Merit Foundation

## Mission & Strategic Priorities

Merit Foundation is a small private foundation incorporated in Illinois with IRS recognition dating to February 1998. Its stated mission is to partner with communities to reduce poverty and expand hope worldwide, operating under the tagline "Improving Lives." The foundation deploys a partnership-first model, working alongside community members, local organizations, and established institutions rather than acting as a direct service provider.

The foundation's strategic priorities cluster around three reinforcing pillars:

Humanitarian Aid for Vulnerable Families: The most recently publicized project serves children with special needs and their caregivers in Chiang Mai, Thailand. The program provides housing subsidies, utility support, and work-from-home income opportunities so that caregivers — largely parents unable to enter traditional employment due to caregiving demands — can maintain household stability. Participant outcomes center on reduced financial stress and improved psychological well-being.

Community Development via Institutional Partnership: In 2016, Merit partnered with YMCA Asia and Pacific to introduce the YMCA's community development and education model to emerging leaders in Lao P.D.R. This partnership produced a self-sustaining cohort of community leaders who continue to serve their neighbors. Merit describes this as an ongoing collaboration, suggesting multi-year relational investment rather than one-off grant-making.

Microfinance and Economic Empowerment: The foundation has extended microfinance loans in Northern Lao P.D.R., with the publicly described example being a mushroom farming enterprise. The selection criteria favor projects with low capital requirements, a small physical footprint, rapid return on investment, and access to local consumer markets. The mushroom farm loan was repaid in full and on time — a mark of program effectiveness and borrower selection quality.

Taken together, Merit Foundation is a relationship-driven, internationally focused private foundation that uses both grant-making and microfinance instruments to attack poverty in Southeast Asia, with a secondary U.S. presence through its registered Illinois domicile and domestic donor base.

## Grant Programs & Funding Priorities

Merit Foundation files as a private non-operating foundation (990-PF). Its grant-making shows consistent activity every year since at least 2011, with grants paid ranging from approximately $21,000 to $71,000 annually.

Historical Grants Paid (IRS 990-PF data):

The minimum distribution requirement for 2023 was approximately $71,290; the foundation distributed $71,100 — essentially the statutory floor. Typical individual grant size ranges from $15,000 to $35,000. The foundation funds approximately one to three projects per year.

Funding focus areas: - Special needs caregiving support (housing, economic stability) - Community-led development (youth leadership, YMCA-model programming) - Microenterprise and small business creation via microfinance - Southeast Asia: Lao P.D.R. and Thailand specifically

There is no published RFP process, no open grant cycle, and no formal application portal on the website.

## Peer Comparison

The following table situates Merit Foundation against comparable small private foundations with international development or poverty-alleviation focus areas:

Key differentiators vs. peers: - Microfinance instrument: Few foundations at this asset scale deploy microfinance loans alongside traditional grants. This adds a revolving dimension to capital deployment that extends effective reach. - Low overhead: Officer compensation was $1,800 in FY2023 — consistent with a volunteer-led operation. - Relationship-first grantmaking: Unlike peer foundations that issue open RFPs, Merit operates exclusively through established partnerships. - Asset growth: Assets doubled from 2015 to 2023 due to strong equity market performance and continued donor contributions. - Geographic concentration risk: Virtually all program activity is in Lao P.D.R. and Thailand.

## Financial Health & Recent Activity

Merit Foundation manages approximately $1.4 million in total assets (FY2023), virtually all held in publicly traded corporate stock ($1.27 million). The investment portfolio has grown 170% from $513,812 in 2012 to $1,389,606 in 2023.

Key FY2023 financial indicators: - Total assets: $1,389,606 - Fair market value of investments: $1,585,285 - Investment securities (corporate stock): $1,270,946 - Total revenue: $118,858 - Contributions received: $100,000 (significant family/donor inflow) - Dividends: $29,757 - Net investment income: $13,697 - Grants distributed: $71,100 (qualifying distributions) - Officer compensation: $1,800

The foundation received $100,000 in contributions in FY2023 — a significant inflow suggesting the founding family remains active. Annual giving capacity is approximately $65,000–$75,000 per year under the mandatory 5% distribution rule. Net investment income dropped substantially in FY2023 ($13,697 vs. $69,360 in FY2022) due to absence of realized capital gains, so disbursements increasingly rely on contributed capital and dividend income.

## Application Guidance & Prospect Intelligence

Merit Foundation is not suitable for cold-call grant seekers. Its operating model is explicitly relationship-driven. The website offers only a contact form — no grant application, no eligibility criteria, no published deadlines. The foundation awards grants exclusively to organizations with which it has pre-existing relationships, primarily in Southeast Asia.

Who could realistically approach Merit Foundation: - Organizations already operating in Lao P.D.R. or Thailand with a track record in community development, microfinance, or caregiver support - Organizations connected to YMCA Asia and Pacific programming networks - U.S.-based nonprofits with field operations in Northern Lao P.D.R. or Chiang Mai

Outreach approach: Contact via website form at meritfoundation.org. Any approach should: (1) lead with specific community partnership or local presence in relevant geographies, (2) demonstrate alignment with the foundation's partnership-first philosophy and self-sustainability ethos, (3) reference specific program models (microfinance, caregiver support, YMCA-style community leadership).

Grant size expectations: Given annual distributions of $59,000–$71,000 total, realistic individual grant sizes range from $15,000 to $35,000.

Strategic intelligence: - Contact of record: Joseph A. Zarlengo, 15 S Pine St Apt 404, Mt Prospect, IL 60056 — consistent with a family foundation structure. - Operating since 1998 — nearly three decades of consistent Southeast Asia development commitment. - $100,000 in FY2023 donor contributions suggests founding family remains engaged and may be interested in expanding reach with the right partner. - Successful microfinance loan repayment history indicates the foundation values demonstrable return on investment and community self-sufficiency. Frame proposals around exit strategy and sustainable outcomes.

Bottom line: Organizations with existing presence in Chiang Mai, Thailand or Northern Lao P.D.R. working on caregiving support, microenterprise, or community development should attempt warm introduction through the YMCA Asia and Pacific network or direct contact with foundation leadership.