bmpUnited Policies
Follow The Money
Follow the money or FTM is a standard bmpUnited policy of sending money for products and services,
on behalf of beneficiaries, to the ultimate end-user or service provider. Most of the time the recipient
of this money is not the same as the beneficiary. A simple example below explains how FTM works.
Say bmpUnited has approved to pay school fees and purchase books for a student. Using the FTM method,
the school fees is sent directly to the school bank account, while money for the books goes to the
bank account of the Bookstore that supplied the books. No need for the student to touch the money.
Sending the school fees to the student risks a chance that the money could be diverted to other equally
important needs, but which are inconsistent with the original defined objective: to pay school fees and buy
books.
Beneficiaries ought to embrace the FTM method because it guarantees that objectives presented to bmpU are met.
Although a few people may misconstrue the FTM method as a lack of trust, nothing could be farther from the
truth.
FTM guarantees that the job is done.
We Don’t Give OPM
As one looks for best ways to make a difference in other’s lives, a discussion of Other People’s Money or OPM is
inevitable.
OPM happens when friends or relatives ask for a gift of cash, or loan to start a business. This kind of request
would not
normally be successful at a bank because the banks need at least two things, may be more, to lend: a business
registration
with ACA, and a cash-flow history. The bank needs this information to establish that the requester is truly a
business,
and that the business will have cash to pay back when the time comes.
OPM lenders lend differently, on the basis of friendships and family relationships, and promises. It is
heartwarming that
a survey found over 80% of people were willing to lend money to relatives in need. When asked if they would
still make
the same loan if they knew upfront the loan would not be paid back as promised, the percentage of respondents
came down
to 32%.
bmpUnited will not make OPM loans, especially if they will not be paid back. This decision is consistent with
68% of
the surveyed population. OPM loans are risky because the borrower very likely has insufficient experience
handling the
size of money borrowed, or running businesses for which the money was borrowed. Worse still, bmpUnited is unable
to
follow the money (FTM), and therefore cannot confirm the money is used as promised. Above all OPM loans are an
obstacle
to bmpUnited mission to serve the most people with limited resources.
