Voices from the Field

1 voices from the field | 2007–2008 annual report

global impact | regions | technology | innovation | supporters | people | financials

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2 2007–2008 annual report | voices from the field| 2007—2008 annual report | 2

our Mission To enable the poor, especially the poorest,

to create a world without poverty.

our Grameen HeritageInspired by the work of Grameen Bank in Bangladesh, Grameen Foundation was created to help share the Grameen philosophy and accelerate the impact of microfinance on the world’s poorest people. Started in 1976 by professor Muhammad Yunus with a mere $27 from his own pocket, Grameen Bank now serves more than six million poor families with financial services. Grameen Foundation replicates the success of Grameen Bank internationally by support-ing microfinance institutions that embody its vision and values. although they are independent organizations, Grameen Foundation and Grameen Bank maintain an enduring relationship.

professor Yunus is a founding and current member of Grameen Foundation’s Board of Directors.

On the cover: Sinapi Aba Trust client Sadiya Dokurogu is a clothmaker in Ghana. With her first loan of 500 cedi (US $432) she bought more materials and can now keep up with her customers’ requests.

1 voices from the field | 2007–2008 annual report1 1

Table of ConTenTs 3 Message from president and Chair 4 Global Impact 6 reaching nearly Seven Million

regions 8 Sub-Saharan africa 10 americas 12 asia 16 Middle east and north africa

technology 18 Grameen technology

Innovation 20 leveraging Hope

22 reaching the poorest 23 Family of Supporters 29 people 31 Financials 33 What You Can Do

ResulTs

number of partners

48number of Clients reached

6,876,003Countries Served

27average loan Size

$250.27total amount of active loans in the GF network

$944,158,349

GRameen foundaTion 2007–2008 annual RepoRT

2 2007–2008 annual report | voices from the field

“I took out my first loan over two years ago, and I am still with my same group. There

are four of us, and we take care of each other. When one member of our group couldn’t

repay her loan on time, I gave her some of my savings to help her. She paid me back within

two weeks. I knew she would.”

—Junie Dubisson, Fonkoze, Haiti


message from president and chair

Dear Friend of Grameen Foundation,

Our recently completed fiscal year was one that advanced microfinance on many fronts and on a global scale. It was also a time of important transitions for Grameen Foundation that will make us a stronger organization.

This was the first full year after the awarding of the Nobel Peace Prize to found-ing board member Professor Muhammad Yunus, and we worked hard to chan-nel the vastly increased interest in microfinance toward enabling the poorest to escape poverty. Never before have we had so many donors, volunteers and em-ployees working for our common goal. Yet, with close to one billion people living in extreme poverty worldwide, we have only begun to scratch the surface of the opportunities and needs before us.

We are pleased to share some of our proudest achievements in 2007–2008:• We mobilized $5.3 million in new financing for Amhara Credit and Saving Insti-

tution (ACSI), a leading microfinance institution in Ethiopia, with a loan guar-antee of $2.5 million. By fiscal year end, we had leveraged $125 million in new financing through our “growth guarantee” program that was launched in 2005.

• Our grassroots microfinance partner institutions collectively surpassed 6.8 million families served. This is 5.6 million more than when we first launched our strategic plan in 2005. This means that we exceeded our strategic goal of reaching five million poor families, one year ahead of schedule!

• Our technology team, in cooperation with corporate partners like IBM, suc-cessfully completed the first two installations of our Mifos software platform at Grameen Koota in India, and Jitegemea in Kenya. Mifos is a revolutionary product that promises to increase efficiency and help microfinance institutions better serve their clients.

• We received the prestigious “member of the year” award from SEEP, a network of 67 microfinance networks and institutions operating in 140 countries.

We also honored former Board Chair Susan Davis, who served on our Board of Directors more than six years, and former Vice Chair Yvette Neier, who served more than nine years.

We are grateful to all of our supporters and ask that you share in our sense of accomplishment and also in the urgency of the work ahead.

Sincerely,

Paul Maritz, Chair Alex Counts, President & CEO



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South AsiaBangladesh,India, Pakistan

East AsiaChina,East Timor,Indonesia,Philippines

Middle East and North AfricaEgypt, Lebanon, Morocco, Saudi Arabia, Tunisia, Yemen

AmericasBolivia, Dominican Republic, El Salvador, Haiti, Honduras,Mexico, Peru, United States Sub-Saharan

AfricaCameroon, Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Uganda

Our Global Impact

WhaT is miCRofinanCe?Sometimes called “banking for the poor,” microfinance is a simple approach that empowers very poor people around the world to pull themselves out of poverty. Relying on their skills and entrepreneurial instincts, very poor people, mostly women, use small loans from local organizations called microfinance institutions (MFIs) to start, establish, support, or expand small, self-sustaining businesses. A key to microfinance is the recycling of loan dollars. As each loan is repaid—usually within six months to a year—the money is recycled as another loan, thus multiplying the value of each dollar in defeating global poverty, and changing lives and communities.

Grameen Foundation and our 48 microfinance partners

currently serve more than 6.8 million clients, in

27 countries around the world.www.grameenfoundation.org/where_we_work


Grameen Foundation provides services and products to enable microfinance institutions across the globe to serve more and more of the world’s poorest.

financeGF provides grants, loans, Growth Guarantees and equity to microfinance partners; this capital goes directly to loans for the poor or to support special projects.

Training & Technical assistance Our Partner Services staff provide our partners with training on business planning, staff recruiting and training, and financial management.

Technology & industry innovationGF has pioneered innovations to ensure that our partners are reaching the poorest of the poor, introduced telecommunications to rural villages, and developed open-source software to help microfinance institu-tions better serve their clients.

South AsiaBangladesh,India, Pakistan

East AsiaChina,East Timor,Indonesia,Philippines

Middle East and North AfricaEgypt, Lebanon, Morocco, Saudi Arabia, Tunisia, Yemen

AmericasBolivia, Dominican Republic, El Salvador, Haiti, Honduras,Mexico, Peru, United States Sub-Saharan

AfricaCameroon, Ethiopia, Ghana, Kenya, Nigeria, Rwanda, Uganda



number of active clients

Region/CountRy PaRtneR 2005≈ 3-31-2008*

asia

China Funding for the poor Cooperative- nanzhao Branch (FpC) 14,211 15,486

China association for rural Development of poor areas in Sichuan (arDpaS)

1,539 2,014

China Chifeng Zhaowuda 3,166 2,945

east timor Moris rasik 4,626 11,862

India activists for Social alternatives (aSa) 68,781 261,062

India CaSHpor/ Cashpor Financial and technical Services 27,769 354,668

India Covenant Centre for Development (CCD) 806

India evangelical Social action Forum (eSaF) 1,064 221,932

India Grameen Koota 9,083 139,114

India Society for Helping, awakening rural poor through education (SHare) Microfin limited

197,943 1,040,718

India Swayam Krishi Sangam (SKS) Microfinance 21,946 1,879,258

India Sonata 44,387

Indonesia Mitra Bisnis Keluarga Ventura (MBK)**

Indonesia Mitra Karya east Java (MKeJ) 85 1,441

Indonesia Yayasan Mirtra Dhuafa (Yamida) 789 8,987

Indonesia Yayasan Kariya Bunda Sejahtera (YKBS) 445 3,770

pakistan Kashf Foundation 59,389 312,439

pakistan urban poverty alleviation program (upap) 36,020 92,455

philippines ahon Sa Hirap Incorporated (aSHI) 10,701 21,333

philippines Center for agricultural and rural Development (CarD) nGo 79,745 339,286

philippines Center for Community transformation (CCt) 78,066 111,672

philippines negros Women for tomorrow Foundation (nWtF) 54,863 79,589

philippines tulay Sa pag-unlad Incorporated (tSpI) 84,517 164,814

subtotal asia: 23 798,334 5,110,366

middle easT & noRTh afRiCa

egypt al-tadamun 9,232 44,216

egypt regional association to Develop enterprise (raDe) 6,115 12,677

egyptDakahlya Businessmen’s association for Community Development (DBaCD)**

lebanon al Majmoua 9,573

Morocco Fondation pour le Développement local et le partenariat – Micro-crédit (FonDep)

20,485 125,571

Morocco Foundation Zakoura**

tunisia enda inter-arabe 25,018 68,911

Yemen Hodeidah 3,900

Yemen abyan 2,584

subtotal mena: 10 67,123 280,102

number of active clients

Reaching Nearly 7 Million ClientsIn 2007, Grameen Foundation strengthened our partners and added new ones as well, expanding into new regions and reaching more than 6.8 mil-lion clients around the world.

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Region/CountRy PaRtneR 2005≈ 3-31-2008*

sub-sahaRan afRiCa

ethiopia amhara Credit and Savings Institution (aCSI) 834,503

ethiopia Specialized Financial and promotional Institution (SFpI) 26,724

Ghana Sinapi aba trust (Sat) 56,448

nigeria Development education Centre (DeC) 48,188

nigeria lift above poverty organization (lapo) 166,278

nigeria Self-reliance economic advancement programme (Seap) 14,044

subtotal sub-saharan africa: 6 1,146,185

ameRiCas

Bolivia Fondo de Desarrollo Comunal (FonDeCo) 8,120 8,860

Bolivia proMujer Bolivia 75,239 100,511

Dominican republic esperanza International 195 13,308

Dominican republic Fundación San Miguel arcangel, Inc. (FSMa) 2,601 9,816

el Salvador las Mélidas 1,300 1,385

Haiti Fonkoze 24,990 177,51

Honduras Fundación adelante 1,956 5,270

Mexico alternativa Solidaria Chiapas (alSol) 3,224 16,499

Mexico Centro de Desarrollo Comunitario (Centéotl) 895 2,308

Mexico Grameen de la Frontera 1,308 3,644

nicaraguaasociación de Consultores para el Desarrollo de la pequeña (aCoDep)**

peru eDpYMe Confianza**

peru eDpYMe edyficar**

peru proMujer peru**

uSa project enterprise 76 395

uSa the plan Fund 144 65

subtotal americas: 16 120,048 339,350

ToTal all paRTneRs 1,010,050 6,876,003

≈ In 2005, Grameen Foundation launched our strategic plan to reach 5 million new clients by 2008. We have accomplished that goal early.* the 2007 annual report covers our fiscal year between april 1, 2007 and March 31, 2008. ** Growth loan Guarantee partner only: this microfinance institution received a Growth Guarantee to support their financial needs.

Hundreds of clients of Grameen Foundation partner Amhara Credit and Savings Institution (ACSI) fill a small building for their loan meeting in Bahir Dar, Ethiopia. You can help our partners expand their facilities and reach even more clients with financial services.


empoWeRinG afRiCan Women WiTh neW oppoRTuniTies“I have been with SEAP from the beginning,” says Bosede Ogunleye, beaming with pride. “They are growing rapidly. I’m so happy to be one of the original members.” Bosede has been a client at Self-Reliance Economic Advancement Programme (SEAP), a Grameen Foundation partner in Nigeria, for more than six years. In that time, she has seen an incredible improvement in her family’s quality of life.

Before joining SEAP, Bosede sold small con-tainers of filtered water on the street, earning less than 26 cents a day. She was barely able to feed her children, and also faced physical abuse from her husband. After taking a loan for 10,000 Naira

(US $90), she began to diversify her inventory and expand her clientele. In 2007 Bosede opened a small shop purchased a freezer and generator, and now sells frozen fish and meats. Her husband soon left the family, but Bosede’s store allowed her to main-tain a good income.

Since joining SEAP and caring for her children on her own, Bosede has increased her household income more than six-fold, earning nearly $4.50 per day. While such a figure may be modest by global standards, it places Bosede and her family squarely in the Nigerian middle class, freeing her from worry-ing about where their next meal will come from, and allowing her to pay school fees for her children.

Bosede Ogunleye has been a borrower with Grameen Foundation partner SEAP for more than six years. Her small store gave her a chance to start a new life—one that ensures a promising future for her family.



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aCComplishmenTs• Trainedourmicrofinancepartnersonhowto

efficiently track their financial performance and create sound business plans

• WorkedwithNigeriangovernmentregulatorson how to effectively support microfinance institutions, and trained staff from the Central Bank of nigeria on how to monitor and contribute to the microfinance sector

• Providedtraininginthelatestsmallbusinessbest practices for staff of the Kenya Central Bank and staff of Kenyan microfinance insti-tutions, allowing them to streamline their processes and assist more poor clients

• Provided$18,500ingrantsand$150,000inloansforourAfricapartners.•ProvidedaGrowthGuaranteeforanEthiopianpartner,ACSI,for$2.5million,leveragingatotalof$5.3million

in financing for loans to clients.

learn more about our approach to fighting poverty in africa at www.grameenfoundation.org/africa

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Sub-Saharan AfricaGrinding, unrelenting poverty. Desperation that only grows worse in the “hungry season,” but never disappears. Watching your children die without medical care from treatable diseases. That is the life of some 300 million people across Sub-Saharan Africa–people who live on less than $1 a day.

That’s why Grameen Foundation launched its ambitious Africa Strategy in January 2007. A year later, our partners are reaching more than one million clients across the con-tinent. Grameen Foundation works to enable the growth of poverty focused microfinance in Africa, by providing direct support to our partners and persuading local and government institutions to support microfinance and support policies that will alleviate poverty.

Grameen Foundation works with governments, regional organizations, commercial banks and microfinance partners to ensure that more and more people can rise out of poverty.



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AmericasIn the Americas, a growing trend has been for microfinance institutions to deliver desperately needed social services in tandem with microfinancial services.

By using microfinance as a platform, both social services and microfi-nance multiply their impact on poverty. Spurred by that insight, GF and its partners are enthusiastically supporting initiatives that go beyond simple financial services, such as health education, nutritional supplements, and educational scholarships for the children of microfinance clients. In 2007, Grameen Foundation supported our Americas partners’ with $2.8 million to reduce poverty and provide social services for the poor.

At AlSol in Chiapas, Mexico, clients’ children can now benefit from nutrition and literacy classes.


Milán Tapia, a petite woman with a warm smile, was standing in her doorway when a group of small children caught her eye. They were hurling insults, squared off in two opposing groups on the street, wearing tattered, dirty clothes. Clearly, they were about to fight.

Quickly preventing the oncom-ing skirmish, Milán called them to her house and distracted them with snacks and stories. She found knives, scissors, and rocks in their pockets. In exchange for their improvised weapons, she gave them pencils and notebooks. They returned to her house daily, for her gentle nurturing, cookies, and more stories. With only a seventh-grade education herself, she taught them all she could about reading, writing and math.

Milán’s little school grew rapidly. She was al-ready a successful client with Esperanza, a Grameen Foundation partner in the Dominican Republic, but her small clothing and upholstery business could not make enough money to feed her new students and give them school supplies. Esperanza gave her larger loans to support her new line of work.

Milán now teaches 212 students and has plans to move into a new building where she can teach 200 more. She charges tuition on a case-by-case basis to

those who can afford it, and awards scholarships to those who can’t. She is full of ideas and plans for the future. “I have long-term dreams. I want education quality to improve, I want the kids to have better

food, I want kids to feel better and be more confident, and to be treated better. I also want all parents to be educated so that they can help their children with their homework. For me, I want to continually be strengthened by God.”

Esperanza, a Grameen Foun-dation partner since 2004, is reaching almost 13,000 clients like Milán in the Dominican Republic. Grameen Foundation

provided scholarships to Esperanza staff to learn about improving efficiency by visiting Bangladesh and seeing Grameen Bank in action.

At the end of 2007, Grameen Foundation’s Amer-icas Initiative was benefiting nearly 200,000 of the poorest families in the Americas, and impacting an estimated 1 million people. Our partners’ outreach in the region has grown by 17 percent since last year.

Learn more about how our partners are innovat-ing in the Americas at www.grameenfoundation.org/americas

“I thank Milán because she helped me, so that today I am not chased by policemen but actually have my own business.”

—Cesarin Apotola, one of Milán’s first students,

now a successful home repair technician

noT by miCRofinanCe alone Grameen Foundation’s partners in the americas value to become a more valuable resource to their clients by fostering health and education programs like these:esperanza (dominican republic)—HIV/aIDS educationpro mujer bolivia—Financial and health services, young

entrepreneurs programfonkoze (haiti)—adult literacy, sustainable agriculture, and

maternal healthgrameen de la frontera (mexico)—High school and college

scholarships for daughters of clientsalsol (mexico)—nutrition and literacy education for clients and

their families

neW hope foR dominiCan ChildRen

A young daughter of a ProMujer Bolivia client gets a checkup at a local health clinic.

Milán used her microfinance loan to bring hope and opportunity to the lives of hundreds of young children in her community.


Children in a Bangalore village, where Grameen Foundation’s social performance tool, the Progress Out of Poverty Index™ (PPI), is helping Grameen Koota measure how microfinance is moving their clients out of poverty.

“At the end of the day if you are very tired, and you see the smile of a child, all your pains go away.”

—Anup Kumar Singh, Managing Director of Indian MFI Sonata


Fresh from university, Rakesh Dubey and Anup Kumar Singh were on their way to make their dreams of fighting poverty come true. Between them, they had one pair of good shoes to wear in an interview with CASHPOR, a prominent Indian microfinance institution and Grameen Foundation partner. With all the shoe shops closed, the friends came up with a creative solution.

Anup recalls, “During the whole process there was only one pair of shoes. One person went for the inter-view, came out, said, ‘Okay take off the

shoes,’ and gave it to the second person, who then went for the interview. That was almost ten years back.”

The two friends have come a long way since then. They joined CASHPOR in 1997, and worked their way into top positions. But they knew there was much more work to be done, and they decided to form their own microfinance institution to work

in other areas of Uttar Pradesh, the most populous and one of the poorest states in India. “We feel that we should work in areas that are unserved,” says Rakesh.

Their MFI, Sonata, was born in January 2006 in the state of Uttar Pradesh. Grameen Foundation helped Anup and Rakesh with their new project by sponsoring them to attend our Partner Forum in Bolivia, where they learned from other microfinance professionals from around the world. Sonata cur-rently serves more than 50,000 clients. In five years, Anup and Rakesh plan to reach 200,000 clients like Rametri.

Rametri, a mother of two sons, used to rely only on her husband’s meager income of 40 rupees (93 cents) every day to get by. She met a field officer from Sonata who explained to her that with a small loan, she could contribute to the family income. With a loan of 2000 rupees (US $46) Rametri opened a tea-stall in the local marketplace, an idea that her husband enthusiastically supported. Their stall has now expanded, and her husband sells small snacks to their ever-increasing clientele.

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Asia“More than two-thirds of the world’s poor live in Asia, in countries as diverse as China, India and the Philippines. Despite vast cultural and geographic differences, they suffer from similar problems: low incomes, poor housing, lack of food security, inadequate sanitation and clean water, low education levels, and lack of access to financial services.

Across the continent, Grameen Foundation’s Asia partners expanded dramatically in 2007, from 1.9 million clients to 3.3 million clients.

In 2007, GF added two new Indian partners, ESAF and Sonata, to our 21 Asia partners, to help them expand into underserved regions of north India. Meanwhile, our partners in Indonesia, with $253,579 in Grameen Foundation funding, are continuing to help people get back on their feet after the 2004 tsunami.

Childhood fRiends on a mission To defeaT poveRTy


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Microfinance is just really getting off the ground in China, and a unique group of Grameen Foundation volunteers in Shanghai is helping to spread the word. the founding members, alan and Mae-ling tien and Susan place everhart, had a passion for GF’s mission and the desire to help.

now, with 70 local volunteers, they have assisted Grameen Foundation in corporate relations, securing pro-bono work, reaching out to donors, translations and fundraising. By 2008, the group had raised more than $65,000. Grameen Foundation and its Chinese microfinance partners that have been the beneficiaries’ of the volunteers support currently serve about 20,900 families in China.

GeTTinG off The GRound in shanGhai

“Meeting the women in Inner Mongolia has inspired me as a volunteer to reach out to the Shanghai community and build support for Grameen Foundation’s programs here, so that the

lives of even more women can be transformed by microfinance.”—Susan Place Everhart, Coordinator of the Shanghai Volunteer Group

Sun Li Hua, a client of Grameen Foundation partner Chifeng Zhaowuda, and her loan officer Wang Yan Hong.


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In India, microfinance institutions need about $50 billion to achieve their client outreach goals, yet only $2 billion is currently available. Grameen Capital India aims to ensure access to life-changing loans for the 27 percent of Indians living in poverty. this innovative social business was launched by Grameen Foundation in partnership with Citicorp Finance and IFMr trust, an Indian finance company. led by Ceo royston Braganza, GCI links grassroots microfinance institutions and local commercial banks, allowing MFIs access to crucial funds to expand their outreach. In the first three months of operations, it mobilized more than $9 million in new financing for two leading Indian MFIs.

learn more about how microfinance is changing lives in asia at www.grameenfoundation.org/asia

a neW soCial business sTRenGThens miCRofinanCe

Kashf, our microfinance partner in Pakistan was able to access $20 million in Pakistani rupees in loans for poor women, with the strength of $5 million in loan guarantees provided through Grameen Foundation.

Clients of CASHPOR in India, a Grameen Foundation partner serving 300,000 clients.


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Middle East and North Africa

Conflict didn’t stop microfinance in Lebanon when war broke out in the summer of 2006. Despite fierce battles, microfinance institution Al Majmoua proved that microfinance can serve the poor even in a war zone.

More than two-thirds of Al Majmoua’s clients lived and worked in the most war-torn areas, and many of their staff had to flee their homes with their families. Amid widespread panic, the organization offered its clients shelter in its office and provided sports, cultural and educational activities for clients’ shell-shocked children, to give them a small taste of normal life. According to Al Majmoua director Youssef Fawaz, “The morning after [the cease fire], Al Majmoua staff members and clients alike returned to discover the scale of the destruction visited on their villages, homes, businesses, fields, live-stock, and on their liveli-hoods. A couple of staff members found their apartments reduced to a

pile of rubble.” In the aftermath of the conflict, nearly 70 percent of their clients could not make regular pay-ments on their loans.

Grameen-Jameel partnered with Al Majmoua in 2007, and gave them a loan of $187,000 to provide, “solidarity loans” modeled on Grameen Bank’s meth-odology. This initiative helped hundreds of clients in the refugee camps that were badly hit by the attacks. The new loan proved invaluable in getting their clients back on their feet. Soon after, the majority of Al Majm-oua’s clients were paying their loans on time again.

Learn more about our joint venture at www.grameen-jameel.com

Grameen-Jameel Pan-Arab Microfinance Limited, a joint venture between Grameen Foundation and the Abdul Latif Jameel Group, a private Arab company, began as an initiative in 2003. Following a four-year partnership between the two organizations, Grameen-Jameel launched as a company in 2007. By the end of 2007, Grameen-Jameel reached 240,830 clients through its 10 partners, exceeding their 2007 outreach goal by 20 percent. Their goal for 2008? Reach 400,000 clients and their families.

miCRofinanCe oveRComes The odds

Thousands had to flee their homes in Lebanon during the summer of 2006. Grameen Foundation partner Al Majmoua made sure that refugees got the assistance they needed.


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Middle East and North Africa

Zeinab desperately needed to find a way to provide for her six children. Four years ago, her husband sud-denly became sick and had to quit his job, so Zeinab frantically asked around her community for a way to feed her family. one friend told her about an agency, al tadamun, that gave small loans to groups of women like her without collateral. Filled with a new hope, Zeinab talked to her neighbors the very next day, organized a group of five women, and headed over to the al tadamun office.

Her first loan was 250 eGp (about uS $46). She used it to start a business making wooden pots, crafts and kitchen supplies. over time, Zeinab moved from one success to another, and now she has her own workshop at home. three of her children are helping her, and she is very happy with her life. Her last loan was for 4000 eGp (uS $735). “this is more than any government officer gets in two months,” she says with a smile.

six ChildRen, no inCome

Zeinab’s determination has paid off. As a client of Grameen- Jameel partner Al Tadamun for four years, she is now reaping the benefits of her successful small business.


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Grameen TechnologyThe Grameen Technology Center was established in 2001 to leverage advanced technology, particularly information technology, for the benefit of microfinance institutions and their clients around the world. Two of GF’s most exciting technology innovations are:• Mifos—Microfinance Open Source software, enabling MFIs to

capture and store information more efficiently, and build their business using world-class computer support

• Village Phone, allowing the rural poor to take advantage of 21st century communications through the use of cell phones

mifos: beTTeR daTa, QuiCkeR loansJitegemea is a small but growing MFI in Nairobi, Kenya. With 5,000 clients and almost 8,000 loan payments to process each week, Jitegemea’s IT staff was struggling to manage their accounts using basic computer spreadsheets. Their rudi-mentary system made it hard for them to perform essential information management functions, such as entering data and ensuring it was available to top decision makers.

Microfinance Open Source (Mifos) software was the answer to these kinds of problems, which are pervasive in microfinance today. Developed by Grameen Technology Center, Mifos was created with the specific needs of microfinance loan of-ficers in mind.

Polly Gikonyo, Jitegemea’s IT officer, says, “Implementation of Mifos has helped Jitegemea in streamlining our processes. My most memorable day was when we phased out the old system.” Polly and her team can now process loans much faster, which means better service for clients. It will now be easier for them to meet their goal of reaching 7,000 clients by the end of 2008.

Jitegemea is not unusual. Around the world, many microfinance institutions face critical chal-lenges in managing their heavy workloads. Mifos allows the microfinance industry to streamline, so it can focus on its goal of enabling people to escape poverty.

at a time of declining profit margins and a shaky global economy, few would think that a multi-billion dollar private corporation would invest time and money to create an alliance with the objective of empower-ing the rural poor. Qualcomm, a California-based wireless communica-tions company, rose to the occasion and joined hands with Grameen Foundation to pilot Village phone Indonesia in 2007. the pilot was very successful, and GF plans to launch Village phone Indonesia in summer 2008. Qualcomm has helped Grameen Foundation by providing funding and expertise, and powerful introductions to members of local govern-ment and telecommunications companies.

poWeRful CoRpoRaTe paRTneRships: Gf and QualComm


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Imagine being unable to call a doctor when your child is ill, or reach friends or family in a different city, or to contact the police quickly in an emergency. In developing countries, most people living in rural villages still lack access to these basic communica-tions that we take for granted. Village Phone brings communications technology into remote areas where none previously existed, while also creating business opportunities for microfinance clients.

When microfinance clients become Village Phone Operators, they offer phone service to their neighbors at an affordable price. Not only does the operator now have a source of income, but they are also providing an important resource for their village.

In 2007 . . . • VillagePhoneRwandaisworkingwithsixmicro-

finance institutions, and established 1,000 Village

Phone Operators—an important milestone for a program that was launched just a year earlier. By 2009, Village Phone Rwanda plans to support more than 2,500 operators.

• OurVillagePhoneDirectwebsitelaunched,making information about starting Village Phone projects available to all microfinance institutions around the world.

• GFpublishedaVillagePhoneDirecttrainingmanual, which anyone can use to start a Village Phone business. The manual is published in five languages: English, French, Spanish, Chinese and Arabic.

Learn more about Village Phone and our technology programs at www.grameenfoundation.org/technology

villaGe phone: a voiCe foR The RuRal pooR

Since 2003, Grameen Foundation has launched Village Phone programs in Uganda and Rwanda and assisted with programs in Cambodia, Haiti and the Philippines.


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Leveraging Hope

The Growth Guarantees Program presents a unique opportunity for individuals or institutions in the U.S. to make a significant impact on the lives of microfi-nance borrowers in the poorest regions of the world. To participate, donor-guarantors—participants who share GF’s vision that microfinance is a scaleable solution to global poverty—provide their assets as a guarantee to Citigroup. Citigroup then issues letters of credit to local banks to support financing for MFIs selected by GF. An important feature is the multiplier effect of these guarantees. Each dollar provided as a guarantee can enable the MFI to borrow at least twice that amount, thus increasing its overall impact. For example, a donor-guarantor’s commitment of $2 million could generate more than $8 million in direct financing for a MFI, or the equivalent of loans to approximately 50,000 women and their families.

If you or your institution would like to provide a guarantee of at least $1 million to the Growth Guar-antees Program, please contact Camilla Nestor at [email protected].

In most countries where Grameen Foundation supports microlending, the need for loans far exceeds the supply of funds. Our Capital Management and Advisory Center (CMAC) has devised a way to leverage wealth and capital from the US directly for microloans.

Through our Growth Guarantees Program, GF uses the assets of wealthy individuals as collateral to enable local commercial banks to provide lo-cal currency loans to microfinance institutions. This guarantee provides security for commercial banks, making them far more willing to give loans to the MFIs at competitive market rates, and the MFIs are protected from foreign exchange risk. Since donor-guarantors use their credit rather than actual funds, they can also continue to earn returns on their individual in-vestment portfolios while simultaneously empowering the poor. All funds secured through the program must be used only for direct lending services to clients.

The Record so far (as of July 15, 2008)

Round 1

140m in local currency commercial debt financing for MFIs

28m in Growth Guarantees issued globally

0 30 60 90 120 150

$ MIllIonS

hoW Can you paRTiCipaTe in The GRoWTh GuaRanTees pRoGRam?


>>


Dr. Shafiq Dhanani, the founder of Grameen Foundation partner Mitra Bisnis Keluarga Ventura (MBK), used to strug-gle to secure financing. When asked if commercial banks in Indonesia were initially hesitant to work with MBK, he responds, “Hesi-tant? they just wouldn’t lend to us! We didn’t have any collateral, they just wouldn’t lend.”

“In Indonesia, there is no short-age of funds,” Dhanani says, “But the formal banking sector is not used to supporting microfinance. Grameen Foundation’s Growth Guarantee provided the bank with

collateral and helped us start a relationship with com-mercial banks.” With this new funding, we’re growing by 5,000 clients a month, so it’s very significant,” says Dr.

Shafiq. “and we’re going to keep doubling our customer base every year.

CMaC also offers a variety of advisory services for our micro-finance partners, helping them

access vital funding from commercial banks. Find out more about Growth Guarantees and our CMaC programs at www.grameenfoundation.org/cmac

hesiTanT? They JusT Wouldn’T lend To us!

Working for someone else, Ibu Irmawahyuni was paid Rp 30,000 (USD $3) for an entire day’s work. With her own equipment, she makes Rp 60,000, doubling her daily income selling dried coconut. GF’s Growth Guarantees can help MFIs reach thousands more clients just like her.

“Now I can work for myself.” —Ibu Irmawahyuni, an Indonesian borrower since 2004

“Grameen Foundation’s Growth Guarantee provided the bank with collateral and helped us

start a relationship with commercial banks.”

2007–2008 annual report | voices from the field 22

Case in point: Negros Women for Tomorrow Foundation (NWTF), a microfinance institution in the Philippines, is one of the largest partners in the Grameen Foundation network. With 40 branches and 80,500 clients, the organization was thriving but wanted a way to ensure that its services were benefiting the poorest families.

NWTF was using a “Client Profile Index” based on an Indian model but found that it didn’t accurately represent poverty levels in the Philip-pines. Gomby Maramba, NWTF’s Manager of Research and Development, says, “We cannot assume that the [poverty indicators for] people who are poor in India are the same as the poor in the Philippines.” Grameen Foundation developed a Progress Out of Poverty Index based on Philip-pines national data, with grants from the Consul-tative Group to Assist the Poor and the Ford Foun-dation. Now, Gomby and his team can use the PPI to track their clients movement out of poverty.

Grameen Foundation has developed PPIs for the Philippines, Mexico, Haiti, Bolivia, India, Pakistan, Bangladesh, Morocco and Peru. Our goal is to have 35 PPIs by the end of 2009, ensuring that it will be available in countries home to more than 85 percent of the world’s poor. Nine MFIs within the GF network are piloting or implementing the PPI.

Grameen Foundation and the Progress Out of Pov-erty Index are providing a valuable impact on social performance management throughout the microfi-nance industry. Learn more at www.progressoutofpoverty.org

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“The Progress Out of Poverty Index has helped us a lot in identifying our target clients efficiently and it is a fast way to measure poverty movement of our clients. We can now

make decisions that will improve social impact.” —Gomby Maramba, Manager of Research and Development

at Negroes Women for Tomorrow (NWTF), Philippines

Reaching the PoorestGrameen Foundation strives to make sure that microfinance is ben-efiting the poorest families in the countries where our partners oper-ate. An innovative tool for making sure that happens is the Progress Out of Poverty Index™ or PPI, used since 2005 as a practical way to measure poverty levels of microfinance clients. It’s tailored to each country, making it easy to observe and verify indicators of poverty. By using it, microfinance institutions can track how quickly their clients are moving out of poverty.


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Microfinance helps a client of NWTF in the Philippines with her brickmaking business.


lifetime $1,000,000+AnonymousAbdul Latif Jameel GroupBill & Melinda Gates FoundationChiapas ProjectCiti FoundationCraig and Susan McCaw John and Ann DoerrFund for the PoorPaul and Yaffa MaritzJanet McKinley and George MillerMichael and Susan Dell FoundationOmidyar NetworkQualcomm Incorporated US Agency for International

Development

$1,000,000+John and Ann DoerrPaul and Yaffa MaritzQualcomm Incorporated

$500,000 – $999,999AnonymousBill & Melinda Gates FoundationCisco Systems FoundationCraig and Susan McCawHalloran PhilanthropiesJanet McKinley and George MillerMichael and Susan Dell FoundationDavid and Susan Russell

$100,000 – $499,999Anonymous (4)Citi FoundationFund for the PoorGoogle.orgHigh Water WomenJoyce and Donald Rumsfeld

FoundationMarge MagnerMarshall and Pamela SaundersMcGraw Hill CompaniesMosaic FoundationNokia CorporationPhil and Shannon SmithRichard and Lois Gunther Family

FoundationRussell Investment Group

$50,000 – $99,999Lucy and Henry BillingsleyBeverly and Gordon DukerscheinCraig Jenkins Charitable FoundationGuerrant Foundation, Inc.Kazarian Family FoundationMicrosoftRaja Malkani

Rick and Mahasti MashhoonRock Paper Scissors FoundationRockdale FoundationMark and Cindy SchoeppnerJohn and Cindy Whitehead

$10,000 – $49,000Anonymous (3)April FundPaul AtlasBochnowski Family FoundationChristopher and Nina BuchbinderCharles Engelhard FoundationCharles Spear Charitable TrustMichael ChastainScott Budde and Charlotte ColeMrs. Trammell Crow Jeffrey CulpepperDelta: A California CompanyEvslin Family FoundationFederated Church, United Church

of ChristDeborah FinkSusan FreemanJames Froese Meera and Vikram GandhiJonathan Gans and Abigail TurinCorydon and Kristin GilchristDiana GondonEsther HewlettJoseph Higdon and Ellen SudowIssa Family FoundationRichard KafkaShel Kaphan and Ericka LockeSusan Karp and Paul HaahrRoberta and Charles KatzDouglas and Elizabeth KinneyDonald Mankoff and Neelam PatelEllen McNallyMoeller Foundation Inc.Jane MundyPierre and Pamela OmidyarOpen Society InstituteReed OppenheimerOsa FoundationChris and Silvana PascucciOmar QandeelSteven RockefellerBetty SamsSEEP NetworkYeardley SmithStanley Family FoundationDavid and Sherrie StephensStichting HivosThomas F. Deutsch 1998 TrustUnited Nations FoundationUS Agency for International

DevelopmentNancy Waldman

Whole Foods MarketBelinda Willis and Howard CookPaul and Pamela Wood Foundation

$5,000 – $9,999AnonymousB. T. Rocca FoundationDavid and Leigh BangsRobert BrooksJacqueline CambataCharles & Peggy Norris Family FundJonathan ChenRobert CloutierLory CrisorioDancing Tides FoundationDarby FoundationMaria Luisa de CartassacGerald and Henrietta Rauenhorst

FoundationPrabandham and Gita GopalInsurance Service Office, Inc.John and Joan Thalheimer Family

FoundationVidar JorgensenKaufman Family FoundationMichael and Linda KeeganAngelique KnappKris KomarnitskyEugen LaeglerJaime Lamo de EspinosaBruce and Susanne LandauHeidi and Nathan LuedtkeTimothy and Stacy LutzMarketing Group, L.L.C.Aryeh and Yvette NeierOak Tree Philanthropic FoundationEdward and Marlena O’ConnorJan OlsenJeanette and Christopher PhelpsChristine PielenzPotrero Fund of the Tides FoundationJames ProtzPaul RobbSheri Berman and Gideon RoseJoel Rubinstein and Sylvia SabelDavid and Deborah SauerCraig and Hsiao-Hui SickelJeffrey SimonsTrond SkramstadSusan SurovaMichael and Sylvia SzpakTom TappPhyllis and Richard TaylorBarbara WebbDaniel WrightMichael YirilliSteven Young

ouR family of suppoRTeRs


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$1,000 – $4,999Anonymous (7)Duke and Sally AckermanSandra Adams and Tom RobertsEliot and Julia AdelsonFahima AhmadiAhson Ahmad-PaiAlan L. Blum Family FundJudy AlbersAlice AlexanderHugo AlfonsoDavid and Phoebe AmanteLane and May AmeenAmerican Gas Association Matching GiftsDario AmodeiLisa and Tom AndersonGregg AndrewsTimothy AndrewsArmstrong Family Charitable Foundation

FundK.R. Baker Kenneth BakerMatthew and Margaret BannickCharles BarnabyPaula BarsamianShirley BaumJerry and Anna BedfordBehnke FoundationMary BeijleveldWilliam BenacTracey BennettMiriam BenorThomas and Brenda BerlethCynthia and Fazil BhimaniJayant BhutaniDouglas BolickRena and Sanford BookstaverRosemarie BoucherTimothy and Ellen BoyerTimothy BrackettBrighter Vision FoundationThomas BrodyGrigory BronevetskyJefrey BrownWillard BrownSally BrowneEdward BrushEmily BuschKaren and Matthew ByronAlan and Lacey CalacPaul and Carol CaldronStephen and Barbara CameronCampus ManagementMarcia CannonCarol and Howard Anderson Family FundJames and Elizabeth CarrJohn and Mildred CassonFrank CatrickesCentury 21 Mike Bowman Inc.Sharyn and Vincent CernigliaJoanna Chapin

Jill ChenChester Tracy FarmJuliana ChisholmEmily ChuehMartin and Lien CibulkaDimitri and Myrto CocconiCollins Family FoundationRobert ConwayDavid CooperJulio CorredorPriscilla CortezAlex Counts and Emily WainwrightPeter Cowhey and Margaret McKeownMark CriswellMargaret CroneWilliam CrossDawn CrottyEmma CullinghamMichael CurtinDavid CushingThomas DanielIndranil and Barnali Das GuptaAnn and Tony DaviesSusan DavisSanchayita DebVermaBen and Christine DiehlScott DoranRobert DossettDouglas and Maria Bayer FoundationAlan DunnAmy EdwardsRobert and Lore EichfeldDaniel EitingonJohan EkenbergJames ElamMark EngasserHoward and Sara-Ann ErichsonRobert and Viola EverettGerard FarrellyAnn FeldmanDan FeuerbornRobert FingerJohn FlockEric FordSarah FordFoundation for Enhancing CommunitiesFrederick A. DeLuca FoundationJohn FrederiksenDavid Garcia and Maya SuryaramanJaneane GarofaloGE FoundationSandaruwan Geeganage and

Kristin JohnsonBob GerberBill and Nancy GerdesPaul and Rebecca GerlachMichael and Anne GermainBeverly GibsonSusan Gibson and Mark BergmanJoseph GilesHilary Giovale

Matthew GoldbergJan GombotzChristopher GootkindJade GoransonKevin GormleyAnton GrambihlerSadja GreenwoodD.L. and Constance GreerPiana GrgurinaZack GrossbartRobert GrossmanPeter and Kerri GuerinAndrew and Teresa GuntherPinkee and Shirish GuptaCheryl GuyreRobert and Frances GwynnGiselle HagenmayerDonna and James HalowDonald Hamer and Marie BednarDavid HamrickRod HandelandShea HanfordLarry HankinsRabab HashimGreg HaydenHCB, Jr. Partners LTDDeborah HebblewhitePatricia HeiligEdwin HemwallRichard HendersonDaniel HeppRonald HerzogBruce and Cheryl HibbettMary HidalgoHighland Technology, Inc.Bachani HiroHirschi InvestmentsRoland HoekzemaDave HorlickPeter and Susan HornbostelHorne Family Charitable Foundation, IncHelen Hower and Colin LanzlLeslie HutchisonIdeal Project Group, LLCBob and Sheryl IlseMr. and Mrs. Harold Isbell JAGEX Ltd.Stacey JarrellJoby FoundationJohn R. and Maria PV Young Family

FoundationReed and Kathleen JohnsonRobert and Michelle JohnsonVirginia JohnsonJoseph Noble IncStewart and Sherry KahnPeter KalotayNeal KanodiaRenata KarrStanley KayesMax Keller


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spReadinG The dReam of miCRofinanCe

When amanda pullaro, a church administrator in Colorado, read Banker to the Poor by professor Muhammad Yunus, she came away with an in-delible impression of the power of microfinance. For her wedding shower in 2008, her longtime neighbor Irene elgart made donations to Grameen Foundation in honor of amanda’s guests in lieu of party favors. “What better gift could I give them than a donation to Mandy’s favorite charity?” says Irene.

amanda and her fiancé, elike nuku, were so moved by the concept of microfinance that they are researching starting their own microfinance institu-tion in elike’s home country of Ghana.

Michael KempJohn and Ada KennedyMatthew KernerShakir KhanAnthony KimDavid King and Dolores ArroyoJane KingKing Family FundNeerav KingslandPhilipp KircherBeth KirkhartJohn KirklandNicola KlineChristian and Ineke KnetschPaul and Diane KolakGerardus KraakBrinlee Kramer and James JacksonStefanie KranendonckMaria and Pranish KumarSusan and Steve KuteLacher and Associates Insurance AgencyAchilles LakesDavid and Linda LakhdhirDarryl LarsonMartha LawlorLe Thieu Hong TrustScott LeckmanChoo LeeMichael Lehenbauer

Hank LeiningerDaniel and Masami LiebermanCindy LinErwin LinkeAnita LishJames and Flora LogieGordon LovettChe-Hao LuMichael LubicAngela LuscombeSteven LuxenbergLyda/Ginnis Charitable TrustWilliam and Lois LydensLee LynnBrian and Amy MaasYasmine Mahdavi and Patrick CampbellDavid MamoDeborah MancusoMark Victor Hansen FoundationBruce and Cindy MarkeyMarkMakers Foundation Inc.Paul MarrkandMary MartorellaMauriel Family FoundationAndrea MazieMichal MazurJon McAlisterRussell Quong and Sarah McCabeColleen McCarthy

David and Celia McCartyErin McConaheyHal McCownAmar MehtaChristina MelinThomas MelsheimerMesa Design GroupBrant MillerRobert MillsTang MingScott MitchellTomoko MiyaharaRiaz Moledina and Lily ChiuLori MondshineKathleen MooneyMSHC Partners, Inc.David MulliganDuncan Murdoch and Wai Ling ChanJoyce MurphyRizwan Naeem and Rubina HeptullaNAIOP Massachusetts ChapterJim and Fran NaylorJohn NeeleyStuart and Sara NelsonBarbara NormanMaura OdellJames OKeefeShawn and Cynthia OldsPappas Family Charitable Fund

Amanda Pullaro and her fiance, Elike Nuku, are dedicated to promoting microfinance in his home country of Ghana.

“I think it was really about empowering women, it’s giving these women financial control.”

— Amanda Pullaro


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Jeff ParkerPartners HealthCare SystemVikas and Lois PassiKiran and Jigisha PatelViral PatelKimberley PaulNick PavlinaGail PetersheimIsabelle PetersonDean and Jane PeytonPeter PierceFrank and Linda PlautJohn PooleJanniah and Shanti PrasadColm and Rena PrendergastRabahy FoundationKent RadspinnerArti RajShrikant RamamurthyRosanna Ramos-Velita and Hans LevinLyle RamshawJoseph and Licia RandoSarah RandolphJaya RaoTamer RashadElizabeth RaymondMarcia Reed and Tai YeeHannah and Gerald ReesCarole ReinerWilliam and Pamela RhodesBernd RiegerJanet and Nick RiehleCoenraad RietmanRohit RishiRobert and Donna Harper FoundationScott RobinsonMonica RodriguezJamie RomeThomas and Elizabeth RossJames RubinPhilip RussellHuma SalimSallie Mae FundTammy SantarsieroAnnamaria SaroliStephen ScarbroughNick and Debra SchatzkiGary SchindlerBryan SchmidtSchmitz-Fromherz Family FundJane SchwartzShoma and Prasad SettyLauren ShallcrossAbby SherD. Wayne SilbyCraig SilversteinJason SimmonsNirupam SinghDavid and Julee SipesSabina SkulskyCharles Smith

Society of the First Church in BostonMark SommerfeldRobert and Nancy SondermanFranklin SpeesDanton SpiveyMarsha SpringutJacob Stacey-SchreierLynn Streeter and Thomas LandauerRodney StricklandChris StronksMartina SturmLalith SubramanianRonald SugameliRenu SwartzJames SwisherBrenda SwithenbankStewart and Rebecca TaggartRobert ThauMoody’s FoundationRowny FoundationScott and Ky-Van Benson Charitable FundCharles ThomasThorman Boyle FoundationSara Throckmorton and Joseph VanceKathleen TimineyChristine TipladyM. E. TraceyJohn TrentacostiTriangle Community Foundation, Inc.Marjorie TrifonWyatt TrollDiane TrombettaTTF FoundationBetty TuttonUnity in ChicagoStephen Van de WeteringShyam VangaVillanova SAMOSAMark VithaMark Vonder Haar and Laurie KopecAnne Wade and Gil HaganPatrick WallaceSusan and Richard WallaceJerry WalshMelanie WarkDana and Linnea WarrenNatalie WatkinsPaul WattsJohn WellerDana Whitaker and Mark PetersenSinclair WhiteStuart WhiteHans-Peter WidauerAlfred and Kimberly WilliamsRussell WilliamsDavid and Martha WilsonGordon WilsonBrent and Robin WintersJennifer WirthIla Wist and Neal AlagiaWitten/Nappi Charitable Fund

WJ & JK Truettner Family FoundationAdrienne and William WoottersJennifer WrightEthan YakeCharles YangAti YatesWaikuen Yee and Anil ThomasNoah YoshaSusan YostIra and Nini ZackonMehdi ZafarM. Zonenberg

$500 - $999AnonymousMorten AbildstromJonathan AbourbihKatharine Abraham and Graham HorkleyLorraine AdamsShantanu Agrawal and Kavita ParikhJudith AlbrechtEdith AlexanderOlle AlexandersonDavid Allen and J. C. PuckettJohn and Sharon AmdallAmerican School in LondonMaria AmoreSusan and Drew ArnoldRamsey & Associates AssociatesBradford AxelAkhtar and Alka BadshahRohit BakshiBarbara Somerfield and John G. Guffey

FundJean BaroletDebra BaskinMarsha BennettNicholas BennettSat BestRakesh BhallaSteve BiaforeRobyn Billington Charlotte PedersenDean Blackketter and Kath WydlerJake and Mary BlehmKathryn BogdanJudith and Michael BohanDave and Mindy BostickKenneth BowlesVirginia BreenMark BrissetteJan BrunnerFarah BullaraKathryn BurgMicheline BurgerJeffrey BurkMireille BuserSamantha BuxtonJohan BuysAnonymousJeffry Byrne


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Elin CarlsonKenneth and Susan CarpenterAlison ChaikenWayne and Karen ChambleeHuei-Chia ChengSandra ChengAmanda CheungJohn CheungCathy ChouAnisur and Swati ChowdhurySusan and Ronald ChoyLung and Lila ChungRichard ClampittJacqueline ClarkDianne CmorChristie ConnardBrent and Kimberly CookRichard CookJennifer CooperE.J. and M.E. CopelandEthan CrawfordMelinda CresonJohn CrespoGlen CrustNancy CundillJanet CunninghamMelissa CzarneckiBill and Emily DannerDarcie and Kiko De FreitasNathan and Jamie De LoreyLaura DeBonisThierry Deegan and Patricia ConfortWim DekkerJamie DeLoreyJoyce DenooyerRichard and Gail deRossetDeutsche Bank Americas FoundationEloy DiazThomas DicksonDennis DillonNali DinshawDiscovery Canyon CampusMichael DorrisAgnes and Jack DoverDeanna DunnWalt EldredgeEpiscopal Church of the EpiphanyMcCann EricksonWilliam and Roberta ErwertDaniel EstyEttare Technologies IncKristin FangmeierRuth FarnhamFazeela FerouzSteve FinkMartin and Cheri FiskPatricia FiskeMichael FlaticoDean FlugstadDolores ForsytheMonica Francis

Ned FreedMichael FrerkerChristine FryerG&C LeasingJimmy GentMike and Cora GetubigScott GibsonHarneet GillPatricia GoldmanHeather GoodmanRobert GordonHenry and Catherine GrahamGrantham, Mayo, Van Otterloo & Co. LLCGema Grau-BullonHeidi GreenMark GreenMike GrossGretchen GrunerEric GurnaMitchell GuthmanRobert and Sandra HaganJeffrey HaleyRev. Hall Sherrie HallDaniel HallencreutzMarcia HalpernChris HarrelsonStephen HarrisonRandall HeathRichard and Barbara HeimbaughErik HeinenKenneth HellerLorraine HendricksonGary and Debbie HeplerNancy HersageDonald HillDoris HoffmanJohn HoganHoly Rosary Catholic ChurchPaul HornickLinda HouserDavid HudginsI-Phone Network LimitedElizabeth JacobsMargaret JaffeSharad JainDamon JansenElizabeth Jeffrey and Robert LonningWesley JonesMelanie JordanAmy JurasekPeter KalajianLinda KammMichael KennedyCynthia KenyonShaq KhanTaimur KhanJerry KiddKenji KikuchiTimothy and Jennifer KingstonAnne Kinsinger

Susan KirknessAshish and Colleen KishoreJoost KnapenRichard KnappPhillip KnollAndreas and Hajira KoellerKarl KofflerThomas and Juna KrajewskiRenate KristoffersenBetty and Warren KuehnerVinay KumarRonald KwokLuis and Lee LainerWinnie LamMargaret LambAnn and Bert LanePeter LanghoffBarbara and Jim LawlerEmmanuelle and Margarita Le DuRichard and Laura LedfordBonnie LedyardDavid LeeStephanie LetourneauDaniela LevatiLawrence LevyWendy and Donald LewisMargaret LindblomPeter LinkShirley LinteauEric Lipson and Lorene SternerAmy LuGrant MacFarlaneAlexander MacgillivrayKaren and Phillip MackoLynn and Eva MaddoxCarol and Alan MagnerJyoti MahapatraWilliam MaherLena MalikDr. R. and Dr. Sarojam Mankau Selena MaranjianDaniel MargolisMarjorie R. Van Steen Memorial FundLaura MartinSantosh MathanStrahan McCartenSydney McShaneJeffrey Mendell and Eddie AdkinsJeffrey MeyerAnnie MichaelisMichael MillerSylvia MillerTamera MinnickMehran MohammedShirley MonroeMonsanto FundHarold and Karen MortensenJames MortonAngel MossbergJohn MoxonDaniel Mufson


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Suresh and Meera MuppallaMaeve MurrayPadmaja MuthiahRamneek NayyarAnn and Wayne NelsonChristiane NeugebauerJoseph NeumayerKen NiehausPeter NilsonKimberly NobleMark NorrisPatricia NowakBrandon NutterMonica OldhamLinda O’NeallKatherine O’NeillRobert and Faith OttenhoffCharles OttoMr. and Mrs. Jeffrey H. Palmer Tim PalmerMarcia ParryWarren PaulJean PawlukMaria PazBret and Rebecca PerishoJohn PittardPointe International Inc.Richard PorterJane PotenzoSusan PozerCharles and Laura ProberPeter and Janet ProliJesse PujjiKathryn RafterSalvatore RagucciSara RahimianRobert and Ilknur RalstonJustin RayDrummond RiceNancy RiceStanley RiggenbachGail RileyKenneth RinesRochell FoundationRonald RohrbachRoanna RosewoodCarolyn RossRichard and Susan RosthalAmanda RoweLisa RubyKatherine RunyonDavid and Catherine RushSaint James’ Episcopal ChurchSalon Family Foundation, Inc.Charles SanfordSanta Clara UniversityJulienne ScanlonSchool Clinical & Consulting ServicesXavier SchwartzGregory ScottGwen Scott

Jacob SearingYoshiko ShimazuKartik ShridharLianne SimonseBecky SimpsonCarla SinopoliSusan SkeneSmalldairy.comBrian SmithJeanette SmithPeter SmithAbby SmutnyRaphael SpannocchiDouglas Spiro and Lynn BrownJaya SrikrishnanSt. John’s Episcopal ChurchClaudia StadelmannKelly StanmoreGeorge StaplesChristine SteeleJohn StevensLaurel StineTed StinsonNancy StottDebby StraussZachary StruykStudents Against Poverty in AfricaFrank and Michelle SwiftGary TanigawaHarshwardhan ThakerLudovic ThebaultMarie and Tom TheissSarah ThomasThomas and Sue Pick Family FundKevin ThompsonLisa ThorneThrivent Financial for Lutherans

FoundationAlan and Mae-Ling TienJennifer TiptonSam TiptonMartha TobiasKaren and William TolandAlphonso and Mary ToppRichard TornelloRobert and Jean TuckerMeredith TurnerNina and Prem UppaluruVance C. Demong Charitable TrustThukalan VergheseDuane and Mary WainwrightTim and Mary Jo WainwrightJanice WashingtonLuke WatsonJen WebbJennie WeinerSandra WeintraubRobert WeissJanet WestWest Hollywood Presbyterian ChurchWeston Financial

Trudy WillemsenWilliam Conway PhotographerVivien WilliamsonDonald WintersJames and Kathryn WireRalph B. Wittman Melvyn WongYingchuan WongGreg and Joyce WoodJerry WrightSusan WrightPablo YabranMartha YanezNedra Young

Grameen Foundation is grateful to the following individuals, organizations and companies that demonstrated their support and commitment to our work by providing in-kind services:

Caroline AstonAZB & PartnersAllison BasileMona BentzBest BuyPeter BladinCiscoCleary Gottlieb Steen & HamiltonAlex CountsDavis Wright Tremaine LLPDebevoise & Plimpton LLPDechert LLPSusan Place EverhartBrad GerdemanGoldman SachsGoogle.comAmelia GreenbergIBMKenyon and Kenyon (US –IP)Kohhhar & Co.McDermott Will & Emery LLPMorgan, Lewis & Bockius LLP (tax)Murtha Collina, LLPO’Melveny & MyersPuyat Jacinto & Santos Law OfficesRussell InvestmentsShearman & SterlingThelen Reid Brown Raysman & Steiner LLPWilmer Cutler Pickering Hale

and Dorr LLP

See our complete list of supporters at

www.grameenfoundation.org/supporters


>>


Lucy BillingsleyAlex Counts*Peter CowheySusan M. DavisJohn DoerrJennifer DrogulaRobert Eichfeld*Vikram GandhiJim GreenbergRichard S Gunther*Paul Maritz*Yvette NeierRobert Ottenhoff*Chris PascucciRosanna Ramos-Velita*David RussellWayne SilbyMuhammad Yunus

*Also a member of the Executive Committee of the Board of Directors.

finance CommitteeRosanna Ramos Velita, ChairBob Eichfeld, Vice-ChairRichard (Dick) Gunther, MemberPaul Kane, MemberChris Pascucci, MemberHans Levin, MemberSi White, Staff Liaison

audit CommitteeBob Ottenhoff, ChairEric Miller, Vice-ChairPeter Cowhey, MemberSi White, Staff Liaison

development CommitteeLucy Billingsley, ChairSteve Rockefeller, Jr, MemberRobert Ottenhoff, MemberYvette Neier, MemberSusan Russell, MemberSandra Adams, Staff Liason

Governance CommitteeJennifer Drogula, ChairMatthew Lesnick, Vice-ChairYvette Neier, MemberJulia Soyars, Staff Liaison

program CommitteeJanet Thompson, ChairJanet McKinley, Vice-ChairSusan Davis, MemberRichard Gunther, MemberChris Pascucci, MemberDonna Rohling, MemberDana deKanter, MemberSalvatore Pappalardo, Staff Liaison

india advisory CouncilVikram Gandhi, ChairBob Eichfeld, MemberSusan Davis, MemberElke Ward-Smith, MemberJames Greenberg, MemberChandni Ohri, Staff Liaison

China advisory CouncilWayne Silby, ChairLynn Chia, Vice-ChairRichard Gunther, MemberYing Wang, MemberKaren Wong, MemberKate Druschel, Staff Liaison

philippines CommitteeJanet Thompson, ChairJoe Higdon, Vice-ChairRobert Atendido, MemberDarcy Kopcho, MemberGeorge Sycip, MemberJanet McKinley, MemberMike Getubig, Staff Liaison

Capital markets CommitteeBob Eichfeld, ChairHarmohan Ahluwalia, MemberJanet Thompson, MemberScott J. Budde, MemberRosanna Ramos-Velita, MemberBridget Lidell, MemberRoz Hongsarangon, MemberHans Levin, MemberCamilla Nestor, Staff Liaison

investment Committee

voting membersBob Eichfeld, Co-ChairSusan Davis, MemberJennifer Drogula, MemberWayne Silby, Member

non-voting members Doug Barry, MemberVinod Khosla, MemberBridgett Lidell, MemberCamilla Nestor, Staff Liaison

latin america and Caribbean advisory CouncilRosanna Ramos-Velita, ChairLucy Billingsley, Vice-ChairChris Pascucci, MemberGary Mulhair, MemberErica Lock, MemberSalvatore Pappalardo, Staff Liaison

boaRd of diReCToRsTechnology advisory CouncilShel Kaphan, MemberPaul Maritz, MemberPeter Cowhey, MemberCraig McCaw, MemberMary Evslin, MemberAnand Narasimhan, MemberPradeep Singh, MemberRob Mechaley, MemberDeepak Amin, MemberWayne Silby, MemberDavid Stephens, MemberDebbie Arnold, MemberPeter Bladin, Staff Liaison

pakistan advisory CouncilBob Eichfeld, ChairJim Greenberg, MemberSteve Rasmussen, MemberMaliha Hussein, MemberAtif Raza, Member Faisal Khan, MemberErin Connor, Staff Liaison

social performance CommitteePeter Cowhey, ChairJanet Thompson, MemberNigel Biggar, Staff Liaison

africa advisory CouncilPaul Maritz, ChairWillene A. Johnson, Vice-ChairDr. Wolday Amha, Member Jennifer Dorgula, MemberGodwin Ehigiamusoe, MemberLynn McMullen, MemberMalini Tolat, Staff Liaison

sustainability CommitteeRobert Ottenhoff, ChairLucy Billingsley, MemberRobert Eichfeld, MemberRichard Gunther, MemberJanet Thompson, MemberChris Pascucci, MemberJennifer Meehan, Staff LiaisonSi White, Staff Liaison


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staff

Alex Counts, Chief Executive OfficerSandra Adams, Vice President of

External AffairsPeter Bladin, Senior Vice President and

Executive Director, Grameen Technology Center

Salvatore J. Pappalardo, Chief Operating Officer

Julia Soyars, General Counsel and Assistant Corporate Secretary

Si White, Acting Chief Financial Officer

Zaved AhmedMohammed Nurul AlamCharlene BalickMegan BeckThomas BellAlly BellageElizabeth BertheNigel BiggarSam BirneyRebecca Booker Jeff BrewsterSharlene BrownEdward CableEric CantorLian CarlKay ChauJill Chen Sherita CoatesGeorge Conard

Erin ConnorSean DeWittPriscilla DosiouKate DruschelMatt DuncanMichael EberDavid EdelsteinAdeOla FadumiyeScott FeldmanAdam FeuerKen FoxMike GabrielWhitney GanttGwyneth GaulMike GetubigTilahun HabtegiorgisLaura HartstoneHeather HenyonJorge HighlandKay HixsonNicole IdenJohn IkedaBeverly JacksonGreta KauffmanDavid KeoghMary Jo KochendorferNamita KoppaEmma Le DuBeth MazurMatt MechenbierJennifer MeehanPatrick MeriweatherCheri MitchellVan Mittal-Henkle

Adam MonsenJoe Mwangi-KioiCamilla NestorChandni OhriVladimir PetrovKeith PierceSabrina QuaraishiChristine RobertsCameron RosenthalFabrizio RotatiViviana Salinas-LanaoChristina SantiagoShannjit SinghRadha SinglaBrian SlocumStuart SmithJulie Stahl PeacheyMalini TolatJeff ToohigJoshua TrippEmily TuckerMaya UppaluruMarie ValdezKathleen Van ZutphenPreeti WaliAliya WaljiSteve WardleLea WerbelRyan WhitneyTim WoodLiselle G.A. YorkeHelen YuenDenise ZieglerStephen Ziobro

Pro Mujer Bolivia, a Grameen Foundation partner in the Americas, is helping its clients’ children to develop their own business skills, through its Young Entrepre-neurs Program. Grameen Foundation supported these microfinance plus programs in 2007.


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31 voices from the field | 2007–2008 annual report31 voices from the field | 2007–2008 annual report


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The outstanding financial results for fiscal year 2008 (April 1, 2007 to March 31, 2008) illustrate only part of the exceptional year we have had at the Grameen Foundation.

For the first time in our history, our revenue exceeded $20 million reaching a total of $21.9 million. As in prior years, our funding came primarily from indi-viduals and foundations. Our focus on sustainable sources of revenue this year led to a 100 percent increase of our earned revenue to $2.5 million. We ended the year in a very strong financial position with our total cash and investments at $11.3 million and total net assets of $23.8 million.

As the organization has grown, we have leveraged our infrastructure allowing us to lower our overhead percentage to 15.9 percent. This percentage represents the overhead percentage from an accounting (GAAP) point of view and does not take into account the benefit of our Growth Guarantees and loans. Including those programs would lower our actual overhead to a world-class 7.5 percent*.

Using $17.2 million in guarantees, the innovative Growth Guarantees Program generated an additional $90.5 million of loans to local microfinance institutions in FY08. With funds supported by Growth Guarantees, these institutions in turn provided over 500,000 new loans to the poor. Since the inception of the program in 2005, with a $31 million guarantee pool, we have generated $120.8 million of loans to the poor.

The CPA firm of Gelman, Rosenberg & Freedman has audited the financial records and statements of Grameen Foundation and expressed an unqualified opinion for the year that ended March 31, 2008. In addition they issued a Man-agement Letter with no “material weaknesses” noted during the audit. You can find the complete audited financial statements at www.grameenfoundation.org.

After a great year, the Grameen Foundation is in a very strong financial posi-tion and is ready to meet our mission “to enable the poor, especially the poorest, to create a world without poverty.”

Si White

* The pledges to the Growth Guarantee Program are retained by the donor-guarantors, and for this reason standard accounting treatment does not allow us to include them in our financial statements as programmatic activity.

finanCial hiGhliGhTs



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finanCials

asseTs

Cash and cash equivalents 9,409,856

restricted deposits 604,580

total cash 10,014,436

Investments 1,263,831

loans receivable 1,781,027

Grants and contributions receivable 3,916,728

other receivables and advances 306,745

prepaid expenses 142,810

total assets $17,425,577

statement of activities for the period april 1, 2007 through march 31, 2008

pRopeRTy and eQuipmenT

net property and equipment 172,628

other assets

loans receivable, net of current portion 4,340,431

loans to program related investments 199,600

program related investments 883,420

Grants and contributions receivable net of current portion

1,846,632

Deposits 103,767

total other assets 17,425,577

total assets $24,972,055

suppoRT and Revenue

Contributions and Grants 16,022,609

program revenues 2,110,933

loan interest 128,461

In-kind contributions 3,435,767

total support and reveune $21,941,311

expenses

program services

partner services 4,499,192

Strategic services 8,816,493

public education 749,483

total program services $14,065,168

supporting services

Mangement and general 2,206,230

Fundraising 445,084

total supporting services 2,651,314

total expenses 16,617,482

Change in net assets before other items 5,224,829

oTheR iTems

allowances for: uncollectible loans receiv-able and foreign exchange risk

-80,694

present value discount of loans receivable 931,447

change in net assets 6,075,582

net assets at beginning of year 17,746,847

net assets at end of year $23,822,429

statement of activities and change in net assets for the period april 1, 2007 through march 31, 2008

liabiliTies and neT asseTs

liabilities

accounts payable and accrued expenses 765,626

note payable 384,000

total liabilities 1,149,626

net assets 103,767

unrestricted 9,769,616

temporary restricted 14,052,813

total net assets 23,822,429

total liabilities and net assets $24,972,055

WheRe ouR money Comes fRom souRCes of ConTRibuTions WheRe ouR money Goes*

Where Our Money Comes From 2008

Program Revenues - 10%Contributions and Grants - 73%Interest and Investments - 1%In-Kind Contributions - 16%

Sources of ContributionsCorporations - 22%Foundations - 19%Individuals - 48%Non-Profits - 11%

Where Our Money GoesFundraising - 3%Management and General - 13%Program Services - 84%

10% proGraM reVenueS

73% ContrIButIonS

anD GrantS

1% IntereSt anD InVeStMentS

16% In-KInD ContrIButIonS

22% CorporatIonS

48% InDIVIDualS

19% FounDatIonS

11% non-proFItS

3% FunDraISInG

13% ManaGeMent anD General

84% proGraM SerVICe

*Please see our Financial Highlights on page 31 for more information on our Growth Guarantees program and our overhead expenses. D

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• Make a gift: Your donation today helps reduce extreme poverty tomorrow. Gifts are fully tax-deductible as charitable contributions to the extent allowed by law.

• Stay informed: Visit our website, www.grameen-foundation.org, and sign up for our e-newsletter for free updates on how microfinance is transforming communities worldwide. You can also forward our e-newsletter to others so they can learn and get involved.

• Spread the word: Invite friends and family to join our e-mail list to learn more about our work, host an event featuring a Grameen Foundation speaker, or host a session where books written by microfinance leaders can be discussed, such as Small Loans, Big Dreams by Grameen Foundation President and CEO Alex Counts, or Creating a World Without Poverty by Grameen Bank Founder Muhammad Yunus.

• Share your expertise: Ask us about volunteer op-portunities by emailing us about your skills and the time you can devote to applying them in microfi-nance.

• Designate Grameen Foundation for your work-place matching-gifts program. Grameen Founda-tion’s code for the Combined Federal Campaign is 15029.

• Include Grameen Foundation in your will or as a beneficiary of your life insurance policy or IRA.

WHAT YOu CAN DO

You can support our work to provide access to financial services for

millions of poor women around the world:

Join the fight against poverty. Visit www.grameenfoundation.org/get_involved.

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Printed on Recycled Paper

SInapI aBa truSt lIVeS tHe paraBle oF tHe MuStarD SeeD, proVInG tHat Great tHInGS Can CoMe FroM tHe tInIeSt aCtIonS.

“My husband is happy to see my business growing, exclaims akosua Ghana with a big smile

and a hearty chuckle. akosua has been a client of Sinapi aba

trust (Sat), a Grameen Foundation partner, for nearly one

year, and has seen her business grow dramatically during

that time.

“When I joined Sinapi aba, my business was very small,

then someone told me about Sat,” explains akosua, who lives

in the city of Kumasi, in central Ghana. Before joining Sat, she

sold small pastries door to door, but since borrowing from Sat,

akosua was able to purchase a small kiosk in a residential area

to sell smoked fish, tomatoes, eggplants, groundnuts, dried

pepper and other staples. She has seen her family’s income

increase dramatically since. the kiosk now does over 50 cedi

(about uS $50) in sales per day, generating a daily profit of

about 10 cedi. the largest non-profit financial institution in

Ghana, Sat provides more than 50,000 women like akosua

with access to loans and savings services. Sat’s name is a

play on the local word for mustard seed —“sinapi.” Sat lives

the parable of the mustard seed, proving that great things can

come from the tiniest actions...just like akosua’s business.

Grameen Foundation50 F Street, 8th FloorWashington, DC 20001phone +1-202-628-3560Fax +1-202-628-3880

Grameen technology Center2101 4th ave., Ste. 1030Seattle, Wa 98121phone +1-206-325-6690Fax +1-206-325-0634

www.grameenfoundation.org

Grameen-Jameel pan-arab Microfinance ltd.International Humanitarian CityBuilding #4, Ground Floorp.o. Box 506025Dubai, u.a.e.phone +971-4-430-9120Fax +971-4-430-9121 Fax

Grameen Capital Indiaunit # 402,36 turner roadBandra, Mumbai 400 050Indiaphone +91-22-6675-2991-3

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