Trickle Up

Trickle Up is a nonprofit international development organization that empowers people living on less than $1.25 a day to take their first steps out of poverty by providing them with resources to build microenterprises for a better quality of life. Trickle Up is unique among microfinance agencies in that it provides seed capital grants for microenterprises as opposed to loans. Trickle up also helps create sustainable economic empowerment by providing microenterprise training and helping participants connect with savings and loan groups.

Focusing particularly on reaching women, who comprise 70% of the world's poorest, and people with disabilities, who comprise 20% of the world's poorest, yet are critical to breaking the cycle of poverty, Trickle Up currently works in five countries: India, Mali, Burkina Faso, Guatemala, and Nicaragua.

History

Founded in 1979 by Glen Leet and Mildred Robbins Leet, Trickle Up has been providing people in extreme poverty the assets to create a sustainable livelihood and a better quality of life for nearly 30 years.

Trickle Up was born when the Leets traveled to one of the Caribbean’s poorest nations, Dominica, where they recognized what other poverty alleviation programs were missing: even the world's lowest income people have entrepreneurial potential. The model they created was simple and effective. With the assistance of local agencies and $1000 of their own money, Glen and Mildred gave ten people grants of $100 to launch their own microenterprises. The Leets provided them with Trickle Up business plans and reports to track business expenses and earnings. New business activities ranged from building blocks to selling eggs, jams, and school uniforms. Some of those businesses are still operating today. Results are overwhelmingly positive in terms of quality of life improvements for the participants.

Program

Trickle Up provides enterprise training, seed capital grants, and savings support implemented through our local partner organizations to help people living in extreme poverty launch or expand a sustainable microenterprise.

Trickle up works closely with local partner agencies that are active and trusted in the regions where Trickle Up programs are located to help people in extreme poverty improve their families’ quality of life. Once a participant has been identified, Trickle Up works with its local partners to provide business training, a seed capital to start or expand a business, and membership in a savings groups.

In addition to the seed grant, Trickle Up teaches people the skills they will need to run successful and profitable microenterprises, such as keeping records, balancing accounts, and reinvesting profits in their businesses. A vital, final piece of the Trickle Up program is connecting participants with savings groups to encourage participants to save money for the future. Trickle Up participants may turn to savings in the case of a medical emergency. Others might draw on these funds to expand a business. No matter what, having savings means that families who once lived hand-to-mouth are better prepared for whatever life hands them.

Trickle Up starts or expands more than 10,000 microenterprises each year. Of every $1 Trickle Up spends, 80 cents goes to programs and services.

Successfully moving out of Poverty: There are six benchmarks that Trickle Up considers significant in helping move people out of extreme poverty:

1. They are less vulnerable to shocks and trends.
2. Their livelihood activities are dignified, diversified, productive, and sustainable.
3. They have a fair and effective means to save and access credit.
4. There is improved access to available basic social services.
5. They enjoy a better quality of life including improved food security.
6. They have made significant progress toward economic and social empowerment.

Trickle Up also continues to work with local partner organizations to provide participants with additional business support services, including links to ongoing sources of capital like microcredit.

Grants versus loans

Trickle Up offers grants, not loans, because it targets the extreme poor, people living on less than $1.25 a day, who, for a variety of reasons, are unable to obtain a microloan or otherwise access traditional financial services.

Leadership

William M. Abrams is the President of Trickle Up. Mr. Abrams joined Trickle Up following a career as a senior executive and journalist for The New York Times, ABC News, and The Wall Street Journal.

Funding

Trickle Up is funded by individuals, corporations, and government and multilateral organizations, including USAID and the International Finance Corporation of the World Bank.

Affiliation

Trickle Up has held Special Consultative Status with the United Nations Economic and Social Council since 1987.

Accountability

Trickle Up is given high ratings by charity watchdog, Charity Navigator, for its efficient and effective use of funds. Eighty cents of every $1 donated goes directly to program support.

References

1. Trickle Up Financial Statement 2009
2. Trickle Up Annual Report 2009
3. Independent Charities, America. "Trickle Up Program, Inc." Independent Charities of America Website retrieved 04/16/08
4. Independent Charities of America ICA
5. The Charity Navigator Website
6. Vimala Palaniswamy, "Grants versus Loans"
7. Fall 2009 Trickle Update
8. Trickle Up catalogued
9. UNESC Special Consultative Groups

External links

• Trickle Up Website
• The Charity Navigator
• Independent Charities of America Website