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Each month, I like to introduce my readers to an opportunity that allows you and your residents to reach out and make a positive difference in the lives of other people. Today I’m sharing a program that I heard about through a local assisted living facility. It’s called Kiva, and I’ll highlight several commonly asked questions.
What is Kiva?
Kiva is a nonprofit organization with a mission of helping put an end to poverty. They do this by providing loans to individuals around the world to help them become self-sufficient.
How does the process work?
A multitude of people around the world don’t have access to financial services to help them create or grow their businesses. As a result, they have difficulty supporting themselves and their families. Kiva provides alternative loans to help these folks.
People apply to Kiva and then go through a complete evaluation process. After approval of a loan, details of the project are posted on the Kiva website. Then lenders like us can read about all of the projects and choose the person we wish to support.
As the recipient develops their business, they gradually pay back the loan through their earnings. You’ll receive email updates as your recipient makes payments. When the entire loan has been repaid, you can request that the money is returned to you, donate the money to support Kiva’s expenses, or you can choose to invest in another person’s project.
Who does Kiva serve?
Kiva helps people in more than 80 countries on 5 continents. These are just a few ways people have used their Kiva loans to meet their goals:
- Victor opened a coffee shop in Mexico
- Najah bought a flock of sheep in Israel
- Chancey opened a bakery in South Carolina
- Mukula started a weaving business in India
Here’s where I see an added benefit should your residents choose to participate in Kiva. Think of all the activities and educational programs you could offer your residents as they learn about the country where their loan recipient lives!
Who are the lenders who participate in Kiva?
Residents of the assisted living facility I mentioned earlier chose to do this as a group project. However, most of the people who participate in Kiva are individuals or families.
In fact, since learning about Kiva, I’ve made a loan to one participant. I also gave Kiva gift certificates to my nephews so they could share this experience with their children.
How much money do I need to participate in Kiva?
You can make a loan to a Kiva recipient with as little as $25. This money is combined with funds from many other lenders to meet the need of the borrower.
I encourage your group to do fundraisers to earn money for the loan. This becomes an additional fun activity for your residents. Besides, it promotes socialization and teamwork. You’ll find lots of fundraising ideas in my archives.
Is Kiva reputable?
Kiva has a 4-star rating through Charity Navigator. That’s the highest star rating a charity can receive.
Historically, Kiva loans have a 97% repayment rate. For a variety of reasons, a small number of borrowers are not able to pay back their loan. So there is a very small chance that you won’t get your money back. But the vast majority of lenders enjoy watching the progress of their recipient as they repay the entire loan.
Have you ever made a loan through Kiva? Please share your experience in the comment section.
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