The Relevance and Meaning of Charity in the Context of Microfinance

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989592%3A15310%2F18%3A73592075" target="_blank" >RIV/61989592:15310/18:73592075 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Relevance and Meaning of Charity in the Context of Microfinance
Original language description
Microfinance is a sector which often balances on the business-charity border. In this paper I claim that it is necessary to clearly distinguish between charitable and commercial forms of microfinance. The issue is especially important for (potential) donors to MFIs which rely on fundraising to finance their operations. I therefore propose theoretical parameters for charitable microfinance institutions (MFIs) and for the identification of charitable products: in this proposal, I define such institutions and products based mostly on a so-called normal profit criterion. Due to the difficulty of objectively calculating the level of normal profit, I suggest approximating the level of normal profit in microfinance based on the average prices of products in the commercial banking sector, as well as using other (country-specific) criteria. I also propose a system of product certification for charitable MFIs and charitable microfinance which is aimed at simplifying orientation in the microfinance sector, mainly for donors, but also for clients and other stakeholders.
Czech name
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Czech description
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Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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