Kiva, Kismet, Karma
A small project
“Microfinance stands as one of the most promising and cost-effective tools in the fight against global poverty.”
Kiva is a non-profit foundation that facilitates micro-loans to communities and businesses, primarily in developing nations. These loans — typically ranging from a few hundred to a few thousand dollars — are crowd-funded from multiple lenders, and are used for projects as varied as buying seeds to grow crops, paying for a local teacher, or for procuring motorcycle parts to enable a business to grow. They allow borrowers to kick-start a local economy and improve their lives without having to rely on charity.
Best of all, 99% of loans are repaid in full, which means that money can be recycled into future projects.
“The smallest act of kindness is worth more than the grandest intention.”
I first learned of Kiva a few years ago. It seemed to have a worthy mission which was deserving of support. I had just received a raise and it seemed like the perfect time to give something back, so I made a resolution to set aside $1000, pick out some well-deserving projects, and fund them. I didn’t tell anyone about it, but got secretly very excited by the prospect.
Then I equivocated, procrastinated, and eventually forgot all about it.
The reasons for this were many, varied, and universally mediocre. Kiva’s default loan amount is $25, which would have meant funding forty different projects, or choosing some extra special ones. That seemed hard. Then there was a friend’s birthday where I picked up the entire bar tab, which left money a bit tighter for a while. Then I was “too busy”. Then the moment was lost and it was too far from the initial idea, so it felt forced.
You can always find a reason not to follow through.
Shortly thereafter, I bought a round-the-world ticket and travelled for most of 2011. When my wife and I eventually settled in San Francisco, I found my salary mostly accounted for by bills, furniture, and college tuition. I contributed small amounts to colleagues’ charity drives, but still, from time to time, I would be reminded of my grand intentions and feel like I had broken a commitment.
“Some things are destined to be — it just takes us a couple of tries to get there.”
I recently joined the team here at Medium, and apart from the chance to build a delightful and meaningful product with world-class colleagues, one of the many perks of the job is a birthday bonus.(Sound good? We’re hiring!)
There are only two conditions attached to the bonus; the money must be spent within a couple of weeks and the recipient must tell the entire company what it was used for.
I joined the team on May 28th 2013, four business days before my thirty-second birthday. I assumed, given my short tenure, that the bonus wouldn’t apply; I certainly couldn’t make any claim that I deserved it. And yet, on the Monday following my birthday, I was presented with a birthday card stuffed with cash.
I’m not particularly materialistic, but I do have a love of gadgets. If the timing were different, I might have treated myself to a PlayStation 4, Google Glass or a new New (New?) iPad. I suppose if I had looked hard enough, I could have found something to treat myself with, but this felt like an opportunity to correct a past failing.
The amount of the bonus, after tax: $1000.
Kismet.
“The utility of networks can scale exponentially with the size of the network.”
Having decided to fund projects,there was still my original problem; choosing dozens of projects to fund is surprisingly difficult. And, while $1000 will certainly help the few who directly benefit, I wanted to try to find a way to make it go further.
Instead of distributing the money directly, I asked ten friends if they would help me with a small social experiment that would require an hour or two of their time.
When they agreed, I gave each of them $100 and asked them to disburse it to projects that resonated with them.
As an analog to the original conditions of the bonus, I attached two conditions of my own to the money; it had to be used to fund projects on Kiva and the recipient had to write about the projects he had funded here on Medium. As the ultimate source of the funds, and as an excellent platform for writing about things that matter, I thought it was appropriate.
“For it is in giving that we receive.”
This scheme, simple as it is, makes me excited, not least because, this time, I’m actually following through with it. Personally, I get the relief of a commitment kept, late though it is. Plus, I avoid the embarrassing situation of telling my new colleagues that I took their money and used it to buy a bunch of video games that I didn’t need.
For its unexpected generosity to me, Medium gets ten compassionate and intelligent new contributors, who will hopefully provide more content in the future. In return, my collaborators get to support something they care about without spending any money, as well as an early invite to Medium.
Kiva gets to activate ten lenders, many of whom did not previously know about its platform. Hopefully, the articles written here will also expose its good work further than I could do on my own, as they are disseminated into each author’s social network.
Most importantly, somewhere in the world, people who are striving to build a better life will get access to funding that allows them to start a business or strengthen their community, while retaining their dignity. And when the loans are paid back in the future, as the majority are likely to be, others can benefit, forming a virtuous circle of investment.
“There is no way I can pay back the time and support I received from my mentors. Rather than paying it back, I look for ways to pay it forward.”
My wife and I are very fortunate to be in a position where we can give this money away without it significantly impacting our lives, but the amount is small in the grand scheme of things.
The greater impact will come from others who are inspired to pay it forward in their own way, which is why the evangelism of the idea is even more important than the initial donation.
This money won’t change the world on its own, but if even a handful of people are inspired to share their time, their skills, or their money to help those who need it, then I can stand in front of my colleagues and say it was well spent.
