I Am A Contributor - Helping Others with Micro-Loans

I can always count on my son, Joe, to help me keep my perspective. He sends me emails with heart-rending stories of people and events that make me poke my head out of my little cubbyhole and try to remember that not everyone has the life experience that I do.  Every November Jay and sit down, around Thanksgiving, and reflect on our life.  We say we are not rich in the financial portfolio sense, but we are wealthy in that we have each other, our health, supportive family and friends and are able to met all our needs.  Our cup runnith over and we take time to share some of what we have with others by making our annual donations to charitable causes.

It is always a quandary to decide where to send our dollars.  We want our donation to have an affect so we search out organizations where only a small percentage of their contributions is used for administrative overhead costs.  Websites like Charity Navigator are helpful.

In 2008 we heard Muhammad Yunus speak at the MIT graduation and were impressed with his message. He is called "The Banker to the Poor" and is the founder of the Grameen Bank, one of the first financial institutions to provide micro-lending.  He believed that providing small loans to people, especially women, gave them the power to rise out of poverty.  We began donating to various micro-lending institutions but we never could "follow" our donation.  Then our friend, H.E.,  told us about Kiva, an organization he has participated for many years, that got us excited.  Kiva.org is a microlending organization whose website says "Empowering people around the world with a $25 loan...loans that change lives."

Kiva facilitates small loans to persons in various parts of the world who need a "leg-up" to start their business or improve a business already going.  It is a very personal experience because you see the face and know the story of the person who is going to receive your contribution.  You become a part of a team of lenders that is sponsoring this person.  The recipient agrees to make monthly payments to pay off the loan and your percentage of that payment is credited back to your account.  When you have your $25 paid back, you can loan it again to another person.  Here is a simple diagram of how the process works:

At the moment we are sponsoring three individuals:
Teyyub is a man in Azerbaijan who raises livestock. He requested a loan to help him buy 15 sheep and fodder to build his business. He is married and has three children and has been in business for 15 years. We are one of a team of 43 lenders providing his loan and he has paid back 74% of his loan to date.

Mairam is a 57 year old woman in Tajikistan who is trying to put her 6 children though University with the proceeds of her small business selling women's clothing in the central market of her town.  We are one of 40 lenders sponsoring her loan and she has repaid 61% of her loan.

Just this month we had $25 of our previous loans repaid so we loaned to another borrower, actually a group of women in Mexico, who have joined together to help each other get ahead and support their children.  They sell tamales and would like to expand their business to carry other food products.  We are one of 97 lenders in this activity.

We like the philosophy of micro-lending.  It isn't a handout but rather a hand-up. It also communicates our confidence and belief in what the person is doing.  It allows us to feel a connection, even if small, to the global community.  It seems like such a small thing to do and hopefully it helps someone else to improve their lives and the lives of their children.