Our investments

About 

How do they work?  ​

What We Do

   Community members receive an invitation to participate in Investing Hope's Savings and Entrepreneurship Groups. They learn a new way to save and discuss its advantages and disadvantages. They build their own group of between ten and nineteen people, inviting friends and family members who already trust each other.

   Investing Hope provides the groups with three training sessions over the next two weeks. We explain the program in detail. The group elects its own leadership, develops by-laws and establishes policies. Investing Hope facilitates the group organization but each group determines its own policies. The group is then ready to begin its savings program.

It starts with a Box…

A wooden box with three locks and three keys provides the visual of safety, cooperation and hope as the group builds economic strength.

The program has four main elements:

• Savings  Fund
• Loan Fund
• Solidarity Fund
• Entrepreneurship Fund

• Savings Fund: 

• Decisions:  Each group determines the minimum amount that each person must save every week. This amount becomes the value of one ‘stock’ in the group.  Members can purchase one to five stocks each meeting.   They also decide on a cycle of time after which savings can be withdrawn, unless there is an emergency. At the end of each cycle, the group returns savings and earned income to its members. They can then start another cycle and invite new members to participate.
• Record-keeping:  The group records stock purchases with a stamp in a passbook. Each stamp represents the value of one stock or share. 
• Accumulation:  The funds in the box are the group’s savings.  Groups save at weekly meetings during the first three months and then at bi-weekly meetings until the end of the first cycle. 
• Security:  The savings or stocks are placed in a green pouch which is locked in the box. The box can only be opened in the presence of all members. To ensure this happens, the box has three locks and the keys to each lock are given to three different members of the group. 
• Loan Fund:  
• Purpose: Just like the operation of commercial banks, the group can generate interest on its savings by lending it out to group members or members of the community.  Typically, the group begins to make loans after it has accumulated about $250 US. 
• Decisions: The group determines the interest rate to members and non-members and jointly approves loans. 
• Accumulation: The loans are paid back in monthly payments during the savings cycle.  Interest is collected monthly and placed in the pouch with the savings.  At the end of the cycle, the group counts and then divides the total amount in the pouch (savings and interest payments). The stock value increases with the income from interest.
• Solidarity Fund: 
• Purpose:  This fund provides emergency non-interest loans or donations to group members undergoing hardship.  For example, a member may need to pay her water bill two days before receiving her paycheck.
• Decisions:  Each group determines whether or not to establish a solidarity fund.  This fund requires each group member to make a weekly contribution in a pre-determined amount.  Typically, this contribution is 10 to 20% of the value of a stock.  After receiving the member’s request for a non-interest loan, the group decides the amount and time frame for repayment.
• Entrepreneurship Fund: 
• Purpose: In addition to earning interest from loans, the group can increase their savings through group income-generating activities.  To encourage this, Plan B provides each group with a $50 US non-interest convertible loan. 
• Decisions:  After deciding what a commercial activity they want to develop together, they can use the $50 to purchase materials. Examples include: doing raffles, making and selling lunches or snacks, and selling seasonal products.
• Accumulation:  If the group doubles their investment through this entrepreneurial activity within the cycle, they can keep the $50 or divide it among themselves.