The recent downsizing of one of the world’s largest microfinance companies raises the eyebrows of its staff and supporters…

• Unitus, a Seattle based microfinance NGO, laid off its entire staff last week despite recent claims of overwhelming success in the field.
• The company’s unprecedented announcement raised confusion among its staff and supporters. Experts speculate whether or not the decision was a conscious act to preserve Unitus’ philanthropic capital, or whether it cloaks more serious problems within the company.
• In recent months, experts have become increasingly skeptical about the effectiveness of microfinance. Some are concerned that Unitus’ change in direction is actually a product of a shaky operation that was on the brink of collapsing.

Best Quote

“Microfinance has great promise and a fantastic mission. The question on everybody’s mind is, does it work?” – Deyan Vitanov, Chief Executive, Philanthropedia

Tags: microfinance, NGO, philanthropy, Unitus