HOPE International is a faith-based Christian-based non-profit organization based in Lancaster, PA focusing on the eradication of physical and spiritual poverty through the development of a Christ-centered micro enterprise. The goal is "to invest in family dreams in underserved world communities as they proclaim and live the gospel," HOPE International now operates in 16 underserved countries and has helped hundreds of thousands of people through more than 2.7 million loans totaling more than $ 800 million since it began operating in 1997. His client also currently has a $ 30 million savings account.
Video Hope International (Christian microfinance)
The need for financial services for families living in poverty
The World Bank reports that "nearly 3 billion people in developing countries have little or no access to formal financial services." According to CGAP, "people living in poverty, like everyone else, need a variety of financial services to run their businesses, build assets, smooth consumption and manage risk." Traditionally, these families fill the financial gap by borrowing from friends and family or by borrowing from moneylenders who charge high interest rates. Often this option does not provide a lasting solution.
Microfinance, defined as "providing financial services such as small loans to the poor so that they can increase their income and reduce their vulnerability to unforeseen circumstances," provides an opportunity for lasting change even in the poorest communities. Many clients in the HOPE network are women who are looking for sustainable ways to provide food, clothing, shelter, and education for their families. Earnings from businesses built partly through small loans and savings not only help individual clients, but also benefit their families and then strengthen the local economy.
Maps Hope International (Christian microfinance)
How HOPE thinks about poverty
While many define poverty as a lack of money, food, or shelter, HOPE believes the roots of poverty go deeper. Using the model developed by The Chalmers Center, HOPE defines poverty as a result of broken relationships - with God, others, self and other creations.
The entrepreneurial approach to poverty alleviation
The organization operates through one of two models depending on the country of operation.
The first method is a savings group program. Savings groups are formed by a group of 10 to 50 individuals who meet regularly to make savings deposits into public funds. Clients regularly save money to stabilize household income, provide emergency safety net, start or expand business, or pay household expenses such as school fees. Many groups also allow savers to take out loans for their financing needs.
The second model of HOPE is a microfinance institution. This approach involves a group of 10-50 entrepreneurs who jointly receive loans from HOPE International or its local partners. Each client guarantees cross-loan of other group members because there is no guarantee form offered for the loan. Accountability to the group provides a strong incentive to make loan payments on a regular basis.
In certain HOPE network countries, microfinance clients may also qualify for individual loans, usually for higher loan amounts than loans in the group model. Clients can graduate from receiving group loans after they are proven creditworthiness, or they can qualify from scratch due to their financial situation, business success, or credit history.
New Initiative
Larger Loans: In developed countries with higher per capita incomes, small and medium enterprises (SMEs) are the backbone of the economy. These businesses, which often employ many people and have a major impact on society, are essential to the advancement of the national economy. However, in countries with lower per capita incomes, SME businesses are missing. The large gap, often referred to as the "lost medium," stems from a lack of capital for SMEs and a lack of incentives for banks to offer loans of the appropriate size. To meet the needs of clients whose businesses have grown large microfinance loans, finding themselves in the middle of this missing, certain HOPE programs have begun to pioneer and launch SME loans.
Track results: HOPE wants to see affected families in four domains: material, personal, social, and spiritual. In 2014, they set up a Listener, Monitoring and Evaluation team (LM & E) to better understand the impact of their services on clients. HOPE has invested in LM & amp; E with the aim of listening well to clients, using feedback to inform their work. Realizing that proof of impact can be a very complex process, HOPE wants to "refine, not prove" the process.
History
After the collapse of the Soviet Union in 1991, Jeff Rutt and the Pennsylvania-based church, he attended in partnership with a church in Ukraine. After failing to help the Ukrainian community effectively through flyers, and after looking into various forms of development assistance, Rutt decided to start a microfinance program to empower Ukrainian citizens. The program was successful, and in 1997 Rutt founded HOPE International.
After further work in Ukraine, the organization began to look for opportunities to expand its operations to other countries where the need for such services has been identified. In 2004, Peter Greer became president of HOPE after spending several years in various microfinance organizations and attending graduate school at Harvard University.
Financial accountability
In addition to the contributions of the clients themselves, HOPE International's work is funded through individual donors, churches, foundations, businesses, and Homes for Hope. In the last five years, approximately 98 percent of loans in the HOPE network have been repaid. HOPE-network clients repay loans at interest, and fixed investments in their local microfinance institutions, stimulate the local economy and allow for resumption of loan distribution.
For 10 years in a row, Charity Navigator has granted HOPE International the highest four-star rating, something less than 1 percent of US nonprofit achievements. Last HOPE received a score of 100/100 in accountability and transparency and the overall rating of 92.05.
HOPE International also has a philanthropic dividend policy. As the HOPE-led microfinance institutions become sustainable, they commit to give 10 percent of their profits to support the ministry of local, Christ-centered children.
Role of confidence in HOPE International
HOPE International shares Christ's hope through her work, trying to change her clients both physically and spiritually. In addition to lending and forming savings groups, HOPE offers business-based Bible training and discipleship to its clients. Although HOPE International is a Christian organization, it works with everyone regardless of religion, race, gender, sexual orientation, or marital status.
Countries where HOPE International operates/Partner organization
- Burundi: Founded in 2012
- Dominican Republic: The Esperanza International Partnership was established in 2005
- East Asia (name of the country withheld for security reasons)
- Haiti: The program was established in 2009
- Malawi: Program established in 2013
- Moldova: Investment-Credit Cooperation established in 2005
- Peru: Comas Christian & amp; Partnership of the Church Fellowship Missionaries established in 2011
- Philippines: Center for Community Transformation (CCT) partnership established in 2007
- Republic of Congo: [16] Program was founded in 2010
- Romania: ROMCOM [11] partnership established in 2007
- Rwanda: Urwego Bank partnership [12] : was founded in 2005 and redirected to HOPE-managed in 2016: the Rwanda HOPE program established in 2007
- Rwanda SCA: Founded in 2007
- Ukraine: The program was established in 1997
- South Asia (name of the country withheld for security reasons)
- Zambia: The program was established in 2015
- Zimbabwe: Partnership was established in 2011; redirected to HOPE-managed in 2017
Government
HOPE International has a 10-member board chaired by Jeff Rutt. [17] Peter Greer was appointed president of the organization in 2004 after working abroad with various microfinance organizations and graduating from Harvard Business School. Greer heads the 12-member HOPE International executive team. The program director also oversees the work of the organization from within its country of operation.
Home for Hope
Home to HOPE, HOPE International's affiliate program, also founded in 1998 by Jeff Rutt. Through Home for HOPE, home builders and trading partners can build a home benefit pro bono. To date, the organization has accumulated more than $ 10,000,0000 to support HOPE International, and currently operates in nine states in the United States. In 2008, Jeff Rutt was awarded the Hearthstone Builder Humanitarian Award for his humanitarian efforts.
Additional Reads
- Created to Develop by Greer and Smith
- When Helps Hurt by Corbett and Fikkert
- From Dependency on Dignity by Fikkert and Mask
- Portfolio of Poor by Daryl Collins
- Blue Sweater by Jacqueline Novogratz
- A Billion Bootstraps by Smith and Thurman
- Help Dead: Why Help Does Not Work and How There Is a Better Way for Africa by Dambisa Moya
- Give Us Credits by Alex Counts
- Good News for the Poor: How the Poor Live on the World $ 2 a Day by Daryl Collins, Jonathan Murdoch, Stuart Rutherford, Orlando Ruthven
- The Economics of Microfinance by Beatriz Armendariz and Jonathan
- The Poor and Their Money: Microfinance from a Twenty First-Century Customer Perspective by Stuart Rutherford
- Walking With The Poor by Bryant L. Myers
References
External links
- Hope International (official website)
Source of the article : Wikipedia
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