Grassroots Microcredit

I was first introduced to Microcredit earlier this year and found it incredibly interesting. Unlike top down aid given from government to government, microcredit empowers those in need of aid to borrow, start businesses and ultimately repay the loans they were given. You can read all about the history of Microcredit on Wikipedia here.

Microcredit has been around for quite some time but received much more attention after Muhummad Yunis, the founder of Microlender Grameen Bank, received the Nobel Peace Prize last year.

I think one of the most brilliant aspects of the Microcredit movement is the ability of individuals like you and I to give directly to entrepreneurs all over the world: Ghana, Afghanistan, Ecuador, Azerbaijan, Ukraine, Uganda etc. One of the best places to lend is KIVA.org. The next time you want to give back I encourage you to check out the site and with a loan as small as $25 you can truly make a difference in someone's life. The whole process from registering to lending money takes all of 10 minutes. Remember it is not charity, it is a loan and the payback rates are astonishingly high. Here are the statistics as reported by Kiva:

• So far, Kiva has experienced a 100% repayment rate on all businesses with completed loan terms. (See our "Paid Back" section)


• Prior to Kiva, our Field Partners have historically experienced a >96% repayment rate with the poor they serve.


• In the past 30 years, over 100 million of the world's poor have received a micro-loan and demonstrated a >95% repayment rate

Think of it as investing in the world. You can check out a video by Nick Kristoff at the New York Times here. Thanks Mike for letting me know about Kiva. Mike is investing with a corn producer in Kenya, I chose a farmer in Cambodia. You should join us, both entrepreneurs still need more money.

Tiger = Athlete + Philanthropist

Tiger had a rough start to this year's Masters. After Friday he stood at 3 over par. Unfortunately for the leaders, they only have a 5 stroke cushion over the Stanford educated golfer, which puts Tiger well within striking distance. Should be an exciting weekend of golf ahead.

Though Tiger may be a few strokes off the lead in this years Masters, at the spry young age of 31 he is already the wealthiest athlete in the world and one of sports most generous philanthropists. Most people have heard mention of his 155 foot Christensen Yacht, his $40mm mansion in Miami and his supermodel wife, but Tiger is probably most proud of the achievements of the foundation he started with his father Earl 11 years ago. Since its inception, the Tiger Woods Foundation has given away over $30 million to a variety of youth initiatives and touched the lives of over 10 million children. The TW Foundation's mission statement can be found on their website, but for your benefit I have copied it below:

"We empower young people to reach their highest potential by initiating and supporting community-based programs that promote the health, education and welfare of all of America's children."

At the rate he's going and at his young age Tiger and the TW Foundation will in all likelihood have a profound impact on the lives of hundreds of millions of children the world over. Very few people in history can say the same.

When Warren Buffett announced that he was giving the bulk of his personal fortune to the Bill and Melinda Gates Foundation he was asked why he had selected the Gates Foundation. Buffett replied that in any situation it makes sense to select someone "better equipped than you are to do it." After all, Buffett continued "who wouldn't select Tiger Woods to take his place in a high-stakes golf game." Few would argue this point. I have a feeling however that in a few years time Woods will not only be known as the world's greatest golfer but also as one of its most generous philanthropists.