This is the second in a series of brief ’spotlights’ of some of the less traditional charitable organizations out there. The aim? To highlight some of the fascinating - and fun - ways that it’s possible to help others in today’s web-based world. I’m focusing on those charities with a significant web presence, because they’re universally accessible, and particularly those that have a slightly different approach from sponsorship and the other typical methodologies. As you will see, some of the organizations out there are doing a tremendous job of introducing human interest and personality to the process of giving.

Kiva (www.kiva.org ) does a great job of explaining what they do:

We let you loan to the working poor
Kiva lets you connect with and loan money to unique small businesses in the developing world. By choosing a business on Kiva.org, you can “sponsor a business” and help the world’s working poor make great strides towards economic independence. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates from the business you’ve sponsored. As loans are repaid, you get your loan money back.

We partner with organizations all over the world
Kiva partners with existing microfinance institutions. In doing so, we gain access to outstanding entrepreneurs from impoverished communities world-wide. Our partners are experts in choosing qualified borrowers. That said, they are usually short on funds. Through Kiva.org, our partners upload their borrower profiles directly to the site so you can lend to them

We show you where your money goes
Kiva provides a data-rich, transparent lending platform for the poor. We are constantly working to make the system more transparent to show how money flows throughout the entire cycle. The below diagram shows briefly how money gets from you to a third-world borrower, and back!

We facilitate connections
Kiva is using the power of the internet to facilitate one-to-one connections that were previously prohibitively expensive. Child sponsorship has always been a high overhead business. Kiva creates a similar interpersonal connection at much lower costs due to the instant, inexpensive nature of internet delivery. 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.

The site highlights businesses that are seeking micro-funding, giving a brief summary and a photo. It’s possible to see who else is supporting that business, and how close they are to achieving their funding goal. Businesses can be filtered in various ways to make it easy to find a business that resonates with you. It’s important to note that Kiva loans do not pay interest. I understand that the local partners who work with the businesses do charge interest, which is obviously necessary for them to be able to provide the services they do.

It’s possible to subscribe to RSS feeds for updates on businesses of interest, and the site features a ‘My Portfolio’ section too.

At present, having received a lot of publicity (including Oprah), there is a shortage of businesses available to fund! That’s nice, in a way, but may testify to the difficulty in finding suitable businesses i.e. those that will use the funds successfully. There is a higher degree of transparency in Kiva than almost all other organizations, and of course their rate of default on loans will be watched quite closely. As a result, they have a strong incentive to vet the businesses carefully.

Kiva is one of the most exciting contribution websites out there at the moment, and I only wish there were more business available to receive funding! Do take a look at the site .

OTHER ARTICLES THAT MAY BE OF INTEREST

• Contribution spotlight - Trickle Up
• Contribution spotlight - GlobalGiving
• Exclusive Resorts - finance available
• Exclusive Resorts price increase
• Quintess philanthropy scheme