Microloan Repayment Success for Mercy Foundation Demonstrates An Effective Way to Alleviate Poverty Using Bargain Sale Real Estate Donations
Mercy Foundation is a charitable organization that has had many successes in providing funds for microloans that help alleviate poverty in the world within vulnerable communities. Charitable donations are made through bargain sale real estate.
Online, June 28, 2013 (Newswire.com) - The Mercy Foundation, a charitable organization that acquires properties through bargain sale real estate and provides microloans to small businesses in developing countries, is pleased to announce that two of its borrowers have achieved the financial and business growth that will enable them to lead more independent lives. Those who provide commercial, industrial or retail real estate donations through a bargain sale receive a small cash transaction and a significant tax-deductible donation for the property in which the proceeds are then turned into interest-free loans to organizations that provide microloans to underprivileged entrepreneurs around the globe.
One of these entrepreneurs is Analiza, a clothing entrepreneur in the Philippines, had been self-employed for twenty years and has been running her business with the help of microloans some of which were made available through bargain sales. She singlehandedly runs a second business selling rice and pig fattening - the profits of which go towards supporting her family. Analiza had dreams of putting her entrepreneurial talents to use by expanding her business and purchasing more clothing products and increasing her line of groceries and finding a sustainable solution to poverty. She put her ideas into practice by applying for a microfinance loan, which Mercy Foundation supported.
Analiza has since been able to turn her businesses into a general store, which she now runs and manages. She has significantly increased her profit margin and has repaid her microloan in full. This a clear win for Analiza and a proud day for Mercy Foundation and those who donate real estate through a bargain sale.
The charity's second success story comes from Drary Ashirafu in South Sudan. Drary is a forty five-year-old mother of five, whose children are all in full time education. She has supported her family by running a small grocery store selling flour, rice and drinks but has continually had to battle against inflation of market prices that create and impact poverty in her community. Drary used her business acumen to apply for a microloan- made possible with funds from Mercy Foundation, in order to get one step ahead of the market and expand her profit margin. She has now been able to do this and has made a 100% loan repayment.
The charity immediately recognised Analiza and Drary's potential as sound business people, and provided the microfinance for them to be able to realize their business goals. Derick Sutton, Director of Business Development for Mercy Foundation, describes how impoverished communities can thrive with the right support from non-profit organizations. "It's important to tap into the business talent that exists in poor communities, in order to break the cycle of dependency."
Mercy Foundation has provided microloans to over 2,700 people around the globe in order to create sustainable opportunities for those suffering under economic hardship, and offer safe financial assistance for those who are vulnerable. They receive no interest on these microloans but are able to use the repaid loans to fund additional microloans for underprivileged entrepreneurs around the world. So, just one tax deductible donation to Mercy Foundation through a real estate bargain sale has an exponential impact on poor communities around the globe.