[Rikki]

I'm generally not one that donates money to organisations that help the 3rd world, because I feel like my money evaporates without any real impact. However, last night I heard about a brilliant concept called micro-lending, specifically through a site called http://www.kiva.org/ and I thought I'd share it because I think it's such a good idea.

Essentially, you choose a pre-vetted business, and offer them an interest free microloan (say, $25). They use that money to establish or invest in their business, then at some point down the road, they repay your loan. Naturally there's a risk in loaning money, but Kiva's repayment rate so far is 100%, and micro-lending as a concept has a rate of around 96%. Kiva passes your money to an organisation in the area you choose to loan to, who handles the distribution of the loan and collection of repayment. After the loan has been received, you get a periodical status update on how the business is doing. After repayment has been made, you can either withdraw your loan or choose another business to invest in. Kiva is the first site that has a deal with PayPal where all fees (sending and receiving) are waived, so the business gets 100% of your loan and you get 100% of it back.

I decided to loan money to this guy in Togo who's expanding his radio repair shop. Seems this morning he got the remainder of his loan

Anyway, I hope you all feel this is as good an idea as I do - it allows you to really help people in poor countries without just handing out free money, and you get to see the actual results of how your money is helping people too If any of you decide to loan, post a link to the business you chose

[Debbie]

Sounds like a good, worthy "charity" Rikki. I'll take a good look later on

[hogleg]

That's actually a nobel-prize winning economic strategy. The idea is on the up and up, as long as the executors are.

[Strange_Will]

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LOLZ get IPD



Anyway, sounds awesome, some money to charity, and small time business owners can get a leg up on business!

[Digi]

I think it is a great idea to collaborate (or collect) money for temporary uses. Now those folks do just get handouts, but still have the opportunity to pursue their goals. I like it. As long as the company mediating the loans stays on the up and up (not just returning/loaning the money, but, for instance, not taking away the livelihood they just gave to repay loans) I think it has definite potential B)

[Ma_ruf]

That's actually a nobel-prize winning economic strategy. The idea is on the up and up, as long as the executors are.

Yeah, here is the news:

http://www.thedailys...d6101401011.htm

Micro-credit has changed the life of the rural people of Bangladesh. It has also helped in women's empowerment and improving human rights record.

[Brandon C]

Thanks for sharing this, Rikki! I've been looking around at several different charities to donate to, and I love this concept! I've signed up, and I'll now be searching Kiva, and I'll be sure to post any links to the businesses I donate to!

[SmashinGarcia]

Yes it is very great, I am tempting to loan but I forgot how much money I need to pay back myself.

[_]

This is indeed a great concept. The idea of giving without actually giving is very attractive; and should one not get his money back, it's hardly a disaster. I like it. I may even lend to someone.

[Luke]

I saw this on TV quite a while ago (I think it was a year ago) and thought it was a wonderful idea. It left my mind after and I again thought about it later but I couldn't remember what the site was called, nor could I find the link.

Thank you!

[Matt]

What a fantastic idea. I've invested thrice! http://www.kiva.org/lender/matt5272

[Jason H]

Not to screw over the third world countries.. But...

http://www.modestneeds.org/

Founded in 2002, Modest Needs is an award-winning charity that works to stop the cycle of poverty before it starts for low-income workers struggling to afford emergency expenses like those we've all encountered before: the unexpected auto repair, the unanticipated trip to the doctor, the unusually large winter heating bill.

At Modest Needs, we believe that EVERY person has the power to make a difference. So, by choice, the work we do at Modest Needs is funded exclusively by the 'small change' donations of people just like you.

The average gift of these extraordinary people? Between $5 and $100 at a time.

Since 2002, our donors' 'small change' has stopped the cycle of poverty for 3253 individuals and families who stood to lose everything over a short-term financial emergency. But with your support, we could reach even more of the hard-working people who need our help the most.

Discover your power to change a life. Please join your friends and neighbors in supporting Modest Needs.

Because Modest Needs has earned the highest possible charity rating from the Better Business Bureau's Wise Giving Alliance, you can give with confidence, knowing that we won't abuse your kindness.

But more importantly, simply by working together in this very modest way, we can make sure that no hard-working person is ever forced to choose between taking a child to the doctor and putting food on the table.

I think that the smaller charities tend to have far more impact than the large. Like the above charity. Some poor schmuck who lives paycheck to paycheck slips on his front step and has to go to the hospital for 4 days and has a $1000 deductable on his health insurance.. Anyone going to help him? Nope. Which is where the above comes into play.

[skinbydragonfly]

Brilliant Idea!

I just made a small loan to a Lady in Samoa, thought I would keep it somewhat local geographically

Thanks for spreading the word on this Rikki, I had never heard of it before, and think it is a truly remarkable way for those of us who are lucky enough to be in the developed world to directly assist those that aren't without all the waste that goes along with large charities and corrupt Governments.

[Stephen]

That sounds like an absolutely brilliant idea, I will definitely have to take a proper look at this later