An Organization That Is Changing The World Through Microfinance

People around the world who live below the poverty line have little access to kind of financial services that banks offer their clients to create assets and generate income. However, the proper management of the smallest asset like livestock can be important for such individuals who are living dismal conditions with very income, food and housing. To be able to overcome their grave economic conditions, they need to borrow, earn, save and invest.

Microfinance is an effective economic tool that helps the poorest of the poor in a society to become financially independent and live a life of dignity. Moreover, they also begin to contribute positively to the economic growth of their country.

An organization that is making a difference

Joe Johnson Mercy Foundation is a popular non-profit making charitable organization in America, which goes out of its way to help poor people around the world to fight poverty by giving them financial assistance. It is has been instrumental in changing the lives of millions of individuals living in bleak economic conditions to start afresh by becoming economically independent. Unlike other institutions who conduct philanthropic activities, the members of this foundation do not raise funds from the public.

This organization generates the resources it needs to finance its charitable activities through disposal of underutilized commercial properties under IRS Section 170 Bargain Sales transactions. In these transactions, companies sell such real estate assets at a price, which is below its fair market value, and claim the difference as a charitable donation. This helps the organization get the resources it needs to provide financial assistance to its borrowers in over 60 countries around the world.


The members of this foundation admit that not many people understand how the idea of microfinance works and it can help poor people overcome their poverty. They believe that lending out assistance in the form of a microloan to such individuals is convenient way to assist them in becoming financial independent. With the money, they can buy the necessary assets and raw materials, which they put to productive use to generate their income.

Many of these poor people even go to the extent of learning a particular profession to improve their livelihood with this money. These members go on to say that a microloan is a like a normal short-term that banks lends to its customers at times of need. Moreover, they further add that these loans also go a long way in safeguarding these people from corrupt moneylenders and institutions who take advantage of their situation.

An instrument to change people’s lives

The members of this foundation further highlight that the recovery rate on the short-term loans they lend out to their borrowers is as high as 99%. This is higher than the payback rate that commercial banks receive from their clients. In many cases, the foundation feels that providing financial assistance to such clients is a risk worth taking.

The experts from Joe Johnson Mercy Foundation further clarify that the amounts they lend out to poor people in the form of microloans may be small it offers them a chance to overcome their poverty and improve their economic conditions.