1. Focused Service
Perhaps you, like us, want to become involved in humanitarian service but just don’t know where to begin. Or perhaps you feel that your small contribution won’t really matter. Starting an action group helps alleviate both these concerns. The Elk Grove Action Group gives us a place to educate ourselves, bounce ideas off each other, and pool our resources.
The key to a successful action group is finding a common goal that excites all the participants. For us, microfinance is exciting because of several vital elements:
- Our donations are loaned out, repaid, and loaned out again, thus multiplying its effect
- A microfinance loan allows recipients to maintain their dignity
- The recipients learn skills that build their ability to overcome poverty
- The microfinance system is flexible such that it can adapt to the business opportunities in any country
Here is what one couple in our group said:
“The idea of micro-banks in particular really interested us. We also read Muhammad Yunus’ book on micro banking and were impressed by his success in helping poor people with low-interest loans…. The idea that such small sums of money could change and upgrade the life style of a family was very appealing to us. We have gained much satisfaction from contributing to help others become self-sufficient by increasing their ability to grow their small businesses.”
-Melvin & Julia Laraway-
Our group has branched out and done other small projects such as purchasing school kits for elementary school and high school children. Last year we provided twelve college scholarships. We also funded a chicken program whereby recipients were given chicks and taught how to raise them as a family business. However, our main focus is microcredit banks.
During our first few meetings, the Elk Grove Action Group decided it was important for us to know where our money went and how it was used. Therefore, we realized we needed to find a small non-government organization (NGO) that was willing to give us this feedback. We selected HELP, International, based in Provo, Utah. They operated our first three microfinance banks in Honduras. Later, they connected us with OEF, an NGO based in El Salvador. We have had wonderful experiences working with this organization. Attached is an example of one of the reports on our banks. Also attached are reports from recipients of our backpacks and college scholarships. This is what keeps us going.
2. Regular Meetings
We all live busy lives so meetings need to be short, organized and action oriented. A typical Elk Grove Action Group meeting lasts one hour. We chat for a few minutes, share information, and decide what our next step will be. When we first started in January 2001, we met once a month. Now we meet when we feel there is enough reason to warrant a meeting. Our meetings now occur one to three months apart.
The first several meetings will be for educating the members about humanitarian work and choosing a focus. Some members may know nothing about microfinance. Other important issues to discuss at these first meetings are: In which country do we want to focus our efforts? What type of humanitarian work do we want to fund? How much money is necessary for the projects involved? Which NGO would best match our goals?
In our group, Jack and I are the mediators between the NGO and our group. We disperse the information at each meeting. These meetings are very open so that everyone feels free to express their opinions. We also used email and, occasionally, newsletters. Newsletters are helpful when trying to share information with those that couldn’t attend. Now we post information on our website. Recently, we also began writing up minutes. Jack and I have attended microfinance conferences to stay informed and build relationships.
After our group picked an NGO and selected a project, we began collecting checks on a quarterly basis. The checks were made out to the NGO and sent together. As we received photos and feedback from the recipients, Jack and I made copies and distributed them at the meetings. Our microcredit banks usually cost $2500 each. A typical bank included around twenty people, with the bank facilitator receiving $500 (six-month salary) and each recipient receiving a $100 loan.
Here is a comment from one of our members:
“It was exciting to see how a small amount of money could change a life. We received reports of progress from one loan phase to the next. If you want to know why we do this, get the book of excerpts [from our loan recipients].”
-Bill Scherrer-
3. Strong Social Bond
Our first meeting was actually a big disappointment. We called and invited several people, but only one person showed up. Fortunately, that person was Shelley Rockwood. She caught the vision and, through her efforts, had five people come to the next meeting. Encourage group members to spread the word. The reason Shelley became so interested was because she was familiar with the microcredit bank concept before we approached her.
In her words:
“I got interested in micro-credit banking from an article in an airline magazine. Then I read something similar about Muhammad Yunus in a BYU magazine…. I’ve always felt strongly that those who have are supposed to share, so I began asking about BYU’s programs about micro-credit finance. I just wanted to share. It’s not about money; it’s about helping those who, through no fault of their own, were born into less favorable circumstances.
“I really didn’t get anywhere until out of the blue, Lisa Williams called me to come to a meeting with the view of starting an “action group”. I was immediately interested. I had lived in Venezuela and visited Panama and Trinidad and had seen the kind of grinding poverty that no American will ever know. I talked to and distributed flyers to dozens of people about the meetings at the Williams’ and we got a small group together.”
Thanks to Shelley’s vision and motivation, our group became a reality. This same core group is still going strong. The most motivating experiences we have are reading the stories from recipients of our loans. Also, the goodness of the people in our group makes me grateful to associate with them. Together, we are able to pool our desire and our resources to do some good.
Jack and I took a ten-day trip with HELP, International board members to El Salvador in 2002 and met the members of one of our banks. We also visited other microcredit banks and saw how they were run. This was my first experience in a third-world country. It opened my eyes as to how much work needs to be done. Jack and I had the opportunity to meet with members of OEF and visit their offices, preschools, and after-school programs. We also became good friends with the president of the board. She speaks English and calls us whenever she is in the United States.
We were also introduced to Rosa. Rosa lives in a simple cement brick house with a tin roof in a remote village. Several years ago she received a microcredit loan and began raising chickens. Her chicken business enabled her to put all four of her daughters through college. Jack and I were inspired by her determination. Getting to know the people of El Salvador has strengthened our desire to help.
Shelley said it best when she said, “Okay, so we’re not changing the world. But every time we help pull even one person out of poverty, we’ve changed the world for that person.”
Suggested Reading Material:
Muhammad Yunus. 1999. Banker to the Poor. New York: Public Affairs
Jackson, Lisa Ann. 1999. Banishing Poverty to Museums and History Books. BYU Magazine (Spring): 35-39