Give a Christmas gift that keeps on giving

For several years I have been an admirer of those using microfinance to help those in poverty create their own job and gain income for their families.  Microfinance basically means giving a small loan to an individual or group of people.  I have seen it work from the giver side in America, now I have the opportunity to see it work on the receiver end here in Ethiopia. 

We’re working with World Vision to see if this is a good opportunity for some of our women.  It gives them a hand, not a hand out.  It uses their assets of work ethic, entrepreneurship, desire, etc. and builds on those to give them the opportunity to provide a living for themselves.  When talking with World Vision’s microfinance institution CEO here, he voiced his concern that the poorest of the poor still are not getting help.  Because they operate like a bank and have to give loans to people who are qualified, many of the extreme poor are simply not a good risk. We hope to be able to bridge the gap and help the women we work with, who are part of the poorest unable to even secure this type of loan.  The CEO also said that while micro-loans are a good start, only “savings truly empowers”. So with these loans, many recipients open a savings account and also pay a small portion of the income to obtain micro-insurance – that helps provide in the loss of death or even drought. 

If you’re looking for a way to use your year-end donations to impact lives many times over, you can consider giving to something like this.  Your money is lent out to groups of people who in turn repay the loan, and the cycle continues.  The most common organization doing this is Kiva (www.kiva.org).  Opportunity International, an amazing Christian microfinance organization, also allows donors to connect with specific businessmen and women that touch their hearts.  Their program is called OptInNow (www.optinnow.org).  If you’re interested in investing, not just donating, you can do this at Microplace (www.microplace.com).  This isn’t a secure investment, but your money is lent out to a group of people who return your principal with modest interest in a period of time.

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All of these places have gift cards so you can give a friend or family member a chance to choose a business they would like to sponsor.  I can’t think of a better Christmas gift!!

October Newsletter

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October 2010 Update