Filed under: General Charity Musings, Microphilanthropy | Tags: economist, MFIS, microfinance, microfinance in recession
I have an Economist subscription, and as most Economist readers know, the magazine is packed. Packed enough that I have a problem keeping up with the material even on not so busy weeks. And for the 2 months now I’ve hardly had time to keep up at all. So today, I started going through the March material, and found an interesting article on the impact of the credit crisis on microfinance.
By conventional wisdom microfinance should be cushioned against the drivers of the financial crisis – behind every loan is something concrete (eg. a cow or a chicken), not just a piece of paper. And the fact that the loans are funding local businesses means that the repayment rate should hold up. However, the Economist points out, there are two things that putting the squeeze on microfinance institutions (MFIS):
- MFIS depend on international aid budgets for funding, and those sources are drying up, even as global banks are pulling out of their involvement with microfinance due to the current climate.
- MFIS are having trouble re-financing existing loans; the refinancing gap could be as high as $1.8B over the next 18 months.
Some also question the microfinance model; there is evidence that borrowers are using loans from one institution to pay off loans from another. Based on this, there is an argument for MFIS to start taking deposits like your local bank, instead of purely relying on institutions and donors for funding.
My take on it all? Lend away. The borrower delinquency rate has only risen from 1.2% to 2%-3% in recent times, which means that microfinance is still a very dependable way to lend your money. And really, I view some of these MFIS (Kiva, Garmeen Bank, etc.) as charitable, and like any charity in need of some financial help in tough times, donor dollars can go a long way. MFIS have already proven to be stronger than some other financial institutions in this credit crunch; their failure now or in the future would only prove that this economy affects everything, and not that microfinance doesn’t work.
Filed under: Microphilanthropy | Tags: microphilanthropy vote, online microphilanthropy
I’ve featured a lot of microphilanthropy sites now on this blog, from Kiva to DonorsChoose. In general there are so many sites that it’s hard to keep track of them all, so Charity CHAMPS has started to compile an online microphilanthropy organization list. The list is great for reference but what we’d really like to know is which ones are your favourites. Which organization do you think is making the most impact, engaging the most people, or doing the most innovative projects? Go to our poll and vote! The results will help Charity CHAMPS to make some informed decisions about our partnerships and priorities moving forward.
Filed under: Microphilanthropy | Tags: carbonzero, earth day, eco commons, ecoaction, kaboose
Happy Earth Day! I couldn’t let today go by without promoting some micro-actions that you can do to celebrate the occasion. Earth Day should be about going outside, but seeing as it’s freezing today where I am, I’m going to stick to actions that you can do easily from your computer:
- Go to CarbonZero and use their emissions calculator to find how much carbon you’re emitting in your daily routine. If you’re up for it, purchase the carbon offset for whatever damage you’ve done.
- Educate yourself with Google Earth Gallery – see what would happen to Vancouver if the sea level rose 6m, which country consumes the most oil on the world map, the conservation work the African Wildlife Foundation is doing in the African Heartlands, and much more!
- Join an EcoAction team and commit yourself to the following over the next year: reducing 200 kg of garbage output, saving 36k litres of water, and using 21% less electricity. Think that sounds like a lot? It isn’t – it can all be done by committing to small actions like setting your fridge to a certain temperature and dumping scraps into a backyard composter. US residents – sorry, as far as I can tell the site is for Canadians only.
- Play some fun, educational, green-themed games with your kids at Kaboose.
- Are you a Second Life user? Eco Commons is launching today. Check it out!
Filed under: General Charity Musings | Tags: facebook volunteer, techsoup, volunteer toronto
A few weeks ago I wrote a post about how to find volunteers in Toronto. It’s been a fairly popular post, but while I was at a TechSoup event yesterday I realized that I had missed mentioning something big – Volunteer Toronto. If you haven’t visited the Volunteer Toronto site yet, you should; the organization is very active in the volunteer space in the city.
One thing that’s deterred me from using them so far (for Charity CHAMPS, Wired Woman, or otherwise) is that unfortunately they require a membership fee for organizations to join and post listings. It’s not much – just $50/ year ( that’s for nonprofits with budgets < $100k a year, see the full rates here ) – and from what I can tell the fee is probably worth it. But given the extremely tight budgets of nonprofits, I always look for other avenues, and at the TechSoup event the Volunteer Toronto rep announced something very useful: Volunteer Toronto is now on Facebook (and it’s been endorsed by the Canadian government)! There’s a group that you can join, and members seem fairly active in posting on the wall / discussion pages, which means that voila, there’s a free way to reach the community after all. But you didn’t hear that from me.
Filed under: General Charity Musings, Microphilanthropy | Tags: Microphilanthropy, ripple, rypple
Social media is all about capitalizing on a network effect to make an impact, so it seems appropriate to use a water ripple as an analogy for the concept. Not surprisingly then, there are organizations incorporated using the name ripple. One is Ripple.org, a click to donate site, and another is Rypple.com, a site where you can solicit and receive feedback.
One of the co-founders of Rypple is Dan Debow, who I worked with several years ago. In talking to him about the premise of Rypple (you can read more at the Economist), I realized that what his organization is trying to do isn’t so different from many of the microphilanthropy sites that I’ve talked about on this blog. The fact is, smaller more frequent actions increases engagement, or a least is an indicator of increased engagement. I would much rather receive feedback from my boss weekly than once a year. And if I had $5 to donate online, donating $1 five times instead of donating $5 once means I’m engaging with the charity website five times as much, so I’m more likely to read updated news, or interact with others involved with the charity. Sure there’s increased transaction costs, but you can argue that the increased engagement more than makes up for it.
Ripple.org I just stumbled upon today, and instantly loved it. It’s one of the simplest and clearest click-to-donate sites I’ve seen so far, in that you know up front exactly what each click will do. Each click gives 6 days of access to clean water, or 2 days of access to education, etc. You can’t miss where to click either, which is key, because I’ve been to tons of sites where you can’t tell whether you’ve made the click that counts or not.
So Ripple (or Rypple) away – both sites are still in Beta so try it out and give the founders some feedback.
Filed under: General Charity Musings, Microphilanthropy | Tags: beer causes, facebook, facebook causes, Microphilanthropy, race to end cancer
One can aruge that Facebook Causes encapsulates the very essence of using social media for microphilanthropy. The whole application is really just about two things – supporting causes, and spreading the word about causes. If you’re on Facebook, I encourage you to check it out. There are 9 categories of causes to choose from, and once you’ve picked, you can feature your favourite causes on your profile and send updates directly to your status to spread the word.
Once thing that’s neat about the application is that it allows you to see what the most popular causes are. For Charity CHAMPS or any other non-profits out there I think this could be a very useful market research tool. Not only does it tell you what people care about, it tells you WHY, if you care to read into the supporting wall posts. Right now the top cause is the Race to End Cancer, followed closely by Supporting the O Campaign for Cancer Prevention. The first has had $49k in donations already, and the second, $85k. Not bad for micro-donations!
If you can’t find your cause on there, you can create it, and that feature adds a very humourous aspect to an otherwise serious application. Because right between Saving Darfur and Stop Child Pornography is the Foundation for the protection of Swedish underwear models. Not to mention over 3 pages of beer causes. I’m sure that no matter what your cause is, you’ll find it. Now to see if the beer and models ever hit the top causes chart.