Microfinance: An Overview

By: Sam Crawford-Cloonan
Sam is a participant in the Emerging Leaders in Philanthropy: Explorers class. 

Microfinance is when many donors, each giving a small amount, loan a relatively large sum of money (say, a thousand dollars) to an individual in need (usually in a developing country) in order to make a significant development in that individual's life. The development helps the individual pay off the debt incurred from the loan, and the money is given back to the donors.

I, personally, would invest in microfinance because it's an efficient and effective way of improving the quality of life (QL) of someone in need. The micro-entepreneurs are then able to break the cycle of poverty. Most of those asking for loans have just enough resources to support themselves  sufficiently, but not enough to improve Quality of life. This leads to a lack of ability to support oneself.

Individuals receiving microfinancial loans become able to support themselves and improve their QL. Loans are also more beneficial than a hand out because there is the added responsibility of being able to pay money back, thus the money is required to be used as a means of financial development rather than directly being used for day-to-day support.

For investors, microfinance is a way to give help to someone in need while still being able to make their money back. In that way, it's a very safe investment. A person can donate time and time again as their funds are replenished by micro-entrepreneurs who pay back their loans. Thus, if managed properly, the exchange is fully sustainable.

In conclusion, microfinance is a necessary part of today's world when it comes to linking local philanthropists to global issues on an individual scale, making the 'treasure' section of the pillars of philanthropy (giving time and talent and treasure) easily transferable and available. The next step? Bringing time and talent to that level of availability--and I'd love to see what this generation does to do so.

On an entirely separate note, my favorite experiences in ELP are the ones in which the students are able to have a natural discussion over previously discussed topics. Being able to ask questions and learn more about philanthropy, both local and global, is both necessary and freeing. 

Grant-making on the Ground

By: Sadie
Sadie is a participant in the Emerging Leaders in Philanthropy: Changemakers class. 

This week in ELP we discussed creating mutually beneficial grantor-grantee relationships 
and expanded on the grantmaking process. So far, I have learned that the grantmaking process can be a hard but mutually beneficial for the grantor and grantee. Through a Request for Proposal or Letter of Intent, the grantor can identify the benefits or challenges involved in giving a grant to the grantee. Then, a grant application can further identify if giving the grant will be an efficient use of the money. The grantor can measure if there will be a mutually beneficial grantor-grantee relationship through these steps that help to measure the effect on the community the grantee will make with the money. 

We have learned that maintaining a mutually beneficial grantor-grantee relationship can ultimately lead to greater and stronger impacts on the community. Through communication, trust, and social impact, this relationship can become stronger. In our class this week, we had the pleasure of having Lauren Wolter from The Once Upon A Time Foundation speak and share her experience with us. The Once Upon A Time Foundation has three sectors; one of which is the Philanthropy Lab. The Philanthropy Lab organizes classes at several colleges and universities in which students are granted money that they can donate to an organization of their choice after learning about philanthropy. Similar to our learning at Allowance for Good, students are given the chance to learn about philanthropy and the grantmaking process and apply their learning to the real world. As a future college student, I think this is a great program to have because many students are unaware of the specifics of philanthropy and its impacts. As part of a foundation, we had the opportunity to hear Lauren’s perspective on the grantmaking process. She spoke of how grantmaking can truly be mutually beneficial and how that can benefit various communities. 

Because of my learning about the grantmaking process in Emerging Leaders in Philanthropy, I am now inspired to somehow be involved in the grantmaking process in the future. I am a catalyst for good because I think everyone deserves to have the same rights, resources, and opportunities as others and non-profit organizations and grantmaking is a way to bring this to action in my future. In the meantime, I will continue to educate myself and others on philanthropy and global change so that I can apply this knowledge in the future along with my peers.

The Benefits of Corporate Philanthropy

By: Caroline

Caroline is a participant in our Emerging Leaders in Philanthropy: Explorers class.

Corporate philanthropy is a very effective and generous form of giving. Companies not only receive great public appeal but those whom they serve benefit best. Companies often have more financing, influence and industry than private donors or foundations that are better equipped to support large events like fundraisers, supply more volunteers or donate larger sums of money etc. Because each side gets something out of the interaction, this is a very just format. No one side is better than the other and each are partners instead of one being charitable and the other being weak. There are many different forms of philanthropy but corporate philanthropy is an increasingly popular form. I was aware of the different forms of philanthropy prior to ELP, but I had no idea all of the work that goes into each one. I have a much greater respect for philanthropy now I know it takes more than just writing a check. When I mentioned to my friend I was taking this class, she asked what could there be to learn about writing a check? It feels so great to have this knowledge of true philanthropy and share it with others. I thought I knew a handful of philanthropists but now I realize I know so many more. Philanthropists are not just the people who write the check but also the people who volunteer their time and talent. Corporate philanthropy is another incredible way to do good and the education of this is crucial to continuing its great work.

Building Strong Communities

By: Meredith

Meredith is a participant in the Emerging Leaders in Philanthropy: Changemakers class.

Asset-based community development is when groups in a community work to change and further expand their society. This development could be technological, numeral, or emotional. Asset-based community development demonstrates a community coming together to make a bigger and more significant impact. Groups include residents, voluntary associations, institutions, physical assets, economic activity, and stories. The mapping activities we did in class helped show how every group in a community works together. The map showed us that even though we may be a part of completely different societies, the same characteristics can be used in each society to create change. Mapping out our own communities and the different ones that we were a part of showed the class how much we all had in common. Most of our communities were not the same but served the same purpose for ourselves. It also showed us how many skills we have in common that we use everyday in our different communities.

Building strong communities is very important to the development of a society. Without strong communities our world would not be as unified as it is now. Strong communities create order and success that create change and advance the world faster. Strong communities consist of strong leaders and accepting members. Although some people may have more of a say or a bigger impact on final decisions, without all of the components of a community, nothing would function smoothly. Coming from the On The Table dinner discussion, our minds were much more open to the different types of communities in the world and how many of them function with and without the same characteristics. Something I took from the On The Table dinner was that even though some communities may have different levels of development, they all find happiness in their own way. No community needs electricity or running water or huge houses to have happiness. A community creates happiness based on their own needs and things they find essential to their life. This stood out to me because there are many places in the world that function perfectly well and happily, even though they don't have as many luxury items as developed cities do.

Making an Impact for Human Rights

By: Anika
Anika is a participant in Allowance for Good's Spring Emerging Leaders in Philanthropy: Explorers class. 

This week in ELP, we talked about human rights. We learned about the different plans and steps for fixing the problems that come with the lack of human rights. There is a declaration issued by the United Nations about human rights. We tend to take many of these basic rights for granted.

 In this class, I learned a lot about human rights and I was able to appreciate how fortunate I am. Less developed countries do not provide adequate protection of human rights, which is a problem that needs to be fixed. Some people don’t have freedom of thought, or the right to privacy. I cannot imagine not having the right to privacy and freedom of thought and speech.

 One of these rights was the right to education. Malala’s speech about the right to education was very inspiring for many reasons.  She is a young girl living in a Taliban dominated and controlled country. She is a girl and a child and the Taliban believed that the children of Pakistan, especially girls and women, had no right to education.  She still stood out, regardless of everything against her and spoke out for both girls and boys. Taliban continued to threaten her but she could not be stopped because she believed in the right to education for everyone. She was shot in the head by the Taliban but that made her even more determined to fight for access and equality of education.

 Another right is the right to food and shelter. There are so many people who don’t have 3 meals a day. Hunger and shelter is a problem all over the world, including the most developed countries. Even a country as developed as the United States has over 5,000 homeless and hungry people in just a 50 mile radius. All of my life I have grown up listening to how my classmates and I were so lucky to have food on our plates and a roof over my head.

 I have heard statistics that 1 out of 5 children go hungry. We have not discussed ways in which we could solve this problem. I would like to try and make a dent in the issue of homelessness and hunger.

One of the ways to doing that is to build awareness of this problem at a younger age. It could be as simple as teaching kids to not waste food and water, volunteering at a food bank, richer class discussions etc.