Acumen Fund

Acumen Fund is a nonprofit global venture fund that uses entrepreneurial approaches to solve the problems of global poverty. They "seek to prove that small amounts of philanthropic capital, combined with large doses of business acumen, can build thriving enterprises that serve vast numbers of the poor. Acumen Fund's investments focus on delivering affordable, critical goods and services- like health, water, housing and energy- through innovative, market-oriented approaches."

Established in 2001, with seed capital from the Rockfeller Foundation, Cisco Systems Foundation, and three individual philanthropists, the Acumen Fund believes something must be done to extend the benefits of the global economy to the world's population that lives on less than $4 a day. The fund uses philanthropic capital to make disciplined loans or equity- not grants- that yield financial and social returns. Financial returns received are used towards new investments.  To date, Acumen Fund has invested in India, East and South Africa, and Pakistan.

For more information on Acumen Fund's initiatives, and how you can get involved, please visit their website. Also visit the Acumen Fund Blog to learn more.

Micro-finance Week

Today kicks off Micro-finance Week. This week we'll be featuring a variety of organizations that use micro-credit and venture philanthropy to help the world's poorest citizens move towards a life of self-sufficiency. On a broader scale, micro-finance helps communities to get out of what economist Jeffrey Sachs calls the 'poverty trap,' by providing the assistance necessary to overcome poverty and create sustainable communities.  The organizations this week will should the wide range of projects you can support, regardless of how much you actually have invest. As you'll see, even an investment of $20 can make a world of difference to those who have nothing.

As an introduction to Micro-Finance week, what better place to start than where it began: Grameen Bank.

Grameen Bank first began in Jobra Bangladesh in 1976 as the Grameen Bank Project. In the Bangla language Grameen means 'rural' or 'village.' The project provided microcredit, (small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families), to the individuals in Jobra Bangladesh. By 1983 the success of Muhammad Yunus' project was evident. The project transformed to become a formal bank under a special law passed for its creation. 

Grameen Bank came into operation with the following objectives:

• Extend banking facilities to poor men and women
• Eliminate the exploitation of the poor by money lenders
• Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh.
• Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves
• Reverse the age-old vicious cycle of "low income, low savings and low investment," into virtuous cycle of "low income, injection of credit, investment, more income, more savings, more investment, more income"

GB's is a banking system based on mutual trust, accountability, participation, and creativity. The bank provides credit to the poorest of the poor in rural Bangladesh, without collateral. 'At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the grounds that they are poor and hence not bankable. Professor Yunus, founder and Managing Director of GB, reasoned that  if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, "these millions of small people with their millions of small pursuits can add up to create the biggest development wonder.""

Yunus' theory proved correct. To date the total amount loaned since its inception is $7.68 billion, with $6.83 billion having been repaid. Grameen Bank can boast a loan recovery rate of 97.82%. It shows just how far trust and accountability can go.

In 1995, Grameen Bank decided is no longer would receive donor funds. In fact they had the money necessary to continue their work independently. Since 1998 the bank has been without donor funds or loans from local or external sources. Grameen Bank is owned by the poor borrowers (95%) and the government (5%).

In 2006, Professor Muhammad Yunus received the Noble Prize for his work with Grameen Bank.

As of February 2009, GB has 7.75 million borrowers, 97% of whom are women, with 2,545 branches. The bank provides services in 83,967 villages, covering more than 100% of the total villages in Bangladesh. 

Grameen Bank's website offers plenty of information on their initiatives, borrowers' successes, and a wonderful introduction into the world of micro-lending. I urge you all to visit Grameen Bank's website.

Also, if you are interested in learning more about Muhammad Yunus and Grameen Bank the following books are available:

Banker to the Poor: Micro-Lending and the Battle Against World Poverty by Muhammad Yunus

 Creating a World Without Poverty: Social Business and the Future of Capitalism by Muhammad Yunus

 The Price of a Dream: The Story of Grameen Bank by David Bornstein

Social Velocity

Today's organization helps nonprofits use the tools of social innovation to advance their missions.

Social Velocity identified a need in the Southwest region of the United States for social innovation. Along the American coasts social innovation is happening, but less so in the middle of the country, specifically the Southwest. They are focused on the need for new ideas to help combat the social, economic, environmental and cultural challenges facing the region.

The company identifies social innovation as system-changing ideas that solve existing public challenges. These new ideas include:

• social entrepreneurship
• social enterprise
• venture philanthropy
• strategic fundraising
• growth and capital
• social investing

Social Velocity inspires this innovation by exposing the region to new ideas, connecting to the national movement, and employing systems and strategies for the region. The company works with nonprofits, their staff, board, and donors to accelerate the pace of social innovation. 

Their services fall into 3 categories:

1. Grow Program- help nonprofit organizations determine whether a program is ready to increase its scale, how to grow it strategically, where to find growth capital, and how to implement a successful plan.
2. Find Greater Resources- help nonprofit organizations introduce new revenue streams, communicate more effectively with potential donors, find good fundraisers, and leverage their board more effectively.
3. Connect to the National Movement- build connections between innovators nationally and innovators in the Southwest, Social Velocity helps to bring attention, resources and momentum to their region.

For more information about Social Velocity, please visit their website. This company is another great resource for nonprofit organizations.