Impact 2006 Mar-Apr

Transformation through Trust Banks

A “Family Week” they’ll never forget

P H O T O G RA P H BY R O N L O N D E N

Francis Gutierrez, loan officer, provides training at the Building for a Future Trust Bank meeting.

very day, in thousands of locations worldwide, Opportunity International helps transform lives — economically, socially and spiritually. This holistic transformation is a vital component of Opportunity’s microfinance programs — empowering clients to become agents for their own freedom and growth. The primary avenue for this transformation is the Trust Bank. Each such gathering of hardworking small-business owners combines life and skill training with community-building, in a way that miracles are possible: • For the first time, a financial institution extends trust to the hardworking poor. This boosts their confidence in their own skills and

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dreams. Thus empowered, clients grow their businesses and diversify, improving their standard of living and that of others.

• This growth brings personal dignity and hope, as well as respect from relatives, neighbors and community members.

• Respect increases as women clients take on leadership roles that are typically relegated to men in their culture: president or treasure of the bank, as well as organizer of community activism.

Overall, Trust Banks offer peer support and accountability, affirmation, and valuable training for business as well as life to many who previously had only an informal education and few marketable skills. Trust Banks transform lives. ●

Employment Opportunities Do you know a marketing or sales professional with a heart for the poor? Would this person like to use his or her expertise to make a difference in the world?

Below is a list of positions available at Opportunity International: •Controller (Oak Brook, Ill.) •Director of Marketing – Major Gifts Fundraiser (Los Angeles, Calif.)

•Director of Marketing – Major Gifts Fundraiser (Phoenix, Ariz.)

•Program Officer (Oak Brook, Ill.) •Private Funding Projects Manager (Oak Brook, Ill.) For full job descriptions, visit our Web site (www.opportunity.org) under “Get Involved.”

Much more than microcredit

EDITOR Laura Reilly DESIGN & PRODUCTION Journey Group, Inc.

Mike and Amy Macari had recently joined Opportunity’s Board of Governors when they traveled to Honduras with 17-year-old son, Marshall, and 19-year-old daughter, Alison.

“You can never know the impact this trip had on our family,” Mike said. Together, the Macaris learned about poverty and gained a new appreciation for the dignity and beauty of the people Opportunity serves.

Opportunity staff members watched the week unfold with enthusiasm. According to host and director of the Board of Governors Wendy Cox, “This was a trip that people will never forget — an amazing experience for all.”

Learn more about the next Family Week, coming up June 18-24, 2006, in Honduras. Share with your children the passion you feel toward transformation through Opportunity International.

Contact Wendy Cox, director of the Board of Governors, at 800-793-9455 x4180. ●

INSIGHT TRIP 2006 CALENDAR Partners with the Poor Insight Trip to Nicaragua Governors Family Week, Honduras Governors Insight Trip to Ghana

May 21-25, 2006 June 18-24, 2006 September 8-16, 2006

OUR STRATEGY is to create jobs, stimulate small businesses and strengthen communities among the poor.

OUR METHOD is to work through indigenous partner organizations that provide small business loans, training and counsel.

OPPORTUNITY INTERNATIONAL’S COMMITMENT is motivated by Jesus Christ’s call to serve the poor.

STATEMENT OF INTENT REGARDING POVERTY AND WOMEN Opportunity International–U.S. strives to reach the world’s poorest people through its microenterprise development programs.

Recognizing that the large majority of the world’s poorest are women and that they contribute decisively to the well-being of their families, Opportunity makes it a priority to support programs that serve the particular needs of women.

OPPORTUNITY INTERNATIONAL SERVES women and men of any faith and no faith.

I M PA C T | M a rc h / A p r i l 2 0 0 6

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s members of the Orphan Caring Group gather for their weekly Trust Bank meeting in Nsike, Uganda, they join together for more than loan repayments and business training. Of course, members want to build small businesses through loans from Opportunity International. But since they have joined together in order to care for 43 AIDS orphans, their concerns go far beyond merely business issues.

Caring for orphans as well as one’s own family — in a country with as many challenges as Uganda — is an immense undertaking. It involves being concerned about everything related to life and health as well as growing a strong business.

Credit alone cannot move poor entrepreneurs across the poverty line.

More tools are needed. So these Trust Bank members are grateful that their relationship with Opportunity International goes beyond a series of Orphan Caring Group Trust Bank loan cycles. to the needs of the poor by providing The world’s poor have long been ignored by microfinance programs that also offer: mainstream financial institutions and thought microsavings, microinsurance and remittances. incapable of benefiting from choices that betteroff consumers have. But Opportunity International has always been about economic, social and spiritual transformation of the whole Keeping what you have person. By listening closely to clients to asic money management begins with understand their needs, Opportunity has built avoiding unnecessary expenses and then upon its solid foundation to address long-term keeping what is left in a safe place. But poor transformation in new ways. Opportunity’s people are frustrated by the hurdles of traditional vision is to create full-service microfinance banks’ minimum-balance requirements and onerous banks that meet all the financial needs of paperwork, as well as business hours and locations impoverished entrepreneurs and their families. that are hopelessly out of touch with a poor person’s Opportunity has listened and has responded work day. Realistic alternatives are few and far

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(continued on page 2)

© 2006 by Opportunity International

For more information, contact Wendy Cox at 800-793-9455 x4180

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MICROSAVINGS:

OPPORTUNITY INTERNATIONAL HAS PARTNERS in Albania, Bulgaria, China, Colombia, Croatia, Dominican Republic, East Timor, Egypt, Ghana, Honduras, India, Indonesia, Macedonia, Malawi, Mexico, Montenegro, Mozambique, Nicaragua, Peru, Philippines, Poland, Romania, Russia, Serbia, Uganda, Zambia and Zimbabwe.

It is estimated that 2.7 billion people live on less than $2 a day. (World Bank)

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Serving Poor Families

New approaches give new tools for fighting poverty

THE OPPORTUNITY MISSION is to provide opportunities for people in chronic poverty to transform their lives.

Elise Haykin, right, daughter of Board of Governor member Randy Haykin

MARCH/APRIL 2006

A publication of Opportunity International

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IMPACT IN

IMPACT is a bimonthly publication of Opportunity International, 2122 York Road, Suite 340, Oak Brook, IL 60523 800.793.9455 www.opportunity.org

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“We make a living by what we get, we make a life by what we give.”

- Sir Winston Churchill ince Opportunity International’s inception in 1971, its work has been funded in large part by the generosity of individuals whose charitable gifts have transformed not only their own lives, but also those of countless poor families in the developing world.

And throughout its history, the vast majority of charitable gifts to Opportunity have been made in the form of cash. But Opportunity’s board of directors has determined that in order to achieve the aggressive goals that it has set for reaching 2 million poor entrepreneurs a year by 2010, it must encourage charitable gifts of all types, especially the giving arrangements that provide the greatest tax benefits to its supporters.

Therefore, Opportunity now accepts, along with cash, gifts of publicly traded securities, closely held stock, real estate of all types, life insurance, and personal property such as artwork and collectibles.

In addition, Opportunity provides donors with expertise in the full array of “planned gifts,” including gifts through one’s will or living trust, gifts of IRA assets, and the giving arrangements that provide lifetime income back to the donor, such as charitable gift annuities and charitable remainder trusts.

It is through these gifts that the poor will be served for decades to come, and countless more lives transformed along the way.

For more information about benefiting from planned gifts, contact Chuck Day, director of Planned Giving, at (800) 7939455, x4136. Or go to www.opportunity.org under “Give Now/ Planned Giving.”

pportunity International’s mission goes beyond empowering its clients to become successful microentrepreneurs. Opportunity is committed to change that makes an impact in the lives of their families as well. Often, clients are the sole support of their children, siblings and parents. Their business success ensures the health and education of their loved ones.

In their wholehearted commitment to the well-being of their families, Opportunity clients are no different from Opportunity supporters.

Seven members of the Opportunity International Board of Governors and their families had a unique chance to experience these similarities firsthand last June during the Board of Governors Family Week Insight Trip.

For six days, seven families joined Opportunity in Honduras for the vision trip of a lifetime. Like other Opportunity Insight Trips, this one involved meeting clients and their families, visiting Trust Banks, and watching transformation at work.

The trip was made unique by educational components geared directly at young people and families. After breaking the ice with an interactive global village simulation that helped the entire family visualize poverty, travelers visited an elementary school to interact with clients’ children and see their needs up close. They also took a “poverty drive” through the communities where clients and their families live, work and play.

Although most of the Opportunity Board of Governor members and their children did not speak Spanish, language barriers vanished as the young people laughed and played together.

Board of Governor member Randy Haykin traveled to Honduras with his 15-year-old daughter, Elise. Watching her connect with the children of Opportunity clients gave him a new perspective on the impact of Opportunity’s work in poor households. “The value of allowing families to come was incredible,” Randy said, “and a huge selling point for Opportunity donors — a chance to educate their children while giving.”

P H O T O G RA P H C O U RT E S Y RA N DY H AY K I N

Changing times, changing needs

For more information about the Board of Governors, visit www.opportunity.org/BOG

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For more information about the Women’s Opportunity Fund, visit www.womensopportunityfund.org

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BOARD OF GOVERNORS

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with Microfinance

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2 Security for Poor Families Microinsurance provides a safety net for poor families.

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3 Money From Abroad Remittance program to support hardworking Filipinos.

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5 The Power of Trust Banks Trust Banks provide economic, social and spiritual development.

6 A Week Focused on Family P H O T O G RA P H BY B R U C E S T R O N G

WOMEN’S OPPORTUNITY FUND

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Family Week – global poverty insights for the whole family.

Microfinance is....

Test your knowledge of microfinance by completing this sentence: Microfinance is: A) small loans and business training for struggling entrepreneurs to start or expand a business B) a type of savings account with a low minimum balance C) insurance policies designed for poor people who are vulnerable to catastrophic losses D) remittance services that allow migrant workers to send money home safely and economically E) self-help networks that empower poor entrepreneurs to create a better future for their families F) ALL OF THE ABOVE The correct answer is: F

w w w. o p p o r t u n i t y. o r g

From the CEO’s desk

CHRISTOPHER A. CRANE

President & Chief Executive Officer

T

he power of microcredit has been proven again and again in the lives of

hundreds of thousands of clients around the world for three-and-a-half decades.

between, whether clients live in urban slums or remote villages. For far too many, a savings account is a spot under the mattress or a hole dug outside, and their savings are too easily lost to desperate neighbors, dishonest relatives or thieves.

Poor people need a safe, simple way to save for lifecycle needs, emergencies, businesses and opportunities.

For many impoverished people, accessing financial services is impeded by their inability to prove who they are. In addition to not being able to read, many poor people do not have a proper birth certificate and a driver’s license or passport can be too expensive.

“Poor people can save and want to save, and when they do not save it is because of lack of opportunity rather than lack of capacity.”

— STUART RUTHERFORD

Small loans at market interest rates have

The Poor and Their Money

ignited the entrepreneurial power and initiated the transformation of countless lives. But microcredit alone is not enough.

At Opportunity International, we are committed to staying true to the heritage of innovation that has always marked our organization. That’s why we are pioneering efforts to provide savings, insurance and remittance programs, both for our clients and for poor families throughout the developing world. With these enhanced microfinance services, we are overcoming yet another barrier to the economic, social and spiritual transformation of impoverished people throughout the world.

Thank you for your faithful and shared vision in serving the poor in such powerful ways through the work of Opportunity International.

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I M PA C T | M a rc h / A p r i l 2 0 0 6

Today, however, lack of identity and illiteracy are no longer barriers for many Opportunity clients. Thanks to technological advancements such as biometric “fingerprint” technology, poor people can identify themselves using their fingerprint embedded in a credit-card-sized identification card. This “smart card” is scanned at the local microfinance bank to give poor people the ability to make financial transactions and keep their money safe.

Opportunity clients have access to technological advancements that do not exist at a typical American bank. For example, a client in Malawi can place a finger on a specially designed keypad that reads fingerprints and automatically brings up account information on a teller’s screen.

By combining high-tech solutions with savings programs already in place, Opportunity clients finally have a path toward a more secure future.

MICROINSURANCE: Stability in times of crisis

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ome 80 percent of people in the developing world work in the informal economy without the social safety net provided by traditional employment. Without the stability and benefits familiar to most workers in the United States, the world’s poor are especially vulnerable to hazards outside their control, such as death or natural disaster.

Catastrophic losses are disturbing for any business, but for poor entrepreneurs, they can

Clients make loan repayments, insurance payments and savings deposits during their weekly Trust Bank meetings.

wipe out a lifetime of work, leaving them without help and without hope.

This is why loans for microenterprise development are not always enough to fuel a permanent escape from poverty. Credit enables poor entrepreneurs to generate income, but — as seen in the tragic aftermath of the Asian tsunami in 2004 — they are vulnerable to disastrous events that eliminate that source of income. Without tools to minimize these risks, many impoverished families fall into still deeper poverty when crises strike.

“We cannot stop natural calamities, but we can and must better equip individuals and communities to withstand them. Those most vulnerable to nature’s wrath are usually the poorest, which means that when we reduce poverty, we also reduce vulnerability.”

— U . N . S E C R E TA RY G E N E R A L K O F I A N N A N

Microinsurance can mitigate financial shocks to poor households, yet it is still a largely untapped market in the developing world. Of the 2.7 billion people who live on less than $2 a day, fewer than 10 million currently have access to insurance — says the Munich Re Foundation, the charitable arm of Munich Re Group, one of the world’s largest reinsurers and the secondlargest primary insurer in Germany.

Opportunity International is emerging as the leading global provider of insurance to microentrepreneurs, helping the poor build a more secure future. Currently, policies cover

more than 2.6 million people in Ghana, Malawi, Uganda, Zambia, Zimbabwe, Colombia, Mexico, West Timor and the Philippines.

Responding to the tremendous need created by the HIV/AIDS pandemic, Opportunity’s programs in Africa provide coverage for death following AIDS. With this help, those left behind can begin to rebuild their lives. Opportunity’s microinsurance products help poor families other ways: Philippines: Clients invest a relatively small amount for a great deal of security: One dollar per month for life insurance provides a benefit of $2,000 if the client dies, $1,000 if a spouse dies and $500 for each child.

Mexico: A client’s loan is cleared upon her death so that the family is not burdened with the repayment of debt on top of their loss.

Uganda: A client who loses a business to a disaster does not lose everything. Insurance covering both life and property helps the client rebuild a source of income.

Opportunity has committed to establishing dedicated insurance brokerages for the poor that will provide access to many more low-income clients and a wider range of products. The first local agency was established in Uganda, which will work with multiple microfinance organizations, unions, cooperatives and church groups to extend affordable life and healthcare insurance to more than 1 million people over the next two years.

REMITTANCES:

Fueling local economies from afar

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he hidden engine of development around the world is the personal passion and hard work of poor people who leave their borders in search of steady work. They invest that passion abroad and then send funds home

P H O T O G RA P H BY R O N L O N D E N

More than loans (continued from page 1)

for their families. Poor households use this money for basic needs such as food, education and health care. According to the United Kingdom’s Department for International Development, remittances through formal channels exceeded $250 billion in 2005, with at least the same estimated amount sent through informal channels. Remittances are a major source of cash flow for households that receive them, accounting for as much as half of their annual income.

Opportunity International desires to help these dispersed workers send as much of their pay home as they can, avoiding the loss of large portions of it in exorbitant fees. Therefore, Opportunity and HSBC, the world’s secondlargest bank, are piloting a groundbreaking project — the Opportunity Card in the Philippines. Filipino workers in the U.S. are able to transfer funds from a bank account or credit card to an ATM card. Beneficiaries in the Philippines with an Opportunity Card can then withdraw the funds from any of 3,000 ATMs nationwide that are linked to Cirrus® or MasterCard®. The Philippines benefited from

more than $10 billion of remittances funds in 2005, representing 10.5% of GDP. The program is now available to customers of Opportunity’s three largest programs in the Philippines, serving nearly 330,000 clients. The product is also available to any interested Filipino family, including those affiliated with

“In 2004, recorded remittances were the second largest source of external financing in developing countries, after foreign direct investment, and amounted to more than twice the size of official aid.”

BEYOND THE LOAN

— D I L I P R A T H A , SENIOR ECONOMIST, WORLD BANK

other microfinance institutions. “The Opportunity Card represents a major step in our work to address the needs of the poor,” said David Stiller, Opportunity International Network board chair.

A key feature of this remittance product is its

Weather insurance offers hope in Malawi The news from Malawi lately has been universally bad. Already one of the poorest nations on earth, this sliver of a country in southeastern Africa has been hard hit by a drought that has resulted in widespread food shortages. Hunger, HIV/AIDS and poverty have wreaked havoc on this nation of 12 million, with many children now suffering from the effects of all three.

A glimmer of hope has emerged, however, in the form of a weather-insurance product that could help improve the lives of thousands of Malawians.

A new pilot program developed by Opportunity International and the World Bank aims to help Malawi’s small groundnut farmers access agricultural loans paired with drought coverage, boosting their ability to recover from weather-related shocks. “The insurance will help farmers obtain the financing necessary to obtain certified seeds, which produce increased yields and revenues [and have] greater resistance to disease,” the World Bank said in a statement.

Previously, banks were not willing to lend to farmers, mainly due to the risk of nonpayment if there were a drought that destroyed their crops. Farmers could not afford to purchase superior, certified seed

competitive pricing. With conventional means of sending money, fees can go as high as 20 percent. By charging the sender $6.95 for bankaccount transfers and $7.95 for credit-card transfers, the Opportunity Card offers one of the lowest-priced remittance services around. It is also one of the fastest ways of sending money: When transferring from a credit card, beneficiaries can get their funds in a matter of minutes. Linking remittances with other microfinance services offers the opportunity for the recipients to use the funds they receive for their businesses and investments.

without financing. So their only option was seed that fared poorly against drought and disease. Now, because of the new insurance, farmers’ creditworthiness increases, and they are able to borrow to purchase the certified seed.

“Opportunity International has enjoyed providing technical insurance expertise and project-management skills to the very successful test pilot in Malawi,” says Christopher Crane, president and CEO, Opportunity International. “We look forward to a continued relationship with the World Bank and hope to extend this offering to other countries in Africa and beyond.

One of the most appealing aspects of this program is that it proactively addresses Malawi’s chronic food shortages in a way that encourages self-sustainability. As Ulrich Hess, senior economist of the World Bank, confirms, “This unsubsidized transaction shows that sustainable development can happen when the right technology meets the right people supported by the right technical assistance.”

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t each meeting of the Orphan Caring Group Trust Bank in Uganda, loan repayments also include small savings deposits and microinsurance payments. As Opportunity’s microfinance offerings continue to expand, so will the ability to serve people like the members of the Orphan Caring Group, as well as the children under their care.

The modern microfinance movement is built on the simple truth that lacking capital is a business challenge, not a character issue. In fact, the daily realities of poverty in the developing world often develop the kinds of skills — such as strong work ethic, practical focus and thrift — that are essential for success as an entrepreneur. With access to small loans, poor entrepreneurs can begin the process of building better lives for themselves and their families.

As it was 35 years ago, Opportunity International is again a pioneer, bringing new approaches and new tools into the battle against world poverty — and the ongoing transformation of poor families throughout the world. ●

Holistic Transformation The power of Opportunity International Trust Banks “We believe that to help people with their businesses is wonderful. They’ll increase their own incomes for their families, and they’ll create jobs for their neighbors. But we have a unique chance to then add two more types of capital to their lives. We’re adding what we call social and spiritual capital into the mix when we get people together on a weekly basis.”

For more information, visit www.opportunity.org under “Media Center/ Press Releases.”

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— Dennis Ripley, senior vice president for programs, Opportunity International

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A guide to microfinance terminology BIOMETRICS: Automated methods of recognizing a person based on a physiological or behavioral characteristic, such as face, fingerprints, hand geometry, handwriting, iris, retina, vein and voice. Opportunity uses biometric technology as a secure identification and personal verification solution.

LOAN SHARK: Moneylenders who lend money to individuals at exorbitant rates of interest. These rates can be as much as 10 to 15 percent per day, with annual rates running as high as 2,000 percent. In some poor communities this is the only source of borrowed funds.

CLIENT IMPACT MONITORING SYSTEM (CIMS): Using a simple survey, CIMS enables Opportunity’s programs to gather information about its clients to assess the transformational impact that microfinance is having on their lives.

NONGOVERNMENTAL ORGANIZATION (NGO): Similar to a nonprofit organization in the United States. International NGOs such as Opportunity International may be further identified as “INGOs.”

CONSULTATIVE GROUP TO ASSIST THE POOR (CGAP): A consortium of 31 public and private development agencies working together to expand access to financial services for the poor in developing countries.

CGAP is housed at the World Bank but operates as an independent entity.

OPERATIONAL SUSTAINABILITY: The ability of the MFI to cover its lending expenses with the income earned by its lending operations, usually expressed as a percent. At one hundred percent, the organization earns from lending money exactly what it spends.

This calculation does not take into account inflation nor the cost to borrow the money that it lends at market interest rates.

FINANCIAL SUSTAINABILITY: The ability of a microfinance institution (MFI) to cover its lending expenses and its cost of capital, usually expressed as a percent. Financial Sustainability takes into account the cost of the funds that it lends to customers as if they were obtained from commercial sources, rather than grants or government subsidies. When this ratio exceeds one hundred percent, the organization is earning a surplus and is able to grow.

FORMAL FINANCIAL INSTITUTION (FFI): A microfinance institution (MFI) that is for-profit and is supervised by a central government agency such as a superintendent of banks. Supervision and regulation usually entail a minimum capital requirement, adherence to set standards in areas of risk management and auditing, and strict reporting procedures.

GROUP LENDING METHODOLOGY: Opportunity International’s Trust Bank model offers small business loans, training and other financial services to 15-40 members of a group who cross-guarantee each other’s loans. If an individual member defaults on his or her loan, the other members of the group are required to cover the shortfall.

MICROFINANCE INSTITUTION (MFI): An NGO or for-profit organization that provides credit and other financial services to the poor.

PORTFOLIO AT RISK (PAR): The outstanding balance of loans with at least one payment overdue by the specified number of days.

PORTFOLIO IN ARREARS: The total value of loan payments that are overdue by the specified number of days.

TRANSFORMATION: The holistic change in the life of the client encompassing economic, social and spiritual factors.

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID): The main federal government agency that extends assistance to countries recovering from disaster, trying to escape poverty and engaging in democratic reforms.

Opportunity International receives funding from USAID for its programs.

WORKING CAPITAL: Current assets (cash, inventory, etc) of a business enterprise that can be applied to fund its operations. The difference between a firm’s current assets and current liabilities is its working capital.

Entrepreneurs who do not have enough cash (current assets) to pay their obligations to vendors who supply raw materials for their business (current liabilities) may borrow these funds on a temporary basis and repay the loan when inventory is sold (working capital loan).

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4

From the CEO’s desk

CHRISTOPHER A. CRANE

President & Chief Executive Officer

T

he power of microcredit has been proven again and again in the lives of

hundreds of thousands of clients around the world for three-and-a-half decades.

between, whether clients live in urban slums or remote villages. For far too many, a savings account is a spot under the mattress or a hole dug outside, and their savings are too easily lost to desperate neighbors, dishonest relatives or thieves.

Poor people need a safe, simple way to save for lifecycle needs, emergencies, businesses and opportunities.

For many impoverished people, accessing financial services is impeded by their inability to prove who they are. In addition to not being able to read, many poor people do not have a proper birth certificate and a driver’s license or passport can be too expensive.

“Poor people can save and want to save, and when they do not save it is because of lack of opportunity rather than lack of capacity.”

— STUART RUTHERFORD

Small loans at market interest rates have

The Poor and Their Money

ignited the entrepreneurial power and initiated the transformation of countless lives. But microcredit alone is not enough.

At Opportunity International, we are committed to staying true to the heritage of innovation that has always marked our organization. That’s why we are pioneering efforts to provide savings, insurance and remittance programs, both for our clients and for poor families throughout the developing world. With these enhanced microfinance services, we are overcoming yet another barrier to the economic, social and spiritual transformation of impoverished people throughout the world.

Thank you for your faithful and shared vision in serving the poor in such powerful ways through the work of Opportunity International.

2

I M PA C T | M a rc h / A p r i l 2 0 0 6

Today, however, lack of identity and illiteracy are no longer barriers for many Opportunity clients. Thanks to technological advancements such as biometric “fingerprint” technology, poor people can identify themselves using their fingerprint embedded in a credit-card-sized identification card. This “smart card” is scanned at the local microfinance bank to give poor people the ability to make financial transactions and keep their money safe.

Opportunity clients have access to technological advancements that do not exist at a typical American bank. For example, a client in Malawi can place a finger on a specially designed keypad that reads fingerprints and automatically brings up account information on a teller’s screen.

By combining high-tech solutions with savings programs already in place, Opportunity clients finally have a path toward a more secure future.

MICROINSURANCE: Stability in times of crisis

S

ome 80 percent of people in the developing world work in the informal economy without the social safety net provided by traditional employment. Without the stability and benefits familiar to most workers in the United States, the world’s poor are especially vulnerable to hazards outside their control, such as death or natural disaster.

Catastrophic losses are disturbing for any business, but for poor entrepreneurs, they can

Clients make loan repayments, insurance payments and savings deposits during their weekly Trust Bank meetings.

wipe out a lifetime of work, leaving them without help and without hope.

This is why loans for microenterprise development are not always enough to fuel a permanent escape from poverty. Credit enables poor entrepreneurs to generate income, but — as seen in the tragic aftermath of the Asian tsunami in 2004 — they are vulnerable to disastrous events that eliminate that source of income. Without tools to minimize these risks, many impoverished families fall into still deeper poverty when crises strike.

“We cannot stop natural calamities, but we can and must better equip individuals and communities to withstand them. Those most vulnerable to nature’s wrath are usually the poorest, which means that when we reduce poverty, we also reduce vulnerability.”

— U . N . S E C R E TA RY G E N E R A L K O F I A N N A N

Microinsurance can mitigate financial shocks to poor households, yet it is still a largely untapped market in the developing world. Of the 2.7 billion people who live on less than $2 a day, fewer than 10 million currently have access to insurance — says the Munich Re Foundation, the charitable arm of Munich Re Group, one of the world’s largest reinsurers and the secondlargest primary insurer in Germany.

Opportunity International is emerging as the leading global provider of insurance to microentrepreneurs, helping the poor build a more secure future. Currently, policies cover

more than 2.6 million people in Ghana, Malawi, Uganda, Zambia, Zimbabwe, Colombia, Mexico, West Timor and the Philippines.

Responding to the tremendous need created by the HIV/AIDS pandemic, Opportunity’s programs in Africa provide coverage for death following AIDS. With this help, those left behind can begin to rebuild their lives. Opportunity’s microinsurance products help poor families other ways: Philippines: Clients invest a relatively small amount for a great deal of security: One dollar per month for life insurance provides a benefit of $2,000 if the client dies, $1,000 if a spouse dies and $500 for each child.

Mexico: A client’s loan is cleared upon her death so that the family is not burdened with the repayment of debt on top of their loss.

Uganda: A client who loses a business to a disaster does not lose everything. Insurance covering both life and property helps the client rebuild a source of income.

Opportunity has committed to establishing dedicated insurance brokerages for the poor that will provide access to many more low-income clients and a wider range of products. The first local agency was established in Uganda, which will work with multiple microfinance organizations, unions, cooperatives and church groups to extend affordable life and healthcare insurance to more than 1 million people over the next two years.

REMITTANCES:

Fueling local economies from afar

T

he hidden engine of development around the world is the personal passion and hard work of poor people who leave their borders in search of steady work. They invest that passion abroad and then send funds home

P H O T O G RA P H BY R O N L O N D E N

More than loans (continued from page 1)

for their families. Poor households use this money for basic needs such as food, education and health care. According to the United Kingdom’s Department for International Development, remittances through formal channels exceeded $250 billion in 2005, with at least the same estimated amount sent through informal channels. Remittances are a major source of cash flow for households that receive them, accounting for as much as half of their annual income.

Opportunity International desires to help these dispersed workers send as much of their pay home as they can, avoiding the loss of large portions of it in exorbitant fees. Therefore, Opportunity and HSBC, the world’s secondlargest bank, are piloting a groundbreaking project — the Opportunity Card in the Philippines. Filipino workers in the U.S. are able to transfer funds from a bank account or credit card to an ATM card. Beneficiaries in the Philippines with an Opportunity Card can then withdraw the funds from any of 3,000 ATMs nationwide that are linked to Cirrus® or MasterCard®. The Philippines benefited from

more than $10 billion of remittances funds in 2005, representing 10.5% of GDP. The program is now available to customers of Opportunity’s three largest programs in the Philippines, serving nearly 330,000 clients. The product is also available to any interested Filipino family, including those affiliated with

“In 2004, recorded remittances were the second largest source of external financing in developing countries, after foreign direct investment, and amounted to more than twice the size of official aid.”

BEYOND THE LOAN

— D I L I P R A T H A , SENIOR ECONOMIST, WORLD BANK

other microfinance institutions. “The Opportunity Card represents a major step in our work to address the needs of the poor,” said David Stiller, Opportunity International Network board chair.

A key feature of this remittance product is its

Weather insurance offers hope in Malawi The news from Malawi lately has been universally bad. Already one of the poorest nations on earth, this sliver of a country in southeastern Africa has been hard hit by a drought that has resulted in widespread food shortages. Hunger, HIV/AIDS and poverty have wreaked havoc on this nation of 12 million, with many children now suffering from the effects of all three.

A glimmer of hope has emerged, however, in the form of a weather-insurance product that could help improve the lives of thousands of Malawians.

A new pilot program developed by Opportunity International and the World Bank aims to help Malawi’s small groundnut farmers access agricultural loans paired with drought coverage, boosting their ability to recover from weather-related shocks. “The insurance will help farmers obtain the financing necessary to obtain certified seeds, which produce increased yields and revenues [and have] greater resistance to disease,” the World Bank said in a statement.

Previously, banks were not willing to lend to farmers, mainly due to the risk of nonpayment if there were a drought that destroyed their crops. Farmers could not afford to purchase superior, certified seed

competitive pricing. With conventional means of sending money, fees can go as high as 20 percent. By charging the sender $6.95 for bankaccount transfers and $7.95 for credit-card transfers, the Opportunity Card offers one of the lowest-priced remittance services around. It is also one of the fastest ways of sending money: When transferring from a credit card, beneficiaries can get their funds in a matter of minutes. Linking remittances with other microfinance services offers the opportunity for the recipients to use the funds they receive for their businesses and investments.

without financing. So their only option was seed that fared poorly against drought and disease. Now, because of the new insurance, farmers’ creditworthiness increases, and they are able to borrow to purchase the certified seed.

“Opportunity International has enjoyed providing technical insurance expertise and project-management skills to the very successful test pilot in Malawi,” says Christopher Crane, president and CEO, Opportunity International. “We look forward to a continued relationship with the World Bank and hope to extend this offering to other countries in Africa and beyond.

One of the most appealing aspects of this program is that it proactively addresses Malawi’s chronic food shortages in a way that encourages self-sustainability. As Ulrich Hess, senior economist of the World Bank, confirms, “This unsubsidized transaction shows that sustainable development can happen when the right technology meets the right people supported by the right technical assistance.”

A

t each meeting of the Orphan Caring Group Trust Bank in Uganda, loan repayments also include small savings deposits and microinsurance payments. As Opportunity’s microfinance offerings continue to expand, so will the ability to serve people like the members of the Orphan Caring Group, as well as the children under their care.

The modern microfinance movement is built on the simple truth that lacking capital is a business challenge, not a character issue. In fact, the daily realities of poverty in the developing world often develop the kinds of skills — such as strong work ethic, practical focus and thrift — that are essential for success as an entrepreneur. With access to small loans, poor entrepreneurs can begin the process of building better lives for themselves and their families.

As it was 35 years ago, Opportunity International is again a pioneer, bringing new approaches and new tools into the battle against world poverty — and the ongoing transformation of poor families throughout the world. ●

Holistic Transformation The power of Opportunity International Trust Banks “We believe that to help people with their businesses is wonderful. They’ll increase their own incomes for their families, and they’ll create jobs for their neighbors. But we have a unique chance to then add two more types of capital to their lives. We’re adding what we call social and spiritual capital into the mix when we get people together on a weekly basis.”

For more information, visit www.opportunity.org under “Media Center/ Press Releases.”

w w w. o p p o r t u n i t y. o r g

— Dennis Ripley, senior vice president for programs, Opportunity International

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A guide to microfinance terminology BIOMETRICS: Automated methods of recognizing a person based on a physiological or behavioral characteristic, such as face, fingerprints, hand geometry, handwriting, iris, retina, vein and voice. Opportunity uses biometric technology as a secure identification and personal verification solution.

LOAN SHARK: Moneylenders who lend money to individuals at exorbitant rates of interest. These rates can be as much as 10 to 15 percent per day, with annual rates running as high as 2,000 percent. In some poor communities this is the only source of borrowed funds.

CLIENT IMPACT MONITORING SYSTEM (CIMS): Using a simple survey, CIMS enables Opportunity’s programs to gather information about its clients to assess the transformational impact that microfinance is having on their lives.

NONGOVERNMENTAL ORGANIZATION (NGO): Similar to a nonprofit organization in the United States. International NGOs such as Opportunity International may be further identified as “INGOs.”

CONSULTATIVE GROUP TO ASSIST THE POOR (CGAP): A consortium of 31 public and private development agencies working together to expand access to financial services for the poor in developing countries.

CGAP is housed at the World Bank but operates as an independent entity.

OPERATIONAL SUSTAINABILITY: The ability of the MFI to cover its lending expenses with the income earned by its lending operations, usually expressed as a percent. At one hundred percent, the organization earns from lending money exactly what it spends.

This calculation does not take into account inflation nor the cost to borrow the money that it lends at market interest rates.

FINANCIAL SUSTAINABILITY: The ability of a microfinance institution (MFI) to cover its lending expenses and its cost of capital, usually expressed as a percent. Financial Sustainability takes into account the cost of the funds that it lends to customers as if they were obtained from commercial sources, rather than grants or government subsidies. When this ratio exceeds one hundred percent, the organization is earning a surplus and is able to grow.

FORMAL FINANCIAL INSTITUTION (FFI): A microfinance institution (MFI) that is for-profit and is supervised by a central government agency such as a superintendent of banks. Supervision and regulation usually entail a minimum capital requirement, adherence to set standards in areas of risk management and auditing, and strict reporting procedures.

GROUP LENDING METHODOLOGY: Opportunity International’s Trust Bank model offers small business loans, training and other financial services to 15-40 members of a group who cross-guarantee each other’s loans. If an individual member defaults on his or her loan, the other members of the group are required to cover the shortfall.

MICROFINANCE INSTITUTION (MFI): An NGO or for-profit organization that provides credit and other financial services to the poor.

PORTFOLIO AT RISK (PAR): The outstanding balance of loans with at least one payment overdue by the specified number of days.

PORTFOLIO IN ARREARS: The total value of loan payments that are overdue by the specified number of days.

TRANSFORMATION: The holistic change in the life of the client encompassing economic, social and spiritual factors.

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID): The main federal government agency that extends assistance to countries recovering from disaster, trying to escape poverty and engaging in democratic reforms.

Opportunity International receives funding from USAID for its programs.

WORKING CAPITAL: Current assets (cash, inventory, etc) of a business enterprise that can be applied to fund its operations. The difference between a firm’s current assets and current liabilities is its working capital.

Entrepreneurs who do not have enough cash (current assets) to pay their obligations to vendors who supply raw materials for their business (current liabilities) may borrow these funds on a temporary basis and repay the loan when inventory is sold (working capital loan).

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From the CEO’s desk

CHRISTOPHER A. CRANE

President & Chief Executive Officer

T

he power of microcredit has been proven again and again in the lives of

hundreds of thousands of clients around the world for three-and-a-half decades.

between, whether clients live in urban slums or remote villages. For far too many, a savings account is a spot under the mattress or a hole dug outside, and their savings are too easily lost to desperate neighbors, dishonest relatives or thieves.

Poor people need a safe, simple way to save for lifecycle needs, emergencies, businesses and opportunities.

For many impoverished people, accessing financial services is impeded by their inability to prove who they are. In addition to not being able to read, many poor people do not have a proper birth certificate and a driver’s license or passport can be too expensive.

“Poor people can save and want to save, and when they do not save it is because of lack of opportunity rather than lack of capacity.”

— STUART RUTHERFORD

Small loans at market interest rates have

The Poor and Their Money

ignited the entrepreneurial power and initiated the transformation of countless lives. But microcredit alone is not enough.

At Opportunity International, we are committed to staying true to the heritage of innovation that has always marked our organization. That’s why we are pioneering efforts to provide savings, insurance and remittance programs, both for our clients and for poor families throughout the developing world. With these enhanced microfinance services, we are overcoming yet another barrier to the economic, social and spiritual transformation of impoverished people throughout the world.

Thank you for your faithful and shared vision in serving the poor in such powerful ways through the work of Opportunity International.

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Today, however, lack of identity and illiteracy are no longer barriers for many Opportunity clients. Thanks to technological advancements such as biometric “fingerprint” technology, poor people can identify themselves using their fingerprint embedded in a credit-card-sized identification card. This “smart card” is scanned at the local microfinance bank to give poor people the ability to make financial transactions and keep their money safe.

Opportunity clients have access to technological advancements that do not exist at a typical American bank. For example, a client in Malawi can place a finger on a specially designed keypad that reads fingerprints and automatically brings up account information on a teller’s screen.

By combining high-tech solutions with savings programs already in place, Opportunity clients finally have a path toward a more secure future.

MICROINSURANCE: Stability in times of crisis

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ome 80 percent of people in the developing world work in the informal economy without the social safety net provided by traditional employment. Without the stability and benefits familiar to most workers in the United States, the world’s poor are especially vulnerable to hazards outside their control, such as death or natural disaster.

Catastrophic losses are disturbing for any business, but for poor entrepreneurs, they can

Clients make loan repayments, insurance payments and savings deposits during their weekly Trust Bank meetings.

wipe out a lifetime of work, leaving them without help and without hope.

This is why loans for microenterprise development are not always enough to fuel a permanent escape from poverty. Credit enables poor entrepreneurs to generate income, but — as seen in the tragic aftermath of the Asian tsunami in 2004 — they are vulnerable to disastrous events that eliminate that source of income. Without tools to minimize these risks, many impoverished families fall into still deeper poverty when crises strike.

“We cannot stop natural calamities, but we can and must better equip individuals and communities to withstand them. Those most vulnerable to nature’s wrath are usually the poorest, which means that when we reduce poverty, we also reduce vulnerability.”

— U . N . S E C R E TA RY G E N E R A L K O F I A N N A N

Microinsurance can mitigate financial shocks to poor households, yet it is still a largely untapped market in the developing world. Of the 2.7 billion people who live on less than $2 a day, fewer than 10 million currently have access to insurance — says the Munich Re Foundation, the charitable arm of Munich Re Group, one of the world’s largest reinsurers and the secondlargest primary insurer in Germany.

Opportunity International is emerging as the leading global provider of insurance to microentrepreneurs, helping the poor build a more secure future. Currently, policies cover

more than 2.6 million people in Ghana, Malawi, Uganda, Zambia, Zimbabwe, Colombia, Mexico, West Timor and the Philippines.

Responding to the tremendous need created by the HIV/AIDS pandemic, Opportunity’s programs in Africa provide coverage for death following AIDS. With this help, those left behind can begin to rebuild their lives. Opportunity’s microinsurance products help poor families other ways: Philippines: Clients invest a relatively small amount for a great deal of security: One dollar per month for life insurance provides a benefit of $2,000 if the client dies, $1,000 if a spouse dies and $500 for each child.

Mexico: A client’s loan is cleared upon her death so that the family is not burdened with the repayment of debt on top of their loss.

Uganda: A client who loses a business to a disaster does not lose everything. Insurance covering both life and property helps the client rebuild a source of income.

Opportunity has committed to establishing dedicated insurance brokerages for the poor that will provide access to many more low-income clients and a wider range of products. The first local agency was established in Uganda, which will work with multiple microfinance organizations, unions, cooperatives and church groups to extend affordable life and healthcare insurance to more than 1 million people over the next two years.

REMITTANCES:

Fueling local economies from afar

T

he hidden engine of development around the world is the personal passion and hard work of poor people who leave their borders in search of steady work. They invest that passion abroad and then send funds home

P H O T O G RA P H BY R O N L O N D E N

More than loans (continued from page 1)

for their families. Poor households use this money for basic needs such as food, education and health care. According to the United Kingdom’s Department for International Development, remittances through formal channels exceeded $250 billion in 2005, with at least the same estimated amount sent through informal channels. Remittances are a major source of cash flow for households that receive them, accounting for as much as half of their annual income.

Opportunity International desires to help these dispersed workers send as much of their pay home as they can, avoiding the loss of large portions of it in exorbitant fees. Therefore, Opportunity and HSBC, the world’s secondlargest bank, are piloting a groundbreaking project — the Opportunity Card in the Philippines. Filipino workers in the U.S. are able to transfer funds from a bank account or credit card to an ATM card. Beneficiaries in the Philippines with an Opportunity Card can then withdraw the funds from any of 3,000 ATMs nationwide that are linked to Cirrus® or MasterCard®. The Philippines benefited from

more than $10 billion of remittances funds in 2005, representing 10.5% of GDP. The program is now available to customers of Opportunity’s three largest programs in the Philippines, serving nearly 330,000 clients. The product is also available to any interested Filipino family, including those affiliated with

“In 2004, recorded remittances were the second largest source of external financing in developing countries, after foreign direct investment, and amounted to more than twice the size of official aid.”

BEYOND THE LOAN

— D I L I P R A T H A , SENIOR ECONOMIST, WORLD BANK

other microfinance institutions. “The Opportunity Card represents a major step in our work to address the needs of the poor,” said David Stiller, Opportunity International Network board chair.

A key feature of this remittance product is its

Weather insurance offers hope in Malawi The news from Malawi lately has been universally bad. Already one of the poorest nations on earth, this sliver of a country in southeastern Africa has been hard hit by a drought that has resulted in widespread food shortages. Hunger, HIV/AIDS and poverty have wreaked havoc on this nation of 12 million, with many children now suffering from the effects of all three.

A glimmer of hope has emerged, however, in the form of a weather-insurance product that could help improve the lives of thousands of Malawians.

A new pilot program developed by Opportunity International and the World Bank aims to help Malawi’s small groundnut farmers access agricultural loans paired with drought coverage, boosting their ability to recover from weather-related shocks. “The insurance will help farmers obtain the financing necessary to obtain certified seeds, which produce increased yields and revenues [and have] greater resistance to disease,” the World Bank said in a statement.

Previously, banks were not willing to lend to farmers, mainly due to the risk of nonpayment if there were a drought that destroyed their crops. Farmers could not afford to purchase superior, certified seed

competitive pricing. With conventional means of sending money, fees can go as high as 20 percent. By charging the sender $6.95 for bankaccount transfers and $7.95 for credit-card transfers, the Opportunity Card offers one of the lowest-priced remittance services around. It is also one of the fastest ways of sending money: When transferring from a credit card, beneficiaries can get their funds in a matter of minutes. Linking remittances with other microfinance services offers the opportunity for the recipients to use the funds they receive for their businesses and investments.

without financing. So their only option was seed that fared poorly against drought and disease. Now, because of the new insurance, farmers’ creditworthiness increases, and they are able to borrow to purchase the certified seed.

“Opportunity International has enjoyed providing technical insurance expertise and project-management skills to the very successful test pilot in Malawi,” says Christopher Crane, president and CEO, Opportunity International. “We look forward to a continued relationship with the World Bank and hope to extend this offering to other countries in Africa and beyond.

One of the most appealing aspects of this program is that it proactively addresses Malawi’s chronic food shortages in a way that encourages self-sustainability. As Ulrich Hess, senior economist of the World Bank, confirms, “This unsubsidized transaction shows that sustainable development can happen when the right technology meets the right people supported by the right technical assistance.”

A

t each meeting of the Orphan Caring Group Trust Bank in Uganda, loan repayments also include small savings deposits and microinsurance payments. As Opportunity’s microfinance offerings continue to expand, so will the ability to serve people like the members of the Orphan Caring Group, as well as the children under their care.

The modern microfinance movement is built on the simple truth that lacking capital is a business challenge, not a character issue. In fact, the daily realities of poverty in the developing world often develop the kinds of skills — such as strong work ethic, practical focus and thrift — that are essential for success as an entrepreneur. With access to small loans, poor entrepreneurs can begin the process of building better lives for themselves and their families.

As it was 35 years ago, Opportunity International is again a pioneer, bringing new approaches and new tools into the battle against world poverty — and the ongoing transformation of poor families throughout the world. ●

Holistic Transformation The power of Opportunity International Trust Banks “We believe that to help people with their businesses is wonderful. They’ll increase their own incomes for their families, and they’ll create jobs for their neighbors. But we have a unique chance to then add two more types of capital to their lives. We’re adding what we call social and spiritual capital into the mix when we get people together on a weekly basis.”

For more information, visit www.opportunity.org under “Media Center/ Press Releases.”

w w w. o p p o r t u n i t y. o r g

— Dennis Ripley, senior vice president for programs, Opportunity International

3

A guide to microfinance terminology BIOMETRICS: Automated methods of recognizing a person based on a physiological or behavioral characteristic, such as face, fingerprints, hand geometry, handwriting, iris, retina, vein and voice. Opportunity uses biometric technology as a secure identification and personal verification solution.

LOAN SHARK: Moneylenders who lend money to individuals at exorbitant rates of interest. These rates can be as much as 10 to 15 percent per day, with annual rates running as high as 2,000 percent. In some poor communities this is the only source of borrowed funds.

CLIENT IMPACT MONITORING SYSTEM (CIMS): Using a simple survey, CIMS enables Opportunity’s programs to gather information about its clients to assess the transformational impact that microfinance is having on their lives.

NONGOVERNMENTAL ORGANIZATION (NGO): Similar to a nonprofit organization in the United States. International NGOs such as Opportunity International may be further identified as “INGOs.”

CONSULTATIVE GROUP TO ASSIST THE POOR (CGAP): A consortium of 31 public and private development agencies working together to expand access to financial services for the poor in developing countries.

CGAP is housed at the World Bank but operates as an independent entity.

OPERATIONAL SUSTAINABILITY: The ability of the MFI to cover its lending expenses with the income earned by its lending operations, usually expressed as a percent. At one hundred percent, the organization earns from lending money exactly what it spends.

This calculation does not take into account inflation nor the cost to borrow the money that it lends at market interest rates.

FINANCIAL SUSTAINABILITY: The ability of a microfinance institution (MFI) to cover its lending expenses and its cost of capital, usually expressed as a percent. Financial Sustainability takes into account the cost of the funds that it lends to customers as if they were obtained from commercial sources, rather than grants or government subsidies. When this ratio exceeds one hundred percent, the organization is earning a surplus and is able to grow.

FORMAL FINANCIAL INSTITUTION (FFI): A microfinance institution (MFI) that is for-profit and is supervised by a central government agency such as a superintendent of banks. Supervision and regulation usually entail a minimum capital requirement, adherence to set standards in areas of risk management and auditing, and strict reporting procedures.

GROUP LENDING METHODOLOGY: Opportunity International’s Trust Bank model offers small business loans, training and other financial services to 15-40 members of a group who cross-guarantee each other’s loans. If an individual member defaults on his or her loan, the other members of the group are required to cover the shortfall.

MICROFINANCE INSTITUTION (MFI): An NGO or for-profit organization that provides credit and other financial services to the poor.

PORTFOLIO AT RISK (PAR): The outstanding balance of loans with at least one payment overdue by the specified number of days.

PORTFOLIO IN ARREARS: The total value of loan payments that are overdue by the specified number of days.

TRANSFORMATION: The holistic change in the life of the client encompassing economic, social and spiritual factors.

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID): The main federal government agency that extends assistance to countries recovering from disaster, trying to escape poverty and engaging in democratic reforms.

Opportunity International receives funding from USAID for its programs.

WORKING CAPITAL: Current assets (cash, inventory, etc) of a business enterprise that can be applied to fund its operations. The difference between a firm’s current assets and current liabilities is its working capital.

Entrepreneurs who do not have enough cash (current assets) to pay their obligations to vendors who supply raw materials for their business (current liabilities) may borrow these funds on a temporary basis and repay the loan when inventory is sold (working capital loan).

w w w. o p p o r t u n i t y. o r g

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Transformation through Trust Banks

A “Family Week” they’ll never forget

P H O T O G RA P H BY R O N L O N D E N

Francis Gutierrez, loan officer, provides training at the Building for a Future Trust Bank meeting.

very day, in thousands of locations worldwide, Opportunity International helps transform lives — economically, socially and spiritually. This holistic transformation is a vital component of Opportunity’s microfinance programs — empowering clients to become agents for their own freedom and growth. The primary avenue for this transformation is the Trust Bank. Each such gathering of hardworking small-business owners combines life and skill training with community-building, in a way that miracles are possible: • For the first time, a financial institution extends trust to the hardworking poor. This boosts their confidence in their own skills and

E

dreams. Thus empowered, clients grow their businesses and diversify, improving their standard of living and that of others.

• This growth brings personal dignity and hope, as well as respect from relatives, neighbors and community members.

• Respect increases as women clients take on leadership roles that are typically relegated to men in their culture: president or treasure of the bank, as well as organizer of community activism.

Overall, Trust Banks offer peer support and accountability, affirmation, and valuable training for business as well as life to many who previously had only an informal education and few marketable skills. Trust Banks transform lives. ●

Employment Opportunities Do you know a marketing or sales professional with a heart for the poor? Would this person like to use his or her expertise to make a difference in the world?

Below is a list of positions available at Opportunity International: •Controller (Oak Brook, Ill.) •Director of Marketing – Major Gifts Fundraiser (Los Angeles, Calif.)

•Director of Marketing – Major Gifts Fundraiser (Phoenix, Ariz.)

•Program Officer (Oak Brook, Ill.) •Private Funding Projects Manager (Oak Brook, Ill.) For full job descriptions, visit our Web site (www.opportunity.org) under “Get Involved.”

Much more than microcredit

EDITOR Laura Reilly DESIGN & PRODUCTION Journey Group, Inc.

Mike and Amy Macari had recently joined Opportunity’s Board of Governors when they traveled to Honduras with 17-year-old son, Marshall, and 19-year-old daughter, Alison.

“You can never know the impact this trip had on our family,” Mike said. Together, the Macaris learned about poverty and gained a new appreciation for the dignity and beauty of the people Opportunity serves.

Opportunity staff members watched the week unfold with enthusiasm. According to host and director of the Board of Governors Wendy Cox, “This was a trip that people will never forget — an amazing experience for all.”

Learn more about the next Family Week, coming up June 18-24, 2006, in Honduras. Share with your children the passion you feel toward transformation through Opportunity International.

Contact Wendy Cox, director of the Board of Governors, at 800-793-9455 x4180. ●

INSIGHT TRIP 2006 CALENDAR Partners with the Poor Insight Trip to Nicaragua Governors Family Week, Honduras Governors Insight Trip to Ghana

May 21-25, 2006 June 18-24, 2006 September 8-16, 2006

OUR STRATEGY is to create jobs, stimulate small businesses and strengthen communities among the poor.

OUR METHOD is to work through indigenous partner organizations that provide small business loans, training and counsel.

OPPORTUNITY INTERNATIONAL’S COMMITMENT is motivated by Jesus Christ’s call to serve the poor.

STATEMENT OF INTENT REGARDING POVERTY AND WOMEN Opportunity International–U.S. strives to reach the world’s poorest people through its microenterprise development programs.

Recognizing that the large majority of the world’s poorest are women and that they contribute decisively to the well-being of their families, Opportunity makes it a priority to support programs that serve the particular needs of women.

OPPORTUNITY INTERNATIONAL SERVES women and men of any faith and no faith.

I M PA C T | M a rc h / A p r i l 2 0 0 6

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s members of the Orphan Caring Group gather for their weekly Trust Bank meeting in Nsike, Uganda, they join together for more than loan repayments and business training. Of course, members want to build small businesses through loans from Opportunity International. But since they have joined together in order to care for 43 AIDS orphans, their concerns go far beyond merely business issues.

Caring for orphans as well as one’s own family — in a country with as many challenges as Uganda — is an immense undertaking. It involves being concerned about everything related to life and health as well as growing a strong business.

Credit alone cannot move poor entrepreneurs across the poverty line.

More tools are needed. So these Trust Bank members are grateful that their relationship with Opportunity International goes beyond a series of Orphan Caring Group Trust Bank loan cycles. to the needs of the poor by providing The world’s poor have long been ignored by microfinance programs that also offer: mainstream financial institutions and thought microsavings, microinsurance and remittances. incapable of benefiting from choices that betteroff consumers have. But Opportunity International has always been about economic, social and spiritual transformation of the whole Keeping what you have person. By listening closely to clients to asic money management begins with understand their needs, Opportunity has built avoiding unnecessary expenses and then upon its solid foundation to address long-term keeping what is left in a safe place. But poor transformation in new ways. Opportunity’s people are frustrated by the hurdles of traditional vision is to create full-service microfinance banks’ minimum-balance requirements and onerous banks that meet all the financial needs of paperwork, as well as business hours and locations impoverished entrepreneurs and their families. that are hopelessly out of touch with a poor person’s Opportunity has listened and has responded work day. Realistic alternatives are few and far

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(continued on page 2)

© 2006 by Opportunity International

For more information, contact Wendy Cox at 800-793-9455 x4180

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MICROSAVINGS:

OPPORTUNITY INTERNATIONAL HAS PARTNERS in Albania, Bulgaria, China, Colombia, Croatia, Dominican Republic, East Timor, Egypt, Ghana, Honduras, India, Indonesia, Macedonia, Malawi, Mexico, Montenegro, Mozambique, Nicaragua, Peru, Philippines, Poland, Romania, Russia, Serbia, Uganda, Zambia and Zimbabwe.

It is estimated that 2.7 billion people live on less than $2 a day. (World Bank)

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Serving Poor Families

New approaches give new tools for fighting poverty

THE OPPORTUNITY MISSION is to provide opportunities for people in chronic poverty to transform their lives.

Elise Haykin, right, daughter of Board of Governor member Randy Haykin

MARCH/APRIL 2006

A publication of Opportunity International

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IMPACT IN

IMPACT is a bimonthly publication of Opportunity International, 2122 York Road, Suite 340, Oak Brook, IL 60523 800.793.9455 www.opportunity.org

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“We make a living by what we get, we make a life by what we give.”

- Sir Winston Churchill ince Opportunity International’s inception in 1971, its work has been funded in large part by the generosity of individuals whose charitable gifts have transformed not only their own lives, but also those of countless poor families in the developing world.

And throughout its history, the vast majority of charitable gifts to Opportunity have been made in the form of cash. But Opportunity’s board of directors has determined that in order to achieve the aggressive goals that it has set for reaching 2 million poor entrepreneurs a year by 2010, it must encourage charitable gifts of all types, especially the giving arrangements that provide the greatest tax benefits to its supporters.

Therefore, Opportunity now accepts, along with cash, gifts of publicly traded securities, closely held stock, real estate of all types, life insurance, and personal property such as artwork and collectibles.

In addition, Opportunity provides donors with expertise in the full array of “planned gifts,” including gifts through one’s will or living trust, gifts of IRA assets, and the giving arrangements that provide lifetime income back to the donor, such as charitable gift annuities and charitable remainder trusts.

It is through these gifts that the poor will be served for decades to come, and countless more lives transformed along the way.

For more information about benefiting from planned gifts, contact Chuck Day, director of Planned Giving, at (800) 7939455, x4136. Or go to www.opportunity.org under “Give Now/ Planned Giving.”

pportunity International’s mission goes beyond empowering its clients to become successful microentrepreneurs. Opportunity is committed to change that makes an impact in the lives of their families as well. Often, clients are the sole support of their children, siblings and parents. Their business success ensures the health and education of their loved ones.

In their wholehearted commitment to the well-being of their families, Opportunity clients are no different from Opportunity supporters.

Seven members of the Opportunity International Board of Governors and their families had a unique chance to experience these similarities firsthand last June during the Board of Governors Family Week Insight Trip.

For six days, seven families joined Opportunity in Honduras for the vision trip of a lifetime. Like other Opportunity Insight Trips, this one involved meeting clients and their families, visiting Trust Banks, and watching transformation at work.

The trip was made unique by educational components geared directly at young people and families. After breaking the ice with an interactive global village simulation that helped the entire family visualize poverty, travelers visited an elementary school to interact with clients’ children and see their needs up close. They also took a “poverty drive” through the communities where clients and their families live, work and play.

Although most of the Opportunity Board of Governor members and their children did not speak Spanish, language barriers vanished as the young people laughed and played together.

Board of Governor member Randy Haykin traveled to Honduras with his 15-year-old daughter, Elise. Watching her connect with the children of Opportunity clients gave him a new perspective on the impact of Opportunity’s work in poor households. “The value of allowing families to come was incredible,” Randy said, “and a huge selling point for Opportunity donors — a chance to educate their children while giving.”

P H O T O G RA P H C O U RT E S Y RA N DY H AY K I N

Changing times, changing needs

For more information about the Board of Governors, visit www.opportunity.org/BOG

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For more information about the Women’s Opportunity Fund, visit www.womensopportunityfund.org

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BOARD OF GOVERNORS

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with Microfinance

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2 Security for Poor Families Microinsurance provides a safety net for poor families.

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3 Money From Abroad Remittance program to support hardworking Filipinos.

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5 The Power of Trust Banks Trust Banks provide economic, social and spiritual development.

6 A Week Focused on Family P H O T O G RA P H BY B R U C E S T R O N G

WOMEN’S OPPORTUNITY FUND

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Family Week – global poverty insights for the whole family.

Microfinance is....

Test your knowledge of microfinance by completing this sentence: Microfinance is: A) small loans and business training for struggling entrepreneurs to start or expand a business B) a type of savings account with a low minimum balance C) insurance policies designed for poor people who are vulnerable to catastrophic losses D) remittance services that allow migrant workers to send money home safely and economically E) self-help networks that empower poor entrepreneurs to create a better future for their families F) ALL OF THE ABOVE The correct answer is: F

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Transformation through Trust Banks

A “Family Week” they’ll never forget

P H O T O G RA P H BY R O N L O N D E N

Francis Gutierrez, loan officer, provides training at the Building for a Future Trust Bank meeting.

very day, in thousands of locations worldwide, Opportunity International helps transform lives — economically, socially and spiritually. This holistic transformation is a vital component of Opportunity’s microfinance programs — empowering clients to become agents for their own freedom and growth. The primary avenue for this transformation is the Trust Bank. Each such gathering of hardworking small-business owners combines life and skill training with community-building, in a way that miracles are possible: • For the first time, a financial institution extends trust to the hardworking poor. This boosts their confidence in their own skills and

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dreams. Thus empowered, clients grow their businesses and diversify, improving their standard of living and that of others.

• This growth brings personal dignity and hope, as well as respect from relatives, neighbors and community members.

• Respect increases as women clients take on leadership roles that are typically relegated to men in their culture: president or treasure of the bank, as well as organizer of community activism.

Overall, Trust Banks offer peer support and accountability, affirmation, and valuable training for business as well as life to many who previously had only an informal education and few marketable skills. Trust Banks transform lives. ●

Employment Opportunities Do you know a marketing or sales professional with a heart for the poor? Would this person like to use his or her expertise to make a difference in the world?

Below is a list of positions available at Opportunity International: •Controller (Oak Brook, Ill.) •Director of Marketing – Major Gifts Fundraiser (Los Angeles, Calif.)

•Director of Marketing – Major Gifts Fundraiser (Phoenix, Ariz.)

•Program Officer (Oak Brook, Ill.) •Private Funding Projects Manager (Oak Brook, Ill.) For full job descriptions, visit our Web site (www.opportunity.org) under “Get Involved.”

Much more than microcredit

EDITOR Laura Reilly DESIGN & PRODUCTION Journey Group, Inc.

Mike and Amy Macari had recently joined Opportunity’s Board of Governors when they traveled to Honduras with 17-year-old son, Marshall, and 19-year-old daughter, Alison.

“You can never know the impact this trip had on our family,” Mike said. Together, the Macaris learned about poverty and gained a new appreciation for the dignity and beauty of the people Opportunity serves.

Opportunity staff members watched the week unfold with enthusiasm. According to host and director of the Board of Governors Wendy Cox, “This was a trip that people will never forget — an amazing experience for all.”

Learn more about the next Family Week, coming up June 18-24, 2006, in Honduras. Share with your children the passion you feel toward transformation through Opportunity International.

Contact Wendy Cox, director of the Board of Governors, at 800-793-9455 x4180. ●

INSIGHT TRIP 2006 CALENDAR Partners with the Poor Insight Trip to Nicaragua Governors Family Week, Honduras Governors Insight Trip to Ghana

May 21-25, 2006 June 18-24, 2006 September 8-16, 2006

OUR STRATEGY is to create jobs, stimulate small businesses and strengthen communities among the poor.

OUR METHOD is to work through indigenous partner organizations that provide small business loans, training and counsel.

OPPORTUNITY INTERNATIONAL’S COMMITMENT is motivated by Jesus Christ’s call to serve the poor.

STATEMENT OF INTENT REGARDING POVERTY AND WOMEN Opportunity International–U.S. strives to reach the world’s poorest people through its microenterprise development programs.

Recognizing that the large majority of the world’s poorest are women and that they contribute decisively to the well-being of their families, Opportunity makes it a priority to support programs that serve the particular needs of women.

OPPORTUNITY INTERNATIONAL SERVES women and men of any faith and no faith.

I M PA C T | M a rc h / A p r i l 2 0 0 6

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s members of the Orphan Caring Group gather for their weekly Trust Bank meeting in Nsike, Uganda, they join together for more than loan repayments and business training. Of course, members want to build small businesses through loans from Opportunity International. But since they have joined together in order to care for 43 AIDS orphans, their concerns go far beyond merely business issues.

Caring for orphans as well as one’s own family — in a country with as many challenges as Uganda — is an immense undertaking. It involves being concerned about everything related to life and health as well as growing a strong business.

Credit alone cannot move poor entrepreneurs across the poverty line.

More tools are needed. So these Trust Bank members are grateful that their relationship with Opportunity International goes beyond a series of Orphan Caring Group Trust Bank loan cycles. to the needs of the poor by providing The world’s poor have long been ignored by microfinance programs that also offer: mainstream financial institutions and thought microsavings, microinsurance and remittances. incapable of benefiting from choices that betteroff consumers have. But Opportunity International has always been about economic, social and spiritual transformation of the whole Keeping what you have person. By listening closely to clients to asic money management begins with understand their needs, Opportunity has built avoiding unnecessary expenses and then upon its solid foundation to address long-term keeping what is left in a safe place. But poor transformation in new ways. Opportunity’s people are frustrated by the hurdles of traditional vision is to create full-service microfinance banks’ minimum-balance requirements and onerous banks that meet all the financial needs of paperwork, as well as business hours and locations impoverished entrepreneurs and their families. that are hopelessly out of touch with a poor person’s Opportunity has listened and has responded work day. Realistic alternatives are few and far

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© 2006 by Opportunity International

For more information, contact Wendy Cox at 800-793-9455 x4180

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MICROSAVINGS:

OPPORTUNITY INTERNATIONAL HAS PARTNERS in Albania, Bulgaria, China, Colombia, Croatia, Dominican Republic, East Timor, Egypt, Ghana, Honduras, India, Indonesia, Macedonia, Malawi, Mexico, Montenegro, Mozambique, Nicaragua, Peru, Philippines, Poland, Romania, Russia, Serbia, Uganda, Zambia and Zimbabwe.

It is estimated that 2.7 billion people live on less than $2 a day. (World Bank)

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Serving Poor Families

New approaches give new tools for fighting poverty

THE OPPORTUNITY MISSION is to provide opportunities for people in chronic poverty to transform their lives.

Elise Haykin, right, daughter of Board of Governor member Randy Haykin

MARCH/APRIL 2006

A publication of Opportunity International

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IMPACT IN

IMPACT is a bimonthly publication of Opportunity International, 2122 York Road, Suite 340, Oak Brook, IL 60523 800.793.9455 www.opportunity.org

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“We make a living by what we get, we make a life by what we give.”

- Sir Winston Churchill ince Opportunity International’s inception in 1971, its work has been funded in large part by the generosity of individuals whose charitable gifts have transformed not only their own lives, but also those of countless poor families in the developing world.

And throughout its history, the vast majority of charitable gifts to Opportunity have been made in the form of cash. But Opportunity’s board of directors has determined that in order to achieve the aggressive goals that it has set for reaching 2 million poor entrepreneurs a year by 2010, it must encourage charitable gifts of all types, especially the giving arrangements that provide the greatest tax benefits to its supporters.

Therefore, Opportunity now accepts, along with cash, gifts of publicly traded securities, closely held stock, real estate of all types, life insurance, and personal property such as artwork and collectibles.

In addition, Opportunity provides donors with expertise in the full array of “planned gifts,” including gifts through one’s will or living trust, gifts of IRA assets, and the giving arrangements that provide lifetime income back to the donor, such as charitable gift annuities and charitable remainder trusts.

It is through these gifts that the poor will be served for decades to come, and countless more lives transformed along the way.

For more information about benefiting from planned gifts, contact Chuck Day, director of Planned Giving, at (800) 7939455, x4136. Or go to www.opportunity.org under “Give Now/ Planned Giving.”

pportunity International’s mission goes beyond empowering its clients to become successful microentrepreneurs. Opportunity is committed to change that makes an impact in the lives of their families as well. Often, clients are the sole support of their children, siblings and parents. Their business success ensures the health and education of their loved ones.

In their wholehearted commitment to the well-being of their families, Opportunity clients are no different from Opportunity supporters.

Seven members of the Opportunity International Board of Governors and their families had a unique chance to experience these similarities firsthand last June during the Board of Governors Family Week Insight Trip.

For six days, seven families joined Opportunity in Honduras for the vision trip of a lifetime. Like other Opportunity Insight Trips, this one involved meeting clients and their families, visiting Trust Banks, and watching transformation at work.

The trip was made unique by educational components geared directly at young people and families. After breaking the ice with an interactive global village simulation that helped the entire family visualize poverty, travelers visited an elementary school to interact with clients’ children and see their needs up close. They also took a “poverty drive” through the communities where clients and their families live, work and play.

Although most of the Opportunity Board of Governor members and their children did not speak Spanish, language barriers vanished as the young people laughed and played together.

Board of Governor member Randy Haykin traveled to Honduras with his 15-year-old daughter, Elise. Watching her connect with the children of Opportunity clients gave him a new perspective on the impact of Opportunity’s work in poor households. “The value of allowing families to come was incredible,” Randy said, “and a huge selling point for Opportunity donors — a chance to educate their children while giving.”

P H O T O G RA P H C O U RT E S Y RA N DY H AY K I N

Changing times, changing needs

For more information about the Board of Governors, visit www.opportunity.org/BOG

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For more information about the Women’s Opportunity Fund, visit www.womensopportunityfund.org

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BOARD OF GOVERNORS

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with Microfinance

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2 Security for Poor Families Microinsurance provides a safety net for poor families.

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3 Money From Abroad Remittance program to support hardworking Filipinos.

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5 The Power of Trust Banks Trust Banks provide economic, social and spiritual development.

6 A Week Focused on Family P H O T O G RA P H BY B R U C E S T R O N G

WOMEN’S OPPORTUNITY FUND

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Family Week – global poverty insights for the whole family.

Microfinance is....

Test your knowledge of microfinance by completing this sentence: Microfinance is: A) small loans and business training for struggling entrepreneurs to start or expand a business B) a type of savings account with a low minimum balance C) insurance policies designed for poor people who are vulnerable to catastrophic losses D) remittance services that allow migrant workers to send money home safely and economically E) self-help networks that empower poor entrepreneurs to create a better future for their families F) ALL OF THE ABOVE The correct answer is: F

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