Microfinanceorganizations (MFO or MFI) working in developing countries have a very good knowledge regarding the spezial regional environmental and economical conditions, administrative and legal matters, the mental structure of the people requiring help. They inform them about the possibilities of microfinance. They work individualy with potencial help-receivers, proofing business concepts towards their capacity or inspire and help by elaborating and improving those concepts. As well appropriate running business will be adviced.
Projects which require a support by donations, will be checked if there is no possibility to realizing by the regular entrepreneurial market, its urgency, an effective use of finances, an extensive involvement of indigenous people by the execution, the capacity in context with the regional respectively communal circumstances. Organizations with good reputations will present projects detailed regarding this criterions.
So givers can be furthest assured, their investment will be generative.