Comments on: DonorsChoose vs Kiva http://tacticalphilanthropy.com/2009/10/donorschoose-vs-kiva Fri, 19 Mar 2010 21:57:46 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Laika Grant Mann http://tacticalphilanthropy.com/2009/10/donorschoose-vs-kiva/comment-page-1#comment-8001 Laika Grant Mann Thu, 15 Oct 2009 19:38:33 +0000 http://tacticalphilanthropy.com/2009/10/donorschoose-vs-kiva#comment-8001 Such a fascinating discussion. We just launched www.worldflix.org, a web-based platform where global basic needs projects can post descriptions of their programs and their funding needs, along with embedded digital video clips that function as mini documentaries about the projects. This in turn creates a web-based portal for philanthropy, where potential donors can view the stories, make personal connections with the projects, and then make immediate micro-grants to their chosen causes, right on the same webpage. Donors are later able to watch the growth and success of these projects through additional videos. We have not "pre-funded" any of these projects so the donors will actually be in total control of who and when the funding will happen. Such a fascinating discussion.
We just launched http://www.worldflix.org, a web-based platform where global basic needs
projects can post descriptions of their programs and their funding
needs, along with embedded digital video clips that function as mini
documentaries about the projects. This in turn creates a web-based
portal for philanthropy, where potential donors can view the stories,
make personal connections with the projects, and then make immediate
micro-grants to their chosen causes, right on the same webpage. Donors
are later able to watch the growth and success of these projects
through additional videos. We have not “pre-funded” any of these projects so the donors will actually be in total control of who and when the funding will happen.

]]> By: Sean Stannard-Stockton http://tacticalphilanthropy.com/2009/10/donorschoose-vs-kiva/comment-page-1#comment-7993 Sean Stannard-Stockton Wed, 14 Oct 2009 21:13:09 +0000 http://tacticalphilanthropy.com/2009/10/donorschoose-vs-kiva#comment-7993 Elise, Thanks for the link to the conference call. It will appear in my Daily Digest post this evening. Elise,
Thanks for the link to the conference call. It will appear in my Daily Digest post this evening.

]]> By: Elise http://tacticalphilanthropy.com/2009/10/donorschoose-vs-kiva/comment-page-1#comment-7992 Elise Wed, 14 Oct 2009 20:56:10 +0000 http://tacticalphilanthropy.com/2009/10/donorschoose-vs-kiva#comment-7992 I am volunteering with one of Kiva's U.S.-based partners, and I have given to both Kiva and DonorsChoose. I think they are both great models, and Mike brings up an interesting comparison here but I am having trouble imagining how Kiva could give donors a "choice." In contrast to DonorsChoose, "giving" on Kiva is actually lending, not a donation. Personally, I trust that MFI underwriters are better at deciding if someone is going to pay back a loan than I am, solely on the basis of a picture and paragraph about them. But does Kiva advertise donor choice? On Kiva's website, under the "About" section, you see the sentence "The individuals featured on our website are real people who need a loan and are waiting for socially-minded individuals like you to lend them money." Is this true? No, the entrepreneurs aren't waiting for you, specifically, to lend them money. In that sense, this is false advertising, and Mike's probably right that Kiva shouldn't promise something they can't deliver. However, it's important to realize that at some point these borrowers were waiting for funding. Donors may not be choosing whether to give a loan to someone, but microfinance organizations, at some point, are. We have to turn good people down all the time - any loan consultant would agree with me. Once they are on Kiva, our organization has already decided to lend to these clients anyway. We cannot put only "risky" clients that we wouldn't lend to on Kiva, because that would be a huge adverse selection problem (I think I've got my economics terminology right). I'd be interested to hear from more Kiva lenders here. I'm wondering how many of us actually think our loan is allowing the borrower to get funded. I can't really speak for "most lenders" because I am too involved with the actual process. Just FYI, Kiva holds community conference calls once a month that are open to everyone. The next one is Tuesday, October 20th: http://www.kiva.org/about/inside/2009/10/02/community-conference-call-october-2009.html This might be a good discussion to bring to the call. I am volunteering with one of Kiva’s U.S.-based partners, and I have given to both Kiva and DonorsChoose. I think they are both great models, and Mike brings up an interesting comparison here but I am having trouble imagining how Kiva could give donors a “choice.” In contrast to DonorsChoose, “giving” on Kiva is actually lending, not a donation. Personally, I trust that MFI underwriters are better at deciding if someone is going to pay back a loan than I am, solely on the basis of a picture and paragraph about them.

But does Kiva advertise donor choice? On Kiva’s website, under the “About” section, you see the sentence

“The individuals featured on our website are real people who need a loan and are waiting for socially-minded individuals like you to lend them money.”

Is this true? No, the entrepreneurs aren’t waiting for you, specifically, to lend them money. In that sense, this is false advertising, and Mike’s probably right that Kiva shouldn’t promise something they can’t deliver.

However, it’s important to realize that at some point these borrowers were waiting for funding. Donors may not be choosing whether to give a loan to someone, but microfinance organizations, at some point, are. We have to turn good people down all the time – any loan consultant would agree with me. Once they are on Kiva, our organization has already decided to lend to these clients anyway. We cannot put only “risky” clients that we wouldn’t lend to on Kiva, because that would be a huge adverse selection problem (I think I’ve got my economics terminology right).

I’d be interested to hear from more Kiva lenders here. I’m wondering how many of us actually think our loan is allowing the borrower to get funded. I can’t really speak for “most lenders” because I am too involved with the actual process.

Just FYI, Kiva holds community conference calls once a month that are open to everyone. The next one is Tuesday, October 20th: http://www.kiva.org/about/inside/2009/10/02/community-conference-call-october-2009.html

This might be a good discussion to bring to the call.

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