Five Talents is a Christian charity that provides savings programs, and financial literacy and business training for those in need in developing countries. [1] They make use of a form of savings-led microfinance. Five Talents' programs serve people regardless of religious background, and they aim to transform lives through economic empowerment, [2] creating long-term solutions to poverty in the developing world. [3]
The organization’s name was inspired by the Parable of the talents or minas from the Bible. The parable illustrates that every human being has dignity and God-given resources that can be used for good. By providing access to financial services and business training, Five Talents empowers the poor to develop and use their resources and talents. [4]
In May 2010 Five Talents was featured on the BBC's monthly television charity appeal program 'Lifeline'. [5] A short film starring Sandi Toksvig was broadcast on BBC1 and explored the impact of Five Talents on the poor in Tanzania.
Five Talents has offices in Washington, DC, London, and Kenya with partner organizations in nine countries. It was founded at the Lambeth Conference of Anglican Church leaders in 1998 [6] as 'a long term response to help the poor in developing countries based on need not creed'. [7]
The patron is the Archbishop of Canterbury, currently Justin Welby. Five Talents works alongside churches to help communities develop savings groups, [8] offer financial services, and provide financial literacy and business skills training. Five Talents has partnered with local communities to build community banks and has trained over 200,000 entrepreneurs and helped to develop over 80,000 businesses in 21 developing countries around the world. [9]
Five Talents works in nine developing countries: Burundi, Bolivia, Democratic Republic of Congo, Indonesia, Kenya, Myanmar, South Sudan, Tanzania, and Uganda. [10]
Five Talents US was named "one of the best" non-profits for by Greater Washington's Catalogue for Philanthropy, According to the Catalogue, "115 reviewers from foundations, corporations, corporate giving programs, giving circles, the philanthropic advisory community, and peer nonprofits, evaluate applicants for distinction, merit, and impact." [11]
Five Talents UK won the 2011 Award from Advocates for International Development (A4ID) for the best Development Partner. [12] This award celebrates the outstanding achievements of legal professionals and the development organisations they have worked with in tackling extreme poverty and meeting the UN’s Millennium Development Goals.
Five Talents operates using a training and savings led group lending model. Members receive training in financial literacy, savings, and business development. They meet on a regular basis, often weekly, and contribute to savings groups. After six months of savings, members can access low interest loans provided to the group as a whole, so if one person has difficulty in repaying, the others in the group will have to cover their repayments. This system aims to reach those who are unable to take out commercial loans due to lack of collateral. The majority of borrowers are women. Loans are paid back within a short period of time and recycled for further business development. [13]
Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment, or a verifiable credit history. It is designed to support entrepreneurship and alleviate poverty. Many recipients are illiterate, and therefore unable to complete paperwork required to get conventional loans. As of 2009 an estimated 74 million people held microloans that totaled US$38 billion. Grameen Bank reports that repayment success rates are between 95 and 98 percent.
Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services. Microfinance services are designed to reach excluded customers, usually poorer population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient. ID Ghana is an example of a microfinance institution.
The Hunger Project (THP), founded in 1977 with the stated goal of ending world hunger in 25 years, is an organization committed to the sustainable end of world hunger. It has ongoing programs in Africa, Asia, and Latin America, where it implements programs aimed at mobilizing rural grassroots communities to achieve sustainable progress in health, education, nutrition, and family income. THP is a 501(c)(3) non-profit charitable organization incorporated in the state of California.
Grameen Bank is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans to the impoverished without requiring collateral.
Opportunity International is a 501(c)(3) nonprofit organization that is working to end global poverty by creating and sustaining jobs. Through a network of 47 program and support partners, Opportunity provides small business loans, savings, insurance and training to more than 14 million people in the developing world. It has clients in more than 20 countries and works with fundraising partners in the United States, Australia, Canada, Germany, Switzerland, Singapore, Hong Kong and the United Kingdom. Opportunity International has 501(c)(3) status as a tax-exempt charitable organization in the United States of America under the US Internal Revenue Code.
Freedom from Hunger is an international development organization working in nineteen different countries. Rather than provide food aid, Freedom from Hunger focuses on providing small loans and business education to poor women. It is a nonprofit, nongovernmental, nonsectarian organization classified by the IRS as a 501(c)(3) charity. It was evaluated in 2011 by GiveWell who found their programs had little to no lasting impact.
Pro Mujer is a nonprofit development organization that provides financial inclusion, health and education programs to low-income women in Latin America. One of the largest women's organizations in the region, Pro Mujer operates in Argentina, Bolivia, Mexico, Nicaragua and Peru with headquarters in New York City. Since its founding in 1990, Pro Mujer has disbursed more than $4 billion in small loans, provided over 10 million health interventions and impacted more than 2 million women across the region.
MicroLoan Foundation is a UK-based microfinance charity that gives small loans and business training to women in Malawi, Zimbabwe and Zambia. The main objectives of the organisation is poverty alleviation and gender empowerment, and consequently its main focus has been on the women living in the rural areas, who make up majority of the poor in Sub-Saharan Africa. In 2019 alone, MicroLoan supported over 65,000 women to grow businesses. With these loans and free business and financial literacy training, the women are able to start businesses thereby increasing their household incomes, business profits and assets. They are able to make savings to support them during future hardship. The women are also able to pay for their children to attend school, pay for medical care and make their families more food secure. Much of the training is delivered in song, dance and role-play because of low literacy rates.
LAPO is a Nigerian organisation with a microfinance bank dedicated to self-employment through microfinance and an NGO, a non-governmental, non-profit community development organization focused on the empowerment of the poor and the vulnerable.
Micro financing in Tanzania started in 1995 with SACCOS and NGOs. It has since then contributed to the increasing success of international micro financing. Microfinance stills remains a relatively new in Tanzania since it has not penetrated yet. Since 1995, microfinance has been linked to poverty alleviation programs and women. The government made efforts to ensure commercial banks have continued to provide financial support to the small entrepreneurial business. However a microfinance National Policy was implemented in 2002 to encourage and support microfinances in the country. Since the implementation, micro financing was officially launched and recognized as a poverty alleviation tool. Due to its increase exposure and use in the nation, commercial banks have developed interests in to offer microfinance. There are various microfinance banks that functions as supporting institutions in the country that usually provide microfinance services. These may include the CRDB, National Microfinance Bank, and AKIBA. However there are also other few banks that are concerned with micro financing in Tanzania such as the PRIDE and SEDA, Tanzania Postal Bank and FINCA. Community and small banks have also expressed interest in the same including the NGOs and other non-profit organizations.
Trickle Up is a nonprofit international development organization that empowers people living in extreme poverty, defined as less than $1.90 a day. Trickle Up's primary focus and expertise is reaching the most vulnerable and excluded women, people with disabilities, members of indigenous groups, and refugees in the Americas, Africa, and India. These groups are disproportionately affected by extreme poverty. They are also the most likely to be beyond the reach of government programs and other anti-poverty NGOs.
A self-help group is a financial intermediary committee usually composed of 12 to 25 local women between the ages of 18 and 50. Most self-help groups are in India, though they can be found in other countries, especially in South Asia and Southeast Asia. A SHG is generally a group of people who work on daily wages who form a loose grouping or union. Money is collected from those who are able to donate and given to members in need.
Financial inclusion is defined as the availability and equality of opportunities to access financial services. It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. Financial inclusion efforts typically target those who are unbanked and underbanked, and directs sustainable financial services to them. Financial inclusion is understood to go beyond merely opening a bank account. It is possible for banked individuals to be excluded from financial services. Having more inclusive financial systems has been linked to stronger and more sustainable economic growth and development and thus achieving financial inclusion has become a priority for many countries across the globe.
Fonkoze is Haiti's largest microfinance institution serving the poor in Haiti, with 44 branches located throughout the country. The name Fonkoze is an acronym for the Haitian Creole phrase "Fondasyon Kole Zepòl" meaning "Shoulder-to-Shoulder Foundation." Its Goal is to aid Haitians with financial and development services to lift themselves out of poverty. Fonkoze's development programs include Adult Education, Ultra-Poverty Alleviation and Boutik Sante, a health program designed to create a new business opportunity for Fonkoze's existing clients while also providing much-needed health products, services and education to rural communities throughout the country. Fonkoze is a family of three organisations working together to achieve its mission:
Dean Karlan is an American development economist. He is Professor of Economics and Finance at Northwestern University where, alongside Christopher Udry, he co-founded and co-directs the Global Poverty Research Lab at Kellogg School of Management. Karlan is the president and founder of Innovations for Poverty Action (IPA), a New Haven, Connecticut, based research outfit dedicated to creating and evaluating solutions to social and international development problems. He is also a Research Fellow and member of the Executive Committee of the board of directors at the Abdul Latif Jameel Poverty Action Lab (J-PAL) at the Massachusetts Institute of Technology. Along with economists Jonathan Morduch and Sendhil Mullainathan, Karlan served as director of the Financial Access Initiative (FAI), a consortium of researchers focused on substantially expanding access to quality financial services for low-income individuals.
Women's World Banking is a nonprofit organization that provides strategic support, technical assistance and information to a global network of 55 independent microfinance institutions (MFIs) and banks that offer credit and other financial services to low-income entrepreneurs in the developing world, with a particular focus on women. The Women's World Banking network serves 24 million micro-entrepreneurs in 32 countries worldwide, of which 80 percent are women. It is the largest global network of microfinance institutions and banks in terms of number of clients, and the only one that explicitly designates poor women as the focus of its mission.
Poverty in Sri Lanka is 4%. Sri Lanka's life expectancy and literacy rate are nearly on par with those of developed countries, and even top the rankings for the South Asia region. While all these indicate that Sri Lanka should be experiencing a high standard of living, until recently it has only ranked in the medium category of the Human Development Index (HDI). This is despite the fact that Sri Lanka has been experiencing moderate growth in its GDP averaging 5.5 per annum between 2006 and 2009. One of the reasons is due to its relatively low GDP per capital;. The Sri Lankan government has been successful in reducing poverty from 15.2% on 2006 to 8.9% in 2010, urban poverty was reduced from 6.7 to 5.3% while rural poverty was reduced from 15.7 to 9.5%, and the nation has made significant progress towards achieving Millennium Development Goals on eradicating extreme poverty and hunger.
Village Enterprise is a 501(c)(3) nonprofit organization that works to end extreme poverty through entrepreneurship and innovation. A pioneer in the quest to help rural Africans lift themselves out of extreme poverty, Village Enterprise employs local leaders who then implement a community-based poverty graduation program that has been adapted for different contexts in Africa. Village Enterprise has trained more than 214,000 ultra-poor individuals, helped them establish over 58,000 businesses, and transformed the lives of over 1.24 million women children and men in Kenya, Uganda, Rwanda, Tanzania, Mozambique, and the Democratic Republic of Congo.
Esperanza International is a Christian-based not-for-profit organization that is devoted to helping poverty-stricken people of the Dominican Republic through finance, education, health, and spiritual programs. It is classified as a 501(c)(3) nonprofit organization in the State of Washington and non-governmental organization in the Dominican Republic. Its primary services are centered around its microfinance program, which provides small loans to impoverished families and business owners, to progress economic development and pull communities out of poverty. It was founded in 1995 by former Major League Baseball player Dave Valle and his wife Vicky. Esperanza is headquartered in Santo Domingo, has 10,000 associates in the Dominican Republic and Haiti, has distributed 200,000 loans, supported 200 schools, and provided access to clean water through 50 water projects.
Kashf Foundation is a non-profit organization, founded by Roshaneh Zafar in 1996. Kashf is regarded as the first microfinance institution (MFI) of Pakistan that uses village banking methodology in microcredit to alleviate poverty by providing affordable financial and non-financial services to low income households - particularly for women, to build their capacity and enhance their economic role. With headquarters in Lahore, Punjab, Kashf has regional offices in five major cities and over 200 branches across the Pakistan.
