Microloan Sharks

Commercial microfinance institutions (MFIs) must calculate two bottom lines: alleviating poverty for clients and also generating profits for investors. To achieve the latter goal, some MFIs charge their impoverished clients exorbitant interest rates. The recent Banco Compartamos IPO in Mexico raises a red flag, demonstrating how easily well-intentioned MFIs and their investors can shift from microlending to microloan-sharking.

The Equity Capital Gap

For-profit businesses can efficiently and quickly raise large amounts of money to fund growth and innovation by tapping equity capital—money that people invest in a company in return for ownership and a share of profits. The nonprofit world has no corollary, making it difficult, costly, and time-consuming to raise money. In this article the author explores ways that nonprofits and funders can create their own version of equity capital, and, just as important, develop an equity approach to doing business.

Reimagining Microfinance

Critics of microfinance institutions (MFIs) ask them to choose between helping the poor or making money for investors, but this is a false choice. MFIs can have their impact and profit, too, says the author, the CEO of the Grameen Foundation. He sketches a new vision of microfinance as a platform, not a product; one that relies on high volumes, not high margins, and that uses limits on private benefit, holistic performance standards, and third-party certification to help MFIs meet both their bottom lines.

Health

Tackling HIV

Grassroot Soccer uses the world’s most popular sport to educate kids in sub-Saharan Africa about HIV and its prevention.

She’s Crafty

World of Good connects female artisans in poor countries with retailers (including Whole Foods Market, pictured) in the West.

Environment

From the Ground Up

Part academic institution, part activist group, part think tank, ATREE crosses sectors to breed a new species of conservation agency in India.

Less Is More

Financial aid discourages innovative solutions to poverty.

Fundraising

We’ve Arrived. Now What?

Although the donor-advised fund industry is in a high-growth phase, all boats will rise if we worry less about competing with each other and instead find ways to work together. By Kim Wright-Violich, president of Schwab Charitable.

C-Level Diversity

How to get more racial minorities into corner offices.

The Price of Going Left

In new democracies, right-leaning elections attract foreign investors.

The Toughest Job You’ll Never Get

Would-be EDs cite inadequate mentoring, low pay, and poor lifestyle as career obstacles.

Don’t Save; Be Saved

Conservative Protestants are poorer partly because of their religion.

Socially Responsible Business

Smoke and Mirrors

British American Tobacco Malaysia has won the favor of the Malaysian government and people by making donations to cultural institutions, funding scholarships, and developing youth smoking prevention programs. But can a tobacco company ever be socially responsible?

Government Cares the Most

Public nursing homes outshine nonprofits and for-profits.

Where Nice Is Naughty

In most parts of the world, strangers helping strangers is strange.

Review: Out of Poverty

Polak offers entrepreneurial solutions to poverty in Asia and Africa.