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Religious, Education and Social Service Top Affluent Charitable Giving |
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 Spectrem’s Perspective Lifestyles of the Rich, shows that the affluent already know the benefits of giving close to home. Thirty percent of affluent charitable dollars go to religious organizations or churches, which are conventional ways to strengthen communities from within, while 17% of charitable dollars go to social service organizations or education.
A New Model for Giving Rises Online Recently, not-for-profit charities are more fully using the internet as a means to more efficiently connect philanthropists with philanthropic causes, and even more specifically—directly with recipients. A method called person-to-person microfinance has emerged.Kiva.org is a not-for-profit organization, receiving much media attention, that has used the internet to change the face of charitable giving. Making neighbors out of strangers, Kiva allows ordinary people to connect with and loan money to small businesses in developing countries from Asia, to Africa and the Americas. Lenders "sponsor a business", and personally help the world's working poor make strides towards economic independence. Loans are repaid, and funds can be withdrawn or re-loaned to another small business, using Kiva’s website.A simple idea, but one that has a very personal appeal, Kiva showcases business owners and entrepreneurs in economically depressed regions all over the globe. Kiva helps finance their businesses through micro-loans, of as little as $25, which are very small amounts of money traditionally given to those who would not be “bankable” at a financial institutions. Kiva’s loan repayment rate hovers around 100%.
The idea behind Kiva and organizations like them, is beguiling because it allows individuals to use the internet to easily affect the lives of individuals in a very real and tangible way. Giving money to a large charity, like the Red Cross or United Way, is important as those organizations and others like them do important and vital work. But what Kiva does can feel more personal, and it is a flavor of charity and personal giving that is catching on.
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High Net Worth Advisor Insights Newsletter April 2008
