Tufts University received a $100-million gift last week, the largest in its history, and plans to use the money in an unusual way: to make small loans throughout the developing world.

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The strategy is designed not only to yield good returns, but also to spur economic growth in impoverished regions. The donation was made by Pierre Omidyar, a Tufts alumnus, and his wife. He is the founder of eBay.

Lawrence S. Bacow, president of Tufts, says the university will "help to establish this investment sector" by proving that microloans â€" which previously have been distributed mostly for philanthropic purposes â€" can bring significant money to the university.

"It's our hope that by demonstrating what the real returns are in this field, we'll encourage others," says Mr. Bacow, a lawyer and economist. The idea, he said, is "to do well by doing good."

Tufts received and immediately liquidated $100-million in shares of eBay stock last week.

The money will be managed as part of the endowment, with half of the income from investments going to the university to support financial aid, scholarships, and other programs.

The other half of the income will be reinvested in the endowment, which was valued at $880-million as of June 30.