Trash To Treasure Means Business For Haiti

by Kathleen Robbins, Consultant, KRobbins & Associates, writing from Haiti

Where’s my old yellow school bus? It certainly isn’t a question I’ve ever asked myself before – I have never thought about that old bus from high school and where it might be today. Nor have I wonder what happened to that old mattress my son grew up sleeping on and had hauled away after 20 years. But today, I have a pretty good guess where both might have gone.

After spending almost a month in Haiti on a humanitarian economic development trip, I have learned more about developing world economies and seen places where the old adage, “one man’s trash is another’s treasure” is put into practice and changing family’s lives.

Haiti is the poorest country in the western hemisphere, a country riddled with massive social, economic, environmental, and political problems. Yet it is also a country of incredibly hard working people who desire the same things you and I want: the opportunity to provide a better life for themselves and their families. In my time here, I have discovered that this is truly a land of small business people. In Port au Prince, Haiti’s capital, almost 90% of the people are part of the ‘informal economy; think salesmen on the streets of New York pushing ‘Rolexes’.

For most Haitians, the financial capacity to buy even one old school bus or mattress is completely out of reach, mainly due to a lack of access to credit; something we take for granted.

Today, this is changing. As in much of the rest of the developing world, Haiti has seen a growth in microfinance opportunities through organizations like Grameen Bank.

Odette Eloi lives in the small community of Hinche on Haiti’s central plateau. While Hinche is only about 30 miles from Port au Prince, it is a day’s journey over rough roads. Five years ago, Odette was among the poorest of Haiti’s poor, but today she owns a thriving business and from her profits, has built a new home, rents her old home, and can finally afford to send her children to school.

Odette has done this by selling those discarded mattresses from the U.S. Her business is possible because Odette is one of over 40,000 borrowers, mostly women, of Fonkoze, the largest microfinance organization in Haiti.

Years ago, bouncing along on the tired springs of my old yellow school bus, I would have never thought it could mean so much to someone else. Microfinance has changed the way I think about things like old mattresses, cell phones, and school buses and it is changing millions of lives around the developing world like Odette’s and her children’s. Microfinance is truly a ‘hand up’!

Non-profit = No profit? Dispelling the myth

by Laura Huth, do good Consulting Principal Trainer & Consultant

The other day, I met a colleague for breakfast to discuss fundraising. She serves on a local non-profit board of directors. In discussing her group’s needs, I asked about her organization’s budget situation, namely what the group’s income was last fiscal year. She thought a moment. “About $600,000, I think,” she replied. “And expenses?” I asked. “Why, the same, of course!” she laughed.

The idea that non-profit organizations cannot earn a profit – or that income and expenses must be exactly the same or that a non-profit cannot ever carry a surplus – is a widespread misconception among non-profit board members, staff, donors, and volunteers.

Just the opposite is true. As we continued to speak, I asked my friend how her non-profit would be able to precisely spend, come June 30, exactly the same amount that came in that fiscal year. “What if on June 29, your group received a $500 check from a donor?” I queried. She scratched her head and admitted she had never really thought about non-profit finances that way.

The distinction between nonprofit organizations and for-profit companies lies in what is done with the profits, not whether there are profits or not. In for-profit corporate settings, "earnings" are distributed to shareholders. In nonprofit settings, these same earnings – called "surpluses" in non-profit lingo – are invested back into nonprofit programs or purposes, retained in an organization's fund balance, or placed in an endowment, but are never distributed to shareholders or board members.

After discussing this further, my friend sighed saying, “So, nonprofit groups really should act like businesses. We should be trying to make a ‘profit’ to help save for the future?” “Bingo!” I replied.

Yes, nonprofit organizations can – and should – earn profits. In fact, nonprofits should strive to do so to ensure financial viability and create a long-term, sustainable organization.

do good Consulting can help your non-profit group profit! Contact us today for a free one-hour consultation.

Profile: A Woman's Place

By Julie Bennington, Community Liaison, do good Consulting

Just after Thanksgiving, I sat down with A Woman’s Fund Executive Director Tami Tunnell to talk about the ins and outs of her organization. First, she clarified for me the differences between A Woman’s Fund and A Woman’s Place: A Woman’s Fund is the administration arm of the organization and A Woman’s Place (AWP) is the programmatic arm, offering a variety of services to survivors of domestic violence, as well as their families. Recently, AWP grew to include the Rape Crisis Services program, a 24 hour hotline for victims of sexual assault. All of A Woman’s Place services and programs are free to its clients.

The Urbana-based domestic violence shelter is not only a safe place for those facing a serious threat in their own home, it is a place residents can rebuild their lives and provide a safe haven for their children. A Woman’s Place offers both individual and group counseling sessions to residents and their children, and runs an advocacy program teaching residents to seize control of their lives. The advocacy program offers families a chance to regain financial security, process court orders, access healthcare, secure transitional housing, and facilitate job placement.

In 2006 alone, A Woman’s Place has served 735 victims of domestic violence and provided 12,001 nights of shelter to 328 women and children. Operating its free services round the clock, it is no wonder that A Woman’s Place’s biggest hurdle is consistent program funding. Tami is optimistic the future will bring more funding and innovative partnerships like the one established with UIUC (pet foster care for victims leaving their abusers). Her dream is that AWP continues to grow and ease the financial burden of abused women in our community. About her 17 years of involvement AWP, Tami commented, “I am so lucky. I go to work everyday and get to help people.”

Want to help? Contact A Woman’s Fund at admin@awomansfund.org or go to www.awomansfund.org. They are always in need of volunteers and donations!