KIVA.org ~ anybody used it?

[VaCollector]

I had heard about KIVA.org a while ago but had put it out of my mind until a recent investigative program regarding its successes got my attention again.

While it seems like a great idea that fulfills a need and I (for one) want to believe, due to the proliferation of ways that the internet can become involved in separating me from my money (without benefit), I thought that I would check with others here for any of your experiences and/or opinions.

Anyone?

 

[travelover]

Yes, I popped for a $100 loan and have been repaid $75, so far. Personally, I think it is a great way to help people all over the world.

 

[ikubak]

I have used Kiva for several months. I have loaned money and had it paid back by several people. I think it is a great idea. I like helping hard working people who can use the capital to make their businesses better and in this way, I feel like I am able to help a family. I have not had any problems with Kiva and if you like to help other industrious people, this is a great way to do it.

 

[ERD50]

How do you know if they are industrious, or will use the money for less 'noble' purposes?

-ERD50

 

[travelover]

How do you know if they are industrious, or will use the money for less 'noble' purposes?

-ERD50

ERD50, are you asking about KIVA or your tax dollars?

 

[donheff]

I made a few loans a while back. They are all being repaid over time and I will reinvest the money with other KIVA applicants after the first loans clear. I like being able to see who the loans go to and what they are doing with the funds. There are some heart warming stories on KIVA.

 

[DangerMouse]

Thanks for bringing this to my attention. This is a great idea, I logged on tonight and found 4 people that I made loans to.

As to how do I know that it is legit, I guess we can say the same about the homeless that we give money to, or any charity. I think sometimes you just have to accept things at face value and believe that you are making a difference.

 

[ikubak]

How do you know if they are industrious, or will use the money for less 'noble' purposes?

-ERD50

At Kiva you can read about each person's business and how they will use the money. I assume they are industrious based on the description of their business and each person I have lent money to paid me back. And of course, paying me back is always a 'noble' purpose.

 

[RetireeRobert]

Just wondering about the mechanics of sending the money to the borrower. How does one do that, and get repaid, and maintain some semblance of anonymity?

Or is one not anonyomous when one loans the funds?

Not sure I would be comfortable having some, in effect, "internet stranger" starting to know things about me---like perhaps my checking account number.

(Sorry, I was an auditor in my former life).

 

[VaCollector]

Just wondering about the mechanics of sending the money to the borrower. How does one do that, and get repaid, and maintain some semblance of anonymity?

Or is one not anonyomous when one loans the funds?

Not sure I would be comfortable having some, in effect, "internet stranger" starting to know things about me---like perhaps my checking account number.

(Sorry, I was an auditor in my former life).

RR, I think if you take time to look at the site you will see that you can be as visible or as anonymous as you would like....this guy O0 could even be your moniker

As an avid eBay user, I already had my paypal account set up, so sending $$$ to them was as easy as a few mouse clicks!!

The stories are interesting, the people seem to have a need....the folks who came up with this idea and actually made it work must be VERY SPECIAL......and I have to admit that the "feel good" factor is quite high.....

 

[travelover]

Just an update, the rest of my $100 KIVA loan was repaid today. I will re-loan this money to another - and another.

 

[Olav23]

These microfinance ideas are really interesting, and a very cool thing the internet has made feasible. Is this like prosper.com, only to developing world countries?

I'm wondering, do you collect interest on the loans, or are they more like charities that pay you back the principle?

I see numbers listed on the people asking for loans like:

Loan Requested: $1,150.00
Repayment Term: 8 months - repaid monthly
Delinquency Rate 0.00%
Default Rate: 0.00%

So, I see repayment time, but nothing else.

Also, does anyone know about the tax consequences of this? Is KIVA considered a tax-deductable charity? I also wonder if anyone knows what kinda cut kiva takes for each loan. It was pretty hefty with prosper. Also, prosper did nothing if the person didn't repay. It was all on you to begin collections.

 

[Olav23]

Nevermind, found the faq page at Kiva.org - Help

I'm wondering, do you collect interest on the loans, or are they more like charities that pay you back the principle?

You get the principle back without interest. Kiva collects interest from the entrepreneur to fund their operations.

Also, does anyone know about the tax consequences of this? Is KIVA considered a tax-deductable charity?

Is my loan tax-deductible?

No – because it is a loan not a donation, and there is an expectation of repayment.

If my loan defaults, can I then claim it as a tax-deductible donation?

No, because it was intended as a loan, not a donation. However you can claim it as a capital loss.