Lingerie Miami

How 7Bar Foundation Works

1. Identify

The Foundation identifies established microfinance organizations which are graded on the following comprehensive criteria which address issues such as:

• Growth
• Mindset
• Scale of Operation
• Poverty Focus
• Structure

Structure + Conduct + Performance = Impact

Defining performance of Microfinance Institutions

		Core Social Issues	Economic/Financial Issues
Global Performance of The Institute	Performance monitoring (intentions and actions of the MFI)	Outreach to the poor and excluded: Who are the clients? Adaptation of the services and products to the target clients Social and political capital of the clients / Empowerment :participation in MFI decision making; “voice” for those being served to avoid “mission drift” Social responsibility of the MFI; relation with client.	Portfolio quality Efficacy and productivity Financial management Profitability Quality and diversity of the financial services offered
	Impact assessment (outcome)	Employment creation for the excluded population Empowerment: position of individuals in their family and communities; social capital building Health improvement Child education, etc.	Change in income and expenditure Change in assets and living standard Food security Employment creation at community level

2. Visit

7Bar Foundation’s microfinance team will visit potential microfinance organizations before creating an official partnership. It is of the utmost importance for Mrs. Black to visit with her team the potential MFI’s and attest that what is on paper is in fact relayed on the field. It is also important that loans are not disbursed without adequate training in order to simply look credible on paper. Once Mrs. Black and her team has visited with the organization, a decision will be made on the most reputable, established and credible organizations whose efforts are reflected in the field.

3. The Loan

7Bar Foundation will loan the MFI the fund for one year. At the end of the initial term, 7Bar Foundation will grade the MFI on certain parameters such as growth, impact, loans disbursed, children impacted, etc. If the MFI has met the grading system requirements, the money is then re-invested in the organization. If the MFI does not pass the grading system then another MFI in Panama is selected to receive the fund.

4. Impact Assesment Report

A comprehensive impact assessment report will be sent to each participant, partner, and attendee in a year’s time detailing the amount of funds raised, how many loans were dispersed, and how many women and children were impacted.