Kiva

Kiva.org is a non-profit organization that helps entrepreneurs in developing countries through microcredit.

In developing countries, small business owners often have little or no access to credit. Banks are often reluctant to provide loans to small businesses because of the high costs and the effort required to provide these small loans.

The alternative is often for these small business owners to turn to loan sharks, sometimes at interest rates as high as 50% (!).

For these small business owners in developing countries, Kiva.org offers a solution. Kiva.org facilitates small loans, often no more than USD 500, at market interest rates.

Instead of donating, Kiva.org also teaches these entrepreneurs how to manage their money through loans.

The Cambio Foundation tries to convert as many of your donations as possible into banknotes. Approximately 65% of the currency we receive is so-called “hard currency,” meaning it is convertible into banknotes. Examples of hard currency include euros, US dollars, or British pounds.

We invest this money in Kiva.org. Kiva then lends this money to small businesses, so your donation has multiple impacts.

The default rate at Kiva.org is approximately 10%. This means that for every US dollar lent out, 10% (or USD 0.10) is lost. This way, with USD 1, we can help nine people nine times over.

You can also donate directly to Kiva.org via this link. You can make an impact with just USD 25!