Kiva loan :)

[cosmosgrove]

Aww my 14 year old son just happily paid for a Kiva loan out of his own money. I suggested it to him after showing him the one I did last night and he didn't hesitate to say yes.

Just a little bit proud that he did that :-x

[rabbitearbandicoot]

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@j*oono wrote:

A bit of a longer read from Kiva here.

http://www.kiva.org/updates/kiva/2012/08/13/qa-expiring-loans-credit-limits-and-the-evolution-of-kiv...

Just one snippet -

"As we explained in #9, Field Partners bear the brunt of expirations. If a loan is pre-disbursed, the Field Partner has to fund it out of its own reserves. The impact is minimal if the borrower pays the loan back in full. But, if the borrower doesn’t pay back the loan and the loan has expired on Kiva, the Field Partner must cover the loss out of its own pocket. This may be a rare occurrence, but it can have a negative impact on a partner depending on its size and financial stability."

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so, kiva cannot lose either way. It has all of you making deposits of millions of dollars > money in the bank earning interest  for kiva > only funds the partners AFTER the loan is fully funded by you > if the loan is not fully funded kiva keeps the money (in lenders account?) the partner loses out > meanwhile kiva has millions of dollars in it's account earning interest - as I said brilliant idea.

These so called 'Not for profit organisations' usually have a few at the top raking in millions of dollars a year, while everyone else is a volunteer.

Call me whatever names you like - but they aint getting my hard-earned to feed some fat cat(s).
 

[azureline**]

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@rabbitearbandicoot wrote:

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@j*oono wrote:

A bit of a longer read from Kiva here.

http://www.kiva.org/updates/kiva/2012/08/13/qa-expiring-loans-credit-limits-and-the-evolution-of-kiv...

Just one snippet -

"As we explained in #9, Field Partners bear the brunt of expirations. If a loan is pre-disbursed, the Field Partner has to fund it out of its own reserves. The impact is minimal if the borrower pays the loan back in full. But, if the borrower doesn’t pay back the loan and the loan has expired on Kiva, the Field Partner must cover the loss out of its own pocket. This may be a rare occurrence, but it can have a negative impact on a partner depending on its size and financial stability."

---

so, kiva cannot lose either way. It has all of you making deposits of millions of dollars > money in the bank earning interest  for kiva > only funds the partners AFTER the loan is fully funded by you > if the loan is not fully funded kiva keeps the money (in lenders account?) the partner loses out > meanwhile kiva has millions of dollars in it's account earning interest - as I said brilliant idea.

These so called 'Not for profit organisations' usually have a few at the top raking in millions of dollars a year, while everyone else is a volunteer.

Call me whatever names you like - but they aint getting my hard-earned to feed some fat cat(s).
 

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I think you have missed something in the translation................. but there is no compulsion to support Kiva, it's voluntary.

[j*oono]

Kiva responds to criticism (as they always do so thoroughly)

http://nextbillion.net/blogpost.aspx?blogid=3731

[rabbitearbandicoot]

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@azureline** wrote:

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@rabbitearbandicoot wrote:

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@j*oono wrote:

A bit of a longer read from Kiva here.

http://www.kiva.org/updates/kiva/2012/08/13/qa-expiring-loans-credit-limits-and-the-evolution-of-kiv...

Just one snippet -

"As we explained in #9, Field Partners bear the brunt of expirations. If a loan is pre-disbursed, the Field Partner has to fund it out of its own reserves. The impact is minimal if the borrower pays the loan back in full. But, if the borrower doesn’t pay back the loan and the loan has expired on Kiva, the Field Partner must cover the loss out of its own pocket. This may be a rare occurrence, but it can have a negative impact on a partner depending on its size and financial stability."

---

so, kiva cannot lose either way. It has all of you making deposits of millions of dollars > money in the bank earning interest  for kiva > only funds the partners AFTER the loan is fully funded by you > if the loan is not fully funded kiva keeps the money (in lenders account?) the partner loses out > meanwhile kiva has millions of dollars in it's account earning interest - as I said brilliant idea.

These so called 'Not for profit organisations' usually have a few at the top raking in millions of dollars a year, while everyone else is a volunteer.

Call me whatever names you like - but they aint getting my hard-earned to feed some fat cat(s).
 

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I think you have missed something in the translation................. but there is no compulsion to support Kiva, it's voluntary.

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of course it is, and they have the ultimate 'carrot' - telling people that they help underprivleged people and the nice people  FLOCK to help pouring MILLIONS into their coffers.

I'll bet Sam Mankiewicz lives in a multi-million dollar mansion in California.

[j*oono]

Rabbit, I did read about as much as I could on how this all works before I stepped in.  There will always be knockers as with any charitable organisation, Although Kiva is more microfinance than charity.

I do give a small donation of a couple of dollars when I make a loan but even that you can untick and not donate to Kiva.

[azureline**]

http://kivablog.kiva.org/about

[rabbitearbandicoot]

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@j*oono wrote:

Rabbit, I did read about as much as I could on how this all works before I stepped in.  There will always be knockers as with any charitable organisation, Although Kiva is more microfinance than charity.

I do give a small donation of a couple of dollars when I make a loan but even that you can untick and not donate to Kiva.

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that's right, I forgot the donations - ADD them to kiva's coffers too - more lovely interest and NO RISK - NO TAX - what a dream 'business plan' - I wish I had thought of it.

** I don't doubt that they do some good for the underprivileged - not to mention the on-the-ground money lenders but as for their claim that they do not take a cut?  

[rabbitearbandicoot]

anyway, sorry I interupted. Carry On.

[azureline**]

Just did another loan.

The way I see it is, most people fund something to help those less fortunate, this is a small way that suits me. I have no regrets.

Making a loan on Kiva is so simple that you may not realize how much work goes on behind the scenes.

Kiva works with microfinance institutions on five continents to provide loans to people without access to traditional banking systems. One hundred percent of your loan is sent to these microfinance institutions, which we call Field Partners, who administer the loans in the field.

Kiva relies on a world wide network of over 450 volunteers who work with our Field Partners, edit and translate borrower stories, and ensure the smooth operation of countless other Kiva programs.

Learn more about how it works.

How we're funded

100% of every dollar you lend on Kiva goes directly towards funding loans; Kiva does not take a cut. Furthermore, Kiva does not charge interest to our Field Partners, who administer the loans.

Kiva is primarily funded through the support of lenders making optional donations. We also raise funds through grants, corporate sponsors, and foundations.

We are incredibly thankful for the support that has enabled us to do the work that has touched the lives of so many people.

Learn more about our partnerships or make a donation.

[j*oono]

Thanks Rabbit for bumping the thread.  It's always good to get more supporters.  Az, you said it so much better than me.

So they are funded by voluntary donations grants and corporate sponsors for the wonderful job they are doing.