So this is a company that does microfinance loans to people (generally in poorer countries), and kind of combines it with charity. So basically you donate a certain amount, and eventually get it paid back. There is some risk there, about 2% of them don't get paid back. And since it is charity you don't actually earn any interest on the loan as far as I can tell.

 

This site has apparently been around for a while but I just found out about it today. So the question is, has anyone heard bad things about this? Seems like most charities are pretty bad in regards to actually helping people, just curious if this one is the same.

 

The link to the site: http://www.kiva.org/

 

EDIT: Looks like another one is https://www.zidisha.org/index.php Zidisha. It looks like it might be better for the borrower, with slightly more risk to the lender. Since it really is just for charity the slightly more risk to the lender is not that big of a deal.

If you're going to donate money then it shouldn't be with the expectance of "getting something back". If Kiva's entire program is based on the donaters getting their money back then it's actual charity work is probably going to be subpar.

Kiva is actually a great program. :thumbup:

 

I found out about it when I was reading Bill Clinton's book, Giving.

 

It's a pretty simple program. You find someone on the website who needs to borrow money in order to help get their small business off the ground, etc. Once you have selected a borrower and an amount to loan them, they can slowly work on paying the loan back but in the meantime, they keep you updated with emails and progress of the work. Once they have paid your loan back, you can either keep it in the system and use it to help another person needing a loan, donate it to the website, or you can simply withdraw the money back into your own account and go on your merry way.

 

Their entire program is designed to help people in need, and not to have their users get their money back or make any sort of profit.

If you're going to donate money then it shouldn't be with the expectance of "getting something back". If Kiva's entire program is based on the donaters getting their money back then it's actual charity work is probably going to be subpar.

 

Huh? I think it's a really great idea. First of all, if you can expect to get your money back, people will "donate" more. That's the first big advantage.

 

What I find even more important though is that it helps poor people out of their vicious circle and enables them to start their own business, through their own work, without being subsidized by others. I think that's a point that a lot of charity programs often neglect.

Ah, I misunderstood how the program worked. My bad...

I do believe I have heard of the concept before under the name 'micro loans', where the idea is that small loans in poorer areas of the world basically get money moving, and new businesses can draw more money into the local economy, and the 98% payback rate does sound about right. It's a very neat concept, and it does seem to work quite well.

Ah, I misunderstood how the program worked. My bad...

 

I see what you were saying though, at first glance you kind of wonder how it actually helps them. But these are (mostly) people who can't get loans that are reasonable any other way. Really I don't actually care much about getting the money back. The thing I like about these are that they seem to actually help people long term, whereas it seems many charities are just keeping something that doesn't work going for a short while longer.

 

But the possibility of money back does change things. I had a deal with myself, long story short I have $450 that I get to spend on whatever I want. Don't have anything I want right now, so I am going to give it all to a few of these, and then in a few months hopefully get some or all of it back and spend it then. If there was no chance of money back then I wouldn't give nearly that much.

Sounds solid. I have money laying around right now, but I might need it for textbooks. I'll try to remember this.

The Zidisha one definitely has a lot less people on it, and they all seem to be from around one or two areas. You actually can make a little money off of them (around 1-2% interest) but when you add money to your account you are charged a 3.4% transfer fee, and then they also put on a 15% suggested donation to the company to cover expenses. I just went with it, so I got $100 on my account and ended up paying $118.40 for that. Chance of getting $102 back which is a bad investment, but this is for charity not to make money.

This sounds like a great way for people to donate money, however it may not work for everybody, as many people do the recommended safe investments by banks, such as GIC's, which offer around a 3% return. This ties a bit of money into other projects outside of charity.

 

However, this could help convince more people to donate with money they do not wish to invest.

How do you guys have spare money? I can't donate because I need all the money I have. I usually donate in person when they are at stores and such.

Full time job,

How do you guys have spare money? I can't donate because I need all the money I have. I usually donate in person when they are at stores and such.

 

Full time job. Do have a mortgage though, so don't have a ton of extra money. Some of us are old on here :)