. Filipino workers in the U.S. are
able to transfer funds from a bank account or
credit card to an ATM card. Beneficiaries in the
Philippines with an Opportunity Card can then
withdraw the funds from any of 3,000 ATMs
nationwide that are linked to Cirrus® or
MasterCard®. The Philippines benefited from
Clients make loan repayments, insurance payments and savings deposits during their weekly Trust Bank meetings.
The news from Malawi lately has beenuniversally bad. Already one of the poorestnations on earth, this sliver of a country insoutheastern Africa has been hard hit by adrought that has resulted in widespread foodshortages. Hunger, HIV/AIDS and povertyhave wreaked havoc on this nation of 12million, with many children now sufferingfrom the effects of all three.
A glimmer of hope has emerged,however, in the form of a weather-insuranceproduct that could help improve the lives ofthousands of Malawians.
A new pilot program developed byOpportunity International and the WorldBank aims to help Malawi’s small groundnutfarmers access agricultural loans paired withdrought coverage, boosting their ability torecover from weather-related shocks. “Theinsurance will help farmers obtain thefinancing necessary to obtain certified seeds,which produce increased yields and revenues[and have] greater resistance to disease,”the World Bank said in a statement.
Previously, banks were not willing to lendto farmers, mainly due to the risk ofnonpayment if there were a drought thatdestroyed their crops. Farmers could notafford to purchase superior, certified seed
Weather insurance offers hope in Malawiwithout financing. So their only option wasseed that fared poorly against drought anddisease. Now, because of the new insurance,farmers’ creditworthiness increases, andthey are able to borrow to purchase thecertified seed.
“Opportunity International has enjoyedproviding technical insurance expertise andproject-management skills to the verysuccessful test pilot in Malawi,” saysChristopher Crane, president and CEO,Opportunity International. “We lookforward to a continued relationship with theWorld Bank and hope to extend this offeringto other countries in Africa and beyond.
One of the most appealing aspects of thisprogram is that it proactively addressesMalawi’s chronic food shortages in a waythat encourages self-sustainability. As UlrichHess, senior economist of the World Bank,confirms, “This unsubsidized transactionshows that sustainable development canhappen when the right technology meets theright people supported by the right technicalassistance.”
For more information, visit
www.opportunity.org under “Media Center/
Press Releases.”
The power of microcredit has been
proven again and again in the lives of
hundreds of thousands of clients around
the world for three-and-a-half decades.
Small loans at market interest rates have
ignited the entrepreneurial power and
initiated the transformation of countless
lives. But microcredit alone is not enough.
At Opportunity International, we are
committed to staying true to the heritage
of innovation that has always marked our
organization. That’s why we are
pioneering efforts to provide savings,
insurance and remittance programs, both
for our clients and for poor families
throughout the developing world. With
these enhanced microfinance services,
we are overcoming yet another barrier to
the economic, social and spiritual
transformation of impoverished people
throughout the world.
Thank you for your faithful and shared
vision in serving the poor in such
powerful ways through the work of
Opportunity International.
competitive pricing. With conventional means of
sending money, fees can go as high as 20
percent. By charging the sender $6.95 for bank-
account transfers and $7.95 for credit-card
transfers, the Opportunity Card offers one of the
lowest-priced remittance services around. It is
also one of the fastest ways of sending money:
When transferring from a credit card,
beneficiaries can get their funds in a matter of
minutes. Linking remittances with other
microfinance services offers the opportunity for
the recipients to use the funds they receive for
their businesses and investments.
BEYOND THE LOAN
A t each meeting of the Orphan Caring
Group Trust Bank in Uganda, loan
repayments also include small savings
deposits and microinsurance payments. As
Opportunity’s microfinance offerings continue to
expand, so will the ability to serve people like
the members of the Orphan Caring Group, as
well as the children under their care.
The modern microfinance movement is built
on the simple truth that lacking capital is a
business challenge, not a character issue. In
fact, the daily realities of poverty in the
developing world often develop the kinds of
skills — such as strong work ethic, practical
focus and thrift — that are essential for
success as an entrepreneur. With access to
small loans, poor entrepreneurs can begin the
process of building better lives for themselves
and their families.
As it was 35 years ago, Opportunity
International is again a pioneer, bringing new
approaches and new tools into the battle against
world poverty — and the ongoing transformation
of poor families throughout the world. ●
“Poor people can save and want tosave, and when they do not save it isbecause of lack of opportunity ratherthan lack of capacity.”
— S T U A R T R U T H E R F O R D The Poor and Their Money
“We cannot stop natural calamities,but we can and must better equipindividuals and communities towithstand them. Those most vulnerableto nature’s wrath are usually thepoorest, which means that when wereduce poverty, we also reducevulnerability.”
— U . N . S E C R E TA R Y G E N E R A L K O F I A N N A N
“In 2004, recorded remittances werethe second largest source of externalfinancing in developing countries,after foreign direct investment, andamounted to more than twice the size ofofficial aid.”
— D I L I P R AT H A , SENIOR ECONOMIST, WORLD BANK
“We believe that to help people withtheir businesses is wonderful. They’llincrease their own incomes for theirfamilies, and they’ll create jobs fortheir neighbors. But we have a uniquechance to then add two more types ofcapital to their lives. We’re addingwhat we call social and spiritual capitalinto the mix when we get peopletogether on a weekly basis.”
— Dennis Ripley, senior vice president
for programs, Opportunity International
Holistic TransformationThe power of OpportunityInternational Trust Banks
PH
OT
OG
RA
PH
BY
RO
N L
ON
DE
N
more than $10 billion of remittances funds in
2005, representing 10.5% of GDP.
The program is now available to customers of
Opportunity’s three largest programs in the
Philippines, serving nearly 330,000 clients. The
product is also available to any interested
Filipino family, including those affiliated with
other microfinance institutions. “The
Opportunity Card represents a major step in our
work to address the needs of the poor,” said
David Stiller, Opportunity International
Network board chair.
A key feature of this remittance product is its
www.oppor tuni ty.org 3
From the CEO’s desk BIOMETRICS: Automated methods of
recognizing a person based on a physiological
or behavioral characteristic, such as face,
fingerprints, hand geometry, handwriting, iris,
retina, vein and voice. Opportunity uses
biometric technology as a secure identification
and personal verification solution.
CLIENT IMPACT MONITORING SYSTEM(CIMS): Using a simple survey, CIMS
enables Opportunity’s programs to gather
information about its clients to assess the
transformational impact that microfinance is
having on their lives.
CONSULTATIVE GROUP TO ASSIST THEPOOR (CGAP): A consortium of 31 public
and private development agencies working
together to expand access to financial
services for the poor in developing countries.
CGAP is housed at the World Bank but
operates as an independent entity.
FINANCIAL SUSTAINABILITY: The ability
of a microfinance institution (MFI) to cover its
lending expenses and its cost of capital, usually
expressed as a percent. Financial Sustainability
takes into account the cost of the funds that it
lends to customers as if they were obtained
from commercial sources, rather than grants or
government subsidies. When this ratio exceeds
one hundred percent, the organization is
earning a surplus and is able to grow.
FORMAL FINANCIAL INSTITUTION(FFI): A microfinance institution (MFI) that
is for-profit and is supervised by a central
government agency such as a superintendent
of banks. Supervision and regulation usually
entail a minimum capital requirement,
adherence to set standards in areas of risk
management and auditing, and strict
reporting procedures.
GROUP LENDING METHODOLOGY:Opportunity International’s Trust Bank model
offers small business loans, training and
other financial services to 15-40 members of
a group who cross-guarantee each other’s
loans. If an individual member defaults on his
or her loan, the other members of the group
are required to cover the shortfall.
MICROFINANCE INSTITUTION (MFI): An
NGO or for-profit organization that provides
credit and other financial services to the poor.
LOAN SHARK: Moneylenders who lend
money to individuals at exorbitant rates of
interest. These rates can be as much as 10 to
15 percent per day, with annual rates running
as high as 2,000 percent. In some poor
communities this is the only source of
borrowed funds.
NONGOVERNMENTAL ORGANIZATION(NGO): Similar to a nonprofit organization in
the United States. International NGOs such
as Opportunity International may be further
identified as “INGOs.”
OPERATIONAL SUSTAINABILITY:The ability of the MFI to cover its lending
expenses with the income earned by its lending
operations, usually expressed as a percent. At
one hundred percent, the organization earns
from lending money exactly what it spends.
This calculation does not take into account
inflation nor the cost to borrow the money that
it lends at market interest rates.
PORTFOLIO AT RISK (PAR): The outstanding
balance of loans with at least one payment
overdue by the specified number of days.
PORTFOLIO IN ARREARS: The total value
of loan payments that are overdue by the
specified number of days.
TRANSFORMATION: The holistic change in
the life of the client encompassing economic,
social and spiritual factors.
UNITED STATES AGENCY FORINTERNATIONAL DEVELOPMENT(USAID): The main federal government
agency that extends assistance to countries
recovering from disaster, trying to escape
poverty and engaging in democratic reforms.
Opportunity International receives funding
from USAID for its programs.
WORKING CAPITAL: Current assets (cash,
inventory, etc) of a business enterprise that
can be applied to fund its operations. The
difference between a firm’s current assets and
current liabilities is its working capital.
Entrepreneurs who do not have enough cash
(current assets) to pay their obligations to
vendors who supply raw materials for their
business (current liabilities) may borrow these
funds on a temporary basis and repay the loan
when inventory is sold (working capital loan).
A guide to microfinance terminology
www.oppor tuni ty.org 42 IMPACT | March/Apri l 2006
More than loans (continued from page 1)
between, whether clients live in urban slums or
remote villages. For far too many, a savings account
is a spot under the mattress or a hole dug outside,
and their savings are too easily lost to desperate
neighbors, dishonest relatives or thieves.
Poor people need a safe, simple way to save
for lifecycle needs, emergencies, businesses and
opportunities.
For many impoverished people, accessing
financial services is impeded by their inability to
prove who they are. In addition to not being able
to read, many poor people do not have a proper
birth certificate and a driver’s license or
passport can be too expensive.
Today, however, lack of identity and illiteracy
are no longer barriers for many Opportunity
clients. Thanks to technological advancements
such as biometric “fingerprint” technology, poor
people can identify themselves using their
fingerprint embedded in a credit-card-sized
identification card. This “smart card” is
scanned at the local microfinance bank to give
poor people the ability to make financial
transactions and keep their money safe.
Opportunity clients have access to technological
advancements that do not exist at a typical
American bank. For example, a client in Malawi
can place a finger on a specially designed keypad
that reads fingerprints and automatically brings up
account information on a teller’s screen.
By combining high-tech solutions with
savings programs already in place, Opportunity
clients finally have a path toward a more
secure future.
MICROINSURANCE:Stability in times of crisis
Some 80 percent of people in the
developing world work in the informal
economy without the social safety net
provided by traditional employment. Without
the stability and benefits familiar to most
workers in the United States, the world’s poor
are especially vulnerable to hazards outside
their control, such as death or natural disaster.
Catastrophic losses are disturbing for any
business, but for poor entrepreneurs, they can
wipe out a lifetime of work, leaving them
without help and without hope.
This is why loans for microenterprise
development are not always enough to fuel a
permanent escape from poverty. Credit enables
poor entrepreneurs to generate income, but —
as seen in the tragic aftermath of the Asian
tsunami in 2004 — they are vulnerable to
disastrous events that eliminate that source of
income. Without tools to minimize these risks,
many impoverished families fall into still deeper
poverty when crises strike.
Microinsurance can mitigate financial shocks
to poor households, yet it is still a largely
untapped market in the developing world. Of the
2.7 billion people who live on less than $2 a day,
fewer than 10 million currently have access to
insurance — says the Munich Re Foundation,
the charitable arm of Munich Re Group, one of
the world’s largest reinsurers and the second-
largest primary insurer in Germany.
Opportunity International is emerging as the
leading global provider of insurance to
microentrepreneurs, helping the poor build a
more secure future. Currently, policies cover
CHRISTOPHER A. CRANE President &Chief Executive Officer
more than 2.6 million people in Ghana, Malawi,
Uganda, Zambia, Zimbabwe, Colombia, Mexico,
West Timor and the Philippines.
Responding to the tremendous need created by
the HIV/AIDS pandemic, Opportunity’s programs
in Africa provide coverage for death following
AIDS. With this help, those left behind can begin
to rebuild their lives. Opportunity’s microinsurance
products help poor families other ways:
Philippines: Clients invest a relatively small
amount for a great deal of security: One dollar
per month for life insurance provides a benefit of
$2,000 if the client dies, $1,000 if a spouse dies
and $500 for each child.
Mexico: A client’s loan is cleared upon her
death so that the family is not burdened with the
repayment of debt on top of their loss.
Uganda: A client who loses a business to a
disaster does not lose everything. Insurance
covering both life and property helps the client
rebuild a source of income.
Opportunity has committed to establishing
dedicated insurance brokerages for the poor that
will provide access to many more low-income
clients and a wider range of products. The first
local agency was established in Uganda, which
will work with multiple microfinance
organizations, unions, cooperatives and church
groups to extend affordable life and healthcare
insurance to more than 1 million people over the
next two years.
REMITTANCES: Fueling local economies from afar
The hidden engine of development around
the world is the personal passion and
hard work of poor people who leave their
borders in search of steady work. They invest
that passion abroad and then send funds home
for their families. Poor households use this
money for basic needs such as food, education
and health care. According to the United
Kingdom’s Department for International
Development, remittances through formal
channels exceeded $250 billion in 2005, with at
least the same estimated amount sent through
informal channels. Remittances are a major
source of cash flow for households that receive
them, accounting for as much as half of their
annual income.
Opportunity International desires to help
these dispersed workers send as much of their
pay home as they can, avoiding the loss of large
portions of it in exorbitant fees. Therefore,
Opportunity and HSBC, the world’s second-
largest bank, are piloting a groundbreaking
project — the Opportunity Card in the
Philippines. Filipino workers in the U.S. are
able to transfer funds from a bank account or
credit card to an ATM card. Beneficiaries in the
Philippines with an Opportunity Card can then
withdraw the funds from any of 3,000 ATMs
nationwide that are linked to Cirrus® or
MasterCard®. The Philippines benefited from
Clients make loan repayments, insurance payments and savings deposits during their weekly Trust Bank meetings.
The news from Malawi lately has beenuniversally bad. Already one of the poorestnations on earth, this sliver of a country insoutheastern Africa has been hard hit by adrought that has resulted in widespread foodshortages. Hunger, HIV/AIDS and povertyhave wreaked havoc on this nation of 12million, with many children now sufferingfrom the effects of all three.
A glimmer of hope has emerged,however, in the form of a weather-insuranceproduct that could help improve the lives ofthousands of Malawians.
A new pilot program developed byOpportunity International and the WorldBank aims to help Malawi’s small groundnutfarmers access agricultural loans paired withdrought coverage, boosting their ability torecover from weather-related shocks. “Theinsurance will help farmers obtain thefinancing necessary to obtain certified seeds,which produce increased yields and revenues[and have] greater resistance to disease,”the World Bank said in a statement.
Previously, banks were not willing to lendto farmers, mainly due to the risk ofnonpayment if there were a drought thatdestroyed their crops. Farmers could notafford to purchase superior, certified seed
Weather insurance offers hope in Malawiwithout financing. So their only option wasseed that fared poorly against drought anddisease. Now, because of the new insurance,farmers’ creditworthiness increases, andthey are able to borrow to purchase thecertified seed.
“Opportunity International has enjoyedproviding technical insurance expertise andproject-management skills to the verysuccessful test pilot in Malawi,” saysChristopher Crane, president and CEO,Opportunity International. “We lookforward to a continued relationship with theWorld Bank and hope to extend this offeringto other countries in Africa and beyond.
One of the most appealing aspects of thisprogram is that it proactively addressesMalawi’s chronic food shortages in a waythat encourages self-sustainability. As UlrichHess, senior economist of the World Bank,confirms, “This unsubsidized transactionshows that sustainable development canhappen when the right technology meets theright people supported by the right technicalassistance.”
For more information, visit
www.opportunity.org under “Media Center/
Press Releases.”
The power of microcredit has been
proven again and again in the lives of
hundreds of thousands of clients around
the world for three-and-a-half decades.
Small loans at market interest rates have
ignited the entrepreneurial power and
initiated the transformation of countless
lives. But microcredit alone is not enough.
At Opportunity International, we are
committed to staying true to the heritage
of innovation that has always marked our
organization. That’s why we are
pioneering efforts to provide savings,
insurance and remittance programs, both
for our clients and for poor families
throughout the developing world. With
these enhanced microfinance services,
we are overcoming yet another barrier to
the economic, social and spiritual
transformation of impoverished people
throughout the world.
Thank you for your faithful and shared
vision in serving the poor in such
powerful ways through the work of
Opportunity International.
competitive pricing. With conventional means of
sending money, fees can go as high as 20
percent. By charging the sender $6.95 for bank-
account transfers and $7.95 for credit-card
transfers, the Opportunity Card offers one of the
lowest-priced remittance services around. It is
also one of the fastest ways of sending money:
When transferring from a credit card,
beneficiaries can get their funds in a matter of
minutes. Linking remittances with other
microfinance services offers the opportunity for
the recipients to use the funds they receive for
their businesses and investments.
BEYOND THE LOAN
A t each meeting of the Orphan Caring
Group Trust Bank in Uganda, loan
repayments also include small savings
deposits and microinsurance payments. As
Opportunity’s microfinance offerings continue to
expand, so will the ability to serve people like
the members of the Orphan Caring Group, as
well as the children under their care.
The modern microfinance movement is built
on the simple truth that lacking capital is a
business challenge, not a character issue. In
fact, the daily realities of poverty in the
developing world often develop the kinds of
skills — such as strong work ethic, practical
focus and thrift — that are essential for
success as an entrepreneur. With access to
small loans, poor entrepreneurs can begin the
process of building better lives for themselves
and their families.
As it was 35 years ago, Opportunity
International is again a pioneer, bringing new
approaches and new tools into the battle against
world poverty — and the ongoing transformation
of poor families throughout the world. ●
“Poor people can save and want tosave, and when they do not save it isbecause of lack of opportunity ratherthan lack of capacity.”
— S T U A R T R U T H E R F O R D The Poor and Their Money
“We cannot stop natural calamities,but we can and must better equipindividuals and communities towithstand them. Those most vulnerableto nature’s wrath are usually thepoorest, which means that when wereduce poverty, we also reducevulnerability.”
— U . N . S E C R E TA R Y G E N E R A L K O F I A N N A N
“In 2004, recorded remittances werethe second largest source of externalfinancing in developing countries,after foreign direct investment, andamounted to more than twice the size ofofficial aid.”
— D I L I P R AT H A , SENIOR ECONOMIST, WORLD BANK
“We believe that to help people withtheir businesses is wonderful. They’llincrease their own incomes for theirfamilies, and they’ll create jobs fortheir neighbors. But we have a uniquechance to then add two more types ofcapital to their lives. We’re addingwhat we call social and spiritual capitalinto the mix when we get peopletogether on a weekly basis.”
— Dennis Ripley, senior vice president
for programs, Opportunity International
Holistic TransformationThe power of OpportunityInternational Trust Banks
PH
OT
OG
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WOMEN’S OPPORTUNITY FUND BOARD OF GOVERNORS
22
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66
As members of the Orphan Caring
Group gather for their weekly Trust
Bank meeting in Nsike, Uganda,
they join together for more than loan
repayments and business training. Of
course, members want to build small
businesses through loans from Opportunity
International. But since they have joined
together in order to care for 43 AIDS
orphans, their concerns go far beyond
merely business issues.
Caring for orphans as well as one’s
own family — in a country with as many
challenges as Uganda — is an immense
undertaking. It involves being
concerned about everything related to
life and health as well as growing a
strong business.
Credit alone cannot move poor
entrepreneurs across the poverty line.
More tools are needed. So these Trust
Bank members are grateful that their
relationship with Opportunity
International goes beyond a series of
loan cycles.
The world’s poor have long been ignored by
mainstream financial institutions and thought
incapable of benefiting from choices that better-
off consumers have. But Opportunity
International has always been about economic,
social and spiritual transformation of the whole
person. By listening closely to clients to
understand their needs, Opportunity has built
upon its solid foundation to address long-term
transformation in new ways. Opportunity’s
vision is to create full-service microfinance
banks that meet all the financial needs of
impoverished entrepreneurs and their families.
Opportunity has listened and has responded
to the needs of the poor by providing
microfinance programs that also offer:
microsavings, microinsurance and remittances.
MICROSAVINGS: Keeping what you have
Basic money management begins with
avoiding unnecessary expenses and then
keeping what is left in a safe place. But poor
people are frustrated by the hurdles of traditional
banks’ minimum-balance requirements and onerous
paperwork, as well as business hours and locations
that are hopelessly out of touch with a poor person’s
work day. Realistic alternatives are few and far
It is estimated that 2.7 billion people live on less than $2 a day. (World Bank)
A publication of Opportunity International
www.oppor tuni ty.org 6 www.oppor tuni ty.org
Every day, in thousands of locations
worldwide, Opportunity International helps
transform lives — economically, socially and
spiritually. This holistic transformation is a vital
component of Opportunity’s microfinance
programs — empowering clients to become
agents for their own freedom and growth. The
primary avenue for this transformation is the
Trust Bank. Each such gathering of
hardworking small-business owners combines
life and skill training with community-building,
in a way that miracles are possible:
• For the first time, a financial institution
extends trust to the hardworking poor. This
boosts their confidence in their own skills and
dreams. Thus empowered, clients grow their
businesses and diversify, improving their
standard of living and that of others.
• This growth brings personal dignity and
hope, as well as respect from relatives,
neighbors and community members.
• Respect increases as women clients take on
leadership roles that are typically relegated to
men in their culture: president or treasure of the
bank, as well as organizer of community activism.
Overall, Trust Banks offer peer support and
accountability, affirmation, and valuable training
for business as well as life to many who previously
had only an informal education and few
marketable skills. Trust Banks transform lives. ●
5 IMPACT | March/Apri l 2006
IMPACT is a bimonthly publication of
Opportunity International, 2122 York Road,
Suite 340, Oak Brook, IL 60523
800.793.9455 www.opportunity.org
EDITOR Laura Reilly
DESIGN & PRODUCTIONJourney Group, Inc.
THE OPPORTUNITY MISSION is to
provide opportunities for people in chronic
poverty to transform their lives.
OUR STRATEGY is to create jobs, stimulate
small businesses and strengthen
communities among the poor.
OUR METHOD is to work through
indigenous partner organizations that
provide small business loans, training and
counsel.
OPPORTUNITY INTERNATIONAL’SCOMMITMENT is motivated by Jesus
Christ’s call to serve the poor.
STATEMENT OF INTENT REGARDINGPOVERTY AND WOMEN Opportunity International–U.S. strives to
reach the world’s poorest people through its
microenterprise development programs.
Recognizing that the large majority of the
world’s poorest are women and that they
contribute decisively to the well-being of
their families, Opportunity makes it a
priority to support programs that serve the
particular needs of women.
OPPORTUNITY INTERNATIONALSERVES women and men of any faith and
no faith.
OPPORTUNITY INTERNATIONAL HASPARTNERS in Albania, Bulgaria, China,
the lives of their families as well. Often, clients are
the sole support of their children, siblings and
parents. Their business success ensures the health
and education of their loved ones.
In their wholehearted commitment to the
well-being of their families, Opportunity clients
are no different from Opportunity supporters.
Seven members of the Opportunity
International Board of Governors and their
families had a unique chance to experience
these similarities firsthand last June during the
Board of Governors Family Week Insight Trip.
For six days, seven families joined
Opportunity in Honduras for the vision trip of a
lifetime. Like other Opportunity Insight Trips,
this one involved meeting clients and their
families, visiting Trust Banks, and watching
transformation at work.
The trip was made unique by educational
components geared directly at young people and
families. After breaking the ice with an interactive
global village simulation that helped the entire
family visualize poverty, travelers visited an
elementary school to interact with clients’ children
and see their needs up close. They also took a
“poverty drive” through the communities where
clients and their families live, work and play.
Although most of the Opportunity Board of
Governor members and their children did not
speak Spanish, language barriers vanished as the
young people laughed and played together.
Board of Governor member Randy Haykin
traveled to Honduras with his 15-year-old
daughter, Elise. Watching her connect with the
children of Opportunity clients gave him a new
perspective on the impact of Opportunity’s work in
poor households. “The value of allowing families
to come was incredible,” Randy said, “and a huge
selling point for Opportunity donors — a chance to
educate their children while giving.”
Mike and Amy Macari had recently joined
Opportunity’s Board of Governors when they
traveled to Honduras with 17-year-old son,
Marshall, and 19-year-old daughter, Alison.
“You can never know the impact this trip had on
our family,” Mike said. Together, the Macaris
learned about poverty and gained a new
appreciation for the dignity and beauty of the
people Opportunity serves.
Opportunity staff members watched the week
unfold with enthusiasm. According to host and
director of the Board of Governors Wendy Cox,
“This was a trip that people will never forget —
an amazing experience for all.”
Learn more about the next Family Week,
coming up June 18-24, 2006, in Honduras. Share
with your children the passion you feel toward
transformation through Opportunity International.
Contact Wendy Cox, director of the Board of
Governors, at 800-793-9455 x4180. ●
For more information about the Women’s Opportunity Fund, visit www.womensopportunityfund.org
A “Family Week” they’ll never forget
Microfinance is....Test your knowledge of microfinanceby completing this sentence:
Microfinance is:
A) small loans and business training forstruggling entrepreneurs to start orexpand a business
B) a type of savings account with a lowminimum balance
C) insurance policies designed for poorpeople who are vulnerable tocatastrophic losses
D) remittance services that allowmigrant workers to send money homesafely and economically
E) self-help networks that empowerpoor entrepreneurs to create a betterfuture for their families
F) ALL OF THE ABOVE
The correct answer is: F
For more information about the Board of Governors, visit www.opportunity.org/BOG
“We make a living by what we get,
we make a life by what we give.”
- Sir Winston Churchill
Since Opportunity International’sinception in 1971, its work hasbeen funded in large part by the
generosity of individuals whose charitablegifts have transformed not only their ownlives, but also those of countless poorfamilies in the developing world.
And throughout its history, the vastmajority of charitable gifts toOpportunity have been made in the formof cash. But Opportunity’s board ofdirectors has determined that in order toachieve the aggressive goals that it hasset for reaching 2 million poorentrepreneurs a year by 2010, it mustencourage charitable gifts of all types,especially the giving arrangements thatprovide the greatest tax benefits to itssupporters.
Therefore, Opportunity now accepts,along with cash, gifts of publicly tradedsecurities, closely held stock, real estateof all types, life insurance, and personalproperty such as artwork and collectibles.In addition, Opportunity provides donorswith expertise in the full array of“planned gifts,” including gifts throughone’s will or living trust, gifts of IRAassets, and the giving arrangements thatprovide lifetime income back to thedonor, such as charitable gift annuitiesand charitable remainder trusts.
It is through these gifts that the poorwill be served for decades to come, andcountless more lives transformed alongthe way.
For more information about benefitingfrom planned gifts, contact Chuck Day,director of Planned Giving, at (800) 793-9455, x4136. Or go to www.opportunity.orgunder “Give Now/ Planned Giving.”
Changing times, changing needs
Elise Haykin, right, daughter of Board of Governormember Randy Haykin
Francis Gutierrez, loan officer, provides training at the Building for a Future Trust Bank meeting.
(continued on page 2)
PH
OT
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Much more than microcreditNew approaches give new tools for fighting poverty
Transformation through Trust Banks
I N S I G H T T R I P 2 0 0 6 C A L E N D A R
Partners with the Poor Insight Trip to Nicaragua May 21-25, 2006Governors Family Week, Honduras June 18-24, 2006Governors Insight Trip to Ghana September 8-16, 2006
For more information, contact Wendy Cox at 800-793-9455 x4180
Do you know a marketing or sales professional with a heart for the poor? Would thisperson like to use his or her expertise to make a difference in the world?
Below is a list of positions available at Opportunity International:
•Controller (Oak Brook, Ill.)•Director of Marketing – Major Gifts Fundraiser (Los Angeles, Calif.)•Director of Marketing – Major Gifts Fundraiser (Phoenix, Ariz.)•Program Officer (Oak Brook, Ill.)•Private Funding Projects Manager (Oak Brook, Ill.)
For full job descriptions, visit our Web site (www.opportunity.org) under “Get Involved.”
Employment Opportunities
Orphan Caring Group Trust Bank
PH
OT
OG
RA
PH
BY
BR
UC
E S
TR
ON
G
2 Security for Poor FamiliesMicroinsurance provides
a safety net for poor families.
3 Money From AbroadRemittance program to support
hardworking Filipinos.
5 The Power of Trust BanksTrust Banks provide economic,
social and spiritual development.
6 A Week Focused on FamilyFamily Week – global poverty
insights for the whole family.
IMPACT
CE
L E B R A T I NG
Y E A R S
Serving Poor Families with Microfinance
I N S I D E
MARCH/APRIL 2006
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AY
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WOMEN’S OPPORTUNITY FUND BOARD OF GOVERNORS
22
55
66
As members of the Orphan Caring
Group gather for their weekly Trust
Bank meeting in Nsike, Uganda,
they join together for more than loan
repayments and business training. Of
course, members want to build small
businesses through loans from Opportunity
International. But since they have joined
together in order to care for 43 AIDS
orphans, their concerns go far beyond
merely business issues.
Caring for orphans as well as one’s
own family — in a country with as many
challenges as Uganda — is an immense
undertaking. It involves being
concerned about everything related to
life and health as well as growing a
strong business.
Credit alone cannot move poor
entrepreneurs across the poverty line.
More tools are needed. So these Trust
Bank members are grateful that their
relationship with Opportunity
International goes beyond a series of
loan cycles.
The world’s poor have long been ignored by
mainstream financial institutions and thought
incapable of benefiting from choices that better-
off consumers have. But Opportunity
International has always been about economic,
social and spiritual transformation of the whole
person. By listening closely to clients to
understand their needs, Opportunity has built
upon its solid foundation to address long-term
transformation in new ways. Opportunity’s
vision is to create full-service microfinance
banks that meet all the financial needs of
impoverished entrepreneurs and their families.
Opportunity has listened and has responded
to the needs of the poor by providing
microfinance programs that also offer:
microsavings, microinsurance and remittances.
MICROSAVINGS: Keeping what you have
Basic money management begins with
avoiding unnecessary expenses and then
keeping what is left in a safe place. But poor
people are frustrated by the hurdles of traditional
banks’ minimum-balance requirements and onerous
paperwork, as well as business hours and locations
that are hopelessly out of touch with a poor person’s
work day. Realistic alternatives are few and far
It is estimated that 2.7 billion people live on less than $2 a day. (World Bank)
A publication of Opportunity International
www.oppor tuni ty.org 6 www.oppor tuni ty.org
Every day, in thousands of locations
worldwide, Opportunity International helps
transform lives — economically, socially and
spiritually. This holistic transformation is a vital
component of Opportunity’s microfinance
programs — empowering clients to become
agents for their own freedom and growth. The
primary avenue for this transformation is the
Trust Bank. Each such gathering of
hardworking small-business owners combines
life and skill training with community-building,
in a way that miracles are possible:
• For the first time, a financial institution
extends trust to the hardworking poor. This
boosts their confidence in their own skills and
dreams. Thus empowered, clients grow their
businesses and diversify, improving their
standard of living and that of others.
• This growth brings personal dignity and
hope, as well as respect from relatives,
neighbors and community members.
• Respect increases as women clients take on
leadership roles that are typically relegated to
men in their culture: president or treasure of the
bank, as well as organizer of community activism.
Overall, Trust Banks offer peer support and
accountability, affirmation, and valuable training
for business as well as life to many who previously
had only an informal education and few
marketable skills. Trust Banks transform lives. ●
5 IMPACT | March/Apri l 2006
IMPACT is a bimonthly publication of
Opportunity International, 2122 York Road,
Suite 340, Oak Brook, IL 60523
800.793.9455 www.opportunity.org
EDITOR Laura Reilly
DESIGN & PRODUCTIONJourney Group, Inc.
THE OPPORTUNITY MISSION is to
provide opportunities for people in chronic
poverty to transform their lives.
OUR STRATEGY is to create jobs, stimulate
small businesses and strengthen
communities among the poor.
OUR METHOD is to work through
indigenous partner organizations that
provide small business loans, training and
counsel.
OPPORTUNITY INTERNATIONAL’SCOMMITMENT is motivated by Jesus
Christ’s call to serve the poor.
STATEMENT OF INTENT REGARDINGPOVERTY AND WOMEN Opportunity International–U.S. strives to
reach the world’s poorest people through its
microenterprise development programs.
Recognizing that the large majority of the
world’s poorest are women and that they
contribute decisively to the well-being of
their families, Opportunity makes it a
priority to support programs that serve the
particular needs of women.
OPPORTUNITY INTERNATIONALSERVES women and men of any faith and
no faith.
OPPORTUNITY INTERNATIONAL HASPARTNERS in Albania, Bulgaria, China,
the lives of their families as well. Often, clients are
the sole support of their children, siblings and
parents. Their business success ensures the health
and education of their loved ones.
In their wholehearted commitment to the
well-being of their families, Opportunity clients
are no different from Opportunity supporters.
Seven members of the Opportunity
International Board of Governors and their
families had a unique chance to experience
these similarities firsthand last June during the
Board of Governors Family Week Insight Trip.
For six days, seven families joined
Opportunity in Honduras for the vision trip of a
lifetime. Like other Opportunity Insight Trips,
this one involved meeting clients and their
families, visiting Trust Banks, and watching
transformation at work.
The trip was made unique by educational
components geared directly at young people and
families. After breaking the ice with an interactive
global village simulation that helped the entire
family visualize poverty, travelers visited an
elementary school to interact with clients’ children
and see their needs up close. They also took a
“poverty drive” through the communities where
clients and their families live, work and play.
Although most of the Opportunity Board of
Governor members and their children did not
speak Spanish, language barriers vanished as the
young people laughed and played together.
Board of Governor member Randy Haykin
traveled to Honduras with his 15-year-old
daughter, Elise. Watching her connect with the
children of Opportunity clients gave him a new
perspective on the impact of Opportunity’s work in
poor households. “The value of allowing families
to come was incredible,” Randy said, “and a huge
selling point for Opportunity donors — a chance to
educate their children while giving.”
Mike and Amy Macari had recently joined
Opportunity’s Board of Governors when they
traveled to Honduras with 17-year-old son,
Marshall, and 19-year-old daughter, Alison.
“You can never know the impact this trip had on
our family,” Mike said. Together, the Macaris
learned about poverty and gained a new
appreciation for the dignity and beauty of the
people Opportunity serves.
Opportunity staff members watched the week
unfold with enthusiasm. According to host and
director of the Board of Governors Wendy Cox,
“This was a trip that people will never forget —
an amazing experience for all.”
Learn more about the next Family Week,
coming up June 18-24, 2006, in Honduras. Share
with your children the passion you feel toward
transformation through Opportunity International.
Contact Wendy Cox, director of the Board of
Governors, at 800-793-9455 x4180. ●
For more information about the Women’s Opportunity Fund, visit www.womensopportunityfund.org
A “Family Week” they’ll never forget
Microfinance is....Test your knowledge of microfinanceby completing this sentence:
Microfinance is:
A) small loans and business training forstruggling entrepreneurs to start orexpand a business
B) a type of savings account with a lowminimum balance
C) insurance policies designed for poorpeople who are vulnerable tocatastrophic losses
D) remittance services that allowmigrant workers to send money homesafely and economically
E) self-help networks that empowerpoor entrepreneurs to create a betterfuture for their families
F) ALL OF THE ABOVE
The correct answer is: F
For more information about the Board of Governors, visit www.opportunity.org/BOG
“We make a living by what we get,
we make a life by what we give.”
- Sir Winston Churchill
Since Opportunity International’sinception in 1971, its work hasbeen funded in large part by the
generosity of individuals whose charitablegifts have transformed not only their ownlives, but also those of countless poorfamilies in the developing world.
And throughout its history, the vastmajority of charitable gifts toOpportunity have been made in the formof cash. But Opportunity’s board ofdirectors has determined that in order toachieve the aggressive goals that it hasset for reaching 2 million poorentrepreneurs a year by 2010, it mustencourage charitable gifts of all types,especially the giving arrangements thatprovide the greatest tax benefits to itssupporters.
Therefore, Opportunity now accepts,along with cash, gifts of publicly tradedsecurities, closely held stock, real estateof all types, life insurance, and personalproperty such as artwork and collectibles.In addition, Opportunity provides donorswith expertise in the full array of“planned gifts,” including gifts throughone’s will or living trust, gifts of IRAassets, and the giving arrangements thatprovide lifetime income back to thedonor, such as charitable gift annuitiesand charitable remainder trusts.
It is through these gifts that the poorwill be served for decades to come, andcountless more lives transformed alongthe way.
For more information about benefitingfrom planned gifts, contact Chuck Day,director of Planned Giving, at (800) 793-9455, x4136. Or go to www.opportunity.orgunder “Give Now/ Planned Giving.”
Changing times, changing needs
Elise Haykin, right, daughter of Board of Governormember Randy Haykin
Francis Gutierrez, loan officer, provides training at the Building for a Future Trust Bank meeting.
(continued on page 2)
PH
OT
OG
RA
PH
BY
RO
N L
ON
DE
N
Much more than microcreditNew approaches give new tools for fighting poverty
Transformation through Trust Banks
I N S I G H T T R I P 2 0 0 6 C A L E N D A R
Partners with the Poor Insight Trip to Nicaragua May 21-25, 2006Governors Family Week, Honduras June 18-24, 2006Governors Insight Trip to Ghana September 8-16, 2006
For more information, contact Wendy Cox at 800-793-9455 x4180
Do you know a marketing or sales professional with a heart for the poor? Would thisperson like to use his or her expertise to make a difference in the world?
Below is a list of positions available at Opportunity International:
•Controller (Oak Brook, Ill.)•Director of Marketing – Major Gifts Fundraiser (Los Angeles, Calif.)•Director of Marketing – Major Gifts Fundraiser (Phoenix, Ariz.)•Program Officer (Oak Brook, Ill.)•Private Funding Projects Manager (Oak Brook, Ill.)
For full job descriptions, visit our Web site (www.opportunity.org) under “Get Involved.”
Employment Opportunities
Orphan Caring Group Trust Bank
PH
OT
OG
RA
PH
BY
BR
UC
E S
TR
ON
G
2 Security for Poor FamiliesMicroinsurance provides
a safety net for poor families.
3 Money From AbroadRemittance program to support
hardworking Filipinos.
5 The Power of Trust BanksTrust Banks provide economic,
social and spiritual development.
6 A Week Focused on FamilyFamily Week – global poverty
