The Stanford Social Innovation Review just posted this great article about Kiva's choice to become a non-profit. Kiva, the first online peer-to-peer microcredit marketplace, is one of the fastest-growing nonprofits in history.
Kiva's online platform allows ordinary people to invest in small and medium enterprises in the developing world. Users log on to the Web site to read the personal accounts of Kiva’s carefully chosen borrowers and then use their PayPal accounts or credit cards to lend as little as $25 to a borrower. Users would get their money back over the course of a year, with the option of either relending the money or pocketing it. While the loan agreement was in place, users would also receive frequent updates about their borrowers.
In April 2005, the founders e-mailed a description of Kiva, its mission, and the businesspeople it currently sponsored to a list of 300 friends. Within two days, the organization had raised $3,500 and funded all seven enterprises. Kiva had just become the first online peer-to-peer microcredit marketplace.
I find this a particularly inspiring story mainly because of the immediacy of the response. The obvious question for us at Microfundo was, 'would the Kiva microfunding model work with musicians?'
As a result we just launched the first peer-to-peer microfunding marketplace for international musicians on our new platform at Microfundo. Anyone can choose an artist with a microfunding campaign and microfund them amounts as small as $25. Earlier this month we followed Kiva's example and sent out a description of Microfundo's mission and the artists we are currently sponsoring ~ and we received over $3,000 in just five days!! (exceeding our goal of $2,500)
Want to see the original offer? You can help microfinance Microfundo and get downloads for life >>
We're launching our microfunding for musicians platform with the following five artist projects:
Tabou Combo - from Haiti - new studio recording
Alex Alvear - from Ecuador - new studio recording
Skye Carrasco - from U.S. - live album recording
Gregorio Uribe - from Colombia - new studio recording
Zili Misik - from U.S. - live album recording
This is a modest beginning. These artists are representative of many equally talented artists from around the world.
Imagine a world where everyone sings and dances and celebrates music each day...