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on the Ground

2008–2009 Annual Report

Our Mission To enable the poor, especially the poorest, to create a world without poverty.


10.9 million

of the world’s poor have been helped by our MFI partners, allowing them to begin their journey out of poverty.

$145 million

in local currency has been leveraged to support microfinance programs in 12 countries.



Village Phone operators are working in six countries around the world.

Progress out of Poverty IndexesTM will track the improvement of the lives of more than 90 percent of the world’s poor by May 2010.


daily transactions are supported through Mifos at microfinance institutions (MFIs) around the world. 1

Professor Yunus with clients in Bangladesh

Our Grameen Heritage Inspired by the work of Grameen Bank in Bangladesh, Grameen Foundation was created to help share the Grameen philosophy and accelerate the impact of microfinance on the world’s poorest people. Started in 1976 by Professor Muhammad Yunus with a mere $27 from his own pocket, Grameen Bank now serves more than six million poor families with financial services. Grameen Foundation replicates the success of Grameen Bank internationally by supporting microfinance institutions (MFIs) that embody its vision and values. Although they are independent organizations, Grameen Foundation and Grameen Bank maintain an enduring relationship.

Cover: Clients at a Cashpor Financial and Technical Services (CASHPOR) meeting in India


Grameen Foundation 2008–2009 Annual Report

Table of Contents

5 Message from President and Chair 6 Our Footprint 8 Reaching More Poor People with Microfinance 11 Eradicating Poverty, Building New Lives 19 Fighting Poverty with Strong MFIs 29 Building the Industry 37 Family of Supporters 40 Board of Directors 42 Staff 43 Financials 46 What You Can Do


“People no longer have to walk long distances to use a phone.” —Susan Mbazi, Village Phone Operator in Uganda


Message from President/Chair In late 2003, Grameen Foundation adopted an ambitious plan to reach five million new clients with microfinance—and ensure that at least half cross the poverty line—between 2004 and 2008. Back then, we realized that our dream for a better life for such a large group of people in such a small amount of time may have been just that—a dream. But we are an organization that was started by dreamers like Grameen Bank founder Professor Muhammad Yunus, people who had taken bold, practical steps to turning aggressive goals into reality. When we questioned whether our goals were too ambitious, we thought about the 850,000 people we’d already managed to successfully reach by that time. People like Mu Zhongxiu, who, after accepting a $120 loan from Funding the Poor Cooperative, our partner in China, began to increase her income to the point where she was earning $480 a year. Her income—still modest but well above the average rural income where she lived—allowed her to not only afford treatment for her ailing husband, but to build a house for her son and his new bride. Stories like Mu’s kept our eyes on what mattered most: finding ways to work more effectively and efficiently to use microfinance and technology to break the cycle of poverty. In 2008, with your support, our partners collectively surpassed the original five-year goal to reach five million families with microfinance. Through dozens of local organizations, we reached an impressive 6.9 million clients, and did so six months ahead of schedule. This past fiscal year, our programs touched the lives of 10.9 million families—more than double the number we’d set out to reach five years ago. What has allowed us to increase our reach to so many poor people? Our most impressive programs have been those to open capital markets up to microfinance institutions (MFIs) so they have access to capital to grow and to use technology to streamline business processes at the MFI level. This past fiscal year alone, our Growth Guarantees program, which connects MFIs with both local financial and capital markets, was able to produce more than $13 million for MFIs. To date, the program

has generated over $145 million in financing for 20 of the world’s leading microfinance institutions. These funds generated new loans for almost 800,000 borrowers. Our open source management information system, Mifos, has given Grameen Koota in India— one of the first two MFIs to install the system in 2008—an invaluable tool that enabled it to grow from serving 70,000 clients in September 2006 to 250,000 in March 2009 while processing some 130,000 transactions each day. Newer products that address social performance management and human capital are beginning to complement our core competencies in breaking financial and technological barriers to growth and impact. With access to more capital than ever before and increased efficiency through effective use of technology, more and more MFIs are better able to put money in the hands of the poor and empower them to change their lives. This money makes it possible for borrowers to start or expand micro-businesses that range from farming, sewing, or reselling produce, to selling cell phone minutes to other villagers through our Village Phone program—an opportunity that also provides valuable means of communications and access to vital information community-wide. Our Progress out of Poverty IndexTM enables us to track how effectively these tools are getting people out of poverty and spurs new innovation. Our efforts over this past fiscal year have shown that we are not only leaders in the microfinance movement but also at the cutting edge of combining the power of microfinance and information technology to reach and empower millions. We hope that in the coming years you will continue to help us increase our impact on the world’s poor so we can do our part in realizing Professor Muhammad Yunus’ vision of a poverty-free world. Sincerely,

Paul Maritz, Chair


Alex Counts, President & CEO

Our Footprint Middle East and North Africa Egypt, Jordan, Lebanon, Morocco, Palestine, Tunisia, Yemen

Americas Bolivia, Dominican Republic, Ecuador, Haiti, Honduras, Mexico, Peru, United States

Sub-Saharan Africa Cameroon, Ethiopia, Ghana, Kenya, Mali, Malawi, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Uganda

Microfinance Basics Sometimes called “banking for the poor,” microfinance is a simple approach that empowers very poor people around the world to pull themselves out of poverty. Relying on their skills and entrepreneurial instincts, very poor people, mostly women, use small loans from local organizations called microfinance institutions (MFIs) to start, establish, support, or expand small, self-sustaining businesses. A key to microfinance is the recycling of loan dollars. As each loan is repaid— usually within six months to a year—the money is recycled as another loan, thus multiplying the value of each dollar in defeating global poverty and changing lives and communities.


Asia Bangladesh, China, Cambodia, India, Indonesia, Pakistan, The Philippines, Vietnam

What We Do Grameen Foundation helps the world’s poorest, especially women, improve their lives and escape poverty through access to microfinance and technology by: • Creating economic opportunities. • Building easy-to-replicate solutions. • Working with local partners to respect local ways of life. • Measuring impact and delivering results.


Reaching More Poor People with Microfinance Five years ago, we challenged ourselves to: (1) play a central role in making it possible for our global network of partners to reach an additional five million poor people, especially women (2) measure the progress of clients to ensure that they are moving out of poverty, and (3) champion three innovations that advance the microfinance sector. We have had a great deal of success achieving our goals. Number of Active Clients Region/ Country





Asia China

Association for Rural Development of Poor Areas in Sichuan (ARDPAS)



Chifeng Zhaowuda




Evangelical Social Action Forum (ESAF)








Yayasan Mirtra Dhuafa (Yamida)




Urban Poverty Alleviation Program (UPAP)




Ahon Sa Hirap Incorporated (ASHI)




Center for Agricultural and Rural Development (CARD) NGO




Center for Community Transformation (CCT)




Negros Women for Tomorrow Foundation (NWTF)




Tulay Sa Pag-Unlad Incorporated (TSPI)




Kashf Foundation




Activists for Social Alternatives (ASA)




CASHPOR/Cashpor Financial and Technical Services




Grameen Koota




Society for Helping, Awakening Rural Poor through Education (SHARE)




Swayam Krishi Sangam (SKS) Microfinance




Mitra Bisnis Keluarga Ventura (MBK)* 735,381


Sub Total Asia Middle East & North Africa Jordan





Al Majmoua




Fondation pour le Developpement Local et le Partenariat-Micro-credit (FONDEP)




enda inter-arabe




Al Tandamun




Dakahlya Businessmen’s Association for Community Development (DBACD)




Regional Association to Develop Enterprise (RADE)




Al Karama








Palestinian Agricultural Relief Committees (PARC)

Sub Total MENA






Initially, we never would have dreamed we would surpass the client outreach goal, but our partners reached 6.9 million families by September 2008—six months earlier than our target date. We are also rapidly moving toward success with our second goal. We commissioned the Progress out of Poverty Index,TM (PPITM) in collaboration with the Consultative Group to Assist the Poor (CGAP), Ford Foundation, and Michael and Susan Dell Foundation. The PPITM is based on an approach developed by Mark Schreiner of Microfinance Risk Management, L.L.C. The tool has been tested and is now being used in 21 countries, with another 15 set to launch. And, equally important, we have launched several innovative uses of technology to drive efficiency in microfinance institutions (MFIs) and connect poor communities to vital information. While making poverty a thing of the past seems like an impossible feat, the tenacity and determination of our partners and our stakeholders across the globe make us even more determined to succeed. Number of Active Clients

Region/ Country




Sub Saharan Africa


Development Education Centre (DEC)



Sinapi Aba Trust (SAT)



Self-Reliance Economic Advancement Programme (SEAP)



Maata-n-Tudu Association



Grameen Ghana



Lift Above Poverty Organization (LAPO)



Amhara Credit and Savings Institution (ACSI)



Buusaa Gonofaa (BG)



Specialized Financial and Promotional Institution (SFPI)


Sub Total SSA


Latin American and Caribbean Bolivia

Fondo de Desarrollo Comunal (FONDECO)


Dominican Republic

Fundacion San Miguel Arcangel, Inc. (FSMA)


10,664 N/A

Dominican Republic

Esperanza International



El Salvador

Las Melidas








Fundacion Adelante




Alternativa Solidaria Chiapas (AlSol)




Centro de Desarrollo Comunitario (Centeotl)




Grameen de la Frontera




ProMujer Bolivia






EDPYME Confianza

101,483 62,444


EDPYME Edyficar



ProMujer Peru


The Plan Fund*



Project Enterprise



Sub Total AC



Total Active Clients (All Regions)




*MFI utilized Grameen Foundation products only.



Prima, a first-time client of Cashpor Financial and Technical Services (CASHPOR)


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Eradicating Poverty, Building New Lives

More than 400 million poor families worldwide could benefit from microfinance if given the opportunity. To fight this level of poverty head on, microfinance institutions (MFIs) need hundreds of millions of dollars to lend. With our loan guarantee and direct loan programs, Grameen Foundation is filling part of that funding void. Another critical need of poor families is access to vital information that can improve their livelihoods and their lives. Our innovative technology programs open the doors for poor people and poor communities to benefit.

Highlights: • More than $13 million is produced for MFIs through our Growth Guarantee program, which connects MFIs with financial resources. • Schwab Charitable Fund commits $14 million to our Growth Guarantee program, becoming the first donor-advised fund to support this type of activity. • Grameen Capital India (GCI) brokers more than $75 million in financing for Indian MFIs.

• YAMIDA serves more than 20,000 poor, tsunami-affected households in Aceh province in Indonesia with $1.43 million from Grameen Foundation through a grant from the American Red Cross. • In response to hurricanes Gustav, Hanna, and Ike, Grameen Foundation issues Fonkoze, our partner in Haiti, $50,000 towards relief efforts. Fonkoze develops Kredi Siklon, a one-time “hurricane loan” program for affected borrowers that allows them to access additional loans at zero percent interest if repaid within six months. • We help 2,800 poor entrepreneurs in Rwanda start Village Phone businesses. Working with MTN Cameroon, we also help 1,100 poor entrepreneurs in the country become Village Phone Operators (VPOs). • 36 Progress out of Poverty Indexes™ (PPI™) will track the improvement of the lives of more than 90 percent of the world’s poor by May 2010.


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Generating Funds for Poor Entrepreneurs Grameen Foundation’s Growth Guarantee program gives individuals or institutions a tangible way to reach microentrepreneurs. Donor-guarantors—participants who share Grameen Foundation’s vision that microfinance is a scalable solution to global poverty—provide their assets as a guarantee to a pool managed by Grameen Foundation and Citigroup. Citigroup then issues letters of credit to local banks to support financing for the microfinance institutions (MFIs) that Grameen Foundation selects. On average, each dollar pledged acts as a guarantee and could yield four dollars for the MFI. Since 2005, the Growth Guarantee program has generated over $145 million in financing for 20 of the world’s leading microfinance institutions. These funds generated new loans for almost 800,000 borrowers in 12 countries. Our program has helped open eyes in the commercial banking world and has prompted these banks to see lending to MFIs as an opportunity rather than a risk. In 2008, during the depths of the global financial crisis, Schwab Charitable Fund joined with Grameen Foundation to attack world poverty by committing $14 million to support the Growth Guarantee program. Schwab Chartable will meet this goal by enabling its more

than 12,000 donors to set aside up to 10 percent of their charitable gift accounts and pledge them to our industryleading guarantee program. With this new initiative, Schwab Charitable becomes the first donor-advised fund to participate in the Growth Guarantee program. In India, there are still an estimated 455 million people living under $1.25, and only 60 million of them have access to microfinance. For most MFIs, especially those operating in hard-to-serve areas, lack of capital is one of their greatest barriers. That’s why Grameen Foundation, in collaboration with IFMR Trust and Citicorp Finance India Limited, launched Grameen Capital India Limited (GCI), India’s first “investment bank” serving the microfinance sector. In April 2008, GCI brokered a transaction between Bandhan, an MFI with 675 branches in India, and IndustInd Bank for Rs 75 crore (US $15 million). This achievement was particularly significant because it occurred in the midst of an economic downturn during which many planned transactions in the industry were postponed or cancelled altogether. GCI has generated more than $100 million in financing for Indian MFIs which will fund more than 800,000 microloans for poor people that country.

Growth Guarantee Amount

Financing Generated (in local currency)


Clients Served



2.5 times





2 times


Pro Mujer—Peru



3 times


Dakahlya Businessmen’s Association for Community Development (DBACD)—Morocco



2 times


Grameen Koota—India



19 times





28.5 times


MFI—Country Lift Above Poverty Organization—Nigeria


Cashpor Financial and Technical Services (CASHPOR) clients in front of their shop in India


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Responding in Times of Crisis Grameen Foundation’s efforts are focused on working with microfinance institutions (MFIs) to help them reach more of the world’s poor more effectively. In addition to providing support for small businesses, at times we need to lend a hand to MFIs and borrowers after a natural disaster. The Nanggroe Aceh Darussalam (Aceh) province was devastated by the 2004 tsunami that struck Indonesia. That prompted us to partner with Mitra Dhuafa to help provide poor women in Aceh with loans and financial services to rebuild their lives. With the support of the American Red Cross, the Abdul Latif Jameel Group, and hundreds of other donors, Grameen Foundation has provided more than $1.43 million in loans and grants to Mitra Dhuafa, enabling them to serve more than 20,000 poor households throughout Indonesia for four successful years.

As a result of hurricanes Gustav, Hanna, and Ike that struck Haiti in August and September 2008, two of Grameen Foundation partner Fonkoze’s branches were destroyed and more than 18,000 of Fonkoze’s borrowers lost most, if not all, of their businesses and personal assets. In response to the tragedy, Fonkoze developed Kredi Siklon, a one-time “hurricane loan” program for affected borrowers to access additional loans at zero percent interest. Close to 14,000 women took advantage of the loan program. Grameen Foundation presented Fonkoze with a $50,000 emergency grant to support its hurricane relief efforts. We provided the MFI with an additional $50,000 for their education programs, which prepare poor women to accept a microloans,, and $100,000 to cover loan repayments. Grameen Foundation also appealed to donors via the internet to raise money towards recovery efforts.

Empowering Poor Entrepreneurs and Improving Lives with Innovative Technology More and more, technology is critical in improving the lives of the world’s poorest people. With initiatives like the Village Phone, Application Laboratory (AppLab), the Mobile Technology for Community Health Initiative, and the Community Knowledge Worker (CKW) Initiative, Grameen Technology Center (GTC) connects poor people with information and innovative technology solutions that can change their lives for the better. Grameen Foundation’s Village Phone program makes a “Village Phone business” available for microfinance clients. These “Village Phone Operators” (VPOs) offer a number of services, from renting phones to members of their communities on a per-call basis at reasonable rates, to recharging telephones in areas outside of the electricity grid, to selling affordable airtime. VPOs earn enough money to repay their micro-loan, reduce their reliance on higher-interest loans from moneylenders, pay their

children’s school fees, and expand their current businesses or create new ones. And since the core of Village Phone is about empowering people to help themselves, the availability of affordable credit, small-business tools, training, encouragement, and one-on-one support allows them to take these micro-businesses wherever their creativity and ambition will allow them to go. One VPO in Uganda stated, “People in this village now respect me as I brought development in the area. This was the first public phone in Kintuntu.” We have helped create over 23,000 new Village Phone businesses in six countries since we launched the initiative in Uganda in 2003. This past year, Village Phone—Rwanda extended affordable telecommunication access more deeply into rural areas with more than 2,800 new Village Phone businesses. In 2008, we also worked with MTN Cameroon to launch a Village Phone program, which led


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

“People in this village now respect me as I brought development in the area. This was the first public phone in Kintuntu.”

to the creation of 1,100 new businesses operated by poor entrepreneurs. In July 2008, Grameen Foundation, along with Qualcomm Incorporated’s Wireless Reach™ initiative and Bakrie Telecom, launched Village Phone in Indonesia. This exciting new program plans to grow from its current 150 VPOs to over 1,000 VPOs next year. Our Information and Communication Technology Innovation Program (ICTI) leverages widely available mobile phones to deliver information and knowledge to improve the lives and livelihoods of poor people. With significant experience in Uganda implementing the Village Phone program since 2003, Grameen Foundation chose Uganda to launch the AppLab in October 2007. AppLab’s focus is to develop mobile applications that could benefit low-income communities through improved access to information. It works closely with MTN Uganda, the country’s leading mobile phone network, and Google, the world’s leader in information search. AppLab, working in collaboration with local partners, relies on the existing network of Village Phone Operators to develop, test, and

deliver mobile phone applications and services tailored to the needs of the poor. So far, applications have been developed in the areas of agriculture, health, and a virtual marketplace for buying and selling goods. The CKW Initiative, which began in November, 2008, involves identifying, recruiting, training, and building a network of CKWs—VPOs, agriculture extension workers, and others—who use mobile phones to improve the livelihoods of farmers living on less than $2 a day. The CKWs convey agricultural information they receive on their phones to farmers and collect information from farmers concerning their local issues and needs. The CKW program aims to decrease the cost of introducing new and improved agricultural techniques, increase farmers’ output and thus their income, create a sustainable business opportunity for CKWs, and improve the ability of governments, NGOs, and companies creating products to meet the needs of the rural poor. CKWs are paid by NGOs that request information about farmers.

—A Village Phone Operator (VPO) in Uganda

Meet Deus Kamusisha, CKW Deus Kamusisha is a CKW from Bushenyi region in Uganda who recently visited a woman who was having trouble with her coffee and her banana plants. Banana rot and coffee rot were damaging her family’s plants, which worried her because the money earned from selling these crops was vital to paying her siblings’ school fees. By texting a simple query to a specialized agriculture application on her phone, Deus was able to provide advice on how to deal with these problems.

Deus Kamus isha (r), Uga nda


Our Village Phone program builds on the pioneering work of Grameen Telecom in Bangladesh.


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Keeping the Focus on the Poor and Poorest Because Grameen Foundation’s goal is to ensure that microfinance institutions (MFIs) are moving as many of their clients out of poverty as quickly as possible, we believe it is essential that they have easy and accurate ways to measure their effectiveness in doing so. The Progress out of Poverty Index™ (PPI™), a tool commissioned by Grameen Foundation and three partners to serve this purpose, and is quickly becoming the industry standard for social performance management. The PPI™ is based on an approach developed by Mark Schreiner of Microfinance Risk Management, L.L.C. Part of its appeal to us is the resemblance it bears to Grameen Bank’s 10 poverty indicators. Data from the PPI is leading MFIs to design and redesign programs and services to meet their clients’ needs. PPIs are country-specific and are based on national census data, which ensures accuracy. So far, 21 PPIs have been developed and another 15 are set to be developed by May 2010. The PPI has been supported by the Consultative Group to Assist the Poor (CGAP), Ford Foundation, and Michael and Susan Dell Foundation.

“The Microcredit Summit Campaign has set a goal to reach 175 million poor families by 2015 and to ensure that 100 million of them are free from poverty...Grameen Foundation’s Progress out of Poverty Indextm that was modeled on our 10 indicators will be needed to ensure we reach our goals.” —Professor Muhammad Yunus, Forward to “Small Loans, Big Dreams”

Meet Ibu Ema, Borrower Ibu Ema is a microfinance client of MBK Ventura in Indonesia who was living on $1.25 per day. She and her family live in a rural area of West Java and their primary business is the scavenging and reselling of metals and plastics. Due to the fluctuating prices for these items, she is never sure what their income will be from day to day. Since Ema became a Village Phone Operator, the family income has increased by approximately 50 percent and the more reliable cash flow has enabled Ema and her family to hold onto the metals and plastics until they can get a better price for them. ia ndones a (l), I Ibu Em


Photo credit Swayam Krishi Sangam (SKS) for Grameen Foundation

A client of Swayam Krishi Sangam (SKS) in India makes and sells bangles for a living


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Fighting Poverty with Strong MFIs

The terms “microfinance” and “big business” don’t go hand-in-hand in the minds of some people. However, some microfinance institutions (MFIs) are even larger than the banks that manage your own money—serving hundreds of thousands of clients face-to-face every week. These MFIs must overcome some of the same challenges as any other rapidly growing organization. Grameen Foundation helps MFIs break through barriers to growth by providing the tools and resources required to build and train a qualified staff and offering state-of-the-art, flexible technology solutions. The resulting increases in efficiency allow the MFIs to grow, reach deeper into poor communities, and help more people escape poverty.

Highlights: • We help MFIs determine how they can best utilize their staff, allowing MFIs freedom to grow and respond to the incredible demands their staffs face daily. • Thanks to Mifos, our open source management information system, Grameen Koota (India) increases its efficiency by more than 75 percent. The MFI currently reaches more than 250,000 clients. • We help MFIs like Tulay Sa Pag-Unlad Incorporated (TSPI) in the Philippines become more efficient, which allows them the serve existing borrowers better and reach out to more of the world’s poor. • Our Bankers without Borders® initiative registers 245 volunteers to help fight global poverty. • Grameen Foundation convenes events in China, Mexico, Dubai, and Ghana that bring the MFI community together, in some instances for the first time ever, to learn from world-class experts and peers.


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Building Human Capital to Better Serve Borrowers Loan officers and other microfinance institution (MFI) staff develop strong relationships with their clients and within the communities the MFI serves. This intimate approach helps MFIs make a difference in the lives of poor people. As MFIs grow and reach even more poor people, attracting, developing, and retaining talented staff is critical. In fact, 70 percent of an MFI’s operating costs are devoted to staffing. The challenge is to manage this important resource effectively. Drawing on the experiences of the private sector, we know that one of the most important factors in organizational success is maximizing the talents and capabilities of its employees. Launched in 2008, Grameen Foundation’s Human Capital Center’s (HCC) vision is to help MFIs strengthen their human capital management (HCM) practices, aligning them with the organization’s overall business strategy. We anticipate this will in turn drive operating efficiencies, enable MFIs to expand efficiently, deliver on both the social and financial goals, and allow for more successful new product implementation. In its first year, the HCC focused on building awareness among MFIs about the important role staff plays in delivering microfinance services and developing ways to improve staff retention

and development. The HCC’s HCM Assessment Tool was developed to identify the gaps between an MFI’s current people practices and those required to fully support their growth and development. Other tools in the pipeline include a program critical to developing leadership among talented staff.

Equipping MFIs to use Technology Strategically To keep pace with their rapid growth and to have measurable impact on their clients, MFIs must invest in technology as a fundamental component of their business strategy and social mission. Our Grameen Technology Center (GTC) guides MFIs in effectively adopting technology across the organization through hands-on training, mentorship, and knowledge transfer. GTC’s strategic IT consulting, delivered through a combination of training, workshops, and advisor services, has had a

Borrowers attend a group training at Negros Women for Tomorrow Foundation (NWTF) in the Philippines

dramatic impact on a growing number of MFIs. Tulay Sa Pag-Unlad Incorporated (TSPI) in the Philippines redesigned its process for approving applications for the MFI’s insurance product and eliminated a backlog of 20,000 transactions in one month. It can now process paperwork for 30,000 new members a month. This increased efficiency allows TSPI to service new and existing borrowers faster.


A microfinance client of Alternativa Solidaria Chiapas (AlSol) in Mexico


A Lift Above Poverty Organization (LAPO) client at her shop in Nigeria.


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Technology in Action at Grameen Koota (India)

Grameen Koota, one of the leading MFIs in India, is now implementing a strategy developed with assistance from Grameen Foundation to process and analyze information much more rapidly. Today, up-to-the-minute information on loan collections and social impact trends helps them make better decisions and solve issues proactively. Grameen Koota is now able to close its books in fewer than 30 days—a process that used to take three to four months. In addition to process alignment, the MFI also needed scalable technology to ensure increased efficiency and to fuel their growth. Thanks to Mifos, Grameen Koota is growing rapidly, processing more than 130,000 transactions per day, allowing its branches to shave six hours off transaction processing time, freeing loan officers up to recruit new borrowers, serve more clients, and provide new services. The system assisted Grameen Koota in growing from serving 70,000 clients in September 2006 to 250,000 at end of FY09.

Building Technology that Grows with the MFI Mifos—Grameen Foundation’s innovative open source solution to automate microfinance institution (MFI) processes —streamlines transaction processing, provides management real-time visibility into business performance and results, and enables the rapid introduction of innovative services for the poor. MFIs using Mifos are supported by a global community of more than 500 active software developers (most of whom are volunteers), sharing collective knowledge and a network

of local IT firms firms empowered to maintain and extend Mifos at the local level. Jitegemea, a small MFI in Nairobi, Kenya with about 4,000 clients, has integrated Mifos into its business processes and is now automated. Mifos has been adopted as the core technology platform to accelerate growth at other MFIs, including two leading Arab MFIs— enda inter-arabe and Al Majmoua— and St. Elizabeth Community Development Program (SECDEP), located in the Philippines.

Meet Rahma Abu, Borrower Twenty-six-year-old Rahma Abu went from dropping out of junior high school because she could not afford her school fees to earning a net income of 150 cedi per month (US$100), all with the help of microfinance lending from Grameen Ghana. Rahma started a metal container shop in 1999 using her own savings. A group of Grameen Ghana staff that visited her shop regularly for breakfast introduced her to microfinance. She joined a group of nine members for four weeks of pre-credit training before receiving her first loan of 500 cedi (US$333) to build her inventory and purchase several items for her shop. She is now ready to borrow larger amounts to achieve her dream of operating a shop twice the size.

a bu, Ghan Rahma A


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Engaging Skilled Volunteers to Expand Our Impact From field work with our grassroots partners to pro bono legal counsel to fundraising, Grameen Foundation has always enlisted the help of professionals who want to contribute their expertise to reducing poverty reduction. What was missing until recently was an efficient way to match volunteers with the needs of microfinance institutions (MFIs). In 2008, with financial support from J.P. Morgan, we launched the Bankers without Borders® program to fill that void. Bankers without Borders® provides a global reserve of professionals and retirees from all disciplines who are willing to contribute their time, skills, and experience to support our mission to eliminate global poverty. During the past fiscal year, 245 volunteers registered in our database with more than 130 actively volunteering their time and services to support Grameen Foundation.

Some have traveled to Asia, Africa and the Americas to work directly with MFIs, others have worked in our Washington, DC headquarters and Seattle office, and some have provided advisory and consulting services from wherever they are located using today’s technology. Said, one volunteer who analyzed the foreign exchange risk faced by Grameen Foundation and one of its MFI partners in Indonesia and recommended ways to minimize the risks it posed. “I enjoyed very much working on this project and the opportunity to better understand the universe of microfinance. Although the theoretical risk management of currency exposure is the same for microfinance institutions as it is for commercial corporations, microfinance institutions face specific challenges as most of the currencies they work with are not traded on the international markets.”

Meet Amina, Borrower Amina supports 10 family members with the earnings from her retail garment business. After hearing about Foundation Pour Le Developpement Local et Le Partenariat (FONDEP), a Grameen-Jameel partner in Morocco, from family members who have received microfinance loans, Amina has taken more than MAD 20,000 (US$2,520) in loans to grow her business. She admits that starting her business on her own was difficult, but with her loans she was able to expand the business and improve the lives of herself and her family. Amina hopes to one day run the biggest business in her local area and maybe even buy a car.

Amina, Morocc


Volunteer helps strengthen MFI in Haiti Until recently, Alayne Sampson’s job as an associate with the Los Angeles office of Capital Groups was not much different from that of thousands of others in the investment management industry. But when she began a career development program that included an option to work for several months at a non-profit organization, she chose to spend three months with Grameen Foundation as a Bankers without Borders® volunteer. This microfinance institution (MFI) initiative, launched in 2008 with generous support from J.P. Morgan, places professionals and retirees in volunteer assignments supporting microfinance and technology-for-development projects around the world. In her first month with us, Alayne traveled to Haiti to document the challenges Fonkoze, an MFI partner, is facing with storing and reporting social performance data. In particular, Alayne helped pilot the new PPITM Data Management Tool that allows MFIs using the Progress out of Poverty IndexTM (PPITM) tool to manage and analyze data. The PPITM is Grameen Foundation’s poverty scorecard, which assesses the current poverty rate of MFI borrowers and tracks their progress out of poverty over time. Alongside the project manager and the social performance director at Fonkoze, Alayne analyzed the existing technical infrastructure, noted the skill sets of existing field staff, and traveled with them to assess how they capture and transmit PPI data back to their central office. The resulting “how to” manual is now being used by other MFIs to develop their own PPI storage software or integrate the PPI Data Management Tool into their existing management information system (MIS). Thanks to Alayne’s volunteer service, more MFIs are able to better understand the needs of their clients and measure their progress out of poverty.

Marie-The rese, Haiti



Our Progress out of Poverty IndexTM (PPITM) is a countryspecific tool that helps MFIs measure the movement of clients like MarieTherese out of poverty over time.

> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Encouraging Collective Learning Among MFIs This year, we organized a number of events that brought MFI leaders together, in some instances for the first time ever, to learn from their peers and from experts in the field. Grameen Foundation, in conjunction with PlaNet Finance, invited China’s top microfinance institutions microfinance institutions (MFIs) to participate in China’s first Investment Readiness training. More than eighteen of the country’s best MFIs convened in Shanghai and Beijing to participate in sessions on how to secure growth capital from international investors and financiers. The Investment Readiness workshop brought in national and international finance, microfinance, and legal experts to lead hands-on sessions. When the training concluded, the MFIs had the tools and knowledge they need to engage local and international institutions to finance their expansion to meet the larger unmet demand for microfinance among the poor in China. In September, more than 40 participants from 10 MFIs in five Latin American countries attended our Regional Partner Forum “Forito” from Mexico to exchange best practices and receive training from world-class experts on topics relevant to their growth and anti-poverty impact. Some of the topics discussed during the three-day event were: microfinance as a channel for delivering high-impact social services; increasing operational efficiency; human capital development; and using social performance results as an internal management tool and to demonstrate progress to socially responsible investors. In November, Grameen-Jameel Pan-Arab Microfinance, Ltd., along with BlueOrchard, hosted the Arab Microfinance Symposium in Dubai, an event that demonstrated to institutional and private investors in the Arab World the outstanding performance of leading MFIs and their potential as solid investments. Grameen-Jameel is a joint venture between Grameen Foundation and the Abdul Latif Jameel Group. It aims to increase the growth and impact of microfinance in the Arab World. The symposium attracted more than 150 delegates from Saudi Arabia, UAE, Egypt, Lebanon, Jordan, Palestine, Morocco, Tunisia, and Pakistan—

Pro Mujer Bolivia, our partner in the Americas, is helping its clients’ children develop their own business skills with the Young Entrepreneurs program.

representing some of the leading MFIs and financial institutions in the region and beyond. In December 2008, Grameen-Jameel added its first microfinance partner in the West Bank—the Palestinian Agricultural Relief Committees (PARC), the second largest MFI in Palestine. Grameen-Jameel has supported PARC since 2006, helping it to develop a business plan to reach 50,000 members providing scholarships to attend regional microfinance conferences and supporting their attendance at the 2008 Grameen Arab Dialogue in Bangladesh. That same month, 80 representatives from 28 African MFIs gathered in Ghana for the first-ever Grameen Foundation Africa Regional Forum. The forum, sponsored by The McGraw-Hill Companies, gave MFIs the chance to hear from development experts from around the globe– including Udaia Kumar, the founder of Society for Helping, Awakening Rural Poor through Education (SHARE) Microfin Limited, the second-largest MFI in India. The 15 workshops on microfinance and technology explored ways that MFIs could fund more loans, move their clients out of poverty faster, and operate more efficiently. MFIs also shared their experiences on how best to solve their common challenges in serving the Africa’s poor people.


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Honoring Excellence in the Microfinance Industry At the annual Knowledge Sharing Roundtable, held in November 2008 in Washington, DC, Grameen Foundation honored two microfinance institutions (MFIs) and a microfinance pioneer that have been instrumental in helping poor women ascend from poverty. Nurjahan Begum received the Susan M. Davis Lifetime Achievement Award for her three decades of service at Grameen Bank. She was its first female general manager and is its most senior training official responsible for both induction and in-service instruction for its 30,000 strong workforce, as well as for trainees from outside Bangladesh. Mitra Bisnis Keluarga (MBK) Ventura of Indonesia received

the Excellence in Microfinance Award for being a leader in providing Indonesia’s poorest people with financial services. Based on the island of Java, it is the only large institution focusing on the poorest 25 percent of Indonesians and serves almost 90,000 female clients. Al Tadamun of Egypt received the Grameen Foundation and Grameen-Jameel Pan-Arab Pioneer in Microfinance Award in recognition of its innovative and fast-growing program to provide financial services to Cairo’s poorest women. Its creative, client-focused solutions have given more than 70,000 women and their families greater financial opportunity and security.

Meet Marie Marthe Michelle, Borrower Marie Marthe Michelle, a single mother of seven with a third-grade education, was a farming day laborer earning 25 gourdes (US$.62) a day when a group of staff from Fonkoze, a Grameen Foundation partner in Haiti, visited her home. They invited her to join their Chemen Lavi Miyò (CLM) program designed to prepare poor women to enter a lending program with an MFI. CLM provides women like Marie with training, one-on-one supervision and encouragement, confidence building and services like health care and home repair and protects them for 18 months as they advance from extreme poverty to running their own functioning microenterprise. Marie borrowed 1500 gourdes (US$35) from Fonkoze, which she used to buy rice, beans, oil, sugar, and bouillon cubes. Fonkoze also gave her three goats. She now earns between 100-150 gourdes per day from the goods she sells at a local market. She plans to breed her goats and sell the kids for money to invest back into her business. With the help of Fonkoze, Marie’s family has food to eat and she is able to send her children to school. “There used to be days when I would get out of bed and have nothing to eat,” she said. “Now, I am eating 2 or 3 times a day.”

Haiti e Michelle, Marie Marth


Photo credit: Fondation pour le Developpement Local et le Partenariat-Micro-credit (FONDEP) for Grameen Foundation

“I feel so happy when I see my kids happy,� says Nada, a microfinance client of Fondation pour le Developpement Local et le Partenariat-Micro-credit (FONDEP) in Morocco.


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

Building the Industry Microfinance institutions (MFIs) currently meet only 10 percent of the estimated demand for microfinance, but this is much higher than even 10 years ago. Because we want to increase our reach into poor communities around the world with microfinance and technology, Grameen Foundation purposely develops our poverty-fighting tools so that those who share our passion and commitment to tackle the hardest problems can utilize them. Although social investors are eager to track the impact of their dollars, the microfinance industry has yet to rally around one instrument of measurement that will show how MFIs are meeting their missions to break the cycle of poverty. At the same time, experience has taught us that MFIs can serve and retain clients better when they monitor their clients’ specific poverty levels and how they change over time. Building on early work of the Grameen Bank, Grameen Foundation, in collaboration with several other leading organizations, commissioned the Progress out of Poverty IndexTM as a tool to help MFIs estimate the percentage of clients who fall below or rise above the national poverty line.

Highlights: • Our goal is to share our tools with those who share our passion and commitment to tackle the hardest problems. • Grameen Foundation, along with a constantly increasing group of other networks, promotes the use of the Progress out of Poverty IndexTM through training, technical support, and advocacy. We have also made training modules and practical, user-friendly training and support materials available online. • Because Mifos was created using open source Java technology, there are 12 implementations of Mifos this fiscal year at MFIs with which we have no affiliation. • Grameen Foundation publishes two Village Phone Replication Manuals and creates a website dedicated to supporting organizations interested in starting their own program.


> Eradicating Poverty, Building New Lives > Fighting Poverty with Strong MFIs > Building the Industry

With this tool, both MFIs and investors can balance financial returns with social progress and obtain the information they need to make the best decisions about resource allocation. Keeping in line with our goal to share our experiences and lessons learned with others, we make the PPITM available to MFIs free-of-charge. We are involved in a wide variety of promotional activities to ensure that the largest possible number of organizations has access to the PPI. Grameen Foundation, along with a constantly increasing group of other networks, promotes the use of the PPI through training, technical support, and advocacy. We have also developed training modules and practical, user-friendly training and support materials—all available online. In addition to commissioning instruments to measure our impact on poor families worldwide, we are leaders in the industry in providing products that strengthen the relationships between MFIs and borrowers and deliver services to the world’s poorest, especially women. Mifos, our MFI management information management system,

was created using open source Java technology, rather than proprietary software, so that organizations around the world can adopt and adapt the solution with greater ease. Just this fiscal year, there were 12 implementations of Mifos at MFIs in countries like Senegal and Kenya— MFIs with which we have no affiliation. Also, our innovative Village Phone program has provided a way out of poverty for 23,000 poor entrepreneurs in six countries. In order to share Village Phone resources with a wider community, we published two Village Phone Replication Manuals and created a website dedicated to supporting organizations interested in starting their own program. Our new strategic plan embodies this product-focused model, marrying microfinance and technology to produce industry-changing innovations that can be replicated widely to reach more poor people. Although the fight never ceases to pose a challenge, we will continue working to realize the dream of a world without poverty.

Meet Nawar Hakaimia, Borrower When Nawar Hakaimia took out her first microfinance loan of 200 DR (US$151) with enda inter-arabe, a Grameen-Jameel partner in Tunisia, some of her neighbors laughed at her. Nawar was one of a handful of people in the local area utilizing microfinance. Now that her livestock business, which earns between 400-900 DR (US$302-680), has allowed her to remodel her home and send her three children to school, she knows some of those same neighbors are a bit envious. Over time, Nawar has taken out five loans, her latest totaling 2000 DR (US$1,511). “People often come to see me and ask how I managed,” she said. “I tell them to go to enda.”


), Tu Nawar (l

Through their own ingenuity, drive, and the support of a lending microfinance institution (MFI), poor women are able to start or expand very small, self-sufficient businesses and begin their journey out of poverty



Featured Funders

The McGraw-Hill Companies

J.P. Morgan


Iain Percy

The McGraw-Hill Companies

The McGraw-Hill Companies: Expanding Opportunities Through Training

Eighty representatives from 28 African MFIs gathered in Ghana for the first-ever Grameen Foundation Africa Regional Forum, sponsored by The McGraw-Hill Companies.)

The McGraw-Hill Companies was the premier sponsor of Grameen Foundation’s 2008 Africa Regional Forum, which brought together staff from 15 microfinance institutions (MFIs) from seven countries in Africa to share experience and discover innovative ways to solve common challenges. In addition to providing financial support for this year’s forum, McGraw-Hill was the main sponsor of the first two Grameen Foundation Partners Forums in India and Bolivia. Participants at the 2008 Africa Regional Forum attended workshops with a focus on MFIs management and skill capacity building, and heard from development experts that Grameen Foundation brought in from around the world. The goal of the forum was to help these organizations qualify for —Teshome Dayesso additional working capital, move their clients out of poverty, Founder/Manager and expand the number of clients they serve. After attending Buusaa Gonofaa, Ethiopia the Forum, Teshome Dayesso, founder and manager of Buusaa Gonofaa, returned to the MFI armed with a clear picture of the challenges his organization needed to resolve and a clear blueprint of the steps they needed to follow. “Our goal is to move beyond our yesterday and manage our tomorrow,” Teshome explained. We thank The McGraw-Hill Companies for its generous support of Grameen Foundation’s training programs over the last three years.

“Our goal is to move beyond our yesterday and manage our tomorrow.”


J.P. Morgan

J.P. Morgan: Volunteering Business Skills for Social Innovation

“We have found a great fit between J.P. Morgan’s core competencies and the needs of both Grameen Foundation and our partners in the field.”

J.P. Morgan is an inaugural sponsor

of Bankers without Borders®, Grameen Foundation’s new volunteer program that places professionals and retirees in project assignments supporting microfinance and technology-for-development projects around the world. In addition to providing — Shannon Maynard financial support, J.P. Morgan also promotes Bankers Director without Borders® volunteer opportunities within the Bankers without Borders® company and actively tries to find employees who have the right skills for our projects. Through October 2009, more than 100 J.P. Morgan employees are registered as Bankers without Borders® volunteers, and 34 employees have participated in assignments. “Grameen Foundation and J.P. Morgan are equally invested in this partnership,” Shannon Maynard, Director of Bankers without Borders™, says. “We have found a great fit between J.P. Morgan’s core competencies and the needs of both Grameen Foundation and our partners in the field.” Since it began, Bankers without Borders® has leveraged more than $2 million in pro bono and skill-based service projects, and has placed more than 130 volunteers from private companies on assignments. We thank J.P. Morgan for their generous support of Bankers without Borders® and of other Grameen Foundation programs Professionals in the Bankers without Borders program volunteer their time, knowledge, and since our inception in 1997. experience to support microfinance and technology developments in the many areas where we work around the world.


Iain Percy

A Winning Combination: Double Olympic Gold Medalist Gives to Grameen Foundation British sailing champion Iain Percy, who won gold medals at the 2000 and 2008 Olympic Games, has also been a strong supporter of Grameen Foundation. After his girlfriend learned about microfinance during a university lecture, they set out to learn more and read about Grameen Foundation on the internet. Iain, who majored in economics while at college, felt that microfinance was the cure for poverty alleviation, rather than just a treatment of the symptoms. As Iain states, “Economics relies on assumptions like free mobility of capital and labor. Microfinance looks at the problems of the poor from a similarly academic standpoint—addressing where the system is failing due to the breakdown of necessary Iain Percy, who majored in economics assumptions about economic and social development.” He is also drawn to while at college, felt that microfinance was the cure for poverty alleviation, rather how much the microfinance movement has grown­— Grameen Foundation than just a treatment of the symptoms. now offers telecommunications and business skills, which Iain often feels are taken for granted in more developed economies. Iain donates generously to Grameen Foundation every Christmas, realizing that his luck in a career as a successful sportsman is an opportunity available to very few people. Iain encourages others to give as well: “Grameen Foundation works to remove the disadvantages facing many poor people. Please help Grameen Foundation assist communities in developing their skills and reaching the potential they deserve.” We thank Iain for his generous support of Grameen Foundation and microfinance and wish him continued luck in his professional sailing career!

“Please help Grameen Foundation assist communities in developing their skills and reaching the potential they deserve.”

— Iain Percy British sailing champion and Grameen Foundation supporter 35

Studies show that women use the profits from their micro-businesses to send their children to school, improve their families’ living conditions and nutrition, and expand their businesses. The fruits of their businesses not only make an impact on themselves and their families, but entire communities. 36

Our Family of Supporters Grameen Foundation is proud and honored to recognize donations received between the period of April 1, 2008 and March 31, 2009.

Lifetime $1,000,000+

Abdul Latif Jameel Group American Red Cross Anonymous Chiapas Project Citi Foundation John and Ann Doerr Fund for the Poor Bill & Melinda Gates Foundation Paul and Yaffa Maritz Craig and Susan McCaw Foundation Janet McKinley and George Miller Michael and Susan Dell Foundation Qualcomm Incorporated David and Susan Russell US Agency for International Development $1,000,000+

American Red Cross Bill & Melinda Gates Foundation John and Ann Doerr Paul and Yaffa Maritz Janet McKinley and George Miller Michael and Susan Dell Foundation $500,000 - $999,999

Chiapas Project David and Susan Russell $100,000 - $499,999

Anonymous (2) Citi Foundation Ford Foundation Fund for the Poor JP Morgan Chase Foundation

Jacqueline Cambata Craig Jenkins Charitable Foundation Delta: A California Company Howard and Sara-Ann Erichson Evslin Family Foundation Diana Gondon Richard and Lois Gunther Family Foundation Holzer Family Foundation Horne Family Charitable Foundation, Inc. Issa Family Foundation Susan Karp and Paul Haahr Roberta and Charles Katz Kaufman Family Foundation Laurie Kruppa Heidi Luedtke Raja Malkani Donald Mankoff and Neelam Patel Bette Moorman Jane Mundy Jan Olsen Paul Robb Steven Rockefeller The Baobab Fund Craig Silverstein Osa Foundation Tomberg Family Philanthropies Belinda Willis and Howard Cook Wendy Wolfe Daniel Wright

Richard Kafka V.E. MacDonald Marge Magner Rick and Mahasti Mashhoon Craig and Susan McCaw Foundation The McGraw-Hill Companies Microsoft Corporation Russell Investment Group Under Armour Inc. $50,000 - $99,999

Best Buy Lucy and Henry Billingsley The Capital Group Companies Charitable Foundation Desmond FitzGerald Guerrant Foundation, Inc. Shel Kaphan and Ericka Lock Levi Strauss Foundation Qualcomm Incorporated Rock Paper Scissors Foundation Marshall and Pamela Saunders Scott and Barbara Sobel Steamboat Ventures John and Cindy Whitehead Paul and Pamela Wood Foundation $25,000 - $49,999

Anonymous Deborah Fink and Wilmer Wilson Susan Freeman Ellen McNally and Andrew Pleatman Open Society Institute Betty Sams

$5,000 - $9,999

Aguila International Inc. Anonymous (3) Antos Family Fund Peter Bladin and Donna Lou David and Leigh Bangs Charles & Peggy Norris Family Fund Anisur and Swati Chowdhury Edwin W. and Catherine M.

$10,000 - $24,999

Anonymous (2) April Fund Bochnowski Family Foundation Sky Brooks


Davis Foundation Eurhope Susan and David Everhart Goldman Sachs & Co. Asbjorn and Bente Hansen Esther Hewlett Insurance Service Office, Inc. Laurie and Jeff Keyes Eugen Laegler GmbH Cindy Lin Louis C. Skinner Jr., Foundation Timothy and Stacy Lutz Mark Victor Hansen Foundation Jon McAlister Paul and Courtney McBride Yvette and Aryeh Neier Iain Percy Jeffrey Sackmann Lexy Shroyer SSB Foundation Student Union of the London School of Economics Carolyn Surgent Tom Tapp Jeff and Jana Thomas $2,500-4,999

The Alan L. Blum Family Fund Lisa and Tom Anderson Anonymous (2) B. T. Rocca Foundation Kim Barnes Thomas and Brenda Berleth Best Buy Children’s Foundation Ursula Boesing Thomas and Judith Brody Willard Brown Christopher and Nina Buchbinder Karen and Matthew Byron Sharyn and Vincent Cerniglia Charles and Gail Muskavitch Foundation Sandra Cheng

Teru and Alex Clavel Dimitri and Myrto Cocconi David Cooper Peter Cowhey and Margaret McKeown Lory Crisorio Mark Criswell Dancing Tides Foundation Nali Dinshaw Jennifer Drogula and David Wohlstadter Robert and Viola Everett Michael and Anne Germain Joseph Giles Racheal Godfrey D.L. and Constance Greer Carol Gunby Ronald Herzog Paul Hilal Hirschi Investments Garry Ismond John R. and Maria PV Young Family Foundation Weldon Johnson Paul and Diane Kolak Bruce and Suzanne Landau Leland High School William Lydens Brian and Amy Maas Stephen Massey McKinsey and Company Mesa Design Group Bengt and Linda Muthen Jason Nerad Mary Ott and Stacey Kaneshiro Mindy Pasco-Anderson Janniah and Shanti Prasad Juhi Prasad Prudential Foundation Matching Gifts Ann and Jerry Raisch Jacky Randall Craig and Hsiao-Hui Sickel D. Wayne Silby Chris Stronks Nina Tate The Oak Tree Philanthropic Foundation Lee Trautmann Jules van Kempen Shyam Vanga

Priscilla Cortez Barbara Cox Ann Cude Nancy and Grier Cundill Michael Curtin Melissa Czarnecki Mary Dallmann Karen Damley Thomas Daniel Ann and Anthony Davies Susan Davis Sven Erik Dethlefs Michael Dial Dennis Director Maureen Eagan Robert and Lore Eichfeld The Episcopal Church of the Epiphany William and Roberta Erwert Dan and Julie Feuerborn FinanceAsia Robert Finger Firefly Communications LLC Eric and Elisa Ford Eric Friedman Lauren Fuller G&C Leasing David Garcia and Maya Suryaraman Elsa Garcia-Pandavenes Timothy Garrett Robert Geary Spencer Glendon Heoh Kwang Goh Matthew Goldberg Keith Goodman Barbara Graves Wayne Gray Gay Greer Tiana and John Grgurina Peter Guerin Giselle Hagenmayer Donna and James Halow Rod Handeland Larry Hankins Marge Harburg Dermot Harriss Richard Henderson Daniel Hepp Bruce and Cheryl Hibbett Peter and Susan Hornbostel

Alexandra Volcy-de Nes Anne Wade and Gil Hagan Barbara Webb Thomas Wieland The Witten/Nappi Charitable Fund $1,000 - $2,499

Abu Dhabi National Energy Co Sandra Adams and Tom Roberts Eliot and Julia Adelson Puneet Agarwal Shantanu Agrawal and Kavita Parikh Sarfaraz Ahmed Vignesh Aier Alice Alexander David and Pheobe Amante Lane and May Ameen Anonymous (6) Josefina Barandiaran Piedra Charles Barnaby and Cynthia Birr Henry and Debbie Baskin Catherine and Albert Batty Miriam Benor Rakesh Bhalla Samuel Book David Bornstein James Bowser Paul Brillinger Mark Bronez Adam and Megumu Brownstein John Burnett Jan Butterworth Johan Buys Carolyn Curry Elbel Memorial Fund Alison Chaiken Wayne and Karen Chamblee Chester Tracy Farm Juliana Chisholm Robert Choy Martin and Lien Cibulka Rita Cinque Kriss Kevin and Allison Cloud Robert Cloutier Wells Fargo Fund Community Foundation for Southeast Michigan Dennis Connolly


Timothy and Jeanne Hoskins Linda Houser Helen Hower and Colin Lanzl Colin Irvine Harold and Lynn Isbell Wesley Jones Stewart and Sherry Kahn Robert and Jean Kane Swati Kaushal Stanley Kayes Alycia Kellman Michael Kemp Michael Kennedy Kevin G. Schoeler Foundation The Key Foundation Shenaz Khadoo-Mautbur Mary and Chris Kidd Anthony Kim Beth Kirkhart Joan Kleinberg Christian and Ineke Knetsch Renate Kristoffersen Vincent Kueffner Maria and Pranish Kumar Susan and Steve Kute Margaret Lamb Bonnie Ledyard Choo Lee Gordon Lovett Michael Lubic The Lyda Hill Foundation Lee Lynn Karen Macko MarkMakers Foundation Inc. Ruth Marrion Jake Marvel Michal Mazur Jeffry McCall Colleen McCarthy Barbara McConagha Christina Melin Timothy Messa Robert Mills and Judith Kleen Tang Ming Mrigank Mishra Allen Mohr Riaz Moledina and Lily Chiu Gwen and Jerome Murray Dave Myers John Neeley New Harbinger Publications, Inc.

Francisco Nunez Wolfgang Obermuller Andreas Ohrt Shawn and Cynthia Olds Theresa O’Leary Don Oliver Katharina Onigkeit Mike Ostrowski Charles Otto OurStage, Inc. The Pappas Family Charitable Fund Vikas and Lois Passi Kiran and Jigisha Patel Kimberley Paul Nick Pavlina Gail Petersheim Matthew Pfile Robert Phillpot Frank and Linda Plaut John Poole Colm and Rena Prendergast James Protz Russell Quong and Sarah McCabe Rabahy Foundation Robert and Ilknur Ralston Neepa Rami Rosanna Ramos-Velita and Hans Levin Lyle Ramshaw

Elizabeth Raymond Anthony Rebarchik Carole Reiner RESULTS, Canada Bernd Rieger Janet and Nick Riehle Rohit Rishi and Madita Towari River Road Unitarian Church Thomas Ross Joel Rubinstein and Sylvia Sabel Philip Russell Stephen Scarbrough Stephen Schaber Bryan Schmidt Anitha Schneider Tamara and John Schroeter David and Judy Schubert Lukas Schulze Devon Seacrest Shoma and Prasad Setty Jamey Shachoy Piyushkumar Shah Anna and Mehzad Shahsavari Shirley Buttrick Family Foundation Jason Simmons Jeffrey Simons William Skelton Mark Sommerfeld and Elaine Hove Robert and Nancy Sonderman

Raphael Spannocchi Franklin Spees Frederick Spencer Jacob Stacey-Schreier Luna Gertrud Steiner John Stevens Laurel Stine Dennis Suding Ronald Sugameli Reuben Swartz Brenda Swithenbank Stewart and Rebecca Taggart Robert Thau ProAction Foundation The Scott and Ky-Van Benson Charitable Fund Charles Thomas Sara Throckmorton and Joseph Vance Alan and Mae-Ling Tien Richard Tornello John Trentacosti Marjorie Trifon Joshua Tripp Diane Trombetta WJ & JK Truettner Family Foundation TTF Foundation Stephen Van de Wetering Thukalan Verghese Wendy and Roger Von Oech

Mark Vonder Haar and Laurie Kopec Kenneth Voorheis and Carol Guttery Susan and Richard Wallace Melanie Wark Paul Watts Adam Weissman John Weller Mitch White Sinclair and Cathy White Mireille Widmer Clive Wilkinson Alfred and Kimberly Williams Gregory Wilmes David and Martha Wilson Ralph Wittman Yingchuan Wong Steve Wozniak Jennifer Wright Jerry Wright Jennifer Wurts Ethan Yake Charles Yang Waikuen Yee and Anil Thomas Noah Yosha Susan Yost Robert Young Mehdi Zafar M Zonenberg

In Kind Services

Grameen Foundation is grateful to the following individuals, organizations, and companies that demonstrated their support and commitment to our work by providing in-kind services: Ali Budiardjo, Nugroho, Reksodiputro (ABNR) Amarchand Mangaldas Deborah Arnold AZB & Partners (India) Bentsi-Enchill, Letsa & Ankomah Best Buy Bruno-Ken Shiozawa Butterfield & Robinson Capital Group Companies Hillary Chen Ting Ting Cisco Corporation CJ Volk Associates Cleary Gottlieb Steen & Hamilton LLP

Susan Place Everhart Google, Inc. IBM Daniel Johnson J.P. Morgan Kenyon and Kenyon LLP Kirkland & Ellis LLP David Mamo Mayer, Brown, Rowe & Maw LLP Sean McElduff Michigan Law Intl Transactions Clinic Morgan, Lewis & Bockius LLP Murtha Collina, LLP O’Melveny & Myers LLP


Phoenix Legal Inc. Puyat Jacinto & Santos Law Offices Patricia Saca Ravi B. Shah Shearman & Sterling  LLP George Sysip Herman To Steve Wang Wilmer Cutler Pickering Hale and Dorr LLP Dustin Worley Wang Xiaohui

Board of Directors Nurjahan Begum** Lucy Billingsley Alex Counts* Susan M. Davis Jennifer Drogula Robert Eichfeld* Vikram Gandhi Jim Greenberg Richard S. Gunther Paul Maritz*

Susan McCaw Yvette Neier Robert Ottenhoff* Chris Pascucci David Russell Donald Wayne Silby Rosanna Ramos-Velita* Si White** Muhammad Yunus***

*Also a member of the Executive Committee of the Board of Directors. **Joined the Board of Directors in 2009. *** Director, Emeritus�

Finance Committee Rosanna Ramos Velita, Chair Bob Eichfeld, Vice-Chair Richard S. Gunther Chris Pascucci Hans Levin Si White Joshua Tripp, Staff Liaison Audit Committee Bob Ottenhoff, Chair Eric Miller, Vice-Chair David Russell Joshua Tripp, Staff Liaison

Development Committee Lucy Billingsley, Chair Steven Rockefeller, Jr. Robert Ottenhoff Yvette Neier Susan Russell Anne Guerrant Gloria McCall Snead Sandra Adams, Staff Liaison Governance Committee Jennifer Drogula, Chair Matthew Lesnick, Vice Chair Yvette Neier Craig Sarsony Julia Soyars, Staff Laision


Program Committee Janet Thompson, Chair Janet McKinley, Vice-chair Susan M. Davis Richard S. Gunther Chris Pascucci Donna Rohling Dana deKanter David Russell Sal Pappalardo, Staff Liaison Peter Bladin, Staff Liaison

India Advisory Council Vikram Gandhi, Chair Bob Eichfeld Susan M. Davis Elke Ward-Smith Jim Greenberg Deepak Amin Chandni Ohri, Staff Liaison China Advisory Council Wayne Silby, Chair Lynn Chia, Vice Chair Richard S. Gunther Ying Wang Jennifer Meehan, Staff Liaison Philippines Advisory Council Joe Higdon, Chair Janet Thompson, Vice-chair Robert Atendido Darcy Kopcho George Sycip Janet McKinley Jennifer Meehan, Staff Liaison Capital Markets Committee Bob Eichfeld, Chair Harmohan Ahluwalia Janet Thompson Rosanna Ramos-Velita Bridget Liddell Roz Hongsarangon Hans Levin Diane Smith Jim Greenberg Jennifer Drogula Susan McCaw Camilla Nestor, Staff Liaison

Investment Committee Voting Members Bob Eichfeld, Co-chair Jim Greenberg, Co-chair Susan M. Davis Rosanna Ramos-Velita Wayne Silby Non-Voting Members Doug Barry Vinod Khosla Bridgett Liddell Diane Smith Camilla Nestor, Staff Liaison Latin America and Caribbean Advisory Council Rosanna Ramos-Velita, Chair Lucy Billingsley, Vice Chair Chris Pascucci Gary Mulhair Erica Lock Sal Pappalardo, Staff Liaison Technology Advisory Council Shel Kaphan Paul Maritz, Chair Craig McCaw Mary Evslin Anand Narasimhan Pradeep Singh Rob Mechaley Deepak Amin Wayne Silby David Stephens Debbie Arnold Peter Bladin, Staff Liaison


Pakistan Advisory Council Bob Eichfeld, Chair Jim Greenberg Steve Rasmussen Maliha Hussein Atif Raza Faisal Khan Chandni Ohri, Staff Liaison Social Performance Committee Janet Thompson Ricki Tigert Helfer Jonathan Morduch Larry Reed Nigel Biggar, Staff Liaison Africa Advisory Council Paul Maritz, Chair Willene A. Johnson, Vice Chair Jennifer Drogula Lynn McMullen Dr. Wolday Amha Godwin Ehigiamusoe Malini Tolat, Staff Liaison Equity Fund Committee Jennifer Drogula, Chair Bob Eichfeld Wayne Silby Jim Greenberg Jill Chen, Staff Liaison

Staff Executive Staff Alex Counts, President & Chief Executive Officer Peter Bladin, Executive Vice President, Programs and Regions Salvatore J. Pappalardo, Chief Operating Officer Norman Buckham, CEO, Africa Region Jennifer Meehan, CEO, Asia Region Alberto Solano, CEO, Americas Julia Soyars, General Counsel and Assistant Corporate Secretary Joshua Tripp, Chief Financial Officer Sandra Adams, Vice President, External Affairs Camilla Nestor, Vice President, Microfinance Programs David Edelstein, Vice President, Technology Programs/Director, Grameen Technology Center Zaved Ahmed Mohammad Alam Charlene Balick Megan Beck Thomas Bell Elizabeth Berthe Nigel Biggar Jeff Brewster Sharlene Brown Edward Cable Eric Cantor Lian Carl Kay Chau Jill Chen Sherita Coates George Conard Erin Connor Jennifer Daum Sean Dewitt Priscilla Dosiou Kate Druschel Matt Duncan Michael Eber David Edelstein Henry Feuer Kenneth E. Fox Michael Gabriel Whitney Gantt Jorge Highland

As of March 31, 2009

Kay Hixson Nicole Iden Jonathan Ikeda Mary Irvine Rachelle Jacobson Beverl Jackson Greta Kauffman Mary Jo Kochendorfer Patrici Kelly David Keogh Erin Kidd Arianna Levitus Shannon Maynard Matthew Mechenbier Jennifer Meehan Rebecca Mellema Patrick Meriweather Barnie Minick Cheryl Mitchell Van Mittal-Henkle Adam Monsen Camilla Nestor Chandni Ohri Julie Peachey Vladimir Petrov Sabrina Quaraishi Taylor Robinson Christine Roberts Cameron Rosenthal


Peg Ross Fabrizio Rotati Christina Santiago Ria Shah Sameer Sheikh Radha Singla Brian Slocum Stuart Smith Adam Taylor Malini Tolat Jeffrey Toohig Joshua Tripp Emily Tucker Maya Uppaluru Marie Valdez Preeti Wali Aliya Walji Alieanor Werbel Steve Wardle Ryan Whitney Timothy Wood Cathy Yi Liselle Yorke Helen Yuen Denise Ziegler Christopher Zintel Stephen Ziobro

Financial Highlights The 12 months that ended March 31, 2009 (FY09) was a difficult time for many nonprofit organizations and for the constituencies that they serve. Global economic turmoil adversely impacted donations made to nonprofit organizations and, more disturbingly, reduced the resources available to the poor and poorest. Grameen Foundation was not immune to the downturn, as donations slipped slightly from last year. However, a passionate base of supporters and a strong financial position entering the year enabled us to increase program spending. In addition to the $14.4 million spent on program activities, $7.2 million in direct financing was provided to microfinance institutions (MFI) around the globe (leveraging another $14.1 million in local financing). Eighty-five cents ($0.85) of every dollar was spent on program services (excluding $2.3 million of inkind Grameen Foundation support). While this is a positive indicator of efficiency, this underestimates the full scope of our operating activities, which includes balance sheet financing as well as local currency financing our Growth Guarantees program leveraged. When these are included in our programmatic portfolio, ninety-three cents ($0.93) of every dollar went to supporting program activities. We ended the year in the strongest financial position of our 13 year history, with total cash and investments of $13.8 million and total net assets of $24.1 million.

We would like to acknowledge the important contribution made by Si White, a Cisco Systems Leadership Fellow, who spent 18 months working in our Finance department. All of us at Grameen Foundation are grateful for Cisco’s generosity and Si’s expertise in helping us successfully navigate these challenging economic times. The accounting firm Gelman, Rosenberg & Freedman has audited the financial records and statements of Grameen Foundation for the year end March 31, 2009 and has issued an unqualified opinion. In addition, the Management Letter identified no “material weaknesses” or “significant deficiencies.” Complete audited financial statements are available at April 1, 2009 marked the launch of an ambitious new three-year strategic plan for Grameen Foundation. Thanks to a growing base of supporters who believe in our important work, we are well-positioned financially to face the challenges of this new strategic plan in the coming year.


Joshua Tripp Chief Financial Officer

Financials Statement of Financial Position As of March 31, 2009

Statement of Activities and Change in Net Assets for the Period April 1, 2008 through March 31, 2009


support and revenue

Current Assets

Contributions and Grants

Cash and cash equivalents

Program revenues

Restricted deposits Total cash Investments



Grants and contributions receivable


Prepaid expenses Total Current Assets

Loan interest In-kind contributions


Loans receivable Other receivables and advances

Interest and investment income (loss)

363,058 12,948,789

Total Support and Reveune

Less: Accumulated Depreciation Net property and equipment

1,938,367 -159,663 143,451 2,349,825 $19,590,560

333,192 80,465



program services

property and equipment Furniture and equipment


303,056 (140,009)

Regional Programs






Public Education


Total Program Services

928,354 $14,418,590

other assets Loans receivable, net of current portion Loans to program related investments Program related investments Grants and contributions receivable net of current portion Deposits Total Other Assets Total Assets

supporting services


Mangement and general




Total Supporting Services

279,458 100,058

3,246,064 390,985 3,637,049

Total Expenses


Changes in net assets before other items


4,993,091 $25,140,206

Other items Allowances for: uncollectible loans receivable and foreign exchange risk

Liabilities and net assets Current Liabilities Accounts payable and accrued expenses

Present value discount of loans receivable 897,423

noncurrent Liabilities Total Liabilities

Net assets at beginning of Year Net Assets at End of Year

192,000 1,089,423

Net Assets Total Net Assets Total Liabilities and Net Assets


Changes in net assets

Note payable


24,050,783 $25,140,206


228,354 $23,822,429 $24,050,783

77% %

Where Our Money Goes 2008 Fundraising - 2% Meet Management and jeff Generaland - 13% Volunteers Program Services - 85%

Jeff and Julia Blue, a father and daughter from Washington, DC, represent many

Where Our Money Comes From

volunteers in the Mifos community who are guiding independent implementations of the software globally. Jeff, a retired applications and database manager, was searching the internet for open source microfinance software and discovered Mifos. He and Julia are now implementing and supporting Mifos remotely for the Senegal Ecovillage Microfinance Fund, a small MFI.

2% Investment Income

79% Contributions and Grants

Julia Blue, Sources of Contributions 2008 Where Our Money Comes From 2008 Where Our Money GoesWhere 2008 Our Money Goes 2008 Sources of Contributions 2008 Where Our Money Comes From 2008 Corporations - 17% Program Revenues - 10% Fundraising - 2% Corporations - 17% Program Revenues 10% Fundraising 2% Foundations Contributions and Grants - 77% Management and General - 13% Foundations - 30% Contributions and Grants - 77% - 30% Management and General - 13% Individuals - 53% In-Kind Contributions - 11% Individuals - 53%Program Services - 85%Program Services - 85% In-Kind Contributions 11% Non-Profits - 0% Investment Income 2%Investment Income 2% Non-Profits - 0%

Sources of Contributions 2008 Corporations - 17% Foundations - 30% Individuals - 53% Non-Profits - 0%

rom 2008

10% Program Revenues 11% In-Kind Contributions

Sources of Contributions 17% Corporations

53% Individuals 30% Foundations

how your dollars are spent Based on numbers from IRS Form 990

Because we make our tools widely available to others who share our mission, volunteers are able to use them to make an impact on microfinance clients in Senegal, like the woman pictured above.

$.85 Programs

$.02 Fundraising

$.13 Management


You Can Help Stop Poverty Now You can support our work to provide access to financial services for millions of poor women around the world: • Make a gift: Your donation today helps reduce extreme poverty tomorrow. Gifts are fully tax-deductible as charitable contributions to the extent allowed by law. • Join our campaign to Stop Poverty Now. • Stay informed: Sign up for our e-newsletter for free updates on how microfinance is transforming communities worldwide. You can also forward our e-newsletter to others so they can learn and get involved. • Spread the word: Invite friends and family to join our e-mail list to learn more about our work, host an event featuring a Grameen Foundation speaker, or activate your friends, families, and social networks to join The Ingenuity Fund and help us raise $1 million online in the next year. • Share your expertise: Check out our volunteer opportunities with Bankers without Borders®, our volunteer initiative. View current volunteer needs and register with the program so we can inform you of future projects that require someone with your skills and professional background. • Designate Grameen Foundation for your workplace matching-gifts program. Grameen Foundation’s code for the Combined Federal Campaign is 15029. • Include Grameen Foundation in your will or as a beneficiary of your life insurance policy or IRA.

Join the fight against poverty. Visit 46

Empowering people. Changing Lives. Innovating for the world’s poor.


Grameen Foundation 50 F Street NW 8th Floor Washington, DC 20001 Phone: +1 202-628-3560 Toll Free (US): 1-888-764-3872 Fax: +1 202-628-3880

Grameen Technology Center 2101 4th Avenue Suite 1030 Seattle, WA 98121 Phone: +1 206-325-6690 Fax: +1 206-325-0634

Grameen-Jameel Pan-Arab Microfinance Ltd. International Humanitarian City Building #4, Ground Floor P.O. Box 506025 Dubai, U.A.E. Tel: +971 4 430 9120 Fax: +971 4 430 9121

Grameen Capital India Limited Unit #402 36 Turner Road Bandra, Mumbai 400 050 Tel: +91 22 66752993

Grameen Foundation Hong Kong Office 3F, SPA Centre 55 Lockhart Road Wanchai Hong Kong Tel: +852 2529 6300 Design: Lloyd Greenberg Design, LLC

2008-2009 Annual Report