KOFAEL is a Christian non-profit program for women in Haiti. Our program offers microloans to women facing many challenges due to economic and natural disasters that have wiped out their small businesses in the past. KOFAEL is a registered organization through the Haitian government and has 501c3 status through our partnership with Heart of God International Ministries in the United States.

We believe KOFAEL’s overall success and continued expansion is a result of the following:

1. Haitian ownership is vitally important. KOFAEL is a legally registered non-profit in Haiti started by Haitians for Haitians. KOFAEL continues to run primarily through the efforts of trustworthy Haitian directors who genuinely care about the women in the program. It is their faces the KOFAEL members see on the front lines making decisions and moving the program forward. Foreigners have never personally handed the loan money to loan recipients. When this happens the money is almost always seen as a “kado” (gift) instead of a loan. While foreign partnerships are essential to fuel the growth of the program and continued support of the women and families they represent, our goal is to prioritize and uplift the Haitian partnerships working daily on the ground to make this a reality.

2. The loan recipients take personal ownership in their progress as they go to the bank to cash their loan checks and also pay their monthly installments. Many of the women initially come to us with no form of identification. We work in areas of extreme poverty where illiteracy is the majority and progress seems a world away. Acquiring a personal ID card is a big first step even before receiving the first loan in order to cash their check at the bank. KOFAEL members can pay off their loans within the contracted time frame or faster if they are able. Women are empowered by their choice to earn and save and often pay back loans before their allotted time. They bring the bank receipt as proof of payment to the monthly KOFAEL meetings and are able to advance as soon as each consecutive loan is paid off.

3. We now charge interest on loans and keep that as collateral should they not pay back. Initially we did not charge interest but found this to not be beneficial for the sustainability of the program nor helpful to the KOFAEL women we were trying so hard to spare from paying interest. While the interest is kept as collateral until a member completes the program, she is also taught valuable principles about saving. The interest is kept as a savings account for faithful members who pay back their loans. They receive ALL of their “interest savings” money back once they complete payment of the final loan. Saving is difficult for most people but is next to impossible for most families in Haiti due to extreme poverty mixed with social and economic strains. KOFAEL’s interest savings plan teaches the importance and possibility of saving to build upon dreams for the future. The interest savings accumulated throughout the consecutive loan process is greater than the largest loan. They now have a jump start to further progress their business and a means to continue to take care of their families after graduation.

4. Once the money is in the KOFAEL system for a set number of people, it stays there sustainably. As each member pays back their loans, the money is rolled over to the next waiting women for many years to come. There is social accountability among the KOFAEL members, which is also like a club where they buy and sell from one another. It is beneficial for their businesses to be part of the group. KOFAEL is careful to not give new loan installments to more than a set number at a time until after loan repayment. There is pressure from the group to pay off loans in a timely matter so that other members can start and others won’t get stalled.

5. KOFAEL provides health insurance for all of the KOFAEL members who live near areas where this is possible. Illness and lack of affordable health care is the number one reason for default on loan repayment. It is in the best interest for sustainability and out of care for the women that KOFAEL offers to pay 50% of the monthly insurance fees. This is currently an ongoing cost raised through donations.

*KOFAEL’s overhead is extremely low considering the size and expansion of the network reached. Donations are needed to help KOFAEL continue to exist, encourage and expand. Please visit our donation page to learn about what donations cover and to give toward a specific need.