Frequently asked questions

How does Zero-Kap control and supervise the progress and results of projects that received a loan?

One line in the contract agreed with each beneficiary of a loan is a report every sixth month through a rather standardized form questioning progress and arguments that substantiate the progress (including pictures). Where we co-operate with other organizations we may be satisfied with the report format used for the other party. The draft report is sent by the receiver of the loan to their local (and independent) monitor, who adds his comments or recommendations. Next the report is sent by the monitor to the Zero-Kap supervisor of the project with a copy to the secretariat. At least once a year the monitor will try to visit the project in order to match his personal observations with the reported progress. If the progress of the project, or the observations of either the monitor or supervisor give reason to discuss the report at large, it will be placed on the agenda of the next board meeting and/or the secretariat or the project supervisor will question the receiver of the loan.

What is the overhead of Zero-Kap?

Zero-Kap overhead is used through the secretariat to prepare projects and project evaluations, to judge credibility of requesting organizations, to monitor progress, to remind receivers of loans that reports should be sent and terms being paid. Also advice is given whenever requested. Donors should be kept informed about advance of the projects sponsored by them and board meetings prepared to assure that decisions on new and running projects are being taken timely and base on proper and complete information. Realize that the preparation and guidance of projects financed through a loan do require more time and effort than projects financed through gifts. After all it is paramount to Zero-Kap’s future capacity that projects are profitable and loans are paid back. Otherwise new projects cannot be financed. In 2007 over € 50.000 will be spent on overheads. Of this amount almost € 30.000 is required for the above mentioned activities and some € 15.000 for acquisition of new funding. Zero-Kap budget is not used for travelling to far away countries and visiting our projects. Instead we use monitors and visitors that travel the area anyhow.

May I send in a project proposal myself?

The answer is the ubiquitous yes and no. Yes is when you supervise or already support a project in a developing country that does fit to our objectives. Yes when you have a substantial donation to make in support of a specific project and want Zero-Kap to take care for supervision. It is also yes when you want to guarantee a project. It is no when you came across a project somewhere that should deserve our attention, however you may feel free to direct the leaders of the project to this web site.

May I choose the (sort of) project that will be funded by me?

Obviously: the more someone wants to dedicate to Zero-Kap the louder his voice will be heard and the more influence he will have on board decisions. Roughly we negotiate with donors that contribute € 5.000 or more about the sort of project their money will fund (country and/or type of activity such as home building, co-operative agriculture, women self help groups etcetera). We also find terms to keep you properly informed about the project funded with your contribution.
Our typical project does have a value between € 10.000 and € 40.000. If you have a particular project in mind that does conform to our demands and if you are willing alone or together with acquaintances to finance it entirely, please propose! We will manage the project as much as possible along your lines. After the loan has been paid back we will engage you again with the choosing of a new destination of your donation. From any one loan returned we subtract 5% per year for administrative expenditure and risk on our entire portfolio. Hence we negotiate about the remainder. As long as we are talking about a residual value of € 25,000 or higher you will be the one calling the shots (as long as a proposed project does fit our objectives).

Are Zero-Kap loans always paid back?

Those who request a loan are carefully screened as are the organizations the represent. The people that request a loan are always of good intentions, have good ideas, have their pride. Together with them we study the reality of their request and the probability that the loan may be paid back. We assign a monitor, we follow progress once the loan has been assigned. Nevertheless sometimes a loan cannot be paid back. This does amount to about 10% of the loans outstanding. Keeping in mind that our partners belong to the economically and socially weakest groups, even in their own countries, a loss of 10% on non refunded loans does not appear very high.

Do all projects succeed?

No, unfortunately sometimes a project does not reach its goals financially (see previous question) or in terms of the agreed objectives (or both). This situation is regretted by the party receiving the loan, by the monitor, by the eventual donor (who righteously had high expectations) and by Zero-Kap. However, is every failure a complete loss? After all money has been invested in homes that are inhabited, in a small plant or workshop, in tools that work for our partner, in seeds that produced a crop, in training really received etcetera. Sometimes projects generate less extra income than expected and the loan cannot be paid back. Sometimes a fire or bad wheather interfered. Many other things may go wrong to the people we work with as those societies often do not have the resources to recover at once and do not have much control about the environment they live in. In general we are proud to state that all our projects succeeded at least partially and generated hope and expectations, have spread knowledge and increased experience.

How does Zero-Kap get funded?

In the very first place most of our loans are paid back. This is the basis of our funding. Next we do look to additional sources of income from private persons, foundations, funds, enterprises etcetera. We are happy with any support, small or very substantial. As these allow us to do this work and gradually increase our funding basis.

What if I do have any complaints on Zero-Kap?

In case you have the feeling that you are not adressed right, either as a donor or as a (potential) client, please address your complaint to our chairman at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it who does head our complaints commission. You may also write a letter to our postal address. In that case address the letter to the chairman and clearly write "personal" in the left corner of the envelope.