Loans that change life

Many charities have been set up for noble causes and many dollars have found themselves in the coffers of these organizations. However, one issue often crops up on the minds of donors. Exactly how is the money being spent? How much of it goes to offset administrative fees? How much ultimately reaches the recipients?

More and more of the super rich have jumped onto the bandwagon of setting up their own foundations. They know exactly which areas they want to contribute their money to and they contribute their money to see to precisely that. Having their own foundations gives them more control over how the money would be used - this is something not realizable for a public charity organization.

So does this mean that if you are not rich, you cannot contribute the way you want it? Check out Kiva at http://www.kiva.org .

Kiva partners with existing microfinance institutions. It lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can "sponsor a business" and help the world's working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you have sponsored. As loans are repaid, you get your loan money back.

Make a loan to an entrepreneur in the developing world for as little as $25. You know where your money is going, and you can choose which business to help. To top it, you are helping to give someone the ability to help himself. This makes it better than a simple one-off donation.

Check it out and open your heart. ;-)