When was the last time money that you'd given to a charity came back to you? Not likely, right? Once it's on its way to whatever good cause you've chosen, it's generally gone and all you're left with are all those lovely warm-fuzzies. Don't get me wrong, that's a fantastic feeling. But what if instead of donating your money to help someone, you lent it? How would that change things? Would the recepient then feel more like a business person and less like a charity case? Perhaps.
That's sort of the concept behind Kiva.org – it's a non-profit organization that's based on microloans. If you haven't heard about microloans, the concept is fairly simple: multiple
people pool small individual amounts of money together, generally through a third
party, into one larger loan for a person or business in need. And with
the magic of the internet, that business can easily be half-way around the
world.
Earlier this week I got an email from Kiva.org, letting me
know that the one of my micro-loans has now been fully repaid. My first full repayment! That
means that the $25 that I originally lent out to this entrepeneur has now
found its way back to me. I can now take that money and run, or donate it to
cover Kiva's operating expenses, or re-lend it out to a new person
somewhere else around the globe.
I've decided to re-lend it, which is the fun part. Now I get to get to click through profiles of businesses from far away places like Tajikistan, Cambodia,
Uganda, and Ukraine; learning about each of these people and their dreams and plans. I enjoy that personal feeling. My funds aren't going to some amorphous organization, but directly and 100% to individual people, individual entrepeneurs. And periodically the recepients will post journal entries to let the lenders know how their business is doing.
While plenty of these businesses sell food, weave
textiles, raise animals and the like; some of them manufacture jewelry. The idea that my tiny contribution could help a fellow jeweler out there is pretty special. Plus once I get that money back, it can help again, and again, and again...
~Addie~
Here are some quick facts I found.
Kiva's impact, this week alone:
- $486,150.00 loaned
- 3.6 hrs to fully fund a business
- 8,057 new lenders joined
- 289 businesses finished paying back loans
- 679 businesses fully funded