Unitus Microfinance Microcredit Organization

Below is a video from Unitus Microfinance Microcredit Organization. This is not an organization that I am going to focus on, but here is a video that will give you some information about another worthy organization.

Presentation Reflection

Reflecting on my presentations in the senior economics classes I feel good about them. When I first got in front of the classes I was greeted by blank stares and puzzled looks when I asked if anyone knew anything about microloans.
The students showed a high level of interest in the concept as I began informing them of the mission of microloans. Several people asked very specific questions in regards to the process of making a microloans. Students wanted to know what the return rate was, if they would make interest on their loans, if there was any sort of security in case the business they funded failed, and other questions that implied that they were sincerely interested in making a loan. Furthermore, many students commented on their surveys that they had no money, but were in fact interested in making a loan.
Many students drew pictures as well. However, the pictures drawn were not the flippant doodles that often decorate seniors' papers. They were pictures depicting world unity, peace, and financial stability.
One student came up to me afterwards and said, "The presentation was informative and articulate, I learned a lot about microloans. They seem like a really awesome way for people with money to help people without money. What's weird is that I have never heard of them before. Why isn't there more publicity around them?"
To her question I didn't have an answer, I am unsure as to why there isn't more public knowledge about microloans. Another student said, "Microloans are extraordinary. I am definitely interested in making a loan. The brochure was great because now I have the information for several organizations so I can choose which one I like the best, and feel most comfortable loaning through." Hearing a student say that made all the work I put into the brochure truly worth it. I felt that I had really made a positive change.
The most negative comment I heard was, "Microloans won't work. Unless they get a s***load of money then there won't be a change. It's a waste of money." If people want to believe that change can't be made on the small day to day scale then that is their problem, because overwhelmingly the seniors I talked to believed either that they can change the world, or at the very least can't hurt it.
That was my goal when I went into the classes. To inspire in them a sense of change. A belief that sometimes the smallest amount of help can make the biggest difference. I feel that I truly achieved my goal.

Entrepreneur RSS feed

The link below connects to entrepreneur.com, a site that frequently has articles about microloans. While not all of the RSS feed relates to microloans they are interetsing to listen to none the less, and sometimes microloans, microfinancing, Kiva, FINCA, NamasteDirect, Grameen Family, Muhammad Yunus, or other related topics come up. To keep up to date subscribe to the feed.

http://www.entrepreneur.com/feeds/

Microloan Podcast

Below is a link to a website that has a podcast about the passing of the Microloan Amendments and Modernization Act. This is a very interesting issue, particularly because it relates to microbusinesses in the United States, not just other countries.

http://www.microenterprisejournal.com/JournalBlog/2007/09/10/podcast-major-microloan-tweak-passes-house/

Letter to the Editor

To Whom it May Concern,
I wish that your magazine would have an in depth article about the growing global trend of microloans. Seeing as the goal of your publication is to inform the public about the economy and various business ventures I would think that microloans would be easy to incorporate into any issue.
The truth of the matter is that microloans are a great way for people to make a contribution to the developing countries of the world, and the most poverty stricken people, without giving up time or money. While temporarily the lender has to part with their hard earned money they eventually get it back.
Many people express concern that the business that they support will not succeed and therefore they will not get repaid. This however, is an empty fear, for many reasons. First, the lender chooses to whom they loan their money. Therefore it is in the hands of the lender to choose an entrepreneur whose business they (the lender) believe will succeed. Second, microloans have a very high success and return rate. Third, should the business fail then the financial contribution of the lender is not so great a sum that it will prove to be a significant burden to the lender.
I feel that one reason that many people do not want to partake in microloans is because they are not tax deductible. With charity a person may do good, and receive a tax break. That is not the case with microloans. I wonder if microloans, if they were designated as cyclical donations, were tax deductible if more people would be willing to make a donation. A cyclical donation is a loan that is re-lent after it has been paid back.
Imagine the good that could be done if even a small percentage of the population donated as little as $100 in cyclical donations. The chain reaction of positive implementations is endless. Hundreds of small businesses could be funded, boosting the economies of developing countries.
Microloans were created on the idea that credit, not charity is the best way to end poverty. When we look at the chain of events cyclical donations can make it is apparent that credit is a great way to fight poverty. If your magazine would run an article discussing the benefits of microloans I feel certain that the number of loans made would jump. The biggest issue facing the microloan foundations is not the personal interest I mentioned earlier, but lack of public awareness. There are thousands of people who feel that the best they can do for society is to throw their spare change in the Salvation Army buckets. If people knew what a difference they could make for so little then surely they would be eager to help. Even running a pole about whether people would be more willing to lend if there was some sort of tax deduction would help boost public awareness. Microloans are a truly worthy cause. It is a shame that not more people know about them, and make the global difference that we are all capable of making.
Sincerely- Kat Brentano

Survey Results

I presented information about microloans to two senior economics classes, I also provided a brochure with information about the concept of microloans, and about the specific organizations. I had them fill out a survey to help me understand how much I was able to teach them, as well as see how many people were inspired to make a microloan. Here are the results of the in class surveys. 45 people were polled.

1. How much did you know about microloans before reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 8.9% Microloan? What's that?- 37.8%
Had heard of them- 35.6% A little- 17.8%

2. Are you Interested in making a microloan?
Percentage Breakdown- Yes- 11.1% No- 22.2%
Potentially- 60% I have no money- 6.7%

3. Which organization are you most interested in loaning with?
Percentage Breakdown- Kiva- 37.8% NamasteDirect- 35.6% FINCA- 26.7%

4. Do you believe microloans can change the world?

Percentage Breakdown- Yes- 44.4% I really don't know- 22.2%
No- 6.7% They can't hurt- 26.7%

5. How much did you know about microloans since reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 53.3% Microloan? What's that?-6.7%
A little- 40% Had heard of them- 0.0%


Comments-

I've already provided a microloan! It's a great idea. I've funded a supermarket in Chile and some others. :)

I <3>

I had never heard of microloans before this presentation. Now I believe they can be incredibly useful.

I don't know if they can change the world, but they sound promising.

Microloans are very interesting and more people should become party of this trend.

Microloans are a great way to slightly change poverty-stricken countries. Really poor to poor.

Dr.Muhammad Yunus; Nobel Peace Prize

Dr. Muhammud Yunus is a remarkable man. He comes from the poverty stricken country of Bangladesh. In his 30's he was a professor of Economics, but he didn't feel that his work was rewarding enough. So he founded the Grameen Foundation and Grameen Bank to help alleviate the pain of extreme poverty through microloans. Here are a few videos that will help you understand the inspiration and goals of Dr. Muhammud Yunus.

Overview of what Dr. Yunus Believes-


History of Bangladesh and Dr. Muhammud Yunus-


Q&A with Dr. Muhammad Yunus-

The Myth of Microloans; A Nobel Peace Prize for Neoliberalism?

On the website CounterPunch there is an article titled "The Myth of Microloans; A Nobel Peace Prize for Neoliberalism?" In this article Alexander Cockburn, a radical political journalist, who criticizes microloans as having outlived their usefulness. Cockburn says that while it was a radical idea in the '70's when it was first introduced it has failed to live up to its promise of changing how first and third world countries relate. Furthermore he compares them to a micro-band aid on a macro-wound.

To prove his case he quotes economist Robert Pollin who says, "Bangladesh and Bolivia are two countries widely recognized for having the most successful micro credit programs in the world. They also remain two of the poorest countries in the world."

He also quotes P. Sainith, author of "Everybody Loves a Good Drought" who says that microlending can be useful but it shouldn't be romanticized or made out to be a transformational activity. Because transformationally speaking, its relatively useless.

Furthermore, Cockburn argues the Nobel Peace Prize is a joke, because at one point Henry Kissinger, father of the atomic bomb, won it. He continues to argue that Mohammed Yunus should not have won the award because the idea that microloans can help is just as ridiculous as linking "Kissinger" with "Peace".

Below is the link to an article ;
http://www.counterpunch.org/cockburn10202006.html

Grameen Foundation- In Depth

Grameen Foundation- Empowering People. Changing Lives. Innovating for the World's Poor.

History-
The Grameen Foundation is a separate foundation from the Grameen Bank. However, the foundation works closely with the bank, and was founded to help speed the impact that microloans can have. It is a baby organization of the bank, and has its roots in the Bank. The bank was founded in 1976 Professor Muhammad Yunus (the founder of Kiva) with $27 from his pocket. He still serves on the board of directors, but the foundation/bank are both entirely owned by the clients.

What Grameen Foundation Does-
The Grameen Foundation is unlike the bank in that it does not actually handle the money. The Grameen Foundation supports microloan institutes (MFI's) in the form of funding, technical assistance, training and new technology. The Foundation helps harness new technology to make the microfinance industry more efficient. They connect MFI's with the capitol market, bringing in new financial resources to the institutes. A major role of the foundation is publicity, they spread the word about the huge amounts of good that can be done through microloans. And finally they promote "social business".

What is Social Business-
In his book, A World Without Poverty, Muhammad Yunus presents two business models which he labels social businesses. A social business is social-objective driven. The first model is created through building or supporting sustainable "non-loss" business enterprises where all of the profits are ploughed back into the company rather than being distributed to shareholders. The second model is profit driven. Instead of the money going back into the business, the business is owned and operated by the poor, who then reap 100% of the benefits.

Where Does Grameen Help-
The Grameen Foundation is making an impact in the following countries-
Bangladesh, Pakistan, India, China, East Timor, Indonesia, The Philippines, Mexico, Honduras, Haiti, El Salvador, Dominican Republic, Bolivia, Egypt, Lebanon, Morocco, Saudi Arabia, Tunisia, Yemen, Cameroon, Ethiopia, Ghana, Nigeria, Rwanda, and Uganda.

For More Information on The Grameen Foundation visit the website below;
http://www.grameenfoundation.org/who_we_are/

Not Just Third World Countries

Below is a link to an article on Reportonbusiness.com about a woman in Canada that benefited from a microloan. When people think of poverty images of shanty towns in Africa, South America, and other developing countries flash in our minds. But there is poverty everywhere.

Marcia Francis worked two jobs and was still having trouble making ends meet. When she received a $5,000 loan she started a health-care service in Toronto. Freedom Support Services offers at-home care for seniors and people with chronic illnesses and disabilities, and last year generated $500,000 dollars and employs around 50 people. Marcia Francis is able to help many many people because she received the help she needed.

It is important for people to remember that there is poverty everywhere, and it can be relieved.

http://www.theglobeandmail.com/servlet/story/RTGAM.20060116.wrmicrocredit16/BNStory/

Namaste Direct- In Depth

What Does Namaste (na'-ma-stay) Mean-
Namaste is a traditional greeting in many parts of the world, especially the East. Derived from Sanskrit, an English translation is “I bow to the divine in you."

What Namaste Direct Does-
Namaste Direct is unique from other microloan programs in that they have a very specific target group. They aim to help women in rural areas of Central America. They say they are "committed to alleviating poverty in the Mayan communities in Guatemala and Mexico by providing microcredit loans, business education, and vocational training to women."

Namaste's History-
In 1973 Bob Graham, a businessman from California visited Guatemala, where he was awestruck by the extreme poverty that its inhabitants endure everyday. A decade later he created the Katalysis Partnership to launch his "50-50 at 50" plan. His plan was that when he turned 50 he would devote 50% of his time and 50% of his resources to helping others. Namaste Direct is the successor program to Katalysis. Katalysis Partnership has expanded into Katalysis Microfinance Network of Central America. This is a regional non-profit organization that involves 13 intermediary credit providers and helps over 180,000 borrowers, totalling over $60 million in loan capitol in four countries.

More Information-
For more information on the programs and services provided by Namaste Direct visit their website at; http://www.namaste-direct.org/

Micro-Insurance

In a previous post micro-insurance was mentioned. I'm going to take a post to discuss what micro-insurance is, and the importance of it.

Micro-insurance is a term coined to describe insurance available to an atypical risk-pool with low premium, caps, and coverage limits. It is designed to help low-income people as well as businesses that are unable to obtain traditional insurance schemes.

Micro-insurance is defined by C. Churchill in his book Protecting the Poor: A Microinsurance Compendium as; "a financial arrangement to protect low-income people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved...micro-insurance does not refer to: (i) the size of the risk-carrier; (ii) the scope of the risk; (iii) the delivery channel: it can be delivered through a variety of different channels, including small community-based schemes, credit unions or other types of microfinance institutions, but also by enormous multinational insurance companies, etc."

What that means is that the size of the person or company obtaining the insurance is irrelevant, while some companies are small and potentially informal, others are larger companies. The size of personal risk is not relevant either. The risks of the investor are in no way small to the investor. To sum it up, Churchill is saying that the insurance provided is on a smaller scale than what large commercial insurance corporation offer.

Not Just Companies

It's not only companies that are getting involved with micro-finance programs, it's also big names. Here is a clip from The View with Natalie Portman. She's talking about FINCA and how it allows her to make a change, and not just be a talking head.



While it is great that companies and celebrities are taking initiative it's still important for everyone to take an interest in the welfare of the world's population.

Companies Get Involved; 2

Many people feel that either big corporations don't care for the poor, or that big company intervention is the only way to create effective change. So here is another article about powerful companies taking an interest in creating positive change.

Reported on the Corporate Social Responsibility News Wire, American Internationl Group (AIG) has donated $1.5 million to FINCA International to help fund their Microinsurance program. AIG is the worlds leader in insurance and financial services. Through their partnership with FINCA, AIG is continuing to provide insurance to the worlds poorest workers.

http://www.csrwire.com/News/8361.html

What Businesses Are Being Funded?

When told that a third world country small business is being helped by microloans many people think of small fruit stands, perhaps a bakery, and here and there a weaving company. All in all the image is wholesome. But are all of the entrepreneurs really taking part of constructive businesses?

This article, from the San Francisco Weekly from February 2008, tells of a women who asked for a $700 loan to help fund her cock-fighting business.

http://news.sfweekly.com/2008-02-27/news/kiva-s-micro-loans-underwriting-cockfighting-in-peru/

At this point the question comes up, who is responsible for scanning the loan applicants to make sure the money will be appropriately used. Is it the job of the loaner, who is able to read what the loan is going to, and therefore is able to make a fully informed decision on whether to make the loan or not? Or should the job fall to the over-seeing bank foundation?

Personally, I feel that if someone wants to donate money to help a women start a cock-fighting business that is their deal. As long as the loan seeker is not asking for money to help fund illegal programs then the over-seeing banks should not deny them the opportunity to reach the rest of the world in their attempt to find funding.

What is your opinion on this?

Survey

I have recently added a survey to the blog. It is located below the Video Bar. Please take a few moments to take this survey. It will be really helpful to me, especially as I try to improve this blog.

FINCA- In Depth

What FINCA Does-

Founded in 1985 FINCA (Foundation for International Community Assistance) was based on a radical idea, credit not charity is the best way to help the poor. FINCA focuses on helping women start and/or expand tiny businesses. When these women become financially independent they are able to better take care of themselves and their family, as well as give back to their communities. A major problem that the poor face is an inability to obtain loans from commercial banks because they have no collateral. As microloans help boost the economy entrepreneurs are able to pay back the initial loans, and now fully established become capable to withdraw loans from national banks, furthering the economies of poorer countries.

How You Can Help-

There are 2 easy ways that you can help the FINCA mission.

1. Make a personal contribution. To do this visit their website at the link provided below. 2. Spread the word. FINCA will provide you with cards that can be sent out to friends and family to help encourage them to make a contribution to this organization. Use the contact information listed below to request their informational cards.

Our Commitment-FINCA supports the economic self-sufficiency of the world's poor, particularly women, through the development of Village Banking Groups. Small loans, not hand-outs, are provided to generate income, savings, and to promote financial independence.
Your Commitment-Your support is not a hand-out, but a hand-up, that directly impacts the lives of impoverished families today. Every dollar and every moment counts!
Their Commitment-Hard work, integrity, and responsibility.


Contact FINCA-
Website- http://www.villagebanking.org/
Fax- 202-682-1535
Telephone- 202-682-1510
Mailing Address- 1101 14th St.
Washington, D.C. 20005

Companies Get Involved

Many people feel that no real change can be created without intervention from big businesses. While this blog is mainly focused on how individuals can create a change I am also going to share stories of big businesses caring.

In a magazine add ExxonMobil writes;

"As studies by the World Bank and the United Nations show, when women are allowed to fulfill their potential, they not only improve the lives of their families but also create new economic opportunities in their communities and drive progress in their nations. That's why ExxonMobil is supporting women in developing countries of Africa, Asia, Latin America and the Middle East.

Our support for the Qatar Foundation Social Development Center has enabled women with limited education to gain the vocational and life skills needed to enter the workforce. We are also proud to support other preeminent organizations helping to develop women leaders around the world. This includes the Centre for Development and Population Activities (CEDPA), Global Women in Management program, which strengthens the leadership skills of women working in community organizations in developing countries. We have also joined the Vital Voices to develop the African Women's Leadership Initiative- a training model to empower women in Africa to become leaders in business and public life.

ExxonMobil salutes our global partners who are truly making a difference."

The main point of posting this information is to encourage people who feel that big businesses don't care about helping the poor. Companies can do good things. Keep your faith in humanity, it's not all bad.

Uganda and Peanut Butter- Video

If you are unwilling to follow the link to the PBS website here is part of the Uganda Peanut Butter Success story video.

Grameen Founder and Success

This is a video interview with Muhammad Yunus, the founder of the Grameen Family Bank. He has won the nobel peace prize. Here he discusses how he founded the bank, what inspired him, what obstacles he overcame, and the good it is now doing.



This video is a success story from Bagladesh. It demonstrates the power of microloans.

Uganda and Peanut Butter; A Success Story

There is a great video from PBS Frontline, however, my computer will not let me embed the video.

http://www.pbs.org/frontlineworld/stories/uganda601/video_index.html

This link will take you to the PBS website, where you will be able to watch the video, and read more about success stories. This is a truly interesting story, and I highly recomend checking it out.

Kiva- In Depth

What Kiva Does-
Kiva prides itself on being "the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world". What this means is the lender has the power to choose to whom they make their loan. Lenders can be assured that they are not just throwing their money away because Kiva partners with "expert microfinance institutions" who hand pick qualified, dedicated entrepreneurs to ensure that only deserving people receive the loans. Finally Kiva prides itself on it's transparency, "We are constantly working to make the system more transparent to show how money flows throughout the entire cycle, and what effect it has on the people and institutions lending it, borrowing it, and managing it along the way."

How Kiva Works-
There are five simple steps to making a loan through Kiva.
1. Lenders choose an entrepreneur they want to support.
2. Lenders make their donation using PayPal or Credit cards. Kiva makes sure that the money is passed on to the correct institutions.
3. Kiva's partners distribute the money to the correct entrepreneur, as well as provide managerial training.
4. As the entrepreneurs build up savings they pay back the lender. Updates on the business ventures of the entrepreneur are e-mailed to the lender, and posted on the Kiva website.
5. Lenders can re-lend their money to another deserving entrepreneur, donate their money to Kiva to help cover operational expenses, or they can withdraw their funds.

For More Information-
For blogs, journals, success stories, and an opportunity to lend money go to the Kiva website at; www.Kiva.org

Grameen Foundation and Namaste

Here are some more organizations that provide Microloan opportunities.

Grameen Foundation- Empowering People, Changing Lives Innovating the Worlds Poor.
Site: www.grameenfoundation.org
Here is a video that is an excellent source of information on the Grameen Family Bank.


~~~

Namaste Direct- Ending Poverty One Loan at a Time.
Site: www.namaste-direct.org
This video focuses on the changes being created in a Mayan village, as well as some background information on the organization.

Kiva and FINCA

If you are interested in doing some research on your own here are some great organizations to look into; FINCA (Foundation for International Community Assistance) and Kiva World Bank. Here is a brief overview of each foundation. I will be posting a more in depth look at each later on.

~~~

Kiva- Loans that Change Lives.

Link: http://www.kiva.org/

Kiva was founded in 2005. They allow lenders to choose to whom they donate, they are the first microloan bank to support that feature. Their website provides information about their past, and where they hope to go in the future. They also have featured lenders as well as featured entrepreneurs.

One of the best features on their site is the "Impact this Week". This is a scrolling text that states; the number of new lenders who joined the site this week. The number of entrepreneurs funded this week. The number of loans completely repaid this week. The number of hours it takes (on average) for the full amount of a loan to be acquired. And the amount of money lent each week.

~~~

FINCA- Small Loans-Big Changes

Link- http://www.villagebanking.org/

Founded in 1985 FINCA was the first organization to support the idea that credit not charity was the best way to help the poor. FINCA is aimed at helping empower working women and their families.

There are no hidden fees taken away from the money lent, with all mailings they include a pie chart to show exactly where the money goes. 3% goes towards fundraising, 6% goes to General and Administrative, and 91% goes to Program Services, or the poor that the money is meant to go to. This breaks down to $1,488,203 going to fundraising, $3,374,861 going to General and Administrative, and $47,148,936 going to Program Services. This totals $52,012,000 annually.

~~~

These are both worthy causes. I highly recommend exploring the sites on your own. In future posts I will go into more depth about how each of these organizations work.

Video Bar

I recently edited my blog to include a video bar. The videos featured should be related to microloans, poverty, and small businesses. However, I have not viewed them all, and do not know how relevant or informative they are. They are not there to necessarily inform, so much as to present an opportunity to do some further exploring on the issues that face our world today, and how microloans can, or cannot depending on the view of the video, change the world. The videos will change every time the page is refreshed. I will follow the videos, and when I find ones I think are particularly good, I will embed them in my post. Such as this video-

How to Use a Microloan

I've posted alot of information about whether microloans work or not, and I've posted some information about how to donate to microloans (don't worry, there's more coming). But here is a site that tells how to best use a microloan. Which is something alot of people don't understand. Even if you're not interested in getting/using a microloan it is good to know how they are used. Whether donating to a foundation, or just learning more about the process this is valuable information. The link below is to Entrepeneur.com- http://www.entrepreneur.com/money/howtoguide/article52724.html

NYT; Problems with Microfinancing

Here is a link to the New York Times. The article is titled, "After Success, Problems for Microfinancing in Mexico" http://www.nytimes.com/2008/04/05/business/worldbusiness/05micro.html?_r=1&hp&oref=slogin

Do Microloans Work?

Here are some videos and articles that debate whether Microloans work.

~~~

This YouTube video balances the pros and cons of microloans. http://www.youtube.com/watch?v=J4wxo5IHpT0

~~~

March 17th, 2008 James Surowiecki wrote on The Finacial Page of The New Yorker, "There’s no doubt that microfinance does a tremendous amount of good, yet there are also real limits to what it can accomplish. Microloans make poor borrowers better off. But, on their own, they often don’t do much to make poor countries richer...This isn’t because microloans don’t work; it’s because of how they work. The idealized view of microfinance is that budding entrepreneurs use the loans to start and grow businesses—expanding operations, boosting inventory, and so on. The reality is more complicated... most microbusinesses aren’t looking to take on more workers. The vast majority have only one paid employee: the owner. As the economist Jonathan Morduch has put it, microfinance 'rarely generates new jobs for others.'...What poor countries need most, then, is not more microbusinesses. They need more small-to-medium-sized enterprises, the kind that are bigger than a fruit stand but smaller than a Fortune 1000 corporation. In high-income countries, these companies create more than sixty per cent of all jobs, but in the developing world they’re relatively rare, thanks to a lack of institutions able to provide them with the capital they need." For the full article click the link below: (http://www.newyorker.com/talk/financial/2008/03/17/080317ta_talk_surowiecki)

~~~

A really great resource to find out more about microfinance is the Kiva website. Kiva is one of the best well known microloan sites. San Francisco based Kiva was developed in 2005 and has since then lent more than $11 million in microloans, as reported by Josh Catone on ReadWriteWeb "Kiva.org has now funded almost 17,000 loans by over 110,000 lenders. The average size of each loan is $649.63 and the repayment rate is a very impressive 99.59%." The link below connects to Josh Catone's article "Kiva.Org Crosses $11 Million in Microloans to Developing Nations": (http://www.readwriteweb.com/archives/kiva_11_million_in_loans_to_developing_nations.php) The link below connects to the FAQ page: http://www.kiva.org/about/microfinance/

~~~

The next few posts will focus more on different organizations, such as Kiva and other less well known organizations including Namaste Direct and Finca.

What is a Microloan?

Before I start talking about microloans, and all the great things that they do, I figured it would be good to talk about what a microloan is. The official definition, according to the American Heritage Dictionary is; "A very small, often short-term loan made to an impoverished entrepreneur, as in an underdeveloped country." What that means is that for a small amount of money (we're talking less than a thousand dollars) business owners in third world countries are able to start their businesses. These are not donations, they are loans, and are usually paid back in full. One great aspect about microloans is that they do not all come from the same person. Small donations, even $25 or $30 makes a differance. Anything helps these entreupenurs start up their businesses. Check in again to hear about differant organizations you can help out.