Making Any Amount of Charitable Giving Go Further

A_business_in_South_Sudan_benefiting_from_microfinance_(6189731244)Merry Christmas, Happy Holidays, and Happy New Year to everyone!

I hope you all had a wonderful holiday. Due to various scheduling hurdles, my family is going to celebrate Christmas tomorrow (the 28th). I am lucky to be a part of a family that values having everyone together over the actual calendar date of a holiday.

As I sit here and think about how lucky I am, it’s also important to me to think about those less fortunate. Charitable giving has always been something my family has participated in, ever since I was a little guy. Being mindful of the way I spend my money is no different when it comes to helping others. I want my money to go as far as possible. That’s why I fell in love with Kiva.

Kiva is a microfinance platform. What does that mean? Let’s break it down:

  • Step 1: As the lender, you go to Kiva‘s website, sign up, and find small businesses that you want to lend to. This might be a woman in Ecuador who wants to purchase chickens to supply eggs to her produce shop, for instance.
  • Step 2: Lend $25 to as many of these people as you like. $25 is the minimum you can lend and while you can lend more, I personally like to spread my money out to touch as many people and countries as possible.
  • Step 3: During your transaction, donate an additional amount to Kiva for operating costs (optional, but obviously I love this organization, so I do).
  • Step 4: Kiva will handle the rest. They work with organizations in various countries that will get your money to the borrower.
  • Step 5: Over time, the borrower will pay back the money you leant them and it gets credited back into your account.
  • Step 6 (The Best Part): You can then take that credit and lend it out AGAIN – to someone new who needs it!

I really like the fact that I get the money back. No, I am not miserly – I never plan on cashing out the money in my Kiva account, just re-lending it to other people. In fact, I regularly put more money into the account and grow the number of active loans I have. But each loan of $25 can help MANY people, so whether you are in a financial situation where you can’t spare much or you can give a lot, your money will go further.

I also like the strings attached. Borrowers are motivated to put the money to good use because they are responsible for paying it back.

Here are my current stats on Kiva:

  • Loans Made: 78
  • Loans Made By People I Have Invited: 12 (This is where you all come in!)
  • Countries Loaned To: 51 (of the 73 that Kiva supports)
  • Defaults: One for $10.83 (Defaults are a risk, but they are generally low and a risk I am willing to take)

So if you want to show some love, click on this Kiva link¬†and sign up! Yes, this link is an affiliate link, but here’s the thing: if you sign up, I don’t get “paid” in the traditional sense. I get a $25 credit in my Kiva account, which I will lend out! See, together we can make our impact go even further!

Thanks and see you all in 2014! I promise it will be an amazing year.

*Update: A friend of mine from college is doing something very cool with microlending. She has created a way for mobile games (think Candy Crush, etc) to build microlending right into their game! So when you make an in-game purchase, that money goes to helping people! Check it out at:

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12 thoughts on “Making Any Amount of Charitable Giving Go Further

  1. Andrew@LivingRichCheaply December 30, 2013 at 10:19 pm

    I participate in Kiva and I like their platform. I enjoy reading about the businesses that the borrowers are starting or what the money will go towards to expand their business. And I like the fact that the money is paid back so that I can continue to lend it out to other business owners.

    • Mr NYBudget December 31, 2013 at 1:03 am

      You’re right – I really like how Kiva lets you know how your money is being used and you are able to get updates along the way!

  2. David December 30, 2013 at 10:29 pm

    Sounds like a great program. I hope to check out the website, and be a part of the organization.
    Thanks for the suggestion.
    David recently posted: Trends in Interest Rates in 2014My Profile

    • Mr NYBudget December 31, 2013 at 1:02 am

      No problem! I hope you find it as great as I do!

  3. EL @ Moneywatch101 January 2, 2014 at 1:39 pm

    I have heard of Kiva before, but never really took it into consideration. I will now and I look forward to giving back soon.

    • Mr NYBudget January 2, 2014 at 1:48 pm

      Excellent! Welcome aboard!

  4. jlcollinsnh December 4, 2014 at 3:10 pm

    Hi David…

    Just wondering….

    are you still as enthusiastic about Kiva as when you wrote this post?

    • Mr NYBudget December 4, 2014 at 8:42 pm

      Yes – I still am! Currently, I have alerts set up for the countries I haven’t lent to. I am slowly, but surely lending out to every country where Kiva has a presence!

      The concept of helping people to help themselves still resonates with me, though!

      • jlcollinsnh December 7, 2014 at 11:54 am

        How did you arrange the affiliate relationship?
        jlcollinsnh recently posted: Chautauqua February 7-14, 2015: Escape from WinterMy Profile

      • jlcollinsnh December 7, 2014 at 11:31 pm

        We just made our first loans. Very cool and very exciting.

        Interestingly, this is tax deductible and yet, after a loan is repaid, you can take back the money. That seems odd…

        Anyway, thanks for binging it to my attention!
        jlcollinsnh recently posted: Chautauqua February 7-14, 2015: Escape from WinterMy Profile

        • Mr NYBudget December 8, 2014 at 4:41 pm

          No problem. And yes – it does seem odd. For me, it doesn’t make much of a difference since I continue to loan the money out (making it essentially a donation from my standpoint). But yeah, I’m not sure about the technicalities on that.

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