You Too Can Be a Banker to the Poor

I don't usually share publically which charitable organizations receive our financial support. However, but I would like to share my experience with one organization which can cost you $0 and yet allow you do a world of good.

KIVA is the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world. It was founded in October 2005 by Matt and Jessica Flannery and is run by a team with experience in microfinance and technology. The founders came up with the idea for KIVA, which means “unity” in Swahili, after spending time in East Africa.

Small loans to entrepreneurs are now widely recognized as an important tool against poverty. Muhammad Yunus won the Nobel Peace Prize for his pioneering work with microfinance in Bangladesh.

Essentially, this is how KIVA works: Choose an entrepreneur, lend, get repaid.

1) Lenders view the profiles of entrepreneurs in need, and choose someone to lend to. When they lend, using PayPal or their credit cards, Kiva collects the funds and then passes them along to one of their microfinance partners worldwide.

2) Kiva's microfinance partners distribute the loan funds to the selected entrepreneur.

3) Over time, the entrepreneur repays their loan. Repayment and other updates are posted on Kiva and emailed to lenders who wish to receive them.

4) When lenders get their money back, they can re-lend to someone else in need, donate their funds to Kiva (to cover operational expenses), or withdraw their funds.

I chose a single mother in Peru who runs her own general store to support her son. Betti was described as a "determined woman and constant in what she does." The background descriptions of the various borrowers are fascinating.

My simple loan was paid on July 28th and she has already paid back 17%. With these funds I have already started to shop around for another borrower...its almost addictive. If you are interested in this concept you can obtain more information from their website: kiva.org.