Robert - Presume you saw this...ya know this Karen's alma mater...

REDWOOD CITY, Calif., Nov. 4 /PRNewswire/ -- Pierre Omidyar, founder of eBay and co-founder of Omidyar Network with his wife, Pam, today announced a $100 million gift to Tufts University to be invested exclusively in international microfinance initiatives. The Omidyars' personal investment is the largest allocation of capital to microfinance from an individual or family, as well as the largest single gift to Tufts University.

The $100 million Omidyar-Tufts Microfinance Fund (OTMF) will serve an innovative triple purpose: demonstrate the potential of microfinance investments for institutional investors, support the Omidyars' alma mater, Tufts University, and potentially stimulate at least $1 billion in new microloans over the next decade. This $1 billion in new loans is possible, because loan capital is repaid with interest by borrowers, lent back out to more borrowers, and repaid with interest again.

"Microloans enable the poor to lift themselves out of poverty through entrepreneurship," said Pierre Omidyar. "The microfinance industry has shown that enabling the poor to empower themselves economically can be a profitable business. With the Omidyar-Tufts Microfinance Fund, we're responding to the industry's need for capital to meet the demand for financial services among the world's poor. At the same time, we hope to demonstrate the potential of microfinance to institutional investors."

The innovative structure of the OTMF aligns Tufts' interest as an institutional investor -- to maximize its investment returns -- with the Omidyars' interest in advancing the field of microfinance. As the microfinance investments yield income, Tufts will retain 50 percent of the income to use for university programs. The other 50 percent will be reinvested in additional microfinance initiatives.

"Tufts has long been committed to international development through its own programs. By taking such innovative action in an emerging area, Tufts secures its leadership role as a top-tier academic institution capable of validating a thesis of critical importance," said Omidyar.

"Partnering with the Omidyars to advance microfinance is a strategic fit for Tufts on many levels," said Larry S. Bacow, president of Tufts University. "As an economist, I'm attracted to microfinance as a financially self-sustaining model for making a difference in the world. Tufts' commitment to active citizenship is a global pursuit that runs deep, and we're pleased to leverage resources that yield so many positive returns."

The fund will bolster microfinance institutions (MFIs) that make loans to those who lack access to traditional financial services. Microfinance clients are typically poor entrepreneurs, often women, who struggle to provide the basic necessities of food, shelter, and clothing for themselves and their families. Microloans averaging $600 (often as low as $40) enable poor entrepreneurs to grow their businesses, increase their income and lift themselves out of poverty. This translates into economically self-empowered citizens, who once they discover their ability to sustain themselves and their families, can focus on aspirations beyond day-to-day survival.

The fund is also aligned with the Omidyars' broader aspirations of fostering individual self-empowerment on a global scale. Separately, they have invested nearly $15 million in a range of microfinance initiatives through their mission-based investment group, Omidyar Network. Over the last year, the investment group has partnered with a wide network of people and organizations within the microfinance sector, such as Blue Orchard, Grameen Foundation USA, Microcredit Summit Campaign, Microfinance Information eXchange (The MIX), MicroVest and Unit

http://www.omidyar.net/group/netchange/news/45/