Esperanza International is a Christian-based not-for-profit organization that is devoted to helping poverty-stricken people of the Dominican Republic through finance, education, health, and spiritual programs.^[1] It is classified as a 501(c)(3) nonprofit organization in the State of Washington, USA and as a non-governmental organization in the Dominican Republic.^[2] Its primary services are centered around its microfinance program, which provides small loans to impoverished families and business owners, to progress economic development and pull communities out of poverty. It was founded in 1995 by former Major League Baseball player Dave Valle and his wife Vicky. Esperanza is headquartered in Santo Domingo, has 10,000 associates in the Dominican Republic and Haiti, has distributed 200,000 loans, supported 200 schools, and provided access to clean water through 50 water projects.^[1]

History

Esperanza International ("esperanza" translates to "hope" in English) was first inspired in 1985 by a group of Dominican Republican children that organization founder and former Seattle Mariners catcher Dave Valle met while playing baseball in the Dominican Republic. Instead of approaching the professional baseball player for autographs like most adolescents in the United States do, the children were asking Valle and his wife for food. After buying food from a local vendor for the children, Valle recognized that he was only giving a temporary solution to a complex problem. He wanted to help these people get back on their feet by providing long-lasting solutions to help families and develop their communities.^[3]

Esperanza was founded in Seattle, Washington in 1995 and began operations in the Dominican Republic in 1999. Over time, the organization has grown to ten branch offices. In 2004, Esperanza partnered with Hope International to collaborate their financial capital missions.

In 2006, it joined with Smiles for Life to host three dental clinics. In 2011, Esperanza and Edify partnered to create loan programs for Christian-based schools.^[1] After three years working in Haiti, the organization ended outreach operations in the country in January 2016.^[2]

Areas of work and impact

The organization exclusively focuses on those in need in the Dominican Republic, more specifically, mothers, the materially poor, and socially marginalized citizens. The four services Esperanza provides are financial, educational, medical, and spiritual.^[1] Over the 20 years of operation, Esperanza has dispersed 210,000 loans, outreached to 1,000,000+ individuals, and distributed over $65,000,000 in loan capital.^[1]

Financials

For the year ended in 2014, Esperanza earned $1,748,723 in revenue, earning all but $10,204 of that revenue from contributions, gifts, and grants. Esperanza spent $1,416,433 (75.6%) on program expenses, $213,748 (11.4%) on administrative expenses, and $242,930 (13%) on fundraising expenses totaling operating expenses to $1,873,111. It reported a $124,388 deficit for the year and net assets of $605,154.^[5]

External reviews

In June 2016, the charity evaluator, Charity Navigator, gave Esperanza International a three-star (out of four) rating and an 81.35 score (out of 100) in financials. For accountability and transparency, it received a four-star rating and 93 score. This combined total gives the organization a three-star rating and an 85.91 score overall.^[5] Another charity evaluator, Philanthropedia, commended Esperanza for their strengths in leadership, technology, and partnerships among Dominican Republican, Haitian, and U.S. organizations. The evaluator recommended that the organization focus on long-term profitability and fewer, more concentrated goals in order to maximize effectiveness for a longer period.^[6]

References