14 DAY TRIAL // Sometimes, charity and financial institutions do go hand in hand. Kiva is a microfinance organization that helps small businesses and entrepreneurs in developing countries by issuing out small loans for those who wouldn't have much chance of getting one from the traditional financial institutions. The funding from the loans is 'crowdsourced' by encouraging people all over the world to make small donations that go toward the loans. The organization is now four years old and is announcing a major milestone, $100 million have been handed out in microloans since it was founded.
“It's a wonderful accomplishment involving 584,189 Kiva Lenders in our first 4 years of operations. What's even more amazing to me is that it took over 1 year to raise our first $1 million . This year alone, we're on track to raise nearly $60 million. On behalf of the volunteers, staff, microfinance field partners and the entrepreneurs they serve -- thank you and congrats to Kiva Lenders for reaching this incredible milestone!,” Kiva President Premal Shah wrote about the milestone.
The over half a million lenders that have pledged their money to Kiva.org giving $25 or more have helped 239,000 entrepreneurs in poor countries get their small businesses going. The organization makes use of the great tools and resources available online to engage the loaners and allow them to follow on the progress of the business they helped fund. The website and the way the donation system works are the main draw of the whole process.
It works in this way: borrowers in developing countries, in the US also as of several months, reach out to microfinance institutions that give out the loans. These institutions then go to Kiva with the information about the borrowers that ends up on the site to raise the money. This process has proven to be quite successful and the number of people lending the money but also those being helped is growing rapidly. With donations coming in at $60 million just for 2009, the organization looks to be on track to make a lot more next year.