p2p microfinance tools

As an addendum to my last post, I’ve outlined some of the p2p microfinance tools that are available out there on the internet. Enjoy!

GlobalGiving

GlobalGiving is a nonprofit organization based in Washington, DC that runs an internet marketplace for international development projects. In its Marketplace of Good, a p2p microphilanthropy tool, potential donors find nearly 500 pre-vetted projects run by individuals or small groups around the world. (Ex. helping David Sowerwine bring pedal-generated light to Nepali villages.) By allowing these projects to compete for donor dollars, the marketplace encourages the success of the best, most creative projects. Individuals are able to give donations in suggested amounts to pay for specific project needs, or they can contribute whatever they please (min. $10). In exchange for their donations, individuals receive regular progress reports directly from their recipients so that they can keep track of the use of their donation money. If, at any point, a donor becomes displeased with the way that their money is being used, s/he can invoke the GlobalGiving Guarantee and receive a donation voucher to put her/his funds toward a new project of her/his choice.

Kiva

Kiva is a nonprofit organization based in San Francisco that runs an internet marketplace for small business ventures around the world. Though very similar to GlobalGiving, Kiva is an example of a p2p microlending tool rather than a p2p microphilanthropy tool. Instead of soliciting small donations for development projects, Kiva solicits small, no-interest loans for venture capital. Potential lenders can browse through dozens of pre-vetted entrepreneurs and choose their favorite recipient, making a loan of any size (min. $25). (Ex. helping Sonnia Tigrero buy beads for her jewelry-making business in Ecuador.) In exchange for their loans, individuals receive regular progress reports from the loan officers who oversee the recipients’ work. Lenders also receive repayment of their loans on a regularly scheduled repayment plan, and they are encouraged to reinvest the money upon receipt.

Microplace

Microplace is a subsidiary of the eBay corporation and is involved in p2p microlending, with a business model and interface that is very similar to Kiva. Having been launched only about 1 month ago, Microplace provides a smaller selection of pre-vetted entrepreneurs and requires a minimum investment of $100. Unlike Kiva, Microplace is a for-profit organization that offers interest-bearing investments with a less direct connection between individuals.

Modest Needs

Modest Needs is a New York-based nonprofit organization that specializes in domestic p2p microphilanthropy. Through its website, potential donors browse requests for assistance from individuals who are incurring sudden, unexpected living costs. (Ex. helping a woman in Brooklyn buy beds for her children.) Individuals can read about the recipients’ experiences and needs and then make donations of as little as $1. Donors receive thank you notes in return.

DonorsChoose

DonorsChoose is a New York-based nonprofit organization specializing in p2p microphilanthropy for education projects in domestic primary and secondary schools. Donors browse requests from teachers for specific materials needed for classroom instruction and make a donation of $1 or more. (Ex. helping a kindergarten teacher in Chicago buy a carpet for her children to gather on.) Recipient teachers are required to make the individual-to-individual development model a part of their classroom curriculum and to provide photographs, impact statements, expenditure lists, and thank you notes to the donors in return.

Women for Women, International

Women for Women, International (WfWI) is a London-based nonprofit organization involved in p2p microphilanthropy. Unlike other p2p microfinance tools, WfWI does not provide a portfolio of potential recipients to individual donors. The organization matches the individual donor and recipient, establishing a peer-to-peer connection that involves a set $27/month donation and a pen pal relationship over the course of one year.