Making a Big Difference on a Small Budget
Ever want to pay it forward, but don't know how? Lucky for you, philanthropy isn’t just for donors with deep pockets. Even in a down economy, everyday people are pooling resources to maximize the impact of their own donations—both in their own communities and beyond. Today on Credit.com, Christopher Maag writes about “a new breed of Web sites and charitable organizations [that] has sprung up in recent years to bundle small investments into high-impact philanthropy.”
There are many ways to work the collaborative giving angle. Microfinancing site Kiva.org, for example, allows donors to loan money to small businesses worldwide—one potential recipient requested $675 to buy more material and expand her carpet weaving business in Kabul, Afghanistan—with the opportunity to receive their loan money back without interest. Donorschoose.org, meanwhile, helps raise funds for cash-strapped schools. The for-profit MicroPlace takes a slightly different approach, giving investors the chance to make a small profit by lending to microfinance groups worldwide, while offering any profits of its own to charity.
And then there's the giving circle, a model created in Nigeria in the 1960s, through which families got together to pitch in for high-expense situations like funerals or investments. This model has been popping up in major American cities as a way to support various charitable community efforts. Maag points readers interested in locating or creating giving circles to a guide created by the Forum of Regional Associations of Grantmakers. A searchable directory is also available.
