For my first column I wanted to write about a great organization that allows you to invest in entrepreneurs that could use a helping hand.  The organization is called KIVA (http://www.kiva.org).  Visitors to the website browse the listing of hundreds of entrepreneurs in third world countries who are looking for funds to start their own business or expand their current business.  The loans are administered by microfinance institutions that work hand in hand with the borrowers and collect payments.  Loans are typically paid back within 6-12 months and although there is no guarantee the loan won’t default, past performance on the website shows a great success rate.

What return will you make?  Well… none financially, although it is very rewarding emotionally and spiritually.  Once your borrower has paid back the loan, you can take your money out or you can reinvest in a new entrepreneur.  While your loan is out, the borrowers write journal entries thanking you for your support and providing updates on their business.  In addition to investing yourself, Kiva offers gift certificates. Giving the gift of allowing someone to give to others is priceless (although not tax deductible).

The Kiva team consists mostly of young professional from Silicon Valley from such companies as PayPal, Google, TiVo, MySpace and more.  For more information from Kiva Founder Matt Flannery, visit his blog.

This entry was posted on Sunday, March 11th, 2007 at 6:45 pm and is filed under Columns, Investing, Non-profit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.