In addition, the Pelham Fund requires financial intermediaries in which it invests to also maintain adequate reserves to ensure against loan losses. All administrative costs for the operation of the Pelham Fund are paid by ECM and the Diocese of Massachusetts. Income derived from interest earned on investments or contributions to the Fund is dedicated to the Pelham Fund grants program. The Pelham Fund welcomes contributions to the grant portion of the fund. Donors may restrict contributions to the grants program.
All donations are fully tax deductible.
The Pelham Fund seeks loans from diocesan institutions, parish-based groups and organizations, as well as concerned individuals and private institutions. On average, the interest charged to financial intermediaries will be greater than the rate returned to the investor but will be lower than conventional rates. The income derived from interest earnings will subsidize the grants program. The Pelham Fund Trustees believe that loans to emerging entrepreneurs in low income communities without support for training, mentoring, and marketing are not sustainable. In response, the Pelham Fund has established a small grants program to support the development of innovative approaches to creating wealth among poor and disadvantaged communities.