Please take some time to review these frequently asked questions. If you still have more questions after reading these, please feel free to contact us.
Paradigm Shift comes alongside South African churches whose desire is to strategically impact the lives of the entrepreneurial poor. You are helping empower these churches through Paradigm Shift to teach the poor how to create their own income while simultaneously providing them with an invitation to become part of a community of faith.
Yes. Paradigm Shift is a US-based 501(c)(3) non-profit organization and all donations are completely tax-deductible. In January of the following year, you will receive a letter thanking you for your support and delineating the amounts you have donated. This letter may be used for the purposes of tax deductions.
In South Africa, Paradigm Shift can issue tax certification and BEE certificates for private and corporate donations. Email bee@shiftingparadigms.org to improve your company’s BEE Scorecard through the Paradigm Shift program.
Yes. The interest rate is 18%. This helps offset the banking fees incurred by partner churches and also the rate of inflation in South Africa. There is no profit incentive for partner churches to be involved by offering microloans.
Microcredit Definition: Small repayable loans (initial loans are approximately $195 USD) for the purposes of expanding small businesses for entrepreneurs who cannot access credit from formal financial institutions.
It is a loan rather than a gift, so there is a sense of ownership and dignity that is inherent in the process. This prevents attitudes of dependence and rewards hard work and dedication.
Yes. Paradigm Shift currently has a 100% repayment rate on all microloans.
Entrepreneurs who receive loans through the Paradigm Shift program use their social relationships instead of physical assets, as collateral. This methodology, called “social collateral,” is used because in the African context, people value relationships and reputations more than they value possessions.
Therefore, to receive a loan through Paradigm Shift, entrepreneurs must form a group of five to eight borrowers, which is called a “Loan Family”. Each Loan Family member receives their own loan, and then guarantees repayment of the other members’ loans. If any member misses a weekly loan repayment, the entire Loan Family must pay for them. This protects the church from having to initiate debt collecting and encourages peer accountability among the entrepreneurs.
In January 2009, Paradigm Shift began working in South Africa and is looking forward to expanding into Ghana and Zimbabwe in 2011, with other African countries to follow in coming years. Currently, Paradigm Shift works in the major urban areas of South Africa: Johannesburg, Pretoria, Durban, Cape Town, Port Elizabeth and East London.
Stay Connected and sign up for updates . Also check the Paradigm Shift blog for all the latest developments.
In the Bible, Jesus gave a very clear mandate for his followers to serve the poor. We are motivated by Christ’s love and the desire to establish innovative, sustainable ways to empower churches to serve their communities.
Paradigm Shift is funded through generous contributions made by committed individuals, families, small groups, churches, businesses, trusts and foundations.
Some choose to give one-time gifts to carry out the mission of Paradigm Shift, while others have committed to monthly support (for Paradigm Shift’s South Africa staff members: Jedd and Janelle Schroy, and Corinne Gray.
Most of the poor who receive small, repayable loans from churches running the Paradigm Shift program are people who live below the poverty line in South Africa. About 60 percent of participating entrepreneurs are from other African countries who are seeking a better life and opportunity in South AfricaThe microloans are for entrepreneurs to invest solely in income-generating activities. This will allow their businesses to grow and have greater amounts of capital to empower themselves.
Paradigm Shift is unique. There is no organization quite like this model as Paradigm Shift combines the best practices of microfinance, business training, mentoring and discipleship and has tailored the program to be utilized specifically by churches.
This means:
- Low overhead costs
- Highly motivated teams
- A replicablemodel
- Sustainable community outreach with high-impact and long-lasting results.
Your support will enable Paradigm Shift to train more churches who will train more entrepreneurs. Your donation will have a multiplied effect as it leverages the impact through volunteer teams from South African churches!
- Stay connected. Sign up for updates.
- Request project information to share with others
- Represent Paradigm Shift at your church’s missions events
- Make a Donation
- Start your own fundraising activity for Paradigm Shift (link to Join Team Paradigm Shift)
- Follow our blog
When we work with a church, we look for it to:
- Have a vision to reach the poor
- Prior community involvement
- Be established with a solid reputation in its community
- Be spiritually and doctrinally sound
- Be financially responsible and accountable
- Have people who are ready and willing to be trained as trainers
- Have close proximity to the poor
- Invest their own time and resources into the Paradigm Shift program
Yes! Paradigm Shift accepts all credit cards and checks.
