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Grameen Foundation : Resource Center : FAQs

Frequently Asked Questions about Grameen Foundation

What is Grameen Foundation?
What does Grameen Foundation do?
How did Grameen Foundation get started?
What are some of Grameen Foundation's programs?
Why do you describe yourself as "innovative"?
I am interested in your Capital Management and Advisory Center . What does it do?
How poor are the microfinance clients served by your partners?
How does Grameen Foundation select its partners?
Can individuals get a loan from Grameen Foundation?
What is the difference between Grameen Foundation and Grameen Bank?
How can I be sure you are doing what you claim?
How can I get involved?
Why should I donate to Grameen Foundation?
Is my contribution tax deductible?
Can I dedicate 100 percent of my contribution to go directly to microloans for clients and can I select the MFI or region?

See also: Frequently Asked Questions about Microfinance

What is Grameen Foundation?

Grameen Foundation is a young, energetic nonprofit that is reducing global poverty among the poorest of the poor. Founded in 1997, we accomplish poverty-reduction by supporting and advancing microfinance, a proven strategy that empowers the world’s poorest people to pull themselves from poverty by starting, expanding or sustaining very small businesses. We also provide the rural poor with means of communication and access to vital information through technology and technology microbusinesses.

What does Grameen Foundation do?

We provide funding, technology, technical assistance, training and information services to a network of 53 local microfinance institutions (MFIs) in 23 countries. These partners then give very small loans and other financial services and support to the world’s poorest people to start very small businesses to pull themselves out of poverty. Thus far, this network reaches 6.8 clients and has impacted an estimated 34 million lives in Asia, Africa, the Americas, and the Middle East (as of March 2008). In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28. More than 90 percent of the network’s clients are women because they have proven to be the most effective in fighting poverty. For more information on our work and how microfinance helps millions around the world, visit the Programs section of our website.

Equally important, Grameen Foundation develops and executes pioneering programs and technology-based solutions to increase the capacity and efficiency of the microfinance industry so it can reach even more of the world’s poorest people. We also develop technology based communications microbusinesses. These businesses provide income for a microentrepreneur, and they provide the rural poor and their villages with expanded means of communication and access to vital information. Grameen Foundation is headquartered in Washington, D.C.

How did Grameen Foundation get started?

We sprang from a rich heritage – Grameen Bank of Bangladesh and Professor Muhammad Yunus, the founder and managing director of Grameen Bank. Credited with launching the global "microfinance movement," Professor Yunus first experienced the promise of microfinance in 1976 by making very small loans with the money in his own pockets to very poor women in Bangladesh. In launching Grameen Foundation in 1997, Professor Yunus challenged us to deliver the promise of microfinance around the world. Grameen Foundation was established by Alex Counts, our founding and current president. We continue and highly value our close relationship with Professor Yunus and Grameen Bank. Professor Yunus remains a valued member of our board of directors.

What are some of Grameen Foundation's programs?

Grameen Foundation’s programs and products are all designed to measurably reduce poverty. Our programs include supporting the practice of microfinance for the poorest of the poor; applying innovative uses of communications and information technology to create self-sustaining technology microbusinesses and support better communications and the flow of information to remote areas; tapping capital markets to bring new, private sector funds to MFIs; and spearheading pioneering technology solutions to expand the effectiveness and reach of the microfinance industry. We are also committed to sharing “best practices” to advance the microfinance industry’s impact on global poverty.

We have challenged ourselves to achieve three specific goals by 2008:

• Reach five million new microfinance clients
• Ensure that 50 percent of clients escape poverty within five years of their first loan
• Deliver three innovations that will increase substantially the delivery of microfinance to far more of the world’s poorest people.

Why do you describe yourself as "innovative"?

Grameen Foundation is at the forefront of using technology, capital market funding strategies, and other pioneering initiatives in the global fight against poverty. Our Grameen Technology Center focuses on developing breakthrough applications for information and communications technology to enhance the entire microfinance industry. One great success is our Village Phone program which connects villagers in remote areas to information about market prices for their agricultural goods, government services, health care, and family members.

The Grameen Foundation Capital Management & Advisory Center develops and manages Grameen Foundation branded financing products that are simple, flexible, with varied risk-return profiles, and aims to establish microfinance as an asset class by negotiating and executing capital markets opportunities, thereby increasing MFIs’ access to financing to server greater numbers of microfinance clients.

We are also increasing MFI efficiency by setting up management information systems that enable them to provide more client services, and through our Mifos project, we are also developing a universal, flexible management information system to help MFIs standardize operations, and process very large numbers of microloans and other financial services. In addition, we are creating a new tool to help MFIs track the progress of their clients – from their first loan to their final step out of poverty.

I am interested in your Capital Management Advisory Center. What does it do?

Originally called the Capital Markets Group, the Capital Management and Advisory Center supports the rapid expansion of poverty-focused MFIs around the world by tapping into the vast resources of the financial and capital markets. In addition to financial products, such as the Growth Guarantee Program, CMAC also advises MFI management teams on specific transactions and provides standardized tools and training on investment readiness, negotiating financing and long-term planning.

How poor are the microfinance clients served by your partners?

For many, it is hard to imagine just how poor microfinance clients are. Many live on just a dollar or so a day and often families eke out an existence on just half of what many of us spend daily on a cup of gourmet coffee each day. Exact dollar amounts vary from country to country, but, by any standards, microfinance clients are literally struggling to live from day to day.

How does Grameen Foundation select its partners?

Grameen Foundation’s targets MFIs that share our focus of reaching the poorest people. Our selection strategy is designed to ensure that our efforts will increase the number of very poor people with access to microfinance. We seek partners who share our goal of reaching the poorest of the poor, and our philosophy of open and transparent operations. Potential partners come through in-house research and referrals. We match a potential MFI partner’s strategy to grow and expand with our resources and assistance. If there is a match, we mutually agree to a long-term action plan to achieve specific poverty reduction objectives. Each partner works closely with a Grameen Foundation microfinance professional to ensure that the objectives are met in the best possible way.

Can individuals get a loan from Grameen Foundation?

No, Grameen Foundation only supports microfinance institutions (MFIs) and microfinance-focused programs.

What is the difference between Grameen Foundation and Grameen Bank?

Grameen Foundation sprang from Grameen Bank. We are strong strategic partners and work closely together to reduce global poverty among the poorest of the poor. We pursue a common vision by sharing knowledge and success models to accelerate the rate at which the world's poorest people can access microfinance and begin their journey out of poverty. However, we are independent organizations with separate management, staff, funding sources, and governing boards. Grameen Bank operates in Bangladesh only. As the largest and most successful microfinance organization, it strongly influences the direction of microfinance globally.

Grameen Foundation is a U.S-based microfinance network based in that operates in 25 countries through a network of 46 partner MFIs.

How can I be sure you are doing what you claim?

Grameen Foundation has been honored for its innovation, efficiency and effectiveness with several industry awards: Fast Company/Monitor Group Social Capitalist Award, Pro-Poor Innovation Award, and Tech Museum Award.

How can I get involved?

In order to extend the reach of microfinance to more of the world’s impoverished families, Grameen Foundation relies largely on private donations. Grameen Foundation’s community of individual donors, foundations and institutions is a tremendous network. But we need many more to fulfill a goal of reaching five million families by 2008. For information on how to give and other ways to get involved, visit the Get Involved section.

Why should I donate to Grameen Foundation?

By donating to Grameen Foundation, you will change lives by supporting a proven strategy that empowers the world’s poorest people to escape poverty. Grameen Foundation relies on the generosity of private contributions to support microfinance institutions around the world. And, Grameen Foundation’s innovative financing strategies multiply the impact of your donation.

Donations also sustain Grameen Foundation's groundbreaking work against poverty. We have earned consecutive Social Capitalist Awards by Fast Company Magazine and Monitor Group (2005-2007) for expanding the reach of microfinance globally while applying innovative technology to increase efficiency and provide new opportunities for the poor. The Tech Museum of Innovation recognized the impact of our technology programs with an Accenture Economic Development Award.

To give opportunity to more of the world’s poorest families through microfinance and to advance Grameen Foundation's innovative solutions against poverty, learn about opportunities to give.

Is my contribution tax deductible?

Grameen Foundation USA is a non-for-profit, 501 (c) (3) organization, and charitable donations are tax-deductible to the extent allowed by law. You can help us work against global poverty by visiting learn about opportunities to give.

Can I dedicate 100 percent of my contribution to go directly to microloans for clients and can I select the MFI or region?

In general, it is not possible to earmark your gift for a specific microfinance institution. However, you may designate your gift to a particular region where Grameen Foundation works. Your gift supports not just impoverished families, but also the dedicated Grameen Foundation staff and our partner microfinance institutions who serve them. In addition to being used for direct loans, your contribution also supports other important services such as workshops on health, education and other topics that help clients improve their living conditions. Learn about the various opportunities for giving.

Grameen Foundation : Resource Center : FAQs