Our latest charity of the month uses microfinance and social enterprise to alleviate poverty all over the world.
It has offices in the UK, USA, and Canada but works across five continents, using a range of innovative tactics to give people the tools they need to survive, receive an education, and start their own businesses.
We explain why FINCA is a charitable organisation that deserves your attention.
FINCA wants to ‘alleviate poverty through lasting solutions’
Founded in 1984, FINCA has a simple mission: ‘to alleviate poverty through lasting solutions that help people build assets, create jobs and raise their standard of living’.
FINCA believes that microfinance has the power to sustainably transform the lives of low-income communities. This is because it provides people with the capital and tools to succeed — to put their families through education, secure medical care, and start businesses.
The organisation is headquartered in Washington DC, but also has offices in the UK and Canada. In the US it is run as a not for profit establishment and in the UK it’s a registered charity.
FINCA has a commitment to ‘market-based solutions to poverty’.
These solutions fall into two categories – microfinance and social enterprise. This is how FINCA uses those two tactics to tackle poverty.
Microfinance provides financial assistance to people who are unable to get this support from traditional institutions.
This assistance provided by FINCA comes via small loans to individuals and entrepreneurs. It gives people a range of benefits:
- Helps people to start or advance businesses
- Allows people to pay for school fees
- Enables people to pay for medical care
Social enterprises aren’t charities but they offer similar assistance to charitable organisations. Where they differ is that they use commercial approaches to advance improvements in well-being, social, financial, and environmental areas.
FINCA’s definition of social enterprise covers organisations that ‘provide goods or services that enable people to work toward lifting themselves out of poverty’.
It operates its social enterprises — BrightLife, FINCA Forward, and FINCA Ventures — and helps alleviate poverty by enabling access for people on low incomes to the following products and services (and more):
- Solar home systems
- Solar lanterns
- Solar appliances
How can I help FINCA to reduce poverty in the world?
FINCA is a cross-continental organisation that has helped millions of people all over the world.
But FINCA needs support to continue doing its good work. You can do this by making a donation to FINCA and there are a number of ways that you can make yours:
- One-off gift
- Donor advised funds
- Monthly gift
Of course, you could simply show your support by making more people aware of FINCA.
You can do this by posting about what it’s doing on your social media channels, or just talking about it to your friends, family, and co-workers.
If you want to learn more about the good work this great organisation is doing then visit the FINCA website now.