Kiva

Speaking of financial-related matters, Tom and I are big fans of Kiva.org. It is one of the best-rated international microlending companies that distributes interest-free loans to people in need throughout the world.

Microlending is a fascinating concept to me. It was pioneered and championed by Muhammad Yunus, a Bangladeshi banker who realized that the people that were getting approved for loans were NOT the people who needed them the most, and vis versa. Traditional banking was allowing the rich to get richer, and keeping the poor from getting financial help they needed. So his bank decided to turn this system on its head and give money to people with no collateral and no credit history. These loanees turned out to be primarily women, often the sole bread-winner for a family in a third-world country. The loans are for a variety of things, from upgrading farming technology, to expanding business inventory, to renting a store front downtown.

At any rate, microlending has been wildly successful throughout the world. Despite the risks, repayment rates are as good or better than traditional loans.

So Tom and I regularly make loans to people on Kiva. It is even more satisfying than traditional charitable giving because when these loans are repaid to us we'll be able to loan the money right out again!