Preface
Today, we know that the non-profit institutions are central to American society and are indeed its most distinguishing feature.
...the ability of government to perform social tasks is very limited indeed...the non-profits exemplify and fulfill the fundamental American commitment to responsible citizenship in the community.
...it is central to quality of life in America, central to citizenship, and indeed carries values of American society and of the American tradition.
...non-profit is not just non-governmental. It is that they do something very different from either business or government.
Its product is the changed human being. The non-profit institutions are human-change agents.
...non-profit institutions themselves know that they need management all the more because they do not have a conventional "bottom line"...they need management so that they can concentrate on
— their mission;
— on the very different role that the board plays
— on the need to attract volunteers, to develop them, and manage them for performance;
— on relationships with a diversity of constituencies;
— on fund-raising and fund development;
— and on the problem of individual burnout, which is so acute in non-profits precisely because the individual commitment to them tends to be so intense.
...the non-profit institution has been the resounding success in the last forty years...it is the "growth industry" of America...America's "Civil Society"...
...non-profits face very big and different challenges:
1) to convert donors into contributors; giving is necessary above all so that the non-profits can discharge the one mission they all have in common: to satisfy the need of the American people for self-realization, for living out our ideals, our beliefs, our best opinion of ourselves.
2)to give community and common purpose: non-profits are the American community... they increasingly give the individual the ability to perform and to achieve.
Thursday, February 17, 2011
Tuesday, February 15, 2011
Kuleana Micro-Lending formal proposal for Island Innovation Fund
Kuleana Micro-Lending
Executive Summary
By providing micro-loans up to $5,000 and creating an on-line network of “community resources” to support incipient entrepreneurs not served by traditional lending institutions, Kuleana Micro-Lending seeks to enhance income-generating opportunities and self-esteem for Hawai'i residents living in poverty.
The social networking component will be a dynamic entity that will communicate activity, engage individuals, and educate/transform the community. By sharing the stories of our clients, members of the community will be attracted to participate in the Kuleana experience.
The Kuleana experience begins with a unique application process that immediately introduces clients to behaviors and positive feedback aimed to reinforce their self perception – “I can do this.”
Micro-loans of up to $5,000 will be offered to clients not served by traditional lending institutions and who Kuleana has determined can make positive strides with this opportunity.
We will leverage clients' stories with an on-line platform, connecting to existing social networks to reach a broad and diverse audience, and create a ”service network” made up of members of the community to help clients start, grow, and maintain their businesses.
With social service funding on the decline, it is imperative to provide an alternatively funded and community-based means to assist those living in adverse financial circumstances. Access to credit is a fundamental tool that empowers individuals to improve their lives. Taking out a loan to start or expand a business is one way people can become less dependent on social services and become more productive, contributing citizens. Small business creation is a recognized pathway to self-sufficiency. People are able to utilize their skills, talents, and aptitudes when they start their own businesses and can fully realize the fruits of their work. The direct relationship between working hard and increasing income, the flexibility of creating one's own schedule, and the inherent enjoyment of working at a job they love sets the stage for becoming self-sufficient. Undertaking a small business can be done in place of or in conjunction with other traditional strategies for exiting poverty (i.e. work, education); therefore it is a powerful tool for Hawaii’s social sector which has seen limited effectiveness lately due to high unemployment, education costs, and child care constraints that affect a person’s ability to break out of poverty through traditional means.
The Kuleana Micro-Lending program intends to help coordinate and leverage as many existing services as possible. Our community partners— Partners in Development, Catholic Charities— will help identify potential clients and coach them through the initial application.
To implement the Kuleana experience we will form application and loan review committees which will focus on a set of non-traditional metrics. Loan terms will be customized for each particular client. We intend to keep the loan interest rate at 7.5% with a loan term of 24-36 months and a grace period of up to three months.
Existing service organizations with various specialties will be tapped for additional support where needed.
A website will be created to host client profiles and connect to existing social networks for the purpose of broadcasting activity and attracting community involvement. This net presence allows for participation by a broad community of people that does not have the constraints normally placed on individual service organizations and their limited staffs and budgets. This plan is essentially modeled on the teamwork concept of the ahupuaʻa —the responsibility of a community's well-being is dependent on all the members of the community supporting each other, regardless of what each individual's contribution may be.
As a client fulfills their obligations through the Kuleana experience, continued storytelling on the website and through the social networks will allow for the community to stay engaged, continue to attract new resources, mentor/coach the client, and provide ongoing inspiration.
Description of Organization/Mission
Kuleana Micro-Lending seeks to create empowered citizens who are increasingly productive and contributing members of society. To achieve this goal we will provide small loans up to $5,000 for incipient businesses that will generate income for borrowers generally living in poverty and who, therefore, are not served by traditional lending institutions. In addition, borrowers will receive mentoring and/or business support services from a network of resources connected by a central web presence. Borrowers will be referred to Kuleana by social service organizations with whom we will establish Memoranda of Agreements to delineate respective and reciprocal duties and responsibilities. Borrowers must have a household income below 150% of the poverty level, defined as $38,565 for a family of four, according to the Federal Register (Vol. 76, No. 13, January 20, 2011.)
Micro-lending is only one instrument for dealing with homelessness and/or poverty. This program emphasizes borrowers taking control of their lives and improving self image as much as raising their earnings potential. The program will also foster a better understanding of poverty by the general public and highlight how citizens can support the broader community.
We are establishing a new organization based on previous efforts at micro-lending both in Hawai’i and around the world. The first year is set up as a pilot program— a time to refine and adapt our approach and procedures as needed for maximum success based on our own experiences with the first year clients.
We expect to select three to five clients out of a pool of candidates indentified by our community partners for the pilot. We also expect the social networking component to be in place, in a simplified form, within 30 days of funding.
Significance of Innovation/Program
Our initial innovation is establishing a local micro-lending organization that understands the unique needs and cultures in Hawaiʻi. Operational capital will be acquired through on-going grant applications, modest interest rate charges on loans, and micro-donations from the service network. To identify potential borrowers we will work closely with our "community partners", (Partners in Development— our fiscal sponsor, and Catholic Charities) and small business support programs. These entities understand that income generation is key to stabilization for all individuals and families, especially for populations that have barriers to traditional employment.
The second innovation we offer is the loan application process itself. The Kuleana experience is structured as a multi-tiered process comprised of partner organizations, a “service network” of individual donors and contributors of services (lawyers, accountants, business people/students, graphic designers, etc.), and a four phase application process that connects the parts together.
Once referred by a partner agency, the first step will be to have the prospective borrower fill out the first part of the loan application (Phase I) to describe their basic business idea as well as to provide personal information and employment history. This will enable us to assess the soundness of their idea as well as gauge their basic level of interest and commitment. All applicants that complete this phase will continue on to Phase II.
• In Phase II, the Application Review Committee will require references and a basic business plan prepared with the help of an assigned mentor, if necessary. Advisors and mentors will come from the “service network” (see below). A profile will be established on the Kuleana website so that borrowers’ stories can be shared, and they can connect with the service network.
• Upon completing Phase II, the Loan Review Committee will determine the loan terms (Phase III) and the type of support the client will need in the short term, intermediate term, and long term to see their business through to success. Depending on the strength of the application we will reserve the option to divide the loan into sequential segments. We anticipate the time from initial referral to actual funding can be as short as six to eight weeks.
• If the borrower is successful in paying back the initial loan and fulfilling all of the obligations (attending meetings, communication with mentor, attendance at basic business classes, savings account etc.) they can then apply for another loan (Phase IV).
• If at any time a client fails to meet the terms of a Phase, they will be referred to an appropriate service organization, or the service network, for assistance in meeting the objectives of a Phase.
The third and perhaps most significant innovation of Kuleana Micro-Lending is the enabling of the community to participate in our 'service network'. Client profiles hosted on the Kuleana website will highlight stories, successes, and current needs that can be met by members of local and online communities.
By taking advantage of already available mechanisms to 'signal' existing online social networks (Facebook, Twitter, tumblr, etc.), a single person’s participation can serve as the catalyst to make their network of peers aware of opportunities and actions that can be taken to support other people in their communities. In these ways, our clients will also have access to a wider pool of support than is currently possible in traditional social service agencies and for a period that extends well beyond that of the loan itself.
The culture of Hawai’i is highly networked and viral by nature. No matter the issue, someone knows someone else who can help, or has a friend with experience in this specific situation. Network participants can experience personal growth of their own by understanding the barriers to income generation, and they can participate directly or indirectly by offering their knowledge and expertise, or in the backfunding of loans (i.e. donating money to the site in order for more loans to be offered).
By tapping into traditional media outlets’ — radio, TV, newspapers, magazines— Kuleana will also be presented to interested individual citizens who view micro-lending, individual empowerment and broad community support as an extension of their values.
Testing Demand for Innovation/Program
It is estimated that global demand for micro-credit is upwards of $300 billion, of which less than 10% has been met. Organizations such as Grameen and Kiva have been pioneers in this field and have changed many people’s impressions of whether people living in poverty can handle money responsibly and then use it to significantly improve their standard of living. As documented in a recent Newsweek article, Grameen has started to provide individual loans of up to $1,500 to groups of women in Brooklyn with widespread success. In Kiva’s case, they encourage participation of donors by utilizing a central website to collect loan contributions via storytelling. Since October 2005 they have provided, through their field partners in fifty-eight countries, close to $200 million in loans to people living in adverse financial circumstances with a repayment rate of 98.93%.
According to the Honolulu Star Advertiser, more than 156,000 people lived below the poverty line in Hawaii in 2009. This is equivalent to about 40,000 families (assuming a family of four)— ample demand if even a small percentage were interested and/or qualified. While available to all individuals and families living in poverty, the Kuleana Micro-Lending program is expected to be particularly helpful to two important sub-groups— the working poor and those who have fallen into poverty from the middle class.
By improving a person’s or a family’s standard of living and subsequently their sense of self-sufficiency, we hope that it will also improve their self-image. When these stories of success are shared with the broader public, we also foresee the general perception of people living in poverty improving as well, as has been the case with both Kiva and Grameen.
Given the rapid growth and success of these two global organizations, as well as the increased number of inquiries to local programs provided by the Office of Hawaiian Affairs and Pacific Gateway, we feel the demand for this type of service in Hawai’i is significant, achievable, and in need of other players in the field. We would like to form symbiotic relationships with these organizations as we collectively address the goal of providing micro-loans to our respective and overlapping constituencies throughout O’ahu.
Growing the Impact of Innovation/Program
We will initially be working with our primary community partners— Partners in Development and Catholic Charities— but we hope to be able to take on clients from other social service organizations (such as KEY Project, US VETS, Ulu Ke Kukui, Honolulu Community Action Program, etc.) as long as they are willing to sign on to our Memorandum of Agreement regarding their responsibilities in this process as well.
We are in discussions with the Finance Club at the University of Hawai’i Shidler School of Business as well as with the Hogan Entrepreneurial Program to provide advisors and mentors to our organization and/or volunteers in counseling the entrepreneurs through the business plan development and implementation stages. We plan to contact the UH Pacific Asian Center for Entrepreneurship for these same purposes.
There are also many opportunities to create partnerships with public and private schools to encourage their students and teachers to get involved at various stages of the application and implementation process, whether it be assisting the mentor and borrower in developing the business plan, fundraising, telling the story of a borrower to prospective donors through video or writing, or helping to promote the business through various other social media. Hopefully this process will also connect the schools to each other in ways they may not have done so before.
To grow the social network, we will continue to do off-line promotions through traditional media; public relations and marketing; presentations at civic groups, schools, universities, and churches; and conversations with interested individuals. On-line promotions will rely on leveraging existing site members’ social networks.
Responsible Parties Comprising Program
While on sabbatical through August 20011, John Cheever will serve as the full time Executive Director of Kuleana Micro-Lending.
Other members of Kuleana Micro-Lending include:
• Benjamin Ancheta, Chief Operating Officer, ProService Hawaii;
• Rona Fukumoto, Director of Intake, Catholic Charities Hawaii;
• Fran Gendrano, Principal Broker, KFG Properties;
• Kimberly Horan, Human Resources Consultant, ALTRES;
• Jessica Horiuchi, Executive Director, Alaka’ina Foundation;
• Kevin Kawahara, Software Development Manager, Punahou School;
• Yvette Maskrey, District Manager, Honeywell International;
• Michael Morales, Executive Director of the Center of Excellence and Enterprise Program Management Office, Hawaiian Telcom;
• Lorene Yap, former manager of Country Economics Division for Bangladesh, Pakistan, and Sri Lanka, World Bank.
Our board of directors, with their diverse professional experiences and background, are capable of playing all key roles during this initial phase, (business development, legal, technical, social service expertise), and will continue to provide the main oversight and quality control to ensure Kuleana’s success.
All board members will serve on a strictly volunteer basis.
A program administrator will be hired prior to August 2011 to support the daily operations
Additional paid staff will be hired as required by the growth and success of the program.
Our fiscal sponsor, Partners in Development, will be available for consultation, and brings over 13 years of local non-profit and social service experience.
Sustainability of Innovation/Program
To maintain a capital base so that we can continue to make loans in a timely manner to worthy borrowers, we will continue to apply for grants from a wide variety of foundations and organizations and solicit donations from local and international civic organizations. Members of our service network will be able to backfund loans (i.e. donating money to the site for the purpose of making more loans), inspired by the success and progress of existing clients.
In one year we would like to have given out three to five loans in support of business plans that have been successfully implemented, and that none of the loans are delinquent, if not paid back entirely.
For the social networking component, we would like to see a steadily increasing number of members registering and taking action each month; and once registered, exhibiting repeated and more active participation. We also want to see a wide variety of members from different professions, of all ages, and both genders. Gauging the daily traffic to the site will determine whether this site has actually become a dynamic and viable asset to the community.
After one year, we expect to be able to constructively evaluate our pilot in order to have a sound working model for the future. By surveying the recipients of loans and community support we hope to be able to witness an improved self-image. The amount of traffic to the site and number of active and passive participants in the program will enable us to infer the changing perceptions of the broader public.
Appendix
A hypothetical Kuleana client/engagement:
The Honolulu Advertiser ran an article last year (“Can it do that?” 4/11/10) which profiled the Chong family. The husband had worked as a mechanic for his entire working career, including the previous five years with his most recent employer, when he was laid off. Unable to find new employment, and despite his wife’s salary working at a 7-11, they could not pay their rent and were subsequently evicted by their landlord. Faced with homelessness they had no choice but to move in with extended family.
The Chongs went to Catholic Charities for help finding more permanent housing and counseling on how to manage their finances more efficiently. These traditional services helped to stabilize their living arrangements and finances, but Mr. Chong’s employment status did not change. Had Kuleana Micro-Lending been a resource for Catholic Charities at that time, another option would have been available to help improve their situation.
With his skill set and experience, Mr. Chong has the makings to become a successful mobile mechanic. However, lacking current employment and credit, Mr. Chong would have been unable to secure a loan from a traditional bank. Having never run a business, he would not have known where to start. Catholic Charities could have referred this case to Kuleana Micro-Lending and helped him complete Phase I of the loan application process.
Kuleana’s application review committee would do some basic research to investigate the viability of this idea: mobile mechanics, according to Craigslist, charge approximately $50/hour, well above the living wage for Hawai’i ($35.95 for two adults and two children). An Internet search reveals that the start-up costs of a set of mechanic's tools (approx. $350 for a 302 pc. set of Craftsman mechanics tools), a multimeter ($250), a diagnostic scanner ($500), a vehicle to get to the jobs ($2,000-$3,500), a cellular phone ($100) so customers can call, and a flat-rate manual ($60) for determining job charges bring total start-up costs, including a car to between $3,260-$4,760; without the car = $1,260. A micro-loan of under $5000 could have meaningful impact to this family’s life.
Additional support from our service network, made up of potential customers, other mechanics, entrepreneurs, and community members interested in seeing a family succeed would be available to provide important advice on business practices, various insights, word of mouth marketing, and simply encouragement.
Executive Summary
By providing micro-loans up to $5,000 and creating an on-line network of “community resources” to support incipient entrepreneurs not served by traditional lending institutions, Kuleana Micro-Lending seeks to enhance income-generating opportunities and self-esteem for Hawai'i residents living in poverty.
The social networking component will be a dynamic entity that will communicate activity, engage individuals, and educate/transform the community. By sharing the stories of our clients, members of the community will be attracted to participate in the Kuleana experience.
The Kuleana experience begins with a unique application process that immediately introduces clients to behaviors and positive feedback aimed to reinforce their self perception – “I can do this.”
Micro-loans of up to $5,000 will be offered to clients not served by traditional lending institutions and who Kuleana has determined can make positive strides with this opportunity.
We will leverage clients' stories with an on-line platform, connecting to existing social networks to reach a broad and diverse audience, and create a ”service network” made up of members of the community to help clients start, grow, and maintain their businesses.
With social service funding on the decline, it is imperative to provide an alternatively funded and community-based means to assist those living in adverse financial circumstances. Access to credit is a fundamental tool that empowers individuals to improve their lives. Taking out a loan to start or expand a business is one way people can become less dependent on social services and become more productive, contributing citizens. Small business creation is a recognized pathway to self-sufficiency. People are able to utilize their skills, talents, and aptitudes when they start their own businesses and can fully realize the fruits of their work. The direct relationship between working hard and increasing income, the flexibility of creating one's own schedule, and the inherent enjoyment of working at a job they love sets the stage for becoming self-sufficient. Undertaking a small business can be done in place of or in conjunction with other traditional strategies for exiting poverty (i.e. work, education); therefore it is a powerful tool for Hawaii’s social sector which has seen limited effectiveness lately due to high unemployment, education costs, and child care constraints that affect a person’s ability to break out of poverty through traditional means.
The Kuleana Micro-Lending program intends to help coordinate and leverage as many existing services as possible. Our community partners— Partners in Development, Catholic Charities— will help identify potential clients and coach them through the initial application.
To implement the Kuleana experience we will form application and loan review committees which will focus on a set of non-traditional metrics. Loan terms will be customized for each particular client. We intend to keep the loan interest rate at 7.5% with a loan term of 24-36 months and a grace period of up to three months.
Existing service organizations with various specialties will be tapped for additional support where needed.
A website will be created to host client profiles and connect to existing social networks for the purpose of broadcasting activity and attracting community involvement. This net presence allows for participation by a broad community of people that does not have the constraints normally placed on individual service organizations and their limited staffs and budgets. This plan is essentially modeled on the teamwork concept of the ahupuaʻa —the responsibility of a community's well-being is dependent on all the members of the community supporting each other, regardless of what each individual's contribution may be.
As a client fulfills their obligations through the Kuleana experience, continued storytelling on the website and through the social networks will allow for the community to stay engaged, continue to attract new resources, mentor/coach the client, and provide ongoing inspiration.
Description of Organization/Mission
Kuleana Micro-Lending seeks to create empowered citizens who are increasingly productive and contributing members of society. To achieve this goal we will provide small loans up to $5,000 for incipient businesses that will generate income for borrowers generally living in poverty and who, therefore, are not served by traditional lending institutions. In addition, borrowers will receive mentoring and/or business support services from a network of resources connected by a central web presence. Borrowers will be referred to Kuleana by social service organizations with whom we will establish Memoranda of Agreements to delineate respective and reciprocal duties and responsibilities. Borrowers must have a household income below 150% of the poverty level, defined as $38,565 for a family of four, according to the Federal Register (Vol. 76, No. 13, January 20, 2011.)
Micro-lending is only one instrument for dealing with homelessness and/or poverty. This program emphasizes borrowers taking control of their lives and improving self image as much as raising their earnings potential. The program will also foster a better understanding of poverty by the general public and highlight how citizens can support the broader community.
We are establishing a new organization based on previous efforts at micro-lending both in Hawai’i and around the world. The first year is set up as a pilot program— a time to refine and adapt our approach and procedures as needed for maximum success based on our own experiences with the first year clients.
We expect to select three to five clients out of a pool of candidates indentified by our community partners for the pilot. We also expect the social networking component to be in place, in a simplified form, within 30 days of funding.
Significance of Innovation/Program
Our initial innovation is establishing a local micro-lending organization that understands the unique needs and cultures in Hawaiʻi. Operational capital will be acquired through on-going grant applications, modest interest rate charges on loans, and micro-donations from the service network. To identify potential borrowers we will work closely with our "community partners", (Partners in Development— our fiscal sponsor, and Catholic Charities) and small business support programs. These entities understand that income generation is key to stabilization for all individuals and families, especially for populations that have barriers to traditional employment.
The second innovation we offer is the loan application process itself. The Kuleana experience is structured as a multi-tiered process comprised of partner organizations, a “service network” of individual donors and contributors of services (lawyers, accountants, business people/students, graphic designers, etc.), and a four phase application process that connects the parts together.
Once referred by a partner agency, the first step will be to have the prospective borrower fill out the first part of the loan application (Phase I) to describe their basic business idea as well as to provide personal information and employment history. This will enable us to assess the soundness of their idea as well as gauge their basic level of interest and commitment. All applicants that complete this phase will continue on to Phase II.
• In Phase II, the Application Review Committee will require references and a basic business plan prepared with the help of an assigned mentor, if necessary. Advisors and mentors will come from the “service network” (see below). A profile will be established on the Kuleana website so that borrowers’ stories can be shared, and they can connect with the service network.
• Upon completing Phase II, the Loan Review Committee will determine the loan terms (Phase III) and the type of support the client will need in the short term, intermediate term, and long term to see their business through to success. Depending on the strength of the application we will reserve the option to divide the loan into sequential segments. We anticipate the time from initial referral to actual funding can be as short as six to eight weeks.
• If the borrower is successful in paying back the initial loan and fulfilling all of the obligations (attending meetings, communication with mentor, attendance at basic business classes, savings account etc.) they can then apply for another loan (Phase IV).
• If at any time a client fails to meet the terms of a Phase, they will be referred to an appropriate service organization, or the service network, for assistance in meeting the objectives of a Phase.
The third and perhaps most significant innovation of Kuleana Micro-Lending is the enabling of the community to participate in our 'service network'. Client profiles hosted on the Kuleana website will highlight stories, successes, and current needs that can be met by members of local and online communities.
By taking advantage of already available mechanisms to 'signal' existing online social networks (Facebook, Twitter, tumblr, etc.), a single person’s participation can serve as the catalyst to make their network of peers aware of opportunities and actions that can be taken to support other people in their communities. In these ways, our clients will also have access to a wider pool of support than is currently possible in traditional social service agencies and for a period that extends well beyond that of the loan itself.
The culture of Hawai’i is highly networked and viral by nature. No matter the issue, someone knows someone else who can help, or has a friend with experience in this specific situation. Network participants can experience personal growth of their own by understanding the barriers to income generation, and they can participate directly or indirectly by offering their knowledge and expertise, or in the backfunding of loans (i.e. donating money to the site in order for more loans to be offered).
By tapping into traditional media outlets’ — radio, TV, newspapers, magazines— Kuleana will also be presented to interested individual citizens who view micro-lending, individual empowerment and broad community support as an extension of their values.
Testing Demand for Innovation/Program
It is estimated that global demand for micro-credit is upwards of $300 billion, of which less than 10% has been met. Organizations such as Grameen and Kiva have been pioneers in this field and have changed many people’s impressions of whether people living in poverty can handle money responsibly and then use it to significantly improve their standard of living. As documented in a recent Newsweek article, Grameen has started to provide individual loans of up to $1,500 to groups of women in Brooklyn with widespread success. In Kiva’s case, they encourage participation of donors by utilizing a central website to collect loan contributions via storytelling. Since October 2005 they have provided, through their field partners in fifty-eight countries, close to $200 million in loans to people living in adverse financial circumstances with a repayment rate of 98.93%.
According to the Honolulu Star Advertiser, more than 156,000 people lived below the poverty line in Hawaii in 2009. This is equivalent to about 40,000 families (assuming a family of four)— ample demand if even a small percentage were interested and/or qualified. While available to all individuals and families living in poverty, the Kuleana Micro-Lending program is expected to be particularly helpful to two important sub-groups— the working poor and those who have fallen into poverty from the middle class.
By improving a person’s or a family’s standard of living and subsequently their sense of self-sufficiency, we hope that it will also improve their self-image. When these stories of success are shared with the broader public, we also foresee the general perception of people living in poverty improving as well, as has been the case with both Kiva and Grameen.
Given the rapid growth and success of these two global organizations, as well as the increased number of inquiries to local programs provided by the Office of Hawaiian Affairs and Pacific Gateway, we feel the demand for this type of service in Hawai’i is significant, achievable, and in need of other players in the field. We would like to form symbiotic relationships with these organizations as we collectively address the goal of providing micro-loans to our respective and overlapping constituencies throughout O’ahu.
Growing the Impact of Innovation/Program
We will initially be working with our primary community partners— Partners in Development and Catholic Charities— but we hope to be able to take on clients from other social service organizations (such as KEY Project, US VETS, Ulu Ke Kukui, Honolulu Community Action Program, etc.) as long as they are willing to sign on to our Memorandum of Agreement regarding their responsibilities in this process as well.
We are in discussions with the Finance Club at the University of Hawai’i Shidler School of Business as well as with the Hogan Entrepreneurial Program to provide advisors and mentors to our organization and/or volunteers in counseling the entrepreneurs through the business plan development and implementation stages. We plan to contact the UH Pacific Asian Center for Entrepreneurship for these same purposes.
There are also many opportunities to create partnerships with public and private schools to encourage their students and teachers to get involved at various stages of the application and implementation process, whether it be assisting the mentor and borrower in developing the business plan, fundraising, telling the story of a borrower to prospective donors through video or writing, or helping to promote the business through various other social media. Hopefully this process will also connect the schools to each other in ways they may not have done so before.
To grow the social network, we will continue to do off-line promotions through traditional media; public relations and marketing; presentations at civic groups, schools, universities, and churches; and conversations with interested individuals. On-line promotions will rely on leveraging existing site members’ social networks.
Responsible Parties Comprising Program
While on sabbatical through August 20011, John Cheever will serve as the full time Executive Director of Kuleana Micro-Lending.
Other members of Kuleana Micro-Lending include:
• Benjamin Ancheta, Chief Operating Officer, ProService Hawaii;
• Rona Fukumoto, Director of Intake, Catholic Charities Hawaii;
• Fran Gendrano, Principal Broker, KFG Properties;
• Kimberly Horan, Human Resources Consultant, ALTRES;
• Jessica Horiuchi, Executive Director, Alaka’ina Foundation;
• Kevin Kawahara, Software Development Manager, Punahou School;
• Yvette Maskrey, District Manager, Honeywell International;
• Michael Morales, Executive Director of the Center of Excellence and Enterprise Program Management Office, Hawaiian Telcom;
• Lorene Yap, former manager of Country Economics Division for Bangladesh, Pakistan, and Sri Lanka, World Bank.
Our board of directors, with their diverse professional experiences and background, are capable of playing all key roles during this initial phase, (business development, legal, technical, social service expertise), and will continue to provide the main oversight and quality control to ensure Kuleana’s success.
All board members will serve on a strictly volunteer basis.
A program administrator will be hired prior to August 2011 to support the daily operations
Additional paid staff will be hired as required by the growth and success of the program.
Our fiscal sponsor, Partners in Development, will be available for consultation, and brings over 13 years of local non-profit and social service experience.
Sustainability of Innovation/Program
To maintain a capital base so that we can continue to make loans in a timely manner to worthy borrowers, we will continue to apply for grants from a wide variety of foundations and organizations and solicit donations from local and international civic organizations. Members of our service network will be able to backfund loans (i.e. donating money to the site for the purpose of making more loans), inspired by the success and progress of existing clients.
In one year we would like to have given out three to five loans in support of business plans that have been successfully implemented, and that none of the loans are delinquent, if not paid back entirely.
For the social networking component, we would like to see a steadily increasing number of members registering and taking action each month; and once registered, exhibiting repeated and more active participation. We also want to see a wide variety of members from different professions, of all ages, and both genders. Gauging the daily traffic to the site will determine whether this site has actually become a dynamic and viable asset to the community.
After one year, we expect to be able to constructively evaluate our pilot in order to have a sound working model for the future. By surveying the recipients of loans and community support we hope to be able to witness an improved self-image. The amount of traffic to the site and number of active and passive participants in the program will enable us to infer the changing perceptions of the broader public.
Appendix
A hypothetical Kuleana client/engagement:
The Honolulu Advertiser ran an article last year (“Can it do that?” 4/11/10) which profiled the Chong family. The husband had worked as a mechanic for his entire working career, including the previous five years with his most recent employer, when he was laid off. Unable to find new employment, and despite his wife’s salary working at a 7-11, they could not pay their rent and were subsequently evicted by their landlord. Faced with homelessness they had no choice but to move in with extended family.
The Chongs went to Catholic Charities for help finding more permanent housing and counseling on how to manage their finances more efficiently. These traditional services helped to stabilize their living arrangements and finances, but Mr. Chong’s employment status did not change. Had Kuleana Micro-Lending been a resource for Catholic Charities at that time, another option would have been available to help improve their situation.
With his skill set and experience, Mr. Chong has the makings to become a successful mobile mechanic. However, lacking current employment and credit, Mr. Chong would have been unable to secure a loan from a traditional bank. Having never run a business, he would not have known where to start. Catholic Charities could have referred this case to Kuleana Micro-Lending and helped him complete Phase I of the loan application process.
Kuleana’s application review committee would do some basic research to investigate the viability of this idea: mobile mechanics, according to Craigslist, charge approximately $50/hour, well above the living wage for Hawai’i ($35.95 for two adults and two children). An Internet search reveals that the start-up costs of a set of mechanic's tools (approx. $350 for a 302 pc. set of Craftsman mechanics tools), a multimeter ($250), a diagnostic scanner ($500), a vehicle to get to the jobs ($2,000-$3,500), a cellular phone ($100) so customers can call, and a flat-rate manual ($60) for determining job charges bring total start-up costs, including a car to between $3,260-$4,760; without the car = $1,260. A micro-loan of under $5000 could have meaningful impact to this family’s life.
Additional support from our service network, made up of potential customers, other mechanics, entrepreneurs, and community members interested in seeing a family succeed would be available to provide important advice on business practices, various insights, word of mouth marketing, and simply encouragement.
Pacific Century Fellows Graduation Speech
I. INTRODUCTION
John: Nate and I are both very honored and humbled by this opportunity to speak for the PCF class of 2010 knowing full-well that many, if not all, of the people in our class could stand before you to recount how truly life-changing this experience has been.
Nate: For those of you who don’t know, I am a lawyer and John is a social studies teacher. We both make our livings explaining things we don’t understand.
John: But since you’ve given us an open mike and a vague assignment, don’t expect to get out of here any time soon. The main difference with this setting, of course, is that when we address audiences in our chosen professions we’re usually hoping that no one in the audience is under the influence of alcohol, (maybe more so for me than for Nate, but that’s debatable) yet tonight we’re hoping that everyone is highly intoxicated.
Nate: Before we begin, we wanted to express our deepest gratitude to a few of the individuals who made this program so successful.
John: Mufi Hannemann and Trudy Saito, your vision in creating a program designed to transform and inspire young leaders has left an indelible mark on our community. Graduates of this program are everywhere and they’re helping to tackle some of the very complex and difficult issues that face Hawaii.
And Char, words cannot express how indebted we are to you. Your selfless work behind the scenes to ensure that each of us was fully engaged with the program is particularly meaningful to us. Throughout the year you have been our navigator, team mom, drill sergeant, motivator, and karaoke Idol. Thank you, thank you, thank you.
Nate: We’d also like to thank our employers, many of whom are in attendance this evening. Thank you for supporting us in our professional development. Please continue to encourage other leaders within your organizations to participate in this program. The return on your investment will be extraordinary, both to your organization, and more importantly, to our community.
John: To the PCF selection committee— your impeccable judgment in recognizing our individual attributes as well our inherent desire and ability to commit to something larger than ourselves is clearly a reflection of your vast wisdom.
Finally, to our spouses or significant others— your impeccable judgment in recognizing our individual attributes as well our inherent desire and ability to commit to something larger than ourselves is clearly a reflection of your wisdom (and, of course, your good looks and winning personalities).
Speaking for myself, I hope I wasn’t the only one who sold PCF to my wife as “hey it’s just one day a month with a couple of optional events on the side, we can handle that?” I honestly had no idea how much this experience would consume my life in an overwhelmingly positive way. So cheers to all the other understanding and supportive spouses out there tonight, and also to those less understanding ones who chose to stay far, far away.
Nate: It’s been a whirlwind year.
John: It certainly has, Nate. For when it was all said and done, in addition to the seven formal retreat days, and the trip to the Big Island, we had:
— a 2-day opening retreat
— 2 Military craft embarks (submarine and aircraft carrier) ;
— a visit to a naval hospital ship;
— a half-day session with D.A.R.E. and the Re-entry Court
— two cultural hikes to Mt. Ka`ala and Makua Valley
— a ride on the Hokule`a
— a joint breakfast session on APEC
— 9 community service projects
— 6 Guest Speaker Lunches
— 10 informal get-to-know-you lunches
— one family picnic
— one family Thanksgiving potluck,
— two wine tastings
— two alumni mixers
— seven pau hanas
— and eight Monthly Dashboard Meetings to discuss coordinating all of that
So maybe I undersold it a little bit and thankfully my wife still wanted to be here.
On top of all that we’ve also already had one birth, and we have two more keiki on the way. We’re been so productive we’re reproductive.
II. SUBSTANCE
John: If we look to the mission of the Pacific Century Fellows program, it aligns perfectly with the idea of a great learning experience: breadth of knowledge, depth of engagement, developing relationships. The first three elements of the experience are generally within one’s control and thanks to Char and everyone who helped her, we gained a tremendous amount of knowledge, engaged deeply into the important causes of our day, and met many of the movers and shakers in our community. That last element, however, the relationships between and among the students, that is the wild card because you just never know how the personalities of the various participants will meld together. What PCF celebrates and emphasizes and succeeds overwhelmingly at is developing those relationships.
Nate: We asked our classmates to reflect back on the year and share some memories that really stood out in their minds.
Vignette #1: Mt. Ka’ala (“walking across the serene crisp ridge of Mt. Ka`ala”) (1-2 minute description of event and take home message)
Nestled at the peak of the Waianae Range is a mountain named Mt. Ka’ala. If you’re ever driving out to the Waianae Coast, and look above the cloud layer, you can see a large white dome at its apex. Immediately below the dome, at about cloud level, is one of the best kept secrets on Oahu: an ancient Hawaiian rainforests that few have seen. The rainforest is pristine and unspoiled; wet cliffs and narrow ridges surround it. AS we walk through the rainforest we got to experience what, perhaps, it may have been like to live on our island before human contact. Mt. Kala teaches us that our island is fragile and that we each have an obligation to be stewards to ensure others can this tiny window into our past can be shared with our children and grandchildren.
John: As was usually the case with this group, whenever a long e-mail chain would go out, it would start off in a fairly serious and productive manner as you just heard, but then someone (and I won’t name names) would inevitably take it off on a humorous tangent, and then things would get really interesting and quite revealing. There were several mentions of a “Love grotto”, karaoke duets, or a particular PCF-er making out with a SWAT officer (who fortunately turned out to be her husband—we think), split leap jetes in high heels, and admonitions that “what happens at pau hana (or the love grotto) stays there.”
Not exactly inspirational narratives of life changing moments, but one of Mufi’s Maxims (from a little wallet sized- card he gave us at the opening retreat) is that the glass is always half full, not half empty, so we interpreted those recollections as simply more evidence of how this class has definitely developed a strong sense of familiarity with each other. If nothing else this information will come in handy in, shall we say, “motivating” our classmates to do us a favor or two sometime down the road. Nevertheless, as another one of Mufi’s Maxims explains: “Half baked ideas, like half-baked manapuas, are not good for you” the responses eventually got back to a more serious and contemplative level.
Nate: Vignette #2: Submarine Embark and Aircraft Carrier (“feeling the heat and pulsating roar of an F18 fighter jet standing on the flight deck of the USS Ronald Reagan.”) (1-2 minute description of event and take home message)
III. CHARGE
John: So when we ask ourselves whether we made the most of this opportunity, the answer would have to be an unqualified yes. But when we ask ourselves, have we fulfilled the mission of the Pacific Century Fellows Program, the answer must be: not yet. Our work has only just begun.
Because, as Mufi also likes to say: “the proof is in the poi.” That is a very apt metaphor for who we are as a PCF class and for who we are as members of this community. To the people who know Hawaii and love it and want it to be better, we know that poi and the kalo from which it comes are more than just sustenance. They represents a connection to and a deep respect for the past, and a growing hope for the future.
Nate: At our opening retreat we were treated to a presentation on Polynesian Leadership by Seamus Fitzgerald at the Polynesian Cultural Center. After an authentic wero ceremony, Mr. Fitzgerald asked us, “Who are you?” That set the tone for the year and we have building on it for 10 months.
John: That sense of ohana we’ve developed over that time is palpable and powerful. We started the year as 31 individuals, and now we stand before you as a cohesive group ready to take on new challenges. Any barriers that may have existed between and among us are now completely obliterated. Any hesitancy about getting out into the community and finding those solutions is gone. What PCF proves over and over again is that we are all in this together; there is no us and them; there is no other half; there is no over there. Our mission must be to perpetuate that sense of ohana now and going forward into the future. Nothing separates us from achieving our common goals and improving our community:
Nate: “We are the ones we've been waiting for. We are the change that we seek.”
Who are we? “We are the people of the Pacific Century Fellows!”
John: Nate and I are both very honored and humbled by this opportunity to speak for the PCF class of 2010 knowing full-well that many, if not all, of the people in our class could stand before you to recount how truly life-changing this experience has been.
Nate: For those of you who don’t know, I am a lawyer and John is a social studies teacher. We both make our livings explaining things we don’t understand.
John: But since you’ve given us an open mike and a vague assignment, don’t expect to get out of here any time soon. The main difference with this setting, of course, is that when we address audiences in our chosen professions we’re usually hoping that no one in the audience is under the influence of alcohol, (maybe more so for me than for Nate, but that’s debatable) yet tonight we’re hoping that everyone is highly intoxicated.
Nate: Before we begin, we wanted to express our deepest gratitude to a few of the individuals who made this program so successful.
John: Mufi Hannemann and Trudy Saito, your vision in creating a program designed to transform and inspire young leaders has left an indelible mark on our community. Graduates of this program are everywhere and they’re helping to tackle some of the very complex and difficult issues that face Hawaii.
And Char, words cannot express how indebted we are to you. Your selfless work behind the scenes to ensure that each of us was fully engaged with the program is particularly meaningful to us. Throughout the year you have been our navigator, team mom, drill sergeant, motivator, and karaoke Idol. Thank you, thank you, thank you.
Nate: We’d also like to thank our employers, many of whom are in attendance this evening. Thank you for supporting us in our professional development. Please continue to encourage other leaders within your organizations to participate in this program. The return on your investment will be extraordinary, both to your organization, and more importantly, to our community.
John: To the PCF selection committee— your impeccable judgment in recognizing our individual attributes as well our inherent desire and ability to commit to something larger than ourselves is clearly a reflection of your vast wisdom.
Finally, to our spouses or significant others— your impeccable judgment in recognizing our individual attributes as well our inherent desire and ability to commit to something larger than ourselves is clearly a reflection of your wisdom (and, of course, your good looks and winning personalities).
Speaking for myself, I hope I wasn’t the only one who sold PCF to my wife as “hey it’s just one day a month with a couple of optional events on the side, we can handle that?” I honestly had no idea how much this experience would consume my life in an overwhelmingly positive way. So cheers to all the other understanding and supportive spouses out there tonight, and also to those less understanding ones who chose to stay far, far away.
Nate: It’s been a whirlwind year.
John: It certainly has, Nate. For when it was all said and done, in addition to the seven formal retreat days, and the trip to the Big Island, we had:
— a 2-day opening retreat
— 2 Military craft embarks (submarine and aircraft carrier) ;
— a visit to a naval hospital ship;
— a half-day session with D.A.R.E. and the Re-entry Court
— two cultural hikes to Mt. Ka`ala and Makua Valley
— a ride on the Hokule`a
— a joint breakfast session on APEC
— 9 community service projects
— 6 Guest Speaker Lunches
— 10 informal get-to-know-you lunches
— one family picnic
— one family Thanksgiving potluck,
— two wine tastings
— two alumni mixers
— seven pau hanas
— and eight Monthly Dashboard Meetings to discuss coordinating all of that
So maybe I undersold it a little bit and thankfully my wife still wanted to be here.
On top of all that we’ve also already had one birth, and we have two more keiki on the way. We’re been so productive we’re reproductive.
II. SUBSTANCE
John: If we look to the mission of the Pacific Century Fellows program, it aligns perfectly with the idea of a great learning experience: breadth of knowledge, depth of engagement, developing relationships. The first three elements of the experience are generally within one’s control and thanks to Char and everyone who helped her, we gained a tremendous amount of knowledge, engaged deeply into the important causes of our day, and met many of the movers and shakers in our community. That last element, however, the relationships between and among the students, that is the wild card because you just never know how the personalities of the various participants will meld together. What PCF celebrates and emphasizes and succeeds overwhelmingly at is developing those relationships.
Nate: We asked our classmates to reflect back on the year and share some memories that really stood out in their minds.
Vignette #1: Mt. Ka’ala (“walking across the serene crisp ridge of Mt. Ka`ala”) (1-2 minute description of event and take home message)
Nestled at the peak of the Waianae Range is a mountain named Mt. Ka’ala. If you’re ever driving out to the Waianae Coast, and look above the cloud layer, you can see a large white dome at its apex. Immediately below the dome, at about cloud level, is one of the best kept secrets on Oahu: an ancient Hawaiian rainforests that few have seen. The rainforest is pristine and unspoiled; wet cliffs and narrow ridges surround it. AS we walk through the rainforest we got to experience what, perhaps, it may have been like to live on our island before human contact. Mt. Kala teaches us that our island is fragile and that we each have an obligation to be stewards to ensure others can this tiny window into our past can be shared with our children and grandchildren.
John: As was usually the case with this group, whenever a long e-mail chain would go out, it would start off in a fairly serious and productive manner as you just heard, but then someone (and I won’t name names) would inevitably take it off on a humorous tangent, and then things would get really interesting and quite revealing. There were several mentions of a “Love grotto”, karaoke duets, or a particular PCF-er making out with a SWAT officer (who fortunately turned out to be her husband—we think), split leap jetes in high heels, and admonitions that “what happens at pau hana (or the love grotto) stays there.”
Not exactly inspirational narratives of life changing moments, but one of Mufi’s Maxims (from a little wallet sized- card he gave us at the opening retreat) is that the glass is always half full, not half empty, so we interpreted those recollections as simply more evidence of how this class has definitely developed a strong sense of familiarity with each other. If nothing else this information will come in handy in, shall we say, “motivating” our classmates to do us a favor or two sometime down the road. Nevertheless, as another one of Mufi’s Maxims explains: “Half baked ideas, like half-baked manapuas, are not good for you” the responses eventually got back to a more serious and contemplative level.
Nate: Vignette #2: Submarine Embark and Aircraft Carrier (“feeling the heat and pulsating roar of an F18 fighter jet standing on the flight deck of the USS Ronald Reagan.”) (1-2 minute description of event and take home message)
III. CHARGE
John: So when we ask ourselves whether we made the most of this opportunity, the answer would have to be an unqualified yes. But when we ask ourselves, have we fulfilled the mission of the Pacific Century Fellows Program, the answer must be: not yet. Our work has only just begun.
Because, as Mufi also likes to say: “the proof is in the poi.” That is a very apt metaphor for who we are as a PCF class and for who we are as members of this community. To the people who know Hawaii and love it and want it to be better, we know that poi and the kalo from which it comes are more than just sustenance. They represents a connection to and a deep respect for the past, and a growing hope for the future.
Nate: At our opening retreat we were treated to a presentation on Polynesian Leadership by Seamus Fitzgerald at the Polynesian Cultural Center. After an authentic wero ceremony, Mr. Fitzgerald asked us, “Who are you?” That set the tone for the year and we have building on it for 10 months.
John: That sense of ohana we’ve developed over that time is palpable and powerful. We started the year as 31 individuals, and now we stand before you as a cohesive group ready to take on new challenges. Any barriers that may have existed between and among us are now completely obliterated. Any hesitancy about getting out into the community and finding those solutions is gone. What PCF proves over and over again is that we are all in this together; there is no us and them; there is no other half; there is no over there. Our mission must be to perpetuate that sense of ohana now and going forward into the future. Nothing separates us from achieving our common goals and improving our community:
Nate: “We are the ones we've been waiting for. We are the change that we seek.”
Who are we? “We are the people of the Pacific Century Fellows!”
Tuesday, February 1, 2011
PCF— Economic Development Day, part 3
During lunch at the First Hawaiian Bank board room (lobster!) we got to hear from FHB CEO Don Horner. he broke down FHB's philosophy into five core values:
1) character
2) cooperation
3) competition
4) caring
5) competence
In order to achieve success you have stick to your core values. In FHB's history they've had 10 CEOs in 152 years. They are, according to Mr. Horner, ranked #1 in the state and their earning have doubled in the past 5 years.
Character
Integrity— honesty
Learn from mistakes
Openness
Caring
empathy— internal, external
"nobody cares what you know until they know that you care"
Cooperation
"gang tackling"
importance of incentives
Competitive
want to be #1
get a bigger piece of the pie
Competence/Confidence
expertise to be creative
4 steps between boss and customer
professionalism
"ask for forgiveness rather than permission"
Vision: Boss tries to define what it looks like before we get there— future reality
people versus process— relationships are more important; processes can always be improved
the task of the boss is to create a family
The biggest impediment to success is pride (it's a drug)
Trust: Boss must help people feel safe.
Ownership as stewardship.
Be the person, not the chair.
Efficiency versus effectiveness. (Get the job done and get it done well.)
Authority versus Responsibility— don't take it personally
Success versus Significance- achievement
changing the lives of people (self or service)
1) character
2) cooperation
3) competition
4) caring
5) competence
In order to achieve success you have stick to your core values. In FHB's history they've had 10 CEOs in 152 years. They are, according to Mr. Horner, ranked #1 in the state and their earning have doubled in the past 5 years.
Character
Integrity— honesty
Learn from mistakes
Openness
Caring
empathy— internal, external
"nobody cares what you know until they know that you care"
Cooperation
"gang tackling"
importance of incentives
Competitive
want to be #1
get a bigger piece of the pie
Competence/Confidence
expertise to be creative
4 steps between boss and customer
professionalism
"ask for forgiveness rather than permission"
Vision: Boss tries to define what it looks like before we get there— future reality
people versus process— relationships are more important; processes can always be improved
the task of the boss is to create a family
The biggest impediment to success is pride (it's a drug)
Trust: Boss must help people feel safe.
Ownership as stewardship.
Be the person, not the chair.
Efficiency versus effectiveness. (Get the job done and get it done well.)
Authority versus Responsibility— don't take it personally
Success versus Significance- achievement
changing the lives of people (self or service)
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