MICROCAPITAL STORY: Pro Mujer Registers as a Charity in the UK to Attract Philanthropic Funds

Pro Mujer International, an international non-profit affiliated with a network of five microfinance institutions (MFIs) in Latin America, released a press release announcing that it registered as a charity in England and Wales. Maria Richter, Board Chair of Pro Mujer UK, explained that the new office was launched in effort to attract more philanthropic funding: “We expect many opportunities to garner support in the UK because there is a growing awareness of microfinance and the power it has to transform lives.” The press release said that donations made to Pro Mujer UK would support the provision of credit, healthcare, and business training to poor women in Latin America. Information was not provided how exactly the donations will be utilized.

Margaret Bennett, the director of non-profit consulting service, THINK Consulting Solutions, and author of the THINK World Fundraising Markets Report 2007, explained how international charities are increasingly choosing to market successful products to new philanthropic markets overseas, “in pursuit of a higher return on their investment, or new pools of donors.” Registration as a charity in the prospective market is a necessary first step towards international expansion. In the US, registration as 501(C)(3) organization is necessary for a charity to accept donations and receive federal tax exemptions. In the UK, charities must register with a regulating body called the Charity Commission for England and Wales. Pro Mujer has already received grants from two large charitable organizations in the UK: the Coutts Microfinance Pilot Donor Advised Fund, and Anglo American Group Foundation.

Pro Mujer began its operations in Bolivia in 1990, and has since replicated its model in Nicaragua (1996), Peru (1999), Mexico (2001), and Argentina (2005). The international body has offices in New York and La Paz. It monitors the performance of its five affiliate MFIs and prepares consolidated financial reports for the entire network. Pro Mujer International’s 2007 Annual Report states that the network had combined loan portfolio of USD 39.5 million: Bolivia (21.4 million), Nicaragua (3.9 million), Peru (USD 8.5 million), Mexico (USD 5 million), and Argentina (669 thousand (p.22). In 2007, the five MFIs served a total of nearly 200 thousand clients with loan and/or savings products. Their total savings amounted to USD 13.9 million (p.22). According to the network’s 2007 Financial Statement, its total assets were USD 51.5 million (p.3). It had USD 5.1 million (p.3) in philanthropic contributions, which consisted mostly of grants from the AIG Corporation and The Bill and Melinda Gates Foundation (p.14). For more information on Pro Mujer International, please refer to this MicroCapital story.