The Omidyar-Tufts Microfinance Fund (OTMF) was launched in November 2005 through a unique partnership between Pierre and Pam Omidyar and their alma mater, Tufts University. The Omidyars gave the university $100 million to create a fund that would be invested entirely in international microfinance initiatives.  As the microfinance investments yield returns, Tufts receives 50 percent to use for its own programs.  The other 50 percent is reinvested in the fund to support additional microfinance investments. The Omidyars' personal investment is the largest allocation of capital to microfinance ever made by an individual or family, and at the time was the largest single gift ever made to Tufts University. 

Frequently Asked Questions

What are the fund's objectives?
The fund's objectives include accelerating the growth of microfinance through access to private capital, demonstrating the potential of microfinance as commercially viable investments, and unleashing at least $1 billion of new microloans to the poor in developing nations over the next decade so that these individuals may economically empower themselves.

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Enables economic self-empowerment among the poor while generating financial returns for Tufts

MEDFORD/SOMERVILLE, Mass. —Tufts University announced on Nov. 4, 2005, that Pierre Omidyar, founder of eBay and co-founder of Omidyar Network with his wife, Pam – both graduates of Tufts – will invest $100 million in international microfinance initiatives through a unique partnership with their alma mater. 

The $100 million endowment gift is the largest single gift in the history of Tufts University as well as the largest private allocation of capital to microfinance by an individual or family. The Omidyar-Tufts Microfinance Fund will be invested solely in microfinance initiatives.  An independent supporting organization controlled by a Board of Trustees will have fiduciary responsibility for investing the funds with the expectation of risk-appropriate financial returns. 

“Partnering with the Omidyars to advance microfinance is a strategic fit for Tufts on many levels,” said Lawrence S. Bacow, president of Tufts University. “As an economist, I’m attracted to microfinance as a financially self-sustaining model for making a difference in the world. Tufts’ commitment to active citizenship is a global pursuit that runs deep, and we are pleased to leverage resources that yield so many positive returns.”

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I am pleased to announce that Pierre and Pam Omidyar have made an extraordinary gift of $100 million to form a unique partnership with Tufts. Their endowment gift - the single largest in the history of Tufts - will underwrite a partnership between Tufts and Pierre and Pam to make investments designed to empower people in developing countries to lift themselves out of poverty.  We hope the Omidyar-Tufts Microfinance Fund will demonstrate that microfinance can be commercially viable, and in the process draw additional capital into this market.

This fund clearly demonstrates that it is possible to do well by doing good.  We expect Pierre’s innovative idea to empower millions of people in developing nations - and to generate significant income to Tufts as the microfinance investments produce returns.  Fifty percent of the investment income from the Omidyar-Tufts Microfinance Fund will be available for Tufts to use in support of both our faculty and students.  The remaining income will be reinvested in microfinance.   We expect to use the returns generated by the Fund to create a loan forgiveness program for graduates pursuing careers in public service, to create a funded internship program for students working in the non-profit sector, and to support additional investments in financial aid.  Faculty will also benefit from this program with additional support for their teaching and research.

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