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The Charity Bank for Small Businesses
Project 1: The Power of the Sewing machine
With some experts estimating that the current rate of unemployment in Iraq is as high as 30% we created The Charity Bank for Small Businesses to offer small interest-free loans to finance home-based and commercial employment projects.
The home-based projects we have supported concentrate specifically on what we call The Power of the Sewing Machine. By providing technical and marketing support alongside our interest-free loans we have already encouraged many disadvantaged and unemployed women to support their families independently through their own sewing businesses. 92% of women said that they have seen an improvement to their finances by getting involved in the scheme, where they were able to sell their products at monthly Bazaars held in Baghdad
With your help the second stage in the provisions of our loans will facilitate medium-sized investment projects such as hair and beauty salons and grocery shops.
By buying or donating a share in our Charity Bank you can help create more sustainable jobs and businesses for the future and encourage the sales of local Iraqi produce.
This is an investment that can't fail!
The money that goes in the bank will be re-paid and recycled to help more and more families wanting to work.
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Why does the 1st stage of funding particularly seek to empower women?
Tending to use their profits for the benefit of their children more than men do- we feel women are lower risk borrowers. For this reason they are more likely to be successful in breaking the cycle of poverty inherited from generation to generation. The money they will pay back goes back into the Fund ready to support more women and their family. Widows, women caring for children with disabilities and divorced women take priority, as we seek to help those women who are in most need of our help:
The Power of the Sewing Machine :
Project mechanism:
At its advanced stages the Bank will expand its activities and improve the quality of performance not only by securing the necessary funding. We see this specific project as consisting of 7 main components each interdependent of one another, and requiring the appropriate support and expertise to ensure that every possible benefit of these small business loans are maximized.
Through enhancing the effectiveness of essential business practice in each section, we pave the way for the healthy expansion of these textile based industries. Here is a brief explanation of what each section accomplishes
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- The Charity Bank – The provision of interest free funds that are recycled back into the bank ready to help more women of course is the principle objective of the Charity Bank, but it cannot benefit without the following:
- Marketing and Advertising - Most recently, we have helped women market their products by arranging to exhibit their clothes in our own Charity Bazaars. This has increased the demand for their products, ensuring a steady source of income for themselves and their families
- Purchases and Donations – This department deals with allocating the raw materials needed for the women to start their work. Through purchases or charoitable donations we try to source materials, threads and all relevant accessories that are vital to the production process.
- Design, Production Programme and Maintenance – This department deals with the business strategy and product design. In our office in Baghdad there are friendly members of our staff that can be approached by our affiliated charities if there is a problem with any of the sewing machinery. Our technical support gives these new business men women the ability to go ahead with their jobs in confidence.
- Mangement, Accounting and IT - With our contacts in the relative fields, we will provide management, accounting and IT services as the sewing businesses expand and require such skills.
- Affiliated Charities - Because The Iraqi Charities Forum does not provide services directly to those in need, but acts as an umbrella organisation that seeks to provide its services through other Iraqi charities, the forum has made a strategy and a work plan that focuses on involving affiliated non-governmental charity organizations in achieving such projects. The Bank does not provide funding to any charities for the distribution to women unless they win our sufficient trust and confidence in their practices. All organizations must be members of the Iraqi charities Forum and meet our eligibility criteria.
- Production Cells- This is the easy part- by providing interest free loans, and a means to success, by putting in place a strict system of interviewing and assessing potential business owners, we only help those in most need and eager to work for their survival. In the case of all enthusiastic unemployed Iraqis waiting to work again, and those who donate to the Bank- this is an investment that can’t fail!
What is the number of small projects which the Bank contributed to finance so far?
At the beginning of its launch in June 2010, and within a short period of time, the Bank was able, at a first batch, to offer 42 interest-free loans and reached the total amount of the 9000 U.S. dollars for 42 small projects benefiting 42 widows and divorcees from the inhabitants of a poor district on the outskirts of BAGHDAD (Algraiaat). 42 sewing machines were bought and partitioned between domestic and industrial usage, this was in addition to fabrics, equipment and required supplies which were provided. For more details you can visit the following links:
ICF distributed 42 Sewing Machines through the Charity Bank for Small Businesses Project
ICF Helps Women Market their Products from the Charity Bank for Small Businesses Project
 With the Iraqi Charities Forum Support they will make products that will go under our Iraqi Home Products Label, and be sold in the monthly Charity Bazaars we have already started to hold. For more information follow our news stories:
Iraqi Charities Forum Hold a Market in Baghdad for the Charity Bank for Small Businesses!
What are the future prospects of the Bank?
The Charity Bank for Small Businesses hopes to support small projects to employ the largest possible number of widows, divorced women, the disabled who are able to work and the poorest of those wanting to support their families in need. In the near future, the Bank hopes to lend 1000 loans in the field of micro-projects that fall within the scope of the Textile Products Project: The Power of the Sewing Machine” and that is in 1 year time.
Moreover, the aspirations of those responsible of the Bank do not stop at a certain extent, in the event of the availability of funding to go ahead and employ thousands of families in need.
- The Bank will consist of 250 million Iraqi Dinars (I.D.) divided into 2500 shares.
- Iraqi Charities Forum has already contributed 50 million Iraqi dinars (nearly £28,000)
- 200 million I.D (£111,000) is yet to be allocated.
- 1 Dividend Share = 100,000 Iraqi Dinars = £55*.(according to the exchange rate on 07/08/10)
- We are appealing to allocate 2000 SHARES which we estimate will help start up around 1000 small business.
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How can you contribute to support the Bank?
Whether you are an individual or an institution, give donations and grants to the Bank by clicking here:
You can also provide interest-free loans to the Bank to be returned to you within the time periods that suit you or that you wish, as guaranteed by Iraqi Charities Forum.
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