Sustainable Philanthropy: Microloan Collective Lending Brings Self-Sufficiency & Independence

"J" is a smart man. He is also a very poor man inalthough interest may be charged to the
a developing African country, with a family tobeneficiary of the loan to help defray costs), at
feed, an inadequate housing situation and not a lotwhich time you can opt to take your money out,
of opportunities. However, with just a few dollarsre-loan it, or donate it to Kiva to either cover
"J" could set up a small shop that would bring inadministration costs or to be added into a growing
enough money to support himself and his family,permanent loan pool, whichever you choose.
with enough left over to begin saving for a betterOf course, Kiva does due diligence research
home. The only problem is, a few dollars might asbefore adding prospective loan recipients to the
well be a million to "J" given the state of the localpool and all of the money you put in goes toward
economy.the loan process - Kiva's low overhead is covered
That's where you come in. Instead of denying andby interest charges (if any) on the loans,
backing away from the title "rich Westerner," whyfundraising and donations. So far, Kiva's payback
not embrace it and use it to do some good? Evenpercentage has been 100%, although the
if you don't feel rich in comparison to the Jones',microfinance industry average is 97% so there's
when compared to the "J's" of the world you'realways a chance, however small, that you won't
Croesus in a spiffy suit. And it really doesn't takeget your money back.
that much to do a world of good.But the coolest part of the whole process is that
How much? How about $25.00?you get ongoing monthly updates about the
That's the minimum contribution to Kiva, a newperson or business your money is helping. You get
peer-to-peer microloan project that enables thoseto see the good you're doing. You can be a part
of us who have been fortunate enough to beof the conversation, as well, by posting a
born into a relatively wealthy, first-world situationcomment on the site's update center. Comments
to help those whose fortune didn't pan out soare reviewed by staff and passed onto the
well.business, if appropriate.
The concept is simple: First, you sign up for andSo what's stopping you? Go on now - it's only
"purchase" a piece of a loan via Pay Pal a credit$25. What's that these days, for a rich
card. Kiva then combines that purchase withWesterner? A haircut? Dinner out? A Dixie Cup of
money from others to make short-term loans togas? Whatever it is, it isn't much. But for a poor
needy African entrepreneurs. The beneficiary setsbut motivated African entrepreneur, it's the
up shop (or whatever) and pays the loan back.chance of a lifetime to make a lifetime's worth of
After the entire loan is repaid, you get yourchange.
money back (no interest is paid to donors,