Philanthropy Front and Center - Washington, DC

From The Answer Desk: What is Microfinance?

A: According to a Forbes article on the World's Top Microfinance Institutions, private investor microfinance funding totaled $2 billion in 2006. So what is microfinance and who benefits? MIX Market, a web-based information portal that disseminates information on public and private funds that invest in microfinance globally, introduces the idea of microfinance in these terms:

"To most, microfinance means providing very poor families with very small loans (microcredit) to help them engage in productive activities or grow their tiny businesses. Over time, microfinance has come to include a broader range of services (credit, savings, insurance, etc.) as we have come to realize that the poor and the very poor who lack access to traditional formal financial institutions require a variety of financial products."

In case anyone wonders whether microfinance is a profitable venture, the Capco Institute reported in the Journal of Financial Transformation that of a sample group of about 700 microfinance institutions (MFIs), the top 176 MFIs experienced a return on equity (RoE) of 17.2%. But what of the effects of the global financial crisis? A new survey by the UK-based Centre for the Study of Financial Information reports that while the sector itself has a growing client base, microlending may be faced with its first major "stress test", tackling the immediate concerns of liquidity shortages, bad loans and credit risk.

In the US, microlending seemed to be making an upswing in the midst of the recession among small business entrepreneurs, according to a February MSNBC article. One of the major global microlending institutions, Kiva, recently launched Online Microfinance in the US, which enables individual lenders to make small loans to US-based entrepreneurs.

Other major players in the arena, both nationally and internationally, include ACCION and The Grameen Foundation, both of which provide stories and updates on their websites of ongoing microlending projects and opportunities around the globe. 

Do you have a question? Ask Us!

(This post is from Katie Artzner, the Foundation Center's online librarian)

A: According to a Forbes article on the World's Top Microfinance Institutions, private investor microfinance funding totaled $2 billion in 2006. So what is microfinance and who benefits? MIX Market, a web-based information portal that disseminates information on public and private funds that invest in microfinance globally, introduces the idea of microfinance in these terms:

"To most, microfinance means providing very poor families with very small loans (microcredit) to help them engage in productive activities or grow their tiny businesses. Over time, microfinance has come to include a broader range of services (credit, savings, insurance, etc.) as we have come to realize that the poor and the very poor who lack access to traditional formal financial institutions require a variety of financial products."

In case anyone wonders whether microfinance is a profitable venture, the Capco Institute reported in the Journal of Financial Transformation that of a sample group of about 700 microfinance institutions (MFIs), the top 176 MFIs experienced a return on equity (RoE) of 17.2%. But what of the effects of the global financial crisis? A new survey by the UK-based Centre for the Study of Financial Information reports that while the sector itself has a growing client base, microlending may be faced with its first major "stress test", tackling the immediate concerns of liquidity shortages, bad loans and credit risk.

In the US, microlending seemed to be making an upswing in the midst of the recession among small business entrepreneurs, according to a February MSNBC article. One of the major global microlending institutions, Kiva, recently launched Online Microfinance in the US, which enables individual lenders to make small loans to US-based entrepreneurs.

Other major players in the arena, both nationally and internationally, include ACCION and The Grameen Foundation, both of which provide stories and updates on their websites of ongoing microlending projects and opportunities around the globe. 

Do you have a question? Ask Us!

(This post is from Katie Artzner, the Foundation Center's online librarian)

Workplace Giving: A Strategy for Diversification

Are you looking for ways to diversify your funding stream? One strategy is to become involved with a workplace giving program. It has documented benefits for both the charity and the employer and it offers access to potential new donors and volunteers.

Join us on Thursday, April 30 from 3:00-4:30 pm as Don Sodo, President and Chief Executive Officer of America's Charities and Steven Sanderson, Chief Development Officer of the United Way of the National Capital Region introduce the workplace giving concept and what their organizations provide.

Register

National Volunteer Week, April 19-25

Established in 1974 by former President Richard Nixon, National Volunteer Week has grown in scope each year drawing the support and endorsement of all subsequent U.S. presidents, governors, mayors and other elected officials. This year's theme is "Celebrating People in Action."

Two significant national celebrations fall during National Volunteer Week: Earth Day and Global Youth Service Day. Earth Day, commemorated April 22, is an opportunity to celebrate the positive impact volunteers can make on the environment. Global Youth Service Day, commemorated the weekend of April 24-26, is an annual international event that highlights and celebrates the ongoing contributions of youth to their communities through volunteer service and service learning.

The Points of Light Institute has posted a resource guide with project ideas, suggestions of ways to recognize volunteers, press release templates and more.

For general information about volunteers and volunteer management, search the Catalog of Nonprofit Literature, the Center's bibliographic database, for the subjects "Voluntarism” or Voluntarism-administration."

Some recommended books in our collection:

• Herman, Melanie L., Peggy M. Jackson, and Barbara B. Oliver.  No Surprises: Harmonizing Risk and Reward in Volunteer Management. Washington, DC: Nonprofit Risk Management Center, 2006. 
• McBee, Shar. To Lead Is to Serve: How to Attract Volunteers and Keep Them. South Fallsburg, NY: Shar McBee, 2002

Share your plans to honor your volunteers this week—or at any time. And don't miss our special program on working with volunteers this Thursday, April 23, at 12:00 noon. We will have representatives from Greater DC Cares and the Taproot Foundation as speakers. Bring your lunch, we'll provide the drinks!

(Thanks to Kayron Bearden, Reference Librarian, Foundation Center-Atlanta, for sharing this post.)

Philanthropy Forum: Celebrate National Volunteer Week

April is our first-ever Health and Human Services Month at the Foundation Center. This month we're offering an array of programs designed to strengthen organizations working to make our communities healthier.

Join us for a special program on Thursday, April 23 from 12:00-1:30 pm to learn about working with volunteers from the new CEO and President of Greater DC Cares, Dr. Madye Henson, and a representative from the Taproot Foundation.

Go to our calendar to register and see other special events offered this month.

Talking About Grants from DC Agencies

Representatives from the DC Department of Health (DOH), Office of Latino Affairs (OLA), and the Effi Barry HIV/AIDS Program briefed attendees at our Dialogue with Donors program on today. The panel outlined their funding priorities and offered general advice on how to succeed as a grantseeker. Pat Henry from the Office of Partnerships and Grants Services moderated the session and reminded participants of the services her office organizes -- giving their 10th Annual Public-Private Partnership Conference on May 7th a big plug!

Charles Nichols from DOH urged the audience to use Grants.gov and the Funding Alert to identify grants awarded by DC agencies, by the federal government, and from the stimulus package. Priority areas for DOH grants mentioned by Nichols included reducing infant mortality, obesity, and chronic diseases through preventative care. He also pointed out that proposals need to be well written and that funding reviewers are carefully considering how a program will be sustained after the grant ends.

Jabari Bruton from the Effi Barry HIV/AIDS Program outlined the critieria and goals for its capacity building two-year award. The technical assistance provided with this award is tailored and intense.

Ezequiel Williams (OLA) manages a city-wide grants portfolio of over $4.6 million. He has provided funding for English as a Second Language programs, Spanish literacy, and a number of health initiatives. He shared that his program is being re-organized next year, so check their web site for updates.

The program was a pleasant reminder that there is still funding available. The panelists were very positive, informative, and helpful. For more ideas on how to thrive in this downturn, check out other  special programs during  April at the Foundation Center. Our focus is on Funding for Health and Human Services programs. In June, we will focus on funding for education projects.

Dialogue with Donors: Health & Human Services

April is our first-ever Health and Human Services Month at the Foundation Center. This month we're offering an array of programs designed to strengthen organizations working to make our communities healthier.

Join us for a special program on Tuesday, April 14 from 9:30-11:00 am to learn about funding for Health and Human Services projects from DC agencies. Panelists include:

• Pat Henry, The Mayor's Office of Partnerships and Grants Services (OPGS) - Moderator
• Ezequiel Williams, Grants Manager Specialist, Executive Office of the Mayor, Office of Latino Affairs (OLA)
• Thanh Nguyen, Executive Office of the Mayor, Office of Asian Pacific Islander Affairs (OAPI)
• Jabari Bruton, Effi Barry HIV/AIDS Program
• Charles Nichols, Chief, Grants Monitoring and Program Evaluation, Community Health Administration, DC Department of Health

Go to our calendar to register and see other special events offered this month.

Local United Way Grant Process Now Open

The United Way of  the National Capital Area (UWNCA) is now accepting applications for its 2009 Community Impact Grants. The funds are to be used to address critical community needs within the National Capital Area.

Each year, almost 1,000 local organizations apply to become UWNCA member agencies, enabling them to apply for Community Impact Fund grants. Volunteers from across the region carefully review the grant applications and recommend awards, with a special focus on programs with proven abilities to make an impact in one of these areas:

• Promoting self-sufficiency - helping people with challenges increase control over their lives.
• Supporting vulnerable & aging populations - enabling seniors and those with disabilities to lead happier and more productive lives.
• Strengthening & supporting families - addressing such challenges as child abuse and neglect, homelessness, domestic violence and major illnesses.
• Improving health & wellness - services especially for those with low incomes, the unemployed and those suffering from chronic illnesses.
• Helping children & youth succeed - affordable day care, after school and spring/summer camp programs, vision screening, education, job and life skills training for youth.

The grant process will close on Friday, April 3, 2009. You can review the application instructions
or read the grant process FAQs on the UWNCA web site. For more information, please contact Nathan Queen, Program Manager, at (202) 488-5814 or nqueen@uwnca.org.

This year UWNCA, with support from Fannie Mae, is accepting applications for its Affordable Housing Initiative, which seeks to award nearly $250,000 to organizations addressing foreclosure assistance and prevention efforts in the National Capital Area. You can download the Request for Proposals (RFP) for this initiative online. The deadline to apply for this program is March 25, 2009.

Grants Available from DC Rotary Club

If your nonprofit is looking for a small grant to help in providing needed services, visit the Rotary Club of Washington, DC web site to download the Community Service Grant information sheet and the application form (look under Downloads on the right side of the screen). These grants are provided by the Rotary Foundation of Washington, DC.

The Community Service Grants Committee will review applications for funding requests and make recommendations for approval to the Foundation's board, which makes the final funding decisions. Money is awarded to projects demonstrating need for small capital items or seed money for special services that provide direct and tangible benefits principally within the District of Columbia.

Applications and required attachments must be received no later than 4:00 p.m., February 13, 2009. For further information, please contact Elena Tscherny by telephone at (202) 727-1183 or by e-mail at grants@dcrotary.org.