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 Nest is a nonprofit organization that empowers female artists and artisans around the world. Using a unique combination of interest-free microfinance loans, mentoring from established designers, as well as a market in which to sell their crafts, Nest helps its loan recipients create successful small businesses. Nest instills pride of ownership, preserves ancient artistic traditions and successfully moves women from poverty to self-sufficiency.
To address some limitations to microfinance, Nest has developed a new way to assist women; they call it “microbarter.” They provide women, or cooperatives of women, with loans that allow them to purchase the supplies, training, bazaar space or raw materials needed to make their crafts. However, rather than requiring repayment in cash, they encourage women to repay their loans in product, which they would market and sell in the United States. These beautifully crafted pieces are available on their website under “Shop Loan Recipients” and at selected retail outlets.
Nest microbartering has many benefits. One, it encourages women to develop businesses using skills they already possess. Two, it supports ancient artistic traditions. Three, Nest does much more than lend money. Through their mentoring by established designers, their financial and business curriculum, their western marketplace and their wrap-around services, they fully support women as they move from poverty to self-sufficiency. Fourth, they provide you, the consumer, with expertly handcrafted merchandise from around the world.
According to a May 17, 2010 press release, “Lord & Taylor, together with UNICEF and FEED Projects, is selling an exclusive “FEED 1 Guatemala” pouch and “FEED 3 Guatemala” tote. Purchase a FEED bag from Lord & Taylor and FEED will provide nutrients for one or three children for a year respectively through UNICEF’s nutrition programs in Guatemala. Look great and feel great by getting your bag today either online or at a Lord & Taylor store!
The FEED Guatemala bags are handmade by Nest, a nonprofit organization that empowers female artists and artisans around the world. The Guatemalan Nest artisans used their traditional Ikat fabrics to make the fun and handy “FEED 1 Guatemala” zippered pouch and the sturdy and sizable “FEED 3 Guatemala” tote bag. The variety of colors and woven patterns reflects the vibrant Guatemalan culture and gives each customer an array of colors and patterns to choose from. Purchase of the bags celebrates the traditional crafts of Guatemala and supports women artisans, while also generating funding to help UNICEF provide micronutrient supplements to children so they grow up stronger, healthier and better equipped to move beyond extreme poverty.”
To learn more about Nest, please visit their website. To read the press release in its entirety, please click here.
NamasteDirect has issued its latest newsletter. In addition to other articles, the letter focused on a recent New York Times article that called into question some aspects of microfinance. The following excerpt (emphasis added) is from their April 2010 newsletter. A more in-depth analysis can be found on their website, which you can access by clicking here.
Our phones have been ringing off the hook these past few days as a result of the recent New York Times article about microfinance that wasn’t very positive. We thought we’d take the opportunity to talk about the issues raised and how NamasteDirect is distinguishing itself from the ‘pack.’
The four principal themes of the article are:
1. Microfinance banks (MFI’s) are making big profits from high and sometimes-unconscionable interest rates.
Most MFI’s charge what the market will bear, or what they think they need to cover all their operating costs. The common perception is that poor clients aren’t interest rate sensitive. In some cases rates are as high as 100+%. They do this because a main goal is to be profitable. The industry wide average rate is about 37%.
Because NamasteDirect’s mission is to assist borrowers in building businesses that have the potential to be bankable in the commercial sector, we use average commercial bank rates to set our rates. This right now is between 18-24% amortized on a declining balance.
2. The beneficial effects of microloans are debatable.
There is no question that small loans to the poor provide benefits of smoothing out cash flow and of minimizing the cyclicality of income, a huge benefit for families living one crisis away from not being able too eat. However there is little to no empirical data to show that people are moving up and out of poverty as a specific result of their loan. It is not a panacea for poverty as many have claimed.
Our primary focus is specifically on increasing the cash flow (income) of women’s businesses that receive loans. We measure monthly cash flow, we support the client with a business advisor for each loan cycle and we provide financial literacy training, all to increase their chances of success.
3. Transparency is lacking, sometimes intentionally so.
Most MFI’s (both for profit banks, and non-profit groups) are disingenuous about interest rates charged on their loans. For example, what is represented as a flat rate of 3% per month (or 36% per year) is actually over 60% according to standard accounting principles. That’s because interest is typically charged on the original principal balance throughout the life of the loan even though the balance is declining!
At Namaste both the clients and the public are advised up front that the loan APR is 22%. If anyone asks “how do you calculate the interest charge?”, we say “by using a flat rate of 1% a month on the original loan throughout the life of the loan.” We feel that it is important to be honest with borrowers, with donors and with potential investors.
4. Lenders are coming under scrutiny, sometimes with embarrassing results.
We think this is a good thing. Recently, the global economy barely survived a complete and total melt down because lenders were (and still are) under inadequate scrutiny by government regulators, by investors, by auditors, by financial institutions, by the press and by the general public.
The Namaste position is “let the sun shine in.” It can only result in betterment for borrowers, institutions, and society at large.
To learn more about NamasteDirect, or to subscribe to their newsletter, please visit their website.
CasaSito increases educational opportunities in rural areas of Guatemala so that indigenous people living in poverty can attend school, receive quality instruction, and obtain the skills they need to improve their lives.
CasaSito has two approaches for addressing educational needs, depending on location. In the Department of Sacatepéquez, they offer scholarships and work closely with local learning centers to provide in-depth and extensive support for students and families. In more remote areas, they work with community leaders to provide support for more short-term projects, such as school construction, education material grants, and training workshops.
- Scholarship: The CasaSito scholarship program focuses on indigenous junior high and high school students of the Sacatepéquez area who have good grades, but are unable to continue their studies due to their economic circumstances. With this program, students may choose their school career as long as their choices are within their budget and their family financial situation.
- School materials and facilities: CasaSito assists six communities in developing the basic resources that they need to provide a solid education. CasaSito provides support for school buildings, teachers’ salaries, furniture and technical equipment that is needed for “Telesecundaria” (a form of long-distance education where students learn from videos). CasaSito also offers school materials such as books, notebooks, and writing utensils. In very rural communities, CasaSito is assisting to build and furnish dorm rooms for students who travel long distances to attend school.
- Food Programs: Students cannot focus in school if they are always hungry. Therefore, CasaSito supports cafeterias in four of its partner programs. These cafeterias not only help children to focus in school, they also provide at least one nutritious meal each day. (And provide employment for community members, usually women.)
- Adult Skill Training: Adhering to their belief that empowering women is one of the effective ways in development, CasaSito provides three communities with skill development programs. CasaSito has trained women in baking, sewing, jewelry making, farming and literacy.
- Library and Computer Labs: CasaSito supports library and computer labs in four of its partner programs. These labs allow students and community members access to a wide variety of knowledge. They also foster a love of learning and reading that students will hopefully carry with them even after they finish their schooling.
- Festivals: CasaSito believes that a well-rounded education includes a variety of extracurricular activities. Therefore, CasaSito holds small festivals for organizations who wish to improve their programs in art, music, athletics, and debate.
As a part of educational mission, CasaSito strives to improve the living condition of the families of rural areas of Guatemala to a level from which they can build their own future and better lives.
- Rainwater Catchment Tanks Construction Program: This program improves domestic water supplies for rural villagers in Guatemala, where besides the lack of clean drinking water, water for bathing is greatly restricted, especially in the dry season, causing skin and other health problems. Each tank can hold up to 6,000 liters of water, which if used properly will last 2-3 months of the dry season and offer clean water during the rainy season.
- Community health posts: They raise funds to help community health posts with equipment and medicine. They also look for associations and university volunteer programs to partner with local communities to improve the quality of health services and special projects such water quality control, medicinal herbal garden, workshops and intensive courses for health promoters.
- Emergency relief: They provide medical help and food supplies to communities and individuals who suffer from the lack of medical services or natural disasters. In 2005, CasaSito offered emergency food supplies to villages around the Tacaná area, which was very affected by Hurricane Stan. They often assist children and their families with medicine, hospital visits and emergency transport fees.
- Microfinance projects: They help associations to apply micro loans to equip their education centers and support mothers who are related to their partner associations to start small business in order to improve their income. One of the most important ingredients of social development in developing countries is the participation of volunteers. Every year, thousands of volunteers arrive in Guatemala and look for ways to help. However, not all of them have strong financial support and for those who stay in the Antigua area, the cost of living can be expensive.
Volunteers’ Program
- Volunteers: The Volunteer Program is very important to CasaSito. CasaSito relies on their volunteers for supporting their general education program. They teach classes, distribute materials, building tanks and centers. They contribute a great deal to the success of CasaSito and its partner communities.
- Volunteers’ House: The goal of the “Volunteers’ House Project” is to provide a comfortable and economical housing option for volunteers working in the Antigua area. The house is 7 blocks from Parque Central, near Parque San Sebastian. The minimum stay is two weeks and prices start at Q1000/month and depend on length of stay and whether you take a single or double room. The prices include use of a full kitchen, filtered water, coffee and tea, and unlimited access to a computer and high speed (wireless) internet.
For more information about CasaSito, please visit their website.
 The Appropriate Infrastructure Development Group (AIDG) helps individuals and communities get affordable and environmentally sound access to electricity, sanitation and clean water. Through a combination of business incubation, education, and outreach, they help people get technology that will better their health and improve their lives.
Many rural communities and urban shantytowns in developing countries do not have public services, such as energy, sanitation and clean water. The residents of these communities also tend to lack access to the capital and training that would let them solve these problems themselves. Due to scarce government resources, they often must rely on help from aid organizations or resort to poorly constructed stop gaps.
AIDG believes that in order to develop affordable services for underserved communities, local enterprises need to be fostered and supported. Small renewable energy, sanitation, water, and other innovative firms need financing and training to build the power systems, schools, toilets, water systems, biomass, agricultural processing, communications and other forms of infrastructure that can change the basic standard of living for people currently living in poverty.
The goal of AIDG’s Business Incubation Program is to create independent locally-owned enterprises that can serve the needs of impoverished communities using appropriate technology. Currently the program focuses on business creation in the following arenas: Energy, Water and Sanitation. Future arenas under consideration include Communications, Housing, Transportation and Agricultural Processing.
The AIDG provides each incubated business with:
- Training
- Seed Capital
- Technical and logical support
- Equipment and material procurement
- Aid in business planning
- A 2-year incubation commitment
- Access to a talented base of international volunteers and interns
- Program Model
They operate the Business Incubation Program through five steps: Talent and Opportunity Identification, Investment Lending, Tools and Equipment Provision, Training and Research and Contracted Services.
Talent and Opportunity Identification Starting in 2008, AIDG began conducting business plan competitions in Guatemala and Haiti to identify entrepreneurs for the Business Incubation program. Teams with the most promising business ideas receive 2 to 3 years’ worth of training, in-kind equipment and material donations, an initial start-up grant to help them incorporate their enterprise and begin early operations, and access to low-interest loans ranging in size from $10,000 to $100,000 (median $50,000).
Investment Lending AIDG’s business financing takes the form of grants and low-interest loans. Loan amounts which can range from $10,000 to $100,000, depend on the enterprise’s scale and scope. They offer a very favorable fixed interest rate ranging from 0% to 5% for most of their loans. The loans have very generous repayment terms and schedules to accommodate the enterprises they support, which operate in difficult market environments. Since their goal is enterprise success and not fund return, loans made by AIDG are intentionally below market rate.
Tools and Equipment Provision Most of the enterprises that they aim to incubate require some level of specialized equipment (e.g. foundries, milling machines, computer aided circuit design software). Depending on an enterprises needs, AIDG may provide an additional equipment donation of $2,000 to $25,000 of either purchased or donated equipment to help the enterprise get itself on its feet.
Training and Research Their training involves direct mentor pairing between members of their internship program and member of the enterprise. To date this has revolved around skills assessment and skill building exercises in both technical and business realms, ranging anywhere from electronics to accounting. They are in the process of developing a standardized training curriculum for each skill set. Additionally, they are working with teams of experienced professionals who can come to the field for shorter terms and give very specific skills based training to augment the intern mentorships. AIDG also acts as a research and development arm for their incubated enterprises working to solve individual technical challenges based on customer feedback and ideas about product improvement.
Contracted Services Much of AIDG’s outreach work is done by contracting their incubated enterprises to perform infrastructure projects in local communities. This provides real world environments to train the business team as the enterprise is getting started. It also builds awareness of AIDG’s work and programs in the region and serves direct charitable purposes for schools, daycares, orphanages and other community organizations. During the 2 to 3 year incubation period, their incubated businesses are responsible for implementation and product delivery while AIDG acts as project manager and monitors project quality on contracted work. Outside of this period, the businesses do both project management and execution.
To learn more about AIDG’s work, please visit their website, or blog.
MayaWorks is a 501(c)3 non-profit that markets the work of Maya artisans who otherwise have no outlet for their handiwork. As a proud member of the Fair Trade Federation, MayaWorks pays artisans at prices they set, provides technical assistance and educational opportunities and meets other Fair Trade criteria.
What makes MayaWorks Unique: MayaWorks is much more than just an outlet for Mayan products. The commitment of MayaWorks-U.S. and MayaWorks-Guatemala to the economic development of women and girls goes far beyond the exchange of money for goods made in Guatemala. MayaWorks believes that community development happens through the economic development of women who otherwise have limited ways to participate or contribute to the economic stability of their families. Giving women an opportunity to earn an income from their skills gives them self-confidence and hope for themselves, their children, their family and their village.
MayaWorks provides opportunity and financial support for artisans to gain business and leadership skills. Through meetings and workshops,  sponsored or paid for by MayaWorks, artisans build their business expertise. MayaWorks is committed to the promotion of information about Guatemala through regular communication with volunteers and distribution of information at sales of MayaWorks products. Through MayaWorks tours, U.S. women are introduced to the Mayan women who create the products sold in the U.S. In the hearing of the life stories of the Guatemalan women and visiting in their villages and homes, American women strengthen their commitment and return home to promote MayaWorks with increased passion and dedication.
How We Sell the Work of MayaWorks Artisans: MayaWorks products are primarily distributed and sold throughout the United States by a vast network of volunteer sellers. These volunteers have sales in their churches, schools, community craft fairs and in their homes. Many of their products are also sold in shops and to individuals online who believe in and promote the Fair Trade policies.
Scholarships: MayaWorks believes the education of young Mayan girls is critical to the economic development of communities. These young women will become the primary caretakers of the next generation, making decisions about the education and health care of their children and the future of their families. Currently MayaWorks provides scholarships to 125 girls in Comalapa, Santiago Atitlan, Xetonox, Agua Caliente, and San Marcos La Laguna. These young women have expressed the desire to become doctors, nurses, teachers, and businesswomen. MayaWorks is committed to providing some support as long as these future leaders are in school.
Microloans: Microloans are helping the families of MayaWorks’ artisans to improve their day-to-day life. Small loans help buy pigs and chickens, bulls and strawberries, avocados and sewing machines. The artisan with a microloan can expand the family income in a significant way. This often means a woman can stay at home with her children while she weaves. Microloans can change what food makes up the family’s daily diet. Children can stay in school and not be needed to supplement the family income. Microloans encourage an entrepreneurial spirit and create some surprising results.
To learn more about MayaWorks, please visit their website.
 HELPS International is a US 501(c)(3) non-profit corporation that partners with individuals, businesses, corporations, local and national governments to alleviate poverty in Latin America. HELPS integrated programs include: medical care, education, community and economic development, and agricultural innovations in order to improve the quality of life for the indigenous people of Latin America.
HELPS International was founded in 1984 as a 501(c)(3) charitable foundation in the tradition of service to others. HELPS programs extend a helping hand to people who then learn to become self-sufficient, giving them hope for a better life for them and a future for their children. HELPS offers its programs to all people regardless of ethnicity, social standing, political involvement, or religious belief.
HELPS believes in a world of liberty, stability, and personal opportunity. To achieve these goals, HELPS integrates its programs into the areas of healthcare, education, economic development, environmental protection and other special projects. HELPS works together with other non-governmental organizations (NGOs), and private enterprise, and cooperates with local and national governments to promote sustainability of its programs.
HELPS strives for permanent change in communities through its programs, and promotes mutual respect, responsibility, and partnership with local infrastructure. This integrated approach ensures cohesiveness in cultural, medical, spiritual and economic affairs of the rural population.
- MEDICAL: HELPS has been said to be one of the largest medical relief efforts in the history of Central America. Since 1988, over 140 medical/surgical teams have gone to Guatemala. Each team composed of approximately seventy people provides over one million dollars in direct medical aid to Guatemala. These teams come from all over the US and travel to the remotest areas to provide US standard healthcare to those who have none. This year, HELPS will bring over 1,100 volunteers from the US and Canada who will provide over $11,000,000 in direct medical aid.
- EDUCATION: HELPS International believes that education is essential to the future of Guatemala, and has worked since the early 1980’s with Mayan (indigenous) women and children in the development of literacy and education. Today, the HELPS Education Program has developed into a system of K through Sixth grade education, with scholarship assistance for those seeking secondary education. HELPS continues to make a strong commitment to long-term literacy and education. HELPS School in Santa Avelina and its teacher training and other educational systems are a pattern for the region. This year, HELPS will educate 125 children.
- COMMUNITY DEVELOPMENT: The cornerstone of HELPS International’s development philosophy is the belief in an integrated approach with a variety of HELPS programs in order to assist communities in the developing world. HELPS recruits volunteer groups to implement such projects as the ONIL stove installations, school construction, potable water systems, and concrete floors for homes.
- THE ONIL STOVE: For centuries the indigenous population, the Mayan, have cooked their meals using open flame three-stone fires on the floors of their one room homes. This traditional method of cooking is the cause of rampant medical and environmental problems throughout rural Guatemala. After an investigation of the cultural and technological factors surrounding three-stone fires, HELPS International developed the “ONIL” Stove: a durable stove that minimizes smoke and burns, and reduces wood use by 70%. To date 60,000 stoves have been implemented in Guatemala and 10,000 in Mexico. Due to the wood savings, women have two extra days a week in time that are freed up by not having to gather wood. HELPS will run three stove factories with factory personnel and stove technicians for training and inspections.
- ECONOMIC DEVELOPMENT: HELPS International believes economic changes are essential in order for Guatemala to have real and permanent growth; HELPS, therefore, supports economic efforts that promote opportunity and individual initiative. HELPS programs include: micro-credit loans, and the creation of marketing outlets for the products of Guatemala.
- COFFEE PROGRAM: Guatemala is a place of great beauty and a place that grows simply the best tasting coffee in the world. In an effort to provide economic assistance to the country, HELPS International is now offering its own private labeled Guatemalan coffee. In addition to the great taste, this coffee offers a great benefit: all the profits from the sale of HELPS coffee go to programs specifically designed to improve the lives of the Guatemalan people.
- CORN PROGRAM: HELPS believes that increased yields in the cultivation of corn is key to alleviating poverty because improving corn production equals improving the economy of Guatemala. HELPS, in cooperation with its partner DISAGRO, implemented a corn program in the rural highlands that resulted in increased production and promises to bring real economic change to the region. This year 1,100 families in the corn program will add $400,000 in annual income to the region.
- WATER FILTER PROGRAM: The HELPS Gravity Water Filter is a practical solution to the need for safe drinking water every day in rural communities, and during emergency relief efforts. Safe drinking water is often very scarce, or available at great expense. The gravity water filter uses two containers: a person simply pours the water into the top container where it then filters to the lower container through a ceramic purification element, providing up to 10 gallons of safe drinking water every four hours. The initial assembly is easy and the setup time is about 15 minutes.
Check out their website to read more about HELPS projects; and check out the site links for volunteer opportunities, success stories, the needs of families in Guatemala and Mexico, videos and ways to donate.
 As Green As It Gets™ is an incubator for small Guatemalan businesses. They provide training, technical services, marketing and financing to hard-working proprietors who need a push in the right direction to lift themselves out of poverty. They place a strong emphasis on protecting the environment and land restoration as an integral part of business management. They help producers develop environmentally and economically sustainable agricultural programs such as intercropping, managed forestry and organic farming.
All revenue from As Green As It Gets product sales goes directly to the producers and their families.
As Green As It Gets is a registered non-profit corporation in the state of Minnesota, USA. The San Miguel Escobar Community Development Foundation is administered by As Green As It Gets. The San Miguel Escobar Community Development Foundation is an approved program of Congressional District Programs; a 501(3)c charity registered under tax ID number 65-0970090.
To find out more, please visit their website.
 Namaste Direct is committed to alleviating poverty in rural communities of Guatemala by providing impoverished women entrepreneurs with microcredit loans along with a personal business mentor, vocational training workshops and informal business education.
Conventional wisdom has it that there are four barriers to escaping poverty (defined as less than $2 a day income per household member).
a. Lack of capital
b. Lack of education
c. Poor health conditions
d. Disasters – natural and man-made, principally wars
Namaste Direct’s response is to provide hard-working, determined women with the means to lead their families out of poverty. They measure effectiveness on a woman-by-woman basis.
The Namaste Direct package is, to the best of their knowledge, unprecedented in the field of microcredit. Their planned use of technology to assist the women is also unprecedented as it involves bringing the internet to heretofore isolated rural villages, and providing the women and their families with individual web sites to access business and market information, educational materials and communications with business associates, family and friends. It will also provide the platform for the first bottom-up communication system linking women borrowers with donors from around the world.
A significant improvement in the economic conditions and quality of life of 1 woman and her family can be attained for $500. This will mean an increase in income for the woman, which in her hands, will be invested in the education, nutrition, housing and health care of her children, as well as in growing her business! These benefits will multiply over the years.
More information about Namaste Direct can be found at their website.
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