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he 2006 Nobel Peace Prize was recently awarded to a microfinance practitioner, thus raising awareness and bringing

recognition to the impact that microfinance is making to alleviate poverty throughout the developing world. This acknowledgment has brought microfinance — and its transforming potential — directly into the public eye. And two new announcements by Opportunity International hold the promise of launching that potential to bold new heights.

September 20, 2006, marked the launch of an initiative that will define and drive Opportunity’s outreach for years to come. Christopher Crane, president and CEO of Opportunity International, announced the formation of the “$1 billion for 100 million people” plan — to help move 100 million people out of poverty by the year 2015. As a midpoint toward this aggressive goal, Opportunity also announced a commitment to mobilize $500 million to serve 50 million people. That commitment was announced at the Clinton Global Initiative, an annual nonpartisan gathering of world leaders including Laura Bush, Bill Gates and Colin Powell.

“The ‘$500 million for 50 million people’ campaign will provide loans, savings, insurance and training to people working their way out of poverty,” said former President Bill Clinton. “By 2010, 34 nations in Africa, Asia, Eastern Europe, Russia and Latin America — with the particular emphasis in Sub-Saharan Africa and Asia — will be participating. Opportunity International is a world leader in developing insurance for the poor.”

For more than 35 years, Opportunity International has rapidly expanded its service to the poor. Over the past five years, Opportunity’s client base has increased at a 28% compound annual growth rate. That trend has put

Opportunity in a unique position: By leveraging its growth, Opportunity hopes to radically increase the scope of its services, thus reaching many more poor entrepreneurs and their families around the world.

Now, more than ever, Opportunity International is positioned to have a world-changing impact. All those who share Opportunity’s vision for serving the poor can make a difference that really counts.

Blessed are they who have regard for the poor. – PSALM 41:1

A publication of Opportunity International

www.oppor tunity.org

MicroFiNANcE rEcogNizEd with NobEl PEAcE PrizEthis year’s Nobel Peace Prize casts another

spotlight on the vital role of microfinance

as a long-term solution to world poverty.

the prize was awarded to microfinance

practitioner grameen bank and its founder,

Muhammad Yunus.

grameen bank, founded in 1976,

and opportunity international, founded

in 1971, are two of the pioneers that

began giving small business loans to poor

entrepreneurs in the developing world so

they can start a business, develop a steady

income and provide for their families.

“Every single individual on earth

has both the potential and the right to

live a decent life,” the Nobel committee

observed in announcing the prize. “Even

the poorest of the poor can work to bring

about their own development.”

(continued on page 2)

2 Now more than ever Sharing in Opportunity’s vision to help the poor.

3 Al whittaker Remembering Opportunity’s visionary co-founder.

5 New ways to help Donor Advised Funds provide new ways to give.

6 Annual bog conference A successful conference allows board members to plan for 2007.

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L E B R A T I NG

Y E A R S

Serving Poor Families with Microfinance

i N S i d E

NoVEMbEr/dEcEMbEr 2006

Now more than everA new chapter for Opportunity International — and new hope for the world’s poor.

Fasilili chidawo is a marketplace vendor inMalawi, Africa.

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From the CEO’s desk

2 iMPAct | November/December 2006

AN AggrESSiVE PlAN For A world oF hoPEThanks to Opportunity International’s unique business model, mobilizing $1 billion to serve the poor does not require $1 billion in private donations. Instead, Opportunity’s plan calls for $250 million in donated funds over five years. The remaining $750 million — a three-to-one leverage — will be mobilized from other sources, including commercial loans, investments, lines of credit and clients’ savings.

Similarly, reaching 100 million people does not require 100 million loan clients. Since the typical client loan has an impact on 7.5 people, 100 million people can be reached through a combination of loans and other financial services:• 60 million people: Opportunity International loan clients and family members;• 40 million people: employees of loan clients; those clients who receive voluntary savings and insurance benefits; and family members of these groups.Even with these advantages, a plan of this scale will require much more than traditional microcredit to reach its goal. helping lift 100 million people out of poverty by 2015 will require at least four more disciplines:

1.Reaching100millionpeoplewillrequire microfinance: •More than 2.6 million Opportunity clients and their family members are currently insured through microinsurance. • In 2005, Opportunity opened nearly 100,000 interest-bearing savings accounts for the poor. • Opportunity and the World Bank have partnered so that more than 900 farmers in Malawi were able to receive crop insurance that protects against losses due to weather. • Opportunity created a stand- alone insurance-brokerage agency in Uganda to distribute customized insurance solutions for the poor.

2.Reaching100millionpeople willrequireinnovations: • Biometric or “fingerprint” technology allows poor people to use their own fingerprint embedded in a credit-card size identification “smart

card,” giving them a safe and secure way to make financial transactions. • Mobile phones are used by Opportunity clients to make financial transactions with Opportunity microfinance banks and other merchants simply by sending a text message. • Mobile banks, ATMs and point-of-sale devices are used by clients in rural areas, who would otherwise have no access to financial services.

3.Reaching100millionpeoplewillrequire buildingmicrofinancebanksforthepoor: • Opportunity has built 12 commercial microfinance institutions for the poor. • In Africa alone, Opportunity plans to run 10 microfinance institutions for the poor by 2010. • By 2010, Opportunity plans to serve 300,000 loan clients and 400,000 savings clients and to insure 1.5 million poor people through its microfinance banks in Africa.

4.Finally,reaching100millionpeoplewill requireasharedvisionandpassionforserving thepoor.

thE PowEr oF PArtNErShiPFortunately, Opportunity International does not embark on this new venture alone. Several initial partnerships will fuel the early efforts toward this goal.

In the largest family donation ever given to a microfinance organization, philanthropists JohnandJacqueWeberg have committed $5 million per year for 10 years. The Webergs

chriStoPhEr A. crANE President &Chief Executive Officer

fter 35 years of growth and

innovation, opportunity

international is in a position to truly

make a world-changing difference. over

the next decade, we are in a position to

help lift 100 million people out of poverty.

on September 20th, we announced a

major new initiative that will shape the

work of opportunity international for

years to come:

“$1 billion for 100 million people.”

we are committed to mobilizing $1

billion dollars by 2012 in order to help

100 million people lift themselves out

of poverty by 2015. reaching the 100

million person goal will require vision,

focus and extraordinary commitment on

the part of our staff and our community

of supporters. it will require just the kind

of commitment that made 35 years of

serving the poor possible.

in christ’s service,

(continued from page 1)

biometric technology allows clients secure access to their accounts at opportunity international bank of Malawi.

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www.oppor tunity.org 3

l whittaker, co-founder of opportunity international, passed away on September

27, 2006. he was 88 years old. thirty-five years ago, whittaker left the

presidency of bristol-Myers international to embark on a life-changing journey. Along with a group of business leaders, he possessed a vision for serving the poor in new ways. together, these business leaders took a business-like approach to the problem of poverty: market research. A simple survey of poor people in latin America yielded remarkable results: we need jobs. . . . we need work that will support our families. . . . with a decent income, we will solve our own problems.

whittaker noticed an energetic entrepreneurial spirit among the poor he met. they worked hard just to survive, yet remained poor, year after year. he concluded that access to working capital loans would help these struggling entrepreneurs break

the cycle of extreme poverty.opportunity’s first loan in 1971, to colombian

spice dealer carlos Moreno, showed that whittaker’s vision would work. today, opportunity is working with more than 810,000 loan clients around the world — with millions more to come in the years ahead.

whittaker’s passion to serve the poor drew from his own faith and desire to follow Jesus christ’s call to serve the poor.

“the bottom line, in my experience, is to always remember this is not our business, this is the lord’s business,” whittaker once said. “we are the ones he has chosen to carry it out. that is all we need to know. that is how it started. that is how it blossomed. let’s keep it that way.”

whittaker went on to lead opportunity international for its first 10 years — providing the original vision for service that will continue to lead opportunity for years to come.

Al Whittaker, 1918 - 2006

have partnered with Opportunity International over the last 20 years. After several successful entrepreneurial ventures, John and Jacque Weberg funded their foundation, which is focused on alleviating international poverty.

“Giving a handout to a hungry man makes both of you feel good,” John Weberg wrote in a message accompanying their gift. “Giving a hand up to someone can transform the life of both of you. And if this someone is a woman, it will transform not only her life, but also the life of her children — and often others as well. Do it for a lot of women, and you can begin to make this world a better place for all of us.”

The Bill&MelindaGatesFoundation made a grant in December 2005 of $2.2 million over three years to help Opportunity develop and test new technological and product innovations that deliver financial services to Africa’s rural poor.

“We are proud to be among the people and organizations that have supported Opportunity International’s vision and operations,” said Sylvia Mathews, president of the Global Development Program for the Bill & Melinda Gates Foundation. “Opportunity International demonstrates very clearly how small loans and other financial services can make an important difference in the lives of the world’s poorest and most vulnerable people.”

The LenovoCorporation announced that it has committed a minimum of $1 million in computer hardware to Opportunity’s

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global microfinance programs over the next three years. Lenovo is leading a coalition of technology firms to support microfinance operations.

For decades, the enormous scope of the global poverty challenge confounded even the best intentions of government aid and philanthropic giving. Then the microfinance revolution ushered in a new possibility: a sustainable solution that helps lift families out

of poverty while it replenishes invested funds. That recycled growth offers a new kind of hope for uncounted millions of poor entrepreneurs around the world. Through this effort, 100 million people can be lifted out of poverty in just a few short years. Through this effort, hope and optimism can replace despair and poverty. Now more than ever, through this effort, the world can be a much different and a much better place. ●

weavers in the tiny Philippine village of Salngan have banded together to form a business using opportunity international’s program to encourage community-based enterprise.

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in order to accomplish the bold goal of helping to lift 100 million people out of poverty, we have to act now. here’s how you can help:

lEAd cAMPAigNNeed: $10 million over 3 yearsopportunity international’s lEAd campaign (leadership, Empowerment, Access, development) is investing in an organizational culture that promotes training and the retaining of transformational leaders. by training all levels of staff in leadership and business skills, we will be able to achieve the rapid scale-up that the “$1 billion for 100 million people” initiative demands.

lENdiNg hoPE to AFricANeed: $10 million over 3 yearsopportunity’s lending hope to Africa campaign was launched to help millions of poor African families work out of poverty and to provide microfinance interventions for families coping with hiV/AidS. the next phase of the campaign will support a trans-Africa network of transformational banks for the poor, meeting the holistic needs of those dealing with AidS and rural poverty.

globAl lEVErAgE FUNd Need: $15 millionopportunity international is creating “triple bottom-line banks” in impoverished countries. these pro-poor banks provide needy families with access to microfinance services that enable them to work their way out of poverty. through the global leverage Fund, opportunity mobilizes capital to leverage every dollar donated by eight times.

rwANdANeed: $1.9 millionopportunity international bank rwanda was launched in 2006 to provide financial services for poor families in the process of rebuilding their lives. with the headquarters newly licensed in Kigali, gifts are needed now to launch lending operations.

How Can I Help?

www.oppor tunity.org 4

MEXicoNeed: $1.5 millionopportunity international Mexico is now operating in guadalajara, rivera chapala and the ciénega region, serving clients with microloans and insurance. in Mexico, opportunity serves a wide variety of ethnic groups within the poor regions of the country and has had much success with carefully tailoring loans to the specific needs of each group.

globAl iNSUrANcE AgENcYNeed: $1 millionEven when they have a business, the poor around the world live just one disaster away from utter destitution. A comprehensive financial package must also include insurance to protect families’ hard-earned funds. the purpose of this project is to establish a microinsurance agency that will enable opportunity to extend insurance services to borrowers of other microfinance networks and rural banks and, eventually, to members of the general public.

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iNdiA Need: $3 millionopportunity’s partner in india works in the chennai area, along the eastern coastal area affected by the tsunami. in 2006, it set out a plan to convert to a formal financial institution. currently operating in chennai, opportunity will open new branches in that area, as well as expand to calcutta in 2007.

corNErStoNE FUNdNeed: $10 millionthe cornerstone Fund provides opportunity international with the sound financial foundation necessary to carry forward its programs even when fundraising timetables lag behind program expansion efforts or operational cash flow needs. the fund provides opportunity international with the financial freedom to cast a grand vision and reach audacious goals on behalf of the global poor.

groundnut farmer Edward Yohane,from Ntchemberegunde, Malawi.

w o M E N ’ S o P P o r t U N i t Y F U N d

he Women’s Opportunity Fund opens the door to economic opportunity for impoverished women around the world,

while encouraging Opportunity International’s female staff and clients to pursue leadership roles and careers not traditionally available to them.

As a catalyst for the advancement of women, the Women’s Opportunity Fund is spearheading a global leadership capacity-building initiative known as the LEAD Campaign, which will identify and train thousands of senior- and mid-level managers and microloan leaders in the 28 countries where Opportunity International operates. The LEAD Campaign will allow Opportunity to hire and develop leaders like Julie Encontro, Business Development Services Manager at one of Opportunity’s partners and the largest microfinance organization in the Philippines.

Julie joined Opportunity International in 1999 as a loan officer. Armed with only a background in physical therapy and a desire to help the poorest of the poor, her innate talent for microfinance work helped her to quickly advance within the organization, first to Trust Bank Program Supervisor and then Branch Manager. She was appointed Business Development Services Manager in 2005. Under Julie’s leadership, outreach to poor entrepreneurs at her branch has grown and expanded into new communities. To equip her for greater challenges and opportunities,

5 iMPAct | November/December 2006

For more information about the women’s opportunity Fund, visit www.womensopportunityfund.org

Opening doors to leadership and opportunity

Julie recently obtained her master’s degree in business administration through an extension program with Opportunity International’s graduate school program in the Philippines.

The Women’s Opportunity Fund believes that recruiting and developing leaders like Julie, who share its commitment to empowering women and fostering economic, social and spiritual transformation, is critical to the success of its global mission. Because Opportunity International opened the door to leadership for Julie Encontro, she is opening doors to opportunity for her clients. ●

A S K t h E E X P E r t

QUEStioN: “Each year i make year-end gifts to several charities, including opportunity international. is there a way to streamline this process, and especially help me match up my gift receipts in January for my accountant?”

ANSwEr: “donor Advised Fund” account provides simplicity, flexibility and some wonderful tax benefits for those who make multiple charitable gifts each year. donor Advise Fund accounts are offered by various financial services companies, community foundations, and individual charities, including opportunity international.

comparable to a “charitable checking account,” a donor Advised Fund is a special fund in which you open an account and deposit funds (typically cash or marketable securities) at any time. the funds remain in your account until you advise the Fund administrator that you wish to make a charitable gift to a desired charity. the administrator reviews your request (as required by law) and after approval, withdraws the requested funds from your account and directs them to the charity. the administrator provides all of the administration, and after each year, you receive a single receipt listing all activity involving your account.

A donor Advised Fund allows funds to qualify for a charitable income tax deduction at the time they are deposited, instead of when they are later directed to a charity. thus, a donor can deposit an appreciated stock into their account when the market is high, thus maximizing their charitable deduction and eliminating the market risk.

Questions regarding donor Advised Funds, other areas of charitable giving or estate planning can be directed to chuck day, opportunity’s director of Planned giving, at cday@opportunity.org.

Correction: In the September/October issue of Impact, the article, “Incentive to give, New IRA Legislation” contained an error indicating that such gifts qualify for a charitable deduction. In fact, while these gifts avoid income taxation, they do not qualify for a charitable deduction. We regret the error. If you have any questions, please contact Chuck Day at cday@opportunity.org. or 800-793-9455.

Donor Advised Fund Benefits

chUcK dAYOpportunity International's Director of Planned Giving

Julie Encontro is recognized as a successful leader through opportunity international and serves as business development Services Manager at the largest microfinance organization in the Philippines.

Employment Opportunitiesdo you know a marketing or sales professional with a heart for the poor? would this person like to use his or her expertise to make a difference in the world?

below is a list of positions available at opportunity international:

director of Marketing (San Jose, calif.)

director of Marketing (los Angeles, calif.)

director of Marketing (Philadelphia, Pa.)

Vice President of Marketing (East coast)

Sr. writer and Editor (oak brook, ill.)

For full job descriptions, visit our web site (www.opportunity.org) under “get involved.”

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b o A r d o F g o V E r N o r S

www.oppor tunity.org 6

iMPAct is a bimonthly publication of Opportunity International, 2122 York Road, Suite 340, Oak Brook, IL 60523 800.793.9455 www.opportunity.org

Editor Laura Reilly

dESigN & ProdUctioN Journey Group, Inc.

thE oPPortUNitY MiSSioN is to provide opportunities for people in chronic poverty to transform their lives.

oUr StrAtEgY is to create jobs, stimulate small businesses and strengthen communities among the poor.

oUr MEthod is to work through indigenous partner organizations that provide small business loans, training and counsel.

oPPortUNitY iNtErNAtioNAl’S coMMitMENt is motivated by Jesus Christ’s call to serve the poor.

StAtEMENt oF iNtENt rEgArdiNg PoVErtY ANd woMEN Opportunity International–U.S. strives to reach the world’s poorest people through its microenterprise development programs. Recognizing that the large majority of the world’s poorest are women and that they contribute decisively to the well-being of their families, Opportunity makes it a priority to support programs that serve the particular needs of women.

oPPortUNitY iNtErNAtioNAl SErVES women and men of any faith and no faith.

oPPortUNitY iNtErNAtioNAl hAS PArtNErS in Albania, Bulgaria, China, Colombia, Croatia, Dominican Republic, Ghana, honduras, India, Indonesia, Kenya, Macedonia, Malawi, Mexico, Montenegro, Mozambique, Nicaragua, Peru, Philippines, Poland, Romania, Russia, Rwanda, Serbia, South Africa, Uganda, Zambia and Zimbabwe.

© 2006 by Opportunity International

very day of every month of every year, Opportunity International touches someone somewhere in the world — restoring hope

and making dreams possible among the poorest of the poor. Once a year, we bring people closer to the work of Opportunity International by sharing the year’s vision, successes and challenges at the annual Board of Governors conference.

In October, more than 170 governors gathered with Opportunity International leadership to learn more about the organization and share stories about how it’s transforming the lives of thousands of poor people in the developing world. From conversations with board members and staff leadership, to interactive discussion sessions, the two days in Chicago were a powerful experience for the dedicated governors who share a passion to help the poor.

Keynote speakers included Claudia J. Kennedy, Lieutenant General, U.S. Army (retired) and member of the Opportunity International board of advisors; Francis Pelekamoyo, chairman of Opportunity International’s Bank of Malawi; and Richard Leftley, vice president of planning and operations for the Opportunity International Network.

In his address to the governors, Larry

Reed, CEO of Opportunity’s Network Services Organization, included video clips from his interview with Jim Collins, best-selling author of Good to Great. Larry and Jim discussed how business principles such as the flywheel effect and the hedgehog concept apply to the work of Opportunity International.

Governors could also choose from educational discussion and training sessions on a variety of topics ranging from building microfinance banks in Africa to introducing Opportunity’s work to friends and colleagues.

Two initiatives were launched at the conference this year. A new Governors Council will provide volunteer leadership to better support all governors across the country. This year, the Governors Council will focus on ways to build community among governors and inspire new supporters to join the board. Opportunity also launched a $10 million Leadership, Empowerment, Access and Development (LEAD) campaign, which is designed to identify, develop and train mission-driven leaders throughout the global organization.

Make plans to attend the 2007 Governors Annual Conference in Chicago, October 5 – 6, 2007. ●

Powerful annual conference For more information about the board of governors, visit www.opportunity.org/bog

Members of the board of governors council work on their “game plan” for 2007.

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i N S i g h t t r i P 2 0 0 7 c A l E N d A r

Mexico insight trip February 7-10, 2007

honduras Family week June 17-23, 2007

ghana insight trip Fall 2007

For more information, contact Wendy Cox at 800-793-9455 x4180 or wcox@opportunity.org