Kiva (organization)
| File:Kiva.org logo.svg | |
| Company type | Non-profit organization |
|---|---|
| Industry | Microcredit |
| Founded | October 2005 |
| Headquarters | San Francisco, California, United States |
Key people | |
| Revenue | 38,603,028 United States dollar (2020)  |
| Website | www.kiva.org |
Kiva Microfunds is an organization that allows people to lend money via the Internet to microfinance institutions in developing countries which in turn lend the money to small businesses.[1] It is a 501(c)(3) non-profit organization headquartered in San Francisco, supported by donations from its users and through partnerships with businesses and other institutions.[2]
How it works
Kiva allows microfinance institutions around the world, called "Field Partners", to post profiles of qualified local entrepreneurs on its website. Lenders browse and choose an entrepreneur they wish to fund. Kiva aggregates loan capital from individual lenders and transfers it to the appropriate Field Partners to disburse to the entrepreneur chosen by the lender. As the entrepreneurs repay their loans, the Field Partners remit funds back to Kiva. As the loan is repaid, the Kiva lenders can withdraw their principal or re-loan it to another entrepreneur.
Lenders' funds are transferred to Kiva through PayPal, which does not collect its usual fees in this case.[3] Field Partners generally charge interest from their borrowers, although Kiva claims to keep track of how much interest is charged and will not work with those charging unfair interest rates.[4] Kiva lenders do not receive any interest because Kiva is not registered with the US Government as a broker.[5] Kiva claims that its borrowers have a historical default rate of 3.1%.[6]
Organization and team
Kiva was founded in October 2005 by Matt and Jessica Flannery.[7] The couples' initial interest in microfinance was inspired by a 2003 lecture given by Grameen Bank founder Muhammad Yunus at Stanford Business School. Jessica Flannery worked at the school and invited Matt to attend the presentation. Yunus' lecture was the first time Matt Flannery had been exposed to the microfinance concept, but it served as a “call to action” for his wife. Soon after, Jessica began working as a consultant for the nonprofit Village Enterprise Fund, which worked to help start small businesses in East Africa. While visiting Jessica in Africa, Matt spent time with his wife interviewing entrepreneurs about the problems they faced in starting ventures and found the lack of “access to start-up capital” was a common theme. After returning from Africa, they began developing their plan for a microfinance project that would grow into Kiva, which means “unity” in Swahili. [8] [9] Kiva is run by a team with experience in microfinance and technology.[10]
Publicity
- Author Bob Wood is a prominent advocate for KIVA Loans. [3]
- Nicholas D. Kristof wrote about the organization in "You, Too, Can Be a Banker to the Poor", New York Times, March 27, 2007. [11]
- Former US President Bill Clinton exhorted the students of Brandeis University to use Kiva in a speech given on December 3, 2007.
- Frontline[12] and The Oprah Winfrey Show had segments devoted to Kiva.
- Kiva is mentioned in Giving: How Each of Us Can Change the World, by Bill Clinton.
- "Lending hope over the Web" Los Angeles Times archive article, October 18, 2007
- The founders were on the Oprah Winfrey Show November 2007 "Oprah Features Kiva Founders".
- "Kiva PR Director Fiona Ramsey" was interviewed on "CBC Radio One's, SearchEngine".
Statistics
As of December 18, 2008, Kiva has $52,624,535 in loans from 383,042 lenders. A total of 75,681 loans have been funded. The average loan size is $443.16[13] According to Alexa, Kiva's website typically ranks well into the top 25,000 websites on the Internet.[14]
Sample loans
- 51 year old fisherman with three children in Azerbaijan
- 12 years of experience
- Seeks 12 month loan for $725 USD in order to purchase a refrigerator
- Has already successfully repaid two prior microloans
Loan to expand restaurant business
- 27 year old seeks financial independence
- Desires $475 USD loan to improve existing restaurant
- Has already successfully repaid one previous loan
References
- ^ "What We Do" on Kiva.org
- ^ "Supporters" on Kiva.org
- ^ Kiva FAQ: When I pay through PayPal, is PayPal taking a fee?: "Kiva.org is the first organization PayPal is supporting by providing free payment processing."
- ^ Kiva FAQ: Do Kiva.org’s Field Partners charge interest to the entrepreneurs?: "Our Field Partners are free to charge interest, but Kiva.org will not partner with an organization that charges exorbitant interest rates."
- ^ Kiva FAQ: Do I get interest on my loan?: "Providing interest to our lenders is legally complex and we hope to provide this option soon as the regulations of the US Government allow."
- ^ [1]: "Of the $17,340,260 of loans with completed loan terms, the default rate is 3.1%"
- ^ "Kiva Facts At A Glance" on kiva.org
- ^ Flannery, Matt (2006). “Kiva and the Birth of Person-to-Person Microfinance.” Innovations (2:1/2): 31-56.
- ^ "Web-Based Microfinancing" New York Times
- ^ KIVA Staff
- ^ [2]
- ^ Frontline story about Kiva
- ^ "Official Kiva.org Facts & Statistics
- ^ Alexa.com - Kiva.org traffic details