Cashflow that helps people.

If you are like me you hesitate to give away your hard earned dollar for a number of reasons. Charitable organizations exist for good reason. However, we are bombarded on the television, radio, airports, church and even at WalMart about giving. Information overload about what to give, how to give, and when to give makes it hard to give at all. Taking time to research an organization to find see if you are a fool parting with dollars, feeding a ineffective corporate giant, or giving directly to the needy makes the process daunting. (for me and maybe you).

I have read articles, heard news stories, and saw charitable scandals unfold before me in the media further pushing away a charitable decision. Some organizations, upon investigation, keep 90% of your donation leaving only 10% to the needy. I don't know about you but I work too hard to give 90% of my money to the non-needy.

Many charitable and government programs over the years have failed using the "give for free approach". The reason? Simple once the help provided is gone it has no further impact thus requiring more giving. Also, studies have shown that failed programs lacked sufficient incentive on part of the receiving persons to improve. More simply put, give a person a fish they will eat. Teach a person to fish they will feed themselves and possibly feed others. Other studies show that when people are given the ability to help themselves they do better for longer periods of time. I know in my own life that I always feel better when I have a choice and ability to help myself. Self dignity is as important as the ability to help yourself.

Over the years I have given to people and organizations that don't appreciate the gifts. I don't like giving my hard earned dollar to people that don't care. Don't get me wrong I don't give to get appreciation, notice or prestige but I do consider if my dollars will be well used and appreciated. The only time I don't care about use and appreciation factors is in disaster relief assuming the administrators are actually providing help and not ripping off the needy.

Aside from disaster relief how do you know your hard earned dollar is appreciated, creates lasting impact, and affects more than just the recipient? The answer is to create a giving cash flow.

A giving cash flow is help you provide that is appreciated and paid back allowing you to give to the next needy person(s). More formally called microfinance. Microfinance is providing credit capital to those in need that otherwise do not have access to cash flow. Normally people having or starting business to help themselves climb out of poverty. The microfinance concept was borne from a micro credit summit held in Washington DC in 1997 and has since grown to help millions of people.

An article found on Scribd at http://www.scribd.com/doc/92714/Microfinance gives a very good overview and detailed history of microfinance. To get more information on the microfinance industry please see http://www.mixmarket.org/en/about_mix_market.asp. Note: Some microfiance platforms will allow you to give as little as $25 dollars.

So, how do you create a giving cash flow? The answer is very easy, visit http://www.kiva.org/ do the following.

• Research your giving risk
• Research the cost to the borrower
• Pick a 4 or 5 star backer (lending institution)
• Pick a needy person(s) with both a good business plan and repayment terms
• Give
• Get repaid
• Give again but give more.

Before you know it you will have a giving cash flow that will help people help themselves and I'm sure along the way they will help others. Kiva doesn't take any money from your giving so be sure to provide a separate gift so they can continue helping the needy.

This link is for the photo above. http://www.kiva.org/app.php?page=businesses&action=about&id=31502