MICROCAPITAL BRIEF: Wall Street Journal: Philanthropists Turning to Program-Related Investments in Microfinance
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Monday, November 23, 2009

MICROCAPITAL BRIEF: Wall Street Journal: Philanthropists Turning to Program-Related Investments in Microfinance

» Posted by in Category: Investment Funds at 10:10 am

A recent Wall Street Journal report covered the move among many philanthropists away from donations toward program-related investments (PRIs), which produce returns that can be re-invested in other efforts: “For a long time only big institutions like the Ford Foundation pursued [PRIs]. Given the lingering economic slump, though, program-related investments are getting attention from a wider array of potential donors – including smaller family foundations, investors with donor-advised funds and everyday individual givers.”

Sample microfinance investments include:

  • Kiva, which does not offer interest, accepts loans starting at USD 25 that can be “recycled” after they are repaid (if they are repaid).
  • MicroPlace, a subsidiary of eBay, is a registered brokerage firm that currently offers returns of up to 6 percent on investments of USD 20 and up.
  • Oikocredit USA, which requires a minimum of USD 1,000.
  • ACCION’s Global Bridge Fund offers interest rates of up to 3 percent, with a minimum term of 18 months and a minimum investment of USD 2,000.

Additional resources:

Wall Street Journal article, November 9, 2009

Kiva

MicroPlace

Oikocredit

ACCION

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