Philanthropy

I attended a presentation this afternoon on philanthropy, and providing working capital to the working poor. While I have heard many stores about micro-financing in third world countries, this is the first time I've heard about such programs in the U.S.

The basic idea is that the way to help people lift themselves out of poverty is to give them the tools so they can make money. With the tools (known as "working capital"), the working poor are able to implement life lessons.

Individuals and foundations who give globally believe that one life is worth saving as much as another, so philanthropy shouldn't be limited to national limits/boundaries/borders.

The needs in some third world countries are incredibly pressing, and as little as $50 or $100 (U.S.) can make a huge difference - buying drip kits for irrigating crops; part of a dairy cow for a milk cooperative; a manual pump for pulling water out of a pond and over to crops; etc.

Of course, here in the U.S. there is also a great need, and there are many people who are not able to get loans/financing through traditional means. In the U.S., the average micro-loan is approximately 14k and goes to someone with a credit score in the low- to mid- 500's, yet the pay-back rate is almost 97 percent. (The application process is also all online, with applicants having their request approved or denied typically within 48- hours.)

Experience has shown that loan applicants who have an entrepreneurial "bent" are most likely to utilize the micro-loan to the fullest and most successful capacity.