Micro Enterprise Summit Breakout - Micro Enterprise and Philanthropy

Panelists: Jack Litzenburg (Charles Stewart Mott Foundation), Terry Bell (Rockwell Fund), Tracy Kartye (Anne E. Casey Foundation)

Comments from Jack Litzenburg

Mott Foundation - national funder
- Early entry into the ME market
- Helped build equity in early ME funds
- Documented lessons in ME
- Today the foundation has turned it's attention to:

Started ME Funders Group

operated through the Aspen Institute. See document created to educate funders. They created a series of funder guides

Funded "Micro Test" collects data to identify best practices
Building scale in US M.E.

Interested to see what the impact of building scale is on the community / organizations

- Tomorrow?

Micro Enterprise Leadership Academy
Develop entrepreneurial network for entrepreneurs

Cost of money is a big deal in the emerging world. In our economy the major hurdle is getting to market, competing with the big guys.
Ex. creation of brand name speciality foods from Appalachia that helps bring products to larger markets (Cracker Barrel Restaurants) (ACENET?)

Community Colleges have a role to play

connection between economic ed, developmental ed, adult ed

- If we are to be competitive in the world market, we must help our low income people engage in the economy

Comments from Tracy Kartye (Anne E. Casey Foundation)

Mission - to build better futures for disadvantaged children and their families

- $100m endowment for social investment

Expect market rate investment

Outcomes for Business Investments

Economic Development
Job Creation
Income patching

Comments from Terry Bell (Rockwell Fund)

- We don't really do micro credit / loaning in the US. We just can charge enough interest (in India they charge 60% interest)
- Philanthropy makes up the difference between what we can charge vs. overhead to run a program. Bell contends that overhead can't be covered by interest alone.
- Groups like Accion helps mitigate losses through relationships
- Why are philanthropists (foundations) good partners

they have time (don't report quarterly)
they have flexibility
can help mitigate risk
misconception: we're easy. there is a move in philanthropy to be more demanding, have more accountability

What do philanthropists look for in projects?

Bottom line
Measurable success
Begin with the end in sight
See that things work

Q and A with Panel:

Q. How to achieve scale?

J.L. - Most ME lending isn't so much a dollar and cents transaction these days, it's one of education. Don't underestimate the true cost of education.

Q. Will scale cost?

T.B. - Perhaps, cited example of Midwest company who were bought out and lost personal touch. Micro businesses need attention

Q. Consolidation in the ME industry:

J.L. YES! He's love to see one loan pool per city with different underwriters applying to. Having separate loan pools is suicidal. One pool would be most effective and efficient.

Accion: Has developed a common loan pool and management of loan portfolio. Check with Aspen Institute.

Q. What forces would drive that?

J.L. Perhaps by the founders for more efficient use of loan funds.

How can corporate partnerships help us (other than banks)?

Procurement (supplies)
Understanding the demand side of the labor markets
How to enter the global markets

YWAMers Praised for Faith and Leadership

The Denver Post reports on the memorial service at the Denver YWAM base: "We're going to celebrate a life, we're not accentuating a death," said Faith Bible Chapel pastor George Morrison, in opening a memorial service today for two people killed at a missionary training school in Arvada . The service is called "A Celebration of Life for Tiffany and Philip." Philip Crouse and Tiffany Johnson died Sunday when a gunman opened fire at the school's dormitory. Youth With a Mission director Peter Warren said today both Crouse and Johnson embodied the spirit of the group. First the service focused on Crouse . "Phil gave his life to Jesus Christ and was never the same again," said Zach, a friend of Johnson's who met him years ago at a youth ministry in Alaska. At the time, Crouse was tough and wouldn't let people get close to him. "Over the years, Phil became a humble, teachable, sweet guy" who was able to reach kids with rough e...

Non Profit Payday Loans?

Here's a recent New York Times article sent to me from Katie at NCHM on payday lending. I know that the NCUD / CTCU-EPA partnership is going to have to create the right program addressing the needs for short term lending for low income families. We don't have the answers yet, but it's definitely on our radar. APPLETON, Wis. — This city of 70,000 has five McDonald’s franchises, three Pizza Huts, four Starbucks shops — and 19 payday loan stores, brightly lighted storefronts with names like EZ Money and Check Into Cash that offer two-week loans without credit checks. Peggy Truckey, 53, knows the allure. Last year she owed nearly $1,300 to four of those stores, and was paying about $600 a month in finance fees alone. “I thought I was going to have to take a second job just to pay off the interest,” Ms. Truckey said. Then she heard about a new nonprofit program operated out of a Goodwill thrift store, one of several hundred lower-cost payday loan products that are now bein...

Samuel Liotti TV Interview about Obama's Nomination

Check this out this link! Samuel, his best friend Malik and other students at East Palo Alto Academy were interviewed on TV where they were asked about their views on Obama. The students has some interesting and revealing comments. With all the politics, it may be easy for some to overlook the significance and importance of the first truly viable African-American candidate for president. Obama's nomination to especially many young people in our community speaks volumes about who they are and what they can become. This is an exciting and important time in our history. Please join me in praying for both our candidates, but especially Obama. I've felt impressed that I should pray specifically for his safety during the next months. Follow the link and check out the interview! What about you? How significant do you feel is Obama's nomination?

NorCalUrban

Search This Blog