Blog Action Day 2008: What we can do about poverty. Starting today.

A couple of years ago, I received a generous year-end bonus from my employer and was so thankful that I wanted to share it in some way. I found Kiva. Through Kiva, via established microfinance organizations in countries around the globe, I loaned several businesses $25 each (as per Kiva's suggestion to spread your money out so to minimize your risk with defaults.) But, instead of taking the money back from the account once the loans were repaid (and all of them were), I found new businesses in need and re-loaned it all. Since I began I've put about $500 into Kiva and through re-loaning, I have turned that into over $1300 in loans that have gone to people in Togo, Azerbaijan, Bulgaria, Ghana, Ecuador, Tanzania, Samoa, and more. Here are a couple of screenshots from my account to give you an idea:


Kiva is an amazing organization and although I'm not wealthy enough to give tons of money to charities every year, I can make a difference with what money I can afford by loaning it over and over. It's a great feeling. It's a great endeavor. It's truly making a difference to real people who are making strides to change their lives.

The thing is, people who are poverty stricken often don't have collateral or friends in the banking industry. So, although they may have a great idea for a poultry market or a seamstress business, they have no access to funds they'd need to make those ideas reality. In most cases, no one loans money to people who don't have money. Kiva does.

And they do it with my money. (And yours if you want to help.)

Give it Up People!

Ok. I know it's the time of the year that people are begging for money for every cause and charity and disfigured cat out there.

But.

This is a great idea to make your charity dollars go as far as possible towards the greater good. Seriously.

Last year I received a nice Christmas bonus for work and I felt I should share the love. I found an organization called Kiva and I fell in love.

Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can "sponsor a business" and help the world's working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you've sponsored. As loans are repaid, you get your loan money back.

Here's how it works (click on photo to enlarge):

It's fun because you can watch these people's progress and once they've paid back their loans (Kiva's default rate is surprisingly low. Of the $2,494,210 of loans with completed loan terms, the default rate is 0.2%.) you can use the exact same money to help another business.

Just throwing it out there ...