Created by Jean-Claude, a new idea to fundraise for Buterere projects (Higher University and BCDC programs):
MICRO-Saving, Credit and loan program.

This program will not ask us to have money to start up, just to start mobilising local people.

How it goes:
Engagment A:
-We meet 25 members
-They donate 6 USD (during meeting)
-They will continue to do so, for a period of 9 months

Engagment B:
-Each of these 25 people will mobilise 24 new members to donate 6 USD for 9 months
Then, each member of these 24 will mobilise 23 new members....until we arrive to 0 new members being recruited.
(We started with 25 members and we will go to 0)

After arriving to 0, we will celebrate BANK TEAM FINANCE AWARD DAY in Buterere
-We will open our account to see money collected
-We will start to call for applications, for members (poor citizens in Buterere) to apply for Microcredit, loans..

** Every Buterere Neigbhour is welcomed to start 24 person consciousness to participate in 6 USD donation per week during 9 months.
We targ 600 persons who will complete donation before 9 months.
NOTE: ONCE 5 volunteer in Buterere have completed to pay 0,6 USD, but paying all months (9=), It means 0,6 USD X 4 weeks/month X 9months=216 USD per 9 month
These can help us to generate funds to keep services in Buterere ongoing.

Now that you have seen the proposed idea, please let us know what you think and if you would like to be involved.
--
Anna Soper

There seems to be some basic errors in the calculations shown in your post, since 6 USD per week for 9 months (assuming 9 months = 36 weeks) will mean a contribution of 216 USD per person, and not 21.6 USD.

The need for such an intricate system of collecting funds seems to be intriguing.

History has shown that such multi-level systems have mostly ended up as scams of varying magnitudes.

Vijai

Thanks Vijai,
The calculation was just a typ-o, but I have changed it now.

Could you please explain a bit more on the last two lines you wrote... "....need for such an intricate system..." and ...."mostly ended up as scams..."

--
Anna Soper

One problem with this pyramid is that, by the time the first payout came up, there would be more money than 10 octillion times the whole World Economy. Watch out.

--
Rick Ellis

Can somone explain more?,

The Facilitator is right I don't understand to.
Dear Rick Ellis, that Idea is only concerned for the members of the community, this is why the idea addressed to volunteers (MEMBERS OF BCDC), to be active in mobilising others (It is another kink of enjoying speaking, telling about BCDC, involving others. It is more than MONEY (HOW MANY THINGS CAN YOU BY WITH 0.6 USD?, Just to contribute for a good charity. What do you understand?

Anna,

About your query in your post above:

If you can do a google search of 'multi-level-marketing', or 'network schemes', or 'pyramid schemes', you might come across enough data as an answer to your question. During these searches, you might also come across several books written over the years, cautioning gullible investors against such schemes.

Vijai

Hello Jean-Claude
The problem is not the $6.00. The problem is the math. The number of contributors in this scheme would be. 25x24x23x22x21x20x19x18x17x16x15x14x13x12x11x10x9x8x7x6x5x4x3x2. By the 6th level or 20 the number becomes too large for a regular calculator to handle. Try the calculation. By the end of the progression the numbers are so large that they are meaningless.
As Vijai says; look up "Pyramid Schemes" and you will find other examples of this kind of thing.
I don't mean that the program wouldn't be a good idea. You have to find a simpler contributing arrangement that makes sense.
--
Rick Ellis

Dear Jean-Claude,

Software can handle the calculation with ease.All what you need to do is to get a consultant or experience volunteer to assist in this regard.

Thanks for making it happen in the field of development.We shall be there.

--
ADISA

You can try USAID,European union,rotary clubs,lion clbs and all embassy in your localities

--
ADISA

Thank you for explaining, Rick. I see your point. Any suggestions on how to simplify?

--
Anna Soper

Hello Adisa
The idea is not to find a way to handle the calculation. The point is that it doesn't make any sense. These schemes are meant to awe and confuse people.

--
Rick Ellis

Hi Anna
I'll see if I can find out what system other Micro-loan operations are using.
--
Rick Ellis

An excellant example of microlending is at http://www.farmsinternational.com/projects.html

Hi Anna and Jean Claude,

I agree with Vijai and Rick that you should be very careful with starting such a fundraising.
As Vijai said, google it for more details - this for example explains it nicely:
http://en.wikipedia.org/wiki/Pyramid_scheme

In sum, such activities are illegal in most of the countries, I think even if it's about charity. A guy living next door to my parents was in jail for a while for being involved in such a pyramide.

I see two problems you can cause with it: 1. For people who know about it - they can become suspicious and the village might get more negative than positive publicity 2. For neighbours who are not aware of it - they might start such activities in their countries without checking if it's legal - and they might get in trouble.

These cases might be a bit extreme, but there is a possibility. I don't know if there are some ways to avoid problems (providing clear proof that the money is used in the way it was promised, for example), I think you should check that and be very careful.

Sonja

Listen,

Almost every woman i have come accross in Kampala think that microlending systems are full of fraud. The women tell stories of having lost property and money through such systems. I hope this is not the picture in Buterere yet but I see there is plenty of warning bells so take heed.

--
Walude