h3o Due Diligence - Humans Helping Humans

h3o Due Diligence: FAQ
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Why loan with h3o?.
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Every $ that you lend goes to your end borrower of your choice. h3o is self sustaining
separate from loan donations. It manages it own administration and costs through
volunteerism, grants and donations.
h3o offers an “ongoing connection” with the borrower through email update journals
every 8-10 weeks. This includes the status of the loan repayment and the impact your
loan is having on the family or group.
One of the major attractive features is the RE CYCLABILITY of the initial loan due to
the high success of micro credit loan repayments (95% Grameen Bank)
h3o only partners with NGO’s and MFI’s that have the highest ratings for good
governance and transparency in all of their activities, as well as a high peer rating in their
country of origin/work.
Your $100 initial loan could impact 10 working poor families in five years if you chose
to keep lending upon repayment of each loan. The ripple effect of one single $100 loan
payment is truly amazing.
What is h3o and what is your mission (link) and beliefs?
h3o is a 501c3 registered non profit organization in the State of North Carolina. (2004).
h3o believes that global poverty exists, in large part, because people are opportunity deprived.
People with no access to collateral are willing to work hard and make sacrifices to better
themselves, and they have the industry and the intelligence to do so. Across the globe all parents
want the best for their children. What the poor lack is opportunity. Micro loans are one very
effective way to provide that “missing” opportunity.
Our mission is to eradicate poverty and hunger for the rural working poor. h3o’s focus is building
local infrastructure at the village level through grass roots initiatives, life skills, small business
training, and micro credit loans.
h3o is about mobilizing and connecting those with plenty and empowering them to make a
difference….providing those in need the “chance” to be the author of their own lives…..breaking
the circle of poverty, through small micro credit loans.
How do I know my money goes to the client?
h3o only partners with MFI’s and NGO’s that have the highest ratings for good governance,
accounting and rigorous transparency in all their activities, as well as a high peer rating in their
own country. They are also locally run and locally controlled. All activities, business projections
and annual reports are publicly posted on both h3o and PenKenya’s web site. (link)
Every transaction is documented and communicated between both parties. More specifically, h3o
and PENKenya exchange itemized reports detailing specific transactions of all disbursements,
distribution and loan repayments.
Every six months a h3o member will actually visit with Pen Kenya on site and meet the clients as
well as review business practices and operational integrity.
How does h3o manage its administrational/operational costs?
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Every $ that you lend goes to your end borrower of your choice. h3o is self
sustaining separate from loan donations. It manages it own administration and
fund raising costs through volunteerism, grants and donations.
What is h3o’s criteria for partnering with MFIs and NGOs? How can I trust that
they are legitimate?
NGO/MFI Loan applicants must provide the following information and comply with the
following criteria:
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Independent audit reports covering at least the two most recent years
Business plan with three years of financial projections
Credit rating report or other similar external evaluation/recommendation
Operationally self-sufficient or demonstrate a clear plan to achieve operational selfsufficiency
For MFI’s, financial and operational profile at The MIX Market the microfinance
industry's clearinghouse for standardized information about the financial strength and
performance of MFIs
If I want my money returned to me, how will I get it back?
Upon completion of the loan, each lender will receive h3o credit on their account. You can
choose to RE CYCLE the amount to another lender in need, donate to h3o, or receive credit back
on your credit card.
What is the loan repayment success rate? (Grameen standard )
The Grameen bank in Bangladesh has a success rate of 95%. However, a major variable
in the success rate is how well the MFI runs its programs. There is considerable variation
in the type, scale, professionalism and transparency of the 7,000 MFI’s operating in
developing countries. However, the success rate is high, usually 90% or higher.
How do I get updates on my loan status?
As borrowers repay the loans the MFI partners will post repayments to the website. Repayments
will be made in periodic installments, contingent on the loan terms. Upon successful completion
of the loan, lenders will receive h3o credit into their h3o account. Secondly, short journals will be
posted every 8-10 weeks with information on how each loan is progressing as well as any
challenges and successes the client is experiencing.
Can I donate to h3o instead of lending?
h3o accepts donations and these are tax deductible, unlike the individual loans.
Is my loan tax deductible?
Because you are making a loan and not donating money you are not eligible to receive a tax
deduction.
Does h3o accept business/corporate sponsorship?
h3o accepts business and corporate sponsorship and will forward our Articles of Incorporation
and IRS 501c3 articles upon request.
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