LendwithCARE

CARE International (CI)


CI is a global confederation of 13 national members of which CARE International UK (CIUK) is one. All are separate legal entities, but operate through one presence in 84 countries under a CI Board and Secretariat.

CIUK is a registered Charity and a company limited by guarantee, established in 1985, whose mission is to fight poverty and injustice in the world’s most vulnerable places. CIUK has four key priorities: i) Humanitarian response in emergency situations, ii) private sector engagement, iii) preventing and resolving conflict and iv) Governance, helping at local level to help the most vulnerable hold public authorities to account for decisions and allocation of public funds.

Within the CI confederation CIUK has a number of strategic goals, one of which is raising strategic and transformational funding. This includes LendwithCARE, which is part of a two-programme engagement that supports micro-finance credit, the other being a joint initiative with Plan-UK and Barclays that links Village Savings and Loans Associations with banks or micro-finance institutions.

Governance

CIUK has a Board of Trustees, who are Directors for the purposes of company law and Trustees for the purposes of Charity law. CIUK regards itself as an operational charity and not a grant making body.

In 2012-13 CIUK was awarded a high performing monitoring and evaluation "green traffic[1]” rating by DFID as part of its mid-term assessment of 40 charities. Eight of the 40 received a "green” rating with CIUK being singled out as the only organization to have met all its performance targets. A review in 2012 recommended that DFID continue to fund CARE as it offers significant value for money.

LendwithCARE

LendwithCARE is a peer-to-peer lending relationship between people in the UK and people in developing countries. It is an innovative way of raising micro-finance to help entrepreneurs in developing countries lift themselves out of poverty. Lenders are bound by an agreement whereby loans will only be repaid up to a maximum of the amount originally loaned, subject to exchange rate fluctuations with lenders never receiving a return whether by way of interest or a share of any profits made. Lenders also acknowledge and accept that loans may not be repaid.

To date (September 2017) over £15million of loans have been made. The scheme presently operates in twelve countries, Benin, Cambodia, Ecuador, Malawi, Pakistan, Palestinian territories, Philippines, Rwanda, Togo, Vietnam, Zambiaand Zimbabwe, involving carefully chosen Micro-Finance institutions, regulated within in each country and selected against a number of success criteria and closely monitored by CIUK. The MF institutions have other sources of loan financing and typically obtain between 5-10% of their funds through LendwithCARE. Some countries, such as India and South Africa, exchange control regulations prevent peer-to-peer lending. In other countries CIUK has made a decision not to operate LendwithCARE so as not to jeopardize their humanitarian response reputation.

Loans are for any small business with agriculture and other natural resource management being an important component. Detailed information is available at www.lendwithcare.org, data available including loan type, country, entrepreneur type (individual or group), gender, amounts by categories, and date.

TAA Involvement

Since 2014 TAA has made contributions to LendwithCARE of £6,100. As loan repayments are made they are credited back to TAA, which can be withdrawn or used to provided further interest-free loans to entrepreneurs. TAA adopts the latter approach, reinvesting the funds. To date 440 loans amounting to over £22,000 has been made to 2,264 individuals or small groups across 12 countries This has supported 6,506 family members and over 1,000 jobs. TAA receives regular updates on the use and progress of loans, which are posted and can be seen on the LendwithCARE websiteTAA’s involvement is administered by TAA’s treasurer.

[1] Green Traffic rating is an important component of CARE’s global monitoring and evaluation system.