Tag: Microfinance

Why People Give

Published on by Kieran Johnson - The Generosity GuyLeave a comment

“When you give to charities, what outcome are you looking to achieve?”

This is the most common question I get to ask people who support Opportunity. It’s important to find out what motivates them to give, mostly so that we can achieve the kind if impact they are looking for.

Often, the answer I get is “I want to make a positive difference”, and after further discussion they tell me about how someone helped them early in their life. So, they give to pass it on and help someone work their way out of poverty.

For many Opportunity supporters they see creating businesses as a great way to help people help themselves. A small loan gets given to kick start their journey out of poverty, by creating a small business which provides them an income. They can then put food on the table, send their kids to school, pay the loan back and leave poverty behind.

The types of business the small loans create in places like India and Indonesia are not what you normally think of. There are no ABN’s, no offices, no IT set up, no convoluted distribution channels. It’s more simple than that. You buy items at one price, take it to a market or the side of the road and sell it for a little bit more. You get a loan in the morning and can create an income to buy food that evening.

Whilst it takes time for loan recipients to fully leave poverty behind, a small loan is the injection they need to start that journey.

That’s what making a positive difference looks like.

$160 is enough to help create a small loan – donate here.

Impact

Published on by Kieran Johnson - The Generosity GuyLeave a comment

Some things can be measured easily. When there are numerical values involved it is simple to compare. Like the size of your bank balance today compared to last week, you can tell the difference just by looking at it.

But measuring someone’s personal growth for example, when the indicators are not as tangible, and it requires some sort of gut feel, can be a little difficult.

It’s the same situation when we measure people’s journey out of poverty. Opportunity International provides small loans to mothers living in poverty and we measure the impact that has on the women and their family over time. The amount of money they earn is one indicator that can show they are leaving poverty behind, but there are so many other elements, like nutrition, sanitation, education, access to information and how hopeful they feel.

Some of this can be measured numerically, and some can’t. Not all elements improve at the same rate or at the same time, so how do you measure the impact?

Often it comes down to the individual. When they recognise they have the ability to make decisions on their own behalf, decisions that can change the lives of them and their families, this shows a level of empowerment which usually means that other elements are improving as well.

People are complex and cannot be measured by numerical values alone to discover what growth is happening.

How are you empowering those around you?