Wednesday, February 5, 2014

Service Learning Day 2 (afternoon)

After doing more thorough research on Kiva we decided to better understand the breakdown of how Kiva functions as whole. After watching countless videos and looking through many different documents regarding Kiva we have decided to compile a basic understanding of how Kiva functions. Below are a few paragraphs we wrote regarding our findings:

All of us want to donate to charity and there are any worthy organizations asking for money but we don’t know where it goes and how much of it gets to people in need.
On the internet it is being changed due to microfinance.

In the third world small time borrowers need low dollar loans, these budding business people don’t want millions of dollars a few hundreds would do. Most banks aren’t in touch with businesses that small but a number of websites put third worlders in touch with first worlders like us. using charitable urge to raise capital. some microfinance sites are highly targeted, but kiva is the most efficient. It is the most successful is kiva established in 2005 by Matt Flannery and Jessica Jackery (stanford business school) they are partners with more than 50 microfinance corporations around the world. they put the money in the hands of those in need and upload the story of each loan to Kiva’s website creating an online catalogue.

People can loan and earn money back. They then take that repaid money and pass the money on to help many other people. Traditional aid organizations set aside money for Admin costs, but Kiva doesn’t work. Kiva doesn’t work that way. Kiva admin works in the different way and is funded through other donations. Lenders can choose whether to contribute to admin, aid or both. 100% of the money we promise to developing nations end up in developing nations.

Website’s statistics are updated daily.

We were able to provide a loan to someone in Cambodia in 15 minute must by visiting a website. Online microfinance sites won’t fix poverty on their own, but the personal connection of the web has the potential to make a huge difference.

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