Founded in 1953, Mennonite Economic Development Associates (MEDA) is a global Christian development organization that aims to reduce poverty by boosting local economies, investing in low-income entrepreneurs, and helping small businesses receive training and financial services. It describes its approach as creating “business solutions” to poverty. MEDA’s vision is to give all people the ability to provide for their families and improve their communities. In F2020, MEDA supported 23 projects in 58 countries across Africa, Asia, Central America, and Europe.

MEDA groups its projects into five main program areas: Impact Investment, Market Systems, Environment and Climate Change, Gender Equality and Social Inclusion, and Inclusive Financial Services. It does not provide a spending breakdown for its programs.

MEDA partners with people living in poverty around the world to help start their own businesses or grow their ventures through loans and impact investing. In F2020, MEDA reports that it helped 196,270 clients directly, such as entrepreneurs, small businesses, partner agencies, and women’s and farming cooperatives. It states that its services also helped 1,705,957 people indirectly, such as household members and workers employed by small businesses. In Kenya and Rwanda, MEDA provided a US$1 million loan to BPI East Africa LLC to invest in local women entrepreneurs. In F2020, MEDA also funded projects that provided 8,355 clients in Kenya with green technology to help run their businesses more efficiently. In Tanzania, MEDA’s partners installed solar panels capable of producing more than 261,400 watts of energy.

Mennonite Economic Development Associates reports its Canadian audited financial statements in US dollars, and consolidates its Canadian, US, and European operations. Ci has therefore presented consolidated figures below in USD.

MEDA received $2.8m USD, or roughly $3.5m CAD, in Canadian donations in F2020. It also received $7.7m USD in international contributions (22% of revenues) and $22.9m USD in Canadian government funding (66% of revenues). MEDA’s financial statements do not report separate administrative and fundraising costs. Combined overhead costs are 11% of revenues. For every dollar donated to the charity, 89 cents go to the cause. This is within Ci’s reasonable range for overhead spending.

MEDA has net funding reserves of $12.5m USD. Using its existing reserves, the charity can cover around 41% or less than five months of annual program costs.

MEDA’s audited financial statements disclose Sarona Asset Management, a private investment firm in Waterloo, Ontario, as a related party. MEDA holds a 10% ownership in Sarona Asset Management and paid it $476k in management fees during the year.

Charity Intelligence has sent this update to Mennonite Economic Development Associates for review. Changes and edits may be forthcoming.

Updated June 18, 2021 by Eric Zhao.