Kiva (organization)

Infobox Company
company_name = Kiva Microfunds
company_
company_type = Non-profit organization
foundation = October 2005
location = San Francisco, California, United States
key_people =

Matt Flannery (Chief Executive Officer)

Premal Shah (President)

Olana Hirsch Khan (Chief Operating Officer)

Sam Mankiewicz (Chief Technical Officer)
industry = Microcredit
homepage = [http://www.kiva.org/ 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. [ [http://www.kiva.org/app.php?page=about "What We Do" on Kiva.org] ] 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. [ [http://www.kiva.org/about/supporters/ "Supporters" on Kiva.org] ] It expects to be self-sustaining by the end of 2008.Fact|date=August 2007

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. [ [http://www.kiva.org/about/faq/#When_I_pay_through_PayPal_is_PayPal 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."] 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. [ [http://www.kiva.org/about/faq/#Do_Kivas_partners_charge_interest_to 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 lenders do not receive any interest because Kiva is not registered with the US Government as a broker. [ [http://www.kiva.org/about/faq/#Do_I_get_interest_on_my_loan 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."] Kiva claims that its borrowers have a historical repayment rate of about 99.7%. [ [http://www.kiva.org/app.php?page=about&action=faq#Will_I_get_my_money_back Kiva FAQ Will I get my money back?] : "To date, Kiva.org’s repayment rate is 99.9%."]

Organization and team

Kiva was founded in October 2005 by Matt and Jessica Flannery. [ [http://www.kiva.org/banners/collage.php "Kiva Facts At A Glance" on kiva.org] ] It is run by a team with experience in microfinance and technology. [ [http://www.kiva.org/about/people/ KIVA Staff] ] The founders came up with the idea for Kiva, which means “unity” in Swahili, after spending time in East Africa. [ [http://www.nytimes.com/2006/12/10/magazine/10section4.t-6.html?ex=1323406800&en=72e9b0bb93393330&ei=5090&partner=rssuserland&emc=rss "Web-Based Microfinancing"] "New York Times"]

Publicity

* Kiva was featured at the 2006 Clinton Global Initiative and the 2006 Global Microcredit Summit.Fact|date=August 2007
* Nicholas D. Kristof wrote about the organization in "You, Too, Can Be a Banker to the Poor", "New York Times", 27 March 2007. [ [http://select.nytimes.com/2007/03/27/opinion/27kristof.html] ]
* Former US President Bill Clinton exhorted the students of Brandeis University to use Kiva in a speech given on December 3rd, 2007.
* "Frontline" [ [http://www.pbs.org/frontlineworld/stories/uganda601/ "Frontline" story about Kiva] ] and "The Oprah Winfrey Show" had segments devoted to Kiva.
* Kiva is mentioned in "", by Bill Clinton.
* [http://pqasb.pqarchiver.com/latimes/access/1367436871.html?dids=1367436871:1367436871&FMT=ABS&FMTS=ABS:FT&type=current&date=Oct+18%2C+2007&author=Joann+Klimkiewicz&pub=Los+Angeles+Times&edition=&startpage=C.7&desc=SMALL+BUSINESS%3B+Lending+hope+over+the+Web%3B+Through+Kiva%2C+anyone+with+%2425+and+an+e-mail+address+can+make+a+loan+to+a+small+entrepreneur+in+a+developing+country. "Lending hope over the Web"] "Los Angeles Times" archive article, October 18th, 2007
* The founders were on the Oprah Winfrey Show November 2007 [http://www2.oprah.com/tows/slide/200709/20070904/slide_20070904_350_112.jhtml "Oprah Features Kiva Founders"] .
* [http://www.kiva.org/lender/fiona "Kiva PR Director Fiona Ramsey"] was interviewed on [http://www.cbc.ca/searchengine/ "CBC Radio One's, SearchEngine"] .

tatistics

As of September 6, 2008, Kiva has $42,356,160 in loans from 333,737 lenders. A total of 59,467 loans have been funded. The average loan size is $465.79 [ [http://www.kiva.org/about/facts/ "Official Kiva.org Facts & Statistics] ] According to Alexa, Kiva's website typically ranks well into the top 25,000 websites on the Internet. [ [http://www.alexa.com/data/details/traffic_details?site0=kiva.org&site1=&site2=&site3=&site4=&y=r&z=1&h=300&w=610&range=3y&size=Medium&url=kiva.org Alexa.com - Kiva.org traffic details] ]

Payment

Kiva has received complaints about its repayment practices to the lenders. A lender typically receives a reimbursement within 1 week; this money is sent to PayPal even if there is no PayPal account associated with that particular e-mail account. In turn this requires the lender to set up a PayPal account, if possible in the lender's home country, or to pay fees in order to receive their funds.Fact|date=April 2008

ample loans

[http://www.kiva.org/app.php?page=businesses&action=about&id=22962 Fisherman seeks refrigerator]
*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

[http://www.kiva.org/app.php?page=businesses&action=about&id=23255 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

Peer-to-Peer Model

Kiva is the first organization to use a peer-to-peer lending (P2P) model to fund micro-entrepreneurs. Other microfinance organizations have since embraced the P2P model.

References

ee also

* Microcredit
* Social entrepreneurship

External links

* [http://www.kiva.org Kiva]
* [http://www.kivafriends.org Kiva Friends]
*myspace|kivaloans|name=Kiva
* [http://www.youtube.com/watch?v=08nEsWrVZSs The Kiva Story]
* [http://www.pbs.org/frontlineworld/stories/uganda601/history.html Several stories about Kiva on PBS's "Frontline/World"]
* [http://www.phorecast.com/2008/02/01/phorecast-podcast-no-03-%e2%80%93-jessica-jackley-flannery-co-founder-of-kivaorg/ Podcast interview with Jessica Jackley Flannery, Feb 2008]
* [http://uk.intruders.tv/Premal-Shah-of-Kiva-org-on-microfinance-and-helping-poor-help-themselves_a226.html Interview with Premal Shah, President of Kiva]
* [http://www.mifex.org Mifex: Microfinance Exchange]
* [http://www.macroselfian.com A Number Diary of Kiva Experience]
* [http://www.kivapedia.org Kivapedia]