Leveraged donation x Loan recycling = Impact
Our donation equation is unique. When you choose to support World Vision's microfinance work, your money is first more than doubled and then recycled over and over again, so that dozens of borrowers and hundreds of children benefit over a long period of time.
So, how does it work?
Let's say you donate US $1,000. We use your donation to borrow more money from financial markets (often three to five times) and it more than doubles in value to over US $2,600. Next, we take this leveraged amount and transform it into small loans. The average loan is around US $500, so your donation can now provide loans to nearly five people who want to start or grow a small business.
As our clients increase their incomes, their children experience better living conditions and a more secure education. In fact, a US $1,000 donation helps more than 25 children in the first year alone. But remember, the money we lend out is given back, so loans are recycled and lent out to a new borrower. That means that over time, we can reach more and more clients, helping more and more children, with the original US $1,000 you gave us.
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