DiscoverHope Fund Programs

DHF stands for a world without poverty.  That is what we do and why we exist. 

Now, just how do we do that?  Here's the short version:

If you like the longer version, read on...

GOAL ONE: Microloans for Macrodreams (extended)

Giving microcredit opportunities - small loans are given to women in poverty to support their micro-enterprise businesses.  Most of the beneficiaries do not have any form of collateral and do not have access to traditional credit because of their poverty status.  DHF works with groups of beneficiaries to give small, reasonable loans at low-interest rates that are paid within a longer time-frame.  Returned loan payments cycle back into the organization and provide subsequent contributions in the form of subsequent loans and new loans for more women.

Microcredit loan specifics:

Some of the distinctive features of DHF microcredit loans have been adapted by microcredit nonprofit industry standards

• Most of our women have no other collateral (guarantee) or access to money or banks because they are so poor, but they have the ultimate responsibility for feeding and clothing their children.  Often the only option to get money is through informal loan sharks as high as 60%+ interest a day.
• Loans are not based on collateral but instead based on group payback and trust and as well as confidence created with DHF by making loan payments

• Loans are obtained by a borrower through joining a group of borrowers often called a “village bank” comprised of 8-25 women; these women hold one another responsible for the payback of their loans

• Loans are offered for creating self-employment for income-generating activities: common areas of business include food production/livestock; textiles and clothing; artisan crafts; and multipurpose "street stores"

• An average first-time loan is $100 and loans are paid back every month in group meetings, over a 4-6 month time period

• New loans becomes available to a borrower when her previous loan is repaid

• DHF helps encourage women through our savings program to save some of their income each month so that they build collateral for their families and businesses and can eventually "graduate" from microcredit

• DHF is currently working with women within our first site in the region of Cajamarca, Peru
• DHF aspires to work with those living on less than $5 a day (World Bank uses reference lines set at those living on less than $1 a day-extreme poverty, and $2 per day-poverty (www.worldbank.org). 
• One of the most inspirational parts of this model of work is that give the women the tools to  realize their potential with total dignity, since it is their money, their responsibility, their skills and their businesses—they take total ownership

DHF's Loan Process Requirements:

DHF Pre-Loan Requirements:

• Attend an introductory meeting on DHF and its purpose

• Propose participation in a village bank group (group of women borrowers)

• Participate in an introductory interview, which includes an assessment of their poverty level (conducted by Bank Officer/Program Manager)

• Allow for a visit to existing business that they wish to expand (if applicable) or communicate what business they would like to initiate.  In general, the initial interview will include an additional discussion about what materials are specifically needed for a proposed business or amplification of an existing business.  This interview is also critical to determining how much money the woman really needs and how much she can pay back and still make her life better, not more difficult.

• Allow for a home visit from a DHF representative to assess household assets and vulnerabilities (conducted by Bank Officer/Program Manager)

During-Loan Requirements:

• Women who receive loans must show commitment to payment of their loans. Women meet bi-monthly with the AFIDER Bank Officers and our Program Manager to make their payments.  With guidance, a village bank group will set forth their own rules with respect to the acceptable number of meetings or payments a woman can miss before a future loan will be not be given (like their very own group articles and bylaws).  The general standard for DHF will be to miss no more than 30% of payment meetings without a legitimate reason or communication with DHF staff (such as illness, death, natural disaster).  Once the members of a village bank group have paid back their loans, they are able to request a new loan. 

• All women in a particular village, whether they are in a village bank microcredit group or not and regardless of their loan repayment status, are invited to attend DHF capacity building support trainings.

DHF Goal Two: Cultivate Passions and Talents (extended):

• Our second program objective encourages support and well-being for each woman through providing training to support entrepreneurial, financial, and personal goals.
• You may have heard the great saying, “Teach a person to fish instead of giving them fish.”  With DHF, the microcredit we give is the “fishing pole” so these women can begin to fish for themselves and change their lives.  This second objective is to follow up with education and support and teach them “how to use their fishing poles.” 
• DHF believes that when credit is accompanied by education our beneficiaries can truly lift themselves out of poverty and pass new frameworks for thinking onto their children and families.  The key here is, we ASK the women what they want and need, as we can never truly understand what their needs are.
• At DHF, we honor the value and the amazing potential in every person we work with.  We believe in organic development—from the roots up—beginning with the dreams and desires of the women we work.
• DHF borrows some of our development values from the Sirolli Model of Enterprise Facilitation:

Enterprise Facilitation is based on the passion, entrepreneurship, innovation, creativity and the fundamental needs for love, respect, quality and beauty found in every community. It maintains that every object we use…is the result of passionate people transforming their talents and visions into good work.  Hence, the “economy” is nothing less than millions of people doing beautifully what they love doing. The better they are at it, the better the economy! This model of development supports the creation of wealth from within your community by nurturing the intelligence and resourcefulness of your people. We champion the development of community pride through the passionate mentoring of local talent (www.sirolli.com).