This article contains content that is written like an advertisement .(February 2017) |
Type | 501(c)(3) |
---|---|
54-0907624 | |
Revenue (2015) | $107,800,238 [1] |
Opportunity International is a 501(c)(3) nonprofit organization chartered in the United States of America. Through a network of 47 program and support partners, Opportunity International 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 (Employer Identification Number: 54-0907624). [2]
In 1971, Al Whittaker left his job as president of Bristol Myers International Corporation in America to found the Institute for International Development Incorporated (IIDI), a micro-enterprise organization. Barry Harper, IIDI's first Executive Director, and development officer Dan Swanson together oversaw establishment of IDII offices in Colombia, Peru, Honduras, Kenya, the Dominican Republic and Indonesia.
Australian philanthropist David Bussau founded Maranatha Trust and began administering loans in Indonesia in 1977. In 1979, he joined IDII as the director of the Indonesia office and began expanding IDII's work in Asia. [3]
In 1988, the two merged their efforts under the name Opportunity International. Since that time, the organization has continued to grow.
In 1991, a group of women supporting Opportunity International called the Women's Opportunity Network created a group-lending methodology called the Trust Group in which groups would be responsible for their peers and hold them accountable for repayment. Opportunity began testing this group lending and Trust Group method in the Philippines in 1992, and in the same year, they began to focus on serving entrepreneurs at even more extreme levels of poverty.
Realizing that no one group can tackle the issues of poverty alone, Opportunity began developing partners - independent, self-governing organizations with similar motivations - in countries and regions around the world. In 1998, Opportunity formalized these partnerships into the Opportunity International Network - a group of partners that now includes 47 entities in over 20 countries.
In 2000, Opportunity began building a series of permanent and mobile banks to reach more remote areas of countries and attempt to serve those that had previously lacked access to financial services. These formal financial institutions (FFIs) took the form of commercial banks, development banks or credit unions that could accept deposits, borrow money and/or accept investments.
In 2002, Opportunity International developed and founded MicroEnsure, a microinsurance entity providing weather-indexed crop insurance, affordable health insurance, and protection against other risks. MicroEnsure was the world's first microinsurance intermediary and received a generous grant from the Bill & Melinda Gates Foundation in 2008. MicroEnsure spun off from Opportunity as its own company, and in 2013 it became a for-profit social enterprise. [4]
On January 24, 2006, David Bussau gave the 10th Australia Day Address with the subject "A Giving Nation." [5] And in January 2008, David Bussau was named Senior Australian of the Year 2008 for his work in the fight against global poverty. [6]
Al Whittaker died in 2006. [7]
Opportunity was founded as and remains a non-denominational Christian organization that serves all its clients regardless of their race, religion, ethnicity or gender.
In 2017, Opportunity International's operation in Malawi was sold to southern African banking group FMB Capital.
Annual Report 2015 | By the Numbers |
---|---|
Active Loan Clients | 4 Million |
Total Loaned | $1.4 Billion |
Savings Clients | 4.9 Million |
Insurance Clients | 9.9 Million |
Loans to Women | 95% |
Loan Repayment Rate | 99% |
Clients Who Bank From Cell Phones | 380,000 |
Children Educated | 803,000 |
According to the annual report 2021, the total revenue in 2021 stood at $54.2 million and the total expeses amounted to $46.9 million, with 88% of its budget going towards programs and the remaining 12% going towards fundraising, general and administrative expenses. [9]
Like many microfinance organizations, Opportunity often lends to clients through group lending. At Opportunity, these lending groups are called Trust Groups and consist of 10 to 30 entrepreneurs who pledge to guarantee each other's loans. The groups meet regularly to share personal and business advice, receive financial training and vote on loan-related topics.
Trust Groups are designed to build a safety net by guaranteeing each other's loans - if one member defaults on a weekly payment, everyone else must cover the costs. The idea is that the group guarantee replaces the need for collateral, so that credit becomes available to those previously excluded from formal financial services.
Each week, as Trust Groups gather to repay their loans, Opportunity provides educational sessions to develop business skills and enhance personal growth. [10]
The efficacy of group lending has been debated since it was first introduced by the Grameen Bank in the 1970s. As MFIs have become more advanced and increased their scale, it has become less costly for them to monitor borrowers, allowing them to be less reliant on group lending and peer enforcement. According to JPAL, there is little evidence on the relative impacts of individual lending versus group lending on household consumption, income and enterprise creation. [11]
Today, Opportunity recruits and develops staff from the countries it serves. Its global team has grown to 23,000 employees, 99% of whom are nationals, with over 10,000 loan officers working directly with microfinance clients. [12]
Over the last 10 years, Opportunity has invested more than $20 million in electronic and mobile technology to reduce transaction costs and bring services to the most marginalized and remote people. Satellite branches and mobile banks reach clients in previously unserved areas, like rural farming villages and sprawling urban markets. Biometric technology provides convenient and secure access to finances, even for those who are illiterate or lack formal identification. Convenient ATMs and point-of-sale (POS) devices offer the only safe method for transactions in many markets and allow clients to make transactions near home, thereby reducing transportation costs, improving their productivity and increasing the safety of their savings deposits. Opportunity's banking programs enable clients to repay loans or transfer funds in Opportunity savings accounts from their mobile device. Cell phone technology gives clients in remote locations access to their accounts.
Opportunity focuses its services, including loans, savings accounts, insurance, training and financial access, on women - providing 95% of their loans to women.
Opportunity EduFinance is a global program partner of Opportunity International, launched in 2007 and based in London UK. [13]
Opportunity invests in parents and educators to help children go to school and receive a high quality education. Opportunity's EduFinance tools include:
Alongside financial tools, Opportunity supports educators with other tools and programs including:
Opportunity has reached 1.7 million children and distributed $69M in education loans since 2009.
In October 2016, Opportunity announced that it received a $1 million grant to expand EduFinance from the Bill and Melinda Gates Foundation. [15]
In November 2016, Opportunity International won the Civil Society Achievement Honor at the Children and Youth Finance International Global Inclusion Awards 2016. [16]
Opportunity International has introduced the following programs, tools and initiatives:
Opportunity works through local program partners to better understand and meet the needs of families they serve. Local partners must share Opportunity's values and objectives. Their stated requirements for partners are:
They also look for partners with:
The Opportunity Network is made up of 47 organizations, 39 of which are microfinance institutions (program partners) operating in Africa, Eastern Europe, Central and East Asia and Latin America. These program partners provide loans and other support directly to families in need. Funds to support the work of program partners are raised through support partners operating in various countries including Australia, Canada, Germany, the United Kingdom and the USA. These funds are provided to program partners as either equity, loans or grants. While program and support partners have close relationships, each operates as an independent legal entity. No program or support partner acts as agent for any other program or support partner, nor has authority to bind any other program or support partner. Opportunity International was the first organization to approach microfinance using a microfinance network.
Opportunity serves clients in the following countries in Africa:
Opportunity serves clients in the following countries in Asia:
Opportunity serves clients in the following countries in Eastern Europe:
Opportunity serves clients in the following countries in Latin America:
Opportunity partners raise support in the following countries:
In 2016, Atul Tandon joined Opportunity International as the US CEO. Global CEO Vicki Escarra joined Opportunity in 2012 and served as US CEO before becoming Global CEO. [19]
Opportunity International Australia Limited is a part of the global Opportunity International Network. [20] Opportunity International Australia Limited was registered as a charity under the Australian Charities and Not-for-profits Commission in January 1989. [21]
Opportunity International Australia also provides support services to its loan recipients such as business training, financial literacy training and community development initiatives. [22] It currently works in India, Indonesia and the Philippines by funding and supporting local microfinance institutions. [23] These services include loans, savings, fund transfers and insurance. Opportunity International Australia has a repayment rate of 97%. [24] Opportunity International is a signatory to ACFID. [25]
In 2008, Opportunity International Australia's founder David Bussau was recognized for his long-standing contribution to poverty alleviation by being named Senior Australian of the Year 2008. [6]
Macro For Micro was a campaign in 2010 to raise funds and awareness for microfinance development. [26] It consisted of a team of Canadian cyclists (Geoff Dittrich, Stu McCrory, Vivian Leung and Isabella Borowiec) that travelled over 5,600 km from Sydney, Australia to Perth, Australia along the southern coast. [27] The campaign aimed to raise A$50,000 for Opportunity Australia to fight poverty. The team stopped at universities, high schools and sponsored venues along the way to share the story of microfinance. They departed Sydney on March 8 (International Women's Day), 2010 and arrived in Perth on 29 May 2010. [28]
Opportunity International Canada is one of five Opportunity International Support Member countries, along with the USA, Australia, the UK and Germany.
Opportunity International Canada was founded in 1998 by David Stiller, who worked with a dedicated group of entrepreneurial Canadian business people to launch it as a registered charity in Canada.
The current President and CEO of Opportunity International Canada is Dan Murray, who has served in this role since November 2018.
A small office is located in Waterloo, Ontario, with most of the small staff team located across Canada and working from home. Staff are currently in Ontario, Manitoba, Alberta and BC.
Opportunity International Canada is the lead Support Member in Honduras, Nicaragua and the DR, and collaborates with other Support Members on microfinance projects in Colombia, Haiti and India. Opportunity International Canada is also running a significant project in Ghana, supported by Global Affairs Canada.
Opportunity International Germany was founded in 1996 by Karl Schock, a businessman, as an independent foundation. [29] Opportunity International Deutschland raises funds and awareness for microfinance services in Ghana, Malawi, Rwanda, Uganda, Mozambique, Dominican Republic, India, Nicaragua and the Philippines. [30] The current CEO is Mark Ankerstein.
Opportunity International UK is part of the global Opportunity International Network. Opportunity UK is currently serving more than 1.2 million African's by raising funds to help develop microfinance in Malawi, Mozambique, Tanzania and Ghana. They also support projects in Rwanda, Uganda, Democratic Republic of Congo, Kenya and South Africa.
Opportunity also raises support in:
In 2012, The Social Performance Task Force (SPTF) launched the Universal Standards for Social Performance Management. These standards incorporate the Smart Campaign's Client Protection Principles and set standards on: defining and monitoring social goals, governance, treatment of clients, development of products and services, treatment of employees, and balancing financial and social performance. [31]
Opportunity's Social Performance Management (SPM) program is used in India, the Philippines and an expanding number of countries in Africa, Eastern Europe and Latin America.
The Progress Out of Poverty Index (PPI) scorecard is a tool that helps monitor the effects of microfinance on income levels. The scorecard includes simple questions related to the client's income level, such as:
By assessing the answers to questions such as these, it is possible to gauge the relative income level and poverty status of a family and help ensure they are receiving benefits from interventions in various areas of their life.
Opportunity has also piloted the Social Return on Investment (SROI) methodology in both India and the Philippines. SROI is a framework for measuring and accounting for the value added to the lives of families served, looking at social, environmental and economic benefits of microfinance and then quantifying the amount of change that has taken place.
There is no evidence presented in Opportunity International (OI) publications of summary-level improvements in household income or jobs created by OI's borrowers. This is not surprising, since scientific testing of the impact of microcredit is surprisingly difficult. Dozens of studies have looked at the experience of people who received microloans. The challenge has been to identify a control group for comparison: it is difficult and expensive to find a group of people who are like the loan recipients in all relevant ways except for not having gotten a loan. Two studies looked at standard microcredit clients over a short period (12–18 months) using randomized controlled trials found no evidence of improvements in household income or consumption. For now, it seems an honest summary of the evidence to say that we simply do not know yet whether microcredit or other forms of microfinance are helping to lift millions out of poverty. [33]
Further, one of the least remarked-on problems facing the world's poor living on two dollars a day is that they do not literally get that amount each day. In other words, economic poverty is not just a matter of low incomes, but also of irregular and uncertain incomes. To put food on the table every day and meet other basic consumption needs, poor households have to save and borrow constantly. [34] One research team presented results of year-long financial diaries collected about twice a month from hundreds of rural and urban households in India, Bangladesh, and South Africa. They consistently found the poor use credit and savings to smooth consumption, to deal with emergencies like health problems and to accumulate the larger sums they need to seize opportunities—occasionally business opportunities—and pay for big-ticket expenses like education, weddings and funerals. [35] Over the year, the average diary household used 8 to 10 different types of financial instruments; most types were used multiple times. The notion that microcredit brings loans to people who previously had no access to them is widespread but mistaken, as is the notion that the strong majority of microloans are used for business purposes. [36]
Finally, it seems unlikely that a year of microlending helps poor people as much as a year of girls' primary education, for example. The true advantage of microfinance is not that each "dose" is more powerful, but rather that each dose costs much less than subsidies. Social programs like primary education and health care usually require large continuing subsidies, using up scarce tax dollars year after year. Microfinancing is different: when it is done right, relatively small up-front subsidies lead to permanent institutions that can continue providing services year after year with no further subsidy needed, and can expand those services to reach many millions of low-income clients. [37]
Opportunity earned the acclaimed Civil Society Achievement Honor at the Children and Youth Finance International (CYFI) Global Inclusion Awards of 2016, held November 28, 2016 in Stockholm, Sweden. [38]
Opportunity International received a $1 million grant from the Bill & Melinda Gates Foundation to expand its Education Finance initiatives in Uganda and Beyond. The grant was announced October 11, 2016. [39]
Opportunity International earned a 4-star rating from Charity Navigator for the second consecutive year on June 2, 2016. [40]
In July 2015, Opportunity announced a partnership with MetLife Foundation to promote access to financial services in rural China. [41]
Opportunity CEO Vicki Escarra was recognized with a Womenetics 2014 POW! Award. [42]
In December 2014, Opportunity announced a partnership with Credit Suisse to help educate more than 530,000 children in Colombia, Tanzania, the Dominican Republic, Ghana, Kenya, Malawi, Rwanda, Uganda, India and the Philippines. [43]
In March 2014, Opportunity announced a partnership with MasterCard Foundation to launch a $22.7 million growth and innovations initiative in Africa. [44]
In June 2013, Opportunity announced a partnership with Caterpillar Foundation in the form of a $19.2 million grant to help provide financial products and services to 16.7 million people in Africa, Asia and Latin America. [45]
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.
Grameen Bank is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans to the impoverished without requiring collateral.
Accion is an international nonprofit. Founded as a community development initiative serving the poor in Venezuela, Accion is known as a pioneer in the fields of microfinance and fintech impact investing.
Aga Khan Agency for Microfinance (AKAM) is a microfinancing agency of the Aga Khan Development Network.
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.
The non-governmental organisation based in Bangladesh which provides microcredit financing.
Kiva is a 501(c)(3) non-profit organization headquartered in San Francisco, California, that claims to allow people to lend money via the Internet to low-income entrepreneurs and students in 80 countries. Kiva's mission is "to expand financial access to help underserved communities thrive." They have been accused of deceptive business practices, misleading donors into believing their funds would be used for specific individuals and misrepresenting other aspects of their operations.
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.
Village banking is a microcredit methodology whereby financial services are administered locally rather than centralized in a formal bank. Village banking has its roots in ancient cultures and was most recently adopted for use by micro-finance institutions (MFIs) as a way to control costs. Early MFI village banking methods were innovated by Grameen Bank and then later developed by groups such as FINCA International founder John Hatch. Among US-based non-profit agencies there are at least 31 microfinance institutions (MFIs) that have collectively created over 800 village banking programs in at least 90 countries. And in many of these countries there are host-country MFIs—sometimes dozens—that are village banking practitioners as well.
Solidarity lending is a lending practice where small groups borrow collectively and group members encourage one another to repay. It is an important building block of microfinance.
Five Talents is a Christian charity that provides savings programs, and financial literacy and business training for those in need in developing countries. 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, creating long-term solutions to poverty in the developing world.
Bharat Financial Inclusion LimitedBFIL is a banking & finance company (NBFC), licensed by the Reserve Bank of India. It was founded in 1997 by Vikram Akula, who serve as its executive chair until working. The company's mission is to provide financial services to the poor under the premise that providing financial service to poor borrowers helps to alleviate poverty. In 2011, the company operated across 11 Indian state.
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.
Microcredit for water supply and sanitation is the application of microcredit to provide loans to small enterprises and households in order to increase access to an improved water source and sanitation in developing countries. While most investments in water supply and sanitation infrastructure are financed by the public sector, investment levels have been insufficient to achieve universal access. Commercial credit to public utilities was limited by low tariffs and insufficient cost-recovery. Microcredits are a complementary or alternative approach to allow the poor to gain access to water supply and sanitation.
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 SIDBI foundation for Microcredit (SFMC)
The impact of microcredit is a subject of much controversy. Proponents state that it reduces poverty through higher employment and higher incomes. This is expected to lead to improved nutrition and improved education of the borrowers' children. Some argue that microcredit empowers women. In the US and Canada, it is argued that microcredit helps recipients to graduate from welfare programs. Critics say that microcredit has not increased incomes, but has driven poor households into a debt trap, in some cases even leading to suicide. They add that the money from loans is often used for durable consumer goods or consumption instead of being used for productive investments, that it fails to empower women, and that it has not improved health or education.
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.