What Real People Actually Recommend to Other Real People: Kiva.org

Now that we’re fully into the most giving time of year, it might be a good time to think about how you can do more giving throughout the year. Because it’s not just companies that need to put people first; people also need to put each other first.

We could all do more for each other. It’s really that simple. So, why not start now?

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From our very own, Mike Farkas:

“Dreams are universal. Opportunity is not.”

This simple, six-word truth is the first thing you read when you visit Kiva.org, and it’s the foundation of one of the most revolutionary ideas in modern charitable giving.  But that’s the thing—it’s not really charitable “giving;” it’s charitable “lending.”  Kiva’s mission is simple: “To connect people through lending to alleviate poverty.”  The company connects people like me and you with people around the world who have dreams of improving their lives through entrepreneurship or education but do not have the opportunity or capital to make those dreams come true.

The process is simple.  The borrower, an impoverished entrepreneur or student, applies for a zero-interest microloan through Kiva.  (Think $200 to buy fertilizer for a small family tea plantation in Uganda, or $1000 for supplies to set up a noodle cart in Myanmar.)  Once the loan is approved, it is posted on Kiva.org for crowdfunding. Lenders (me and you) can then give as little as $25 towards the loan, or any other opportunity of their choice.  If the loan gets fully funded (from one or several lenders), the borrower gets to use the funds to start or improve their business or education.  The borrower then repays the loan to the lender over time. Once repaid, the lender is encouraged to use the repayment to fund other microloans, continuing the cycle of economic advancement.

Since 2005 over 97% of all Kiva microloans have been repaid at a value of over $1 billion dollars.  

That’s over $1 billion dollars into struggling economies—struggling people’s lives.

Over 2.5 million lives, 81% of which are women, in 86 countries.

The microloans facilitated by Kiva.org bring true economic opportunity to impoverished people the world over.  The impact these microloans have on communities is seismic; they create opportunities not just for the recipient of the microloan, but also their family, friends, and community.  Next time you’re thinking about making charitable donation, I’d highly recommend you consider getting active on Kiva.org. It’s an amazing way to improve the lives of real people all over the world.

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Photo credit: Kiva.org