ESPERA Funds: A Better Idea for Solving the Problem of Poverty
Edica is a young mother in El Salvador barely making ends meet. She struggles daily to care for her children, feed them and send them to school. There are no jobs available in her village. She is determined and resourceful but, as in many countries, banks do not lend to women. What can she do? What would you do?
Micro-lending might be an option but that can be dangerous. You may have read about the recent problems uncovered in the micro-lending industry. Often the money actually goes to another lending institution, rather then to the individual pictured on the website. Or the interest charged might quickly become more than the value of the loan. Sometimes a woman applies for a loan that actually ends up in the hands of others – usually men – although the woman is legally responsible for the loan. These abuses hurt every organization working to end poverty through sustainable change.
After almost 25 years of granting and working with women in the Americas, Mary’s Pence, a faith based non-profit, decided there had to be a better way to help end the cycle of poverty. I know. As a board member of Mary’s Pence I watched and participated as month after month the women of Mary’s Pence collaborated to create a sustainable and local alternative. After months of strategic planning and collaboration ESPERA Funds were born.
Mary’s Pence ESPERA Funds (“she hopes” in Spanish) go to networks of women – not individuals. Together, using the power of community, women can share ideas. Each network is made up of a group of women who encourage and support each other in starting sustainable businesses right in their own communities.
ESPERA Funds are designed so decisions are made by local women creating local solutions. The women in the network are in the best place to determine which projects should be funded and the interest they need to charge for their lending pool (ESPERA Fund). Loans are repaid to the community fund so more new businesses can be started or the money can be loaned to another network. Successful projects are grounded in the community and serve the needs of the local village.
ESPERA Funds recently completed its first year. There are now four funds working in communities in Central America and Mexico. The results are exciting. When women do better children benefit, families are more secure and the entire community does better. With a reliable income Edica and women like her, can send their children to school instead of to work. For Edica, a sustainable income means that she can plan and save for her future.
Mary’s Pence ESPERA Funds are supported by donations from individual donors. There is no endowment fund or large grant to support this work. Mary’s Pence relies on social outreach, churches, women’s groups, faith groups and those they know to spread the word.
What can you do? Join me. Be part of the poverty solution. Consider learning more at www.maryspence.org, sign up for Mary’s Pence E-Newsletter, or make a donation. Become a Companeras by donating automatically each month. Better yet, volunteer to host a giving circle at your next book club or gathering – even dollars or change on hand makes a good donation.
Make a difference today. Just click funding women, changing lives.
In Africa women are doing similar work. Watch Jacqueline Novogratz, founder of Acumen Funds, describe investing in local solutions and the power of patient capital.
You may also like Poverty is a Luxury We Can NOT Afford, What Can You and I Do?, Does Everyone Have a Voice? and Kowalski’s Grocery Store and Fiji Water.
