In much of the world, including developing countries as well as communities within the United States, development and sustainability are impaired by lack of access to financial systems, including small loans that can be used to help start or build a business, or allow someone to complete his or her educational or vocational training. Short-term assistance to selected projects can help to proactively and efficiently advance individuals, their families and collective groups in a sustainable manner – by enabling them to help themselves. Success not only benefits those involved but also serves as a model for others seeking a means to improve their lives and prospects under similar conditions.
LendWithCare – Food Stall, Benin
The ProPhilanthropy Fund operates in partnership with microfinance organizations in developing countries as well as in underserved communities within the U.S. to provide capital in the form of loans or loan guarantees for selected projects promoting individual and community development. Placements through programs such as UK-based LendWithCare (an initiative of CARE® International) and Accion® (a world pioneer in microfinance) benefit from decades of experience and relationships with field partners, which are generally small banks, savings and loans and other cooperatives built through microfinance assistance. Partner organizations and individual projects will be selected from those which have the ability to ensure high rates of repayment (typically through community group guarantees, co-signing and other forms of security) – as well as providing for sustainable impact that helps those involved as well as those around them. In furtherance of ACP’s ProPhilanthropy approach, special priority is also given to individual projects and groups that can serve as a model for others in their communities or regions.
Unlike online microcredit placed through organizations such as Kiva®, Zidisha and others, all contributions to ACP’s ProPhilanthropy Fund will be 100% tax-deductible as donations to a 501(c)(3) public benefit charitable organization. Under current terms of the fund, contributions will be reinvested on a recurring basis until at least December 31, 2025, following which funds may be made available in the form of grants to enable a new generation of projects to receive microfinance funding and/or otherwise promote sustainable impact.
Given the recurring basis of the investments, each contribution would be leveraged multiple fold. Illustrating the power and long-term impact of this social investment model, a single $250 contribution can thus provide all of the following:
- An immediate tax-deductible donation for the amount of the original contribution, i.e. $250;
- A source of $1,250 in loans helping individuals start or build a business or complete their educational or vocational training (based on a recurring investment over 5 annual loans); and
- An eventual grant of $250 to an organization or group helping the underserved (enabling additional individuals and groups to secure funding and/or otherwise promote sustainable impact).
Under current terms of the fund, contributions will be invested and reinvested on a recurring basis until at least December 31, 2025, following which funds may be made available in the form of grants to enable a new generation of projects to receive microfinance funding and/or otherwise achieve sustainable impact. Unlike typical microcredit organizations, all contributions to the Fund are 100% tax-deductible as donations to a 501(c)(3) public benefit charitable organization.
Contributions to the ProPhilanthropy Fund are currently being accepted via our DONATE page.
