Kiva's mission is to connect people through lending for the sake of alleviating poverty.
Kiva is the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs around the globe.
The people you see on Kiva's site are real individuals in need of funding - not marketing material. When you browse entrepreneurs' profiles on the site, choose someone to lend to, and then make a loan, you are helping a real person make great strides towards economic independence and improve life for themselves, their family, and their community. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates and track repayments. Then, when you get your loan money back, you can relend to someone else in need.
Kiva allows microfinance institutions around the world, called "Field Partners", to post profiles of qualified local entrepreneurs on its website, www.kiva.org. Lenders browse and choose an entrepreneur they wish to fund. Kiva aggregates loan capital from individual lenders and transfers it to the appropriate Field Partners to disburse to the entrepreneur chosen by the lender. As the entrepreneurs repay their loans, the Field Partners remit funds back to Kiva. As the loan is repaid, the Kiva lenders can withdraw their principal or re-loan it to another entrepreneur.
Lenders' funds are transferred to Kiva through PayPal, which does not collect its usual fees in this case.
Kiva lenders do not receive any interest because Kiva is not registered with the US Government as a broker.
Kiva was founded in October 2005 by Matt Flannery and Jessica Jackley.
The couple's initial interest in microfinance was inspired by a 2003 lecture given by Grameen Bank founder Muhammad Yunus at Stanford Business School. Jackley worked at the school and invited Flannery to attend the presentation; this was the first time Flannery had heard of microfinance, but it served as a "call to action" for Jackley. Soon after, Jackley began working as a consultant for the nonprofit Village Enterprise Fund, which worked to help start small businesses in East Africa. While visiting Jackley in Africa, Flannery spent time with Jackley interviewing entrepreneurs about the problems they faced in starting ventures and found the lack of access to start-up capital was a common theme. After returning from Africa, they began developing their plan for a microfinance project that would grow into Kiva, which means "unity" in
Swahili or "nice" in Finnish.
Kiva is run by a team with experience in business, microfinance, and technology.
In my personal opinion, this is a positive step into a better global economy, fueling local initiatives and sponsoring small business opportunity that will help the developing nations far more than any donation fund. Having said that, it is my personal opinion that small time donations are better than charity. You have direct control over what your contribution does and where it goes, there is minimal politics involved, little bureaucracy, none of the disgusting stickiness of most non-profit organizations.
It is my prediction and hope that Kiva's economy grow from $80,000,000 to a couple billion dollars.
How can you help? Pull out a couple hundreds out of your pocket, I know you can spare it, and hand it over to a cause you find worthy on Kiva.com then wait for your small impact to make waves and come back a thousandfold!
This is the pure essence of equal energy exchange!