April 2008 Archives

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anything in europe

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Hi, I've just been through your site and I think this project is really powerfull. Do you now if there is anything of the sort in Europe, or better still in Italy ?

Thanks

G.

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I was inspired by a post on Tactical Philanthropy, "Will the Kiva Card be for philanthropists what American Express "Black" is to Hollywood?" For those who don't know, the Amex Black Card, aka the Centaurian Card, has held a sort of legendary status in our culture. The oohs and ahhs of the impressed have provided many a celebrity and high roller with the savory goodness of immediate gratification.  Flashing it in a fancy restaurant or shwanky hotel will not only get you that corner table, but also the "respect" that comes with being seen as a V,VIP.

amex black card.jpg

The Centaurian Card...oooooo









But it's time to stick that black card in the back of your calf skin wallet, because there's a new kid on the block...and she's brown, not black. Her name is the KivaB4B credit card.

kiva card.jpg

Very Nice.









In the parlance of our times, the KivaB4B card  is the Fo-Shizzle.* (see below for important note)

But let's get down to a more objective comparison between the two cards.

Basic Overview:
  • The Amex Black Card is a fancy black credit card that has extremely high spending limits and built in bragging tools.
  • The KivaB4B credit card allows small business owners the chance to double their impact when making loans to entrepreneurs in developing countries. It also provides the "Very Best Offer" in the business credit card market. And if you use it just once, you'll go straight to heaven (or some place nice). (Note: Advanta can't guarantee where in the heavenly realm you'll go).

The Unique Selling Proposition:
  • AMEX's "Centaurian" card is clearly trying to sell an image of mythological power, (Centaurian refers to a race of monsters having the head, trunk, and arms of a man, and the body and legs of a horse). I presume that Amex is saying, "Use this card and you can run fast and kick people." Of course, as with all credit card offers, there should be small print...something to the effect of, "We are not responsible for the embarrassment or the mess resulting when you can't get into the bathroom of that fancy French bistro."  Flashing the Amex black card will feel good, but it's the same kind of "good" feeling you get when you stuff yourself with Cool Ranch Doritos and a Diet Coke while watching reruns of Ultimate Fighting on TV...a bit of adrenaline, some artificial flavor, but not the kind of feeling the Dalai Lama suggests cultivating over the long run.
  • The KivaB4B card, on the other hand, promises a more real and lasting sense of well-being. It not only offers that Gandhian sense of goodness, but it provides the immediate satisfaction that is not pre-packaged and cheap, but more like the feelings you experience when sharing a beautifully prepared meal with best friends on a porch overlooking a lake on a perfect summer evening. Do you hear the crickets?

Searching online for quotes from people who use the black card, this one captures some of its flavor:
  • "Have you used the concierge service, if so what for, and have you used it for anything ridiculous: Oh yes. Ellen show tickets." Ellen Show tickets??
  • Let's compare that response with a quote from a KivaB4B card user.  "Anybody can make a difference with MicroFinance. I chose to help start a pharmacy."  
Hmmm....Ellen tickets...change a life.

If, however, your aspirations are still more oriented towards status 1.0, there's an even more fabulous option than the black card. MasterCard's newest high end offer is an invitation only card from a Dubai Bank, Dubai First.

dubaifirst card.jpeg

 Intended for the super wealthy, the card has a fat diamond in the middle that I suppose you could sell if the economy hits you too hard.










For all of you who are evolving towards status 2.0, where our contribution to helping others is more prominent, be sure to consider the KivaB4B card. Just think, instead of buying that $1million private jet with a carefree swipe of your card, you could make 10,000 $100 Kiva loans.

Brown is the new Black. Fo Shizzle.

*(Important note - Snoop Dogg did NOT originate the colliquialism of adding the suffix' -izzle, -eezy, -iggedy and so forth to common everyday phrases. Although sometimes called "Snoop speak," because it was popularized by Snoop Dogg, it was used much earlier by Frankie Smith in his 1981 hit single "The Double Dutch Bus." Also note, Carnies, aka carnival workers, have used "iz" in precisely the same fashion for centuries).




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Kivapedia

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kiva-thumb-225x120-thumb-350x240.jpgThe growth of Wikipedia has been explosive.  But, now we are seeing a variety of sub wiki sites - for things like autos, entertainment, sports and so on. 

Well, there is even a wiki site for Kiva, which is called Kivapedia.  On its home page, the goal is to "create a complete reference to all things Kiva."

Some of the topics include:  Biographies, Galleries, Media Coverage, Microfinance and Videos.

Of course, you can add or edit the content on the site, to help it grow.

 

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Amey Stone on 'WalletPop' has an interesting post about the Kiva card. She points out that it is unique as a cause related marketing effort specifically for small businesses. She quotes, "There is a huge opportunity here for small businesses to gain market share and take on the big boys in whatever sector they are working in through smart cause marketing efforts..." She highlights a few tips on how small companies can benefit from cause marketing:

  • Don't just support your own pet cause.
  • Do it in a way that will provide real benefit to a cause
  • Don't think that you can charge more.
  • Start small. 
Full Post Here
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yunus2.jpgLast week, Muhammad Yunus - who is the pioneer of microfinance - was in NY.  He's starting up a branch of his bank, Grameen, in the US.  In fact, there have already been $350,000 loans disbursed.  Some of the borrowers include the Dominican community of Corona and a group from the Bangladeshi community in Woodside. 

Yunus also spent time with the media, such as CNBC.  Here are two video clips:

 

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In addition to about 8 other blogs to which she contributes (and one of the cooler names ever), Britt Bravo's 'Have Fun * Do Good' Blog has a great post linking to podcast interviews with 30 social entrepreneurs and changemakers. From my past life as an activist in San Francisco, it was fun to see, as part of her list, some friends and other faces I recognized well. One of the interviews is with Jessica Flannery, co-founder and board member of Kiva.

jessica flannery.jpg


Click Here for the podcast.



















Hopefully, KivaB4B will be flying so high next year that one of our team will make it on her distinguished list. Click Here for the post.



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Kiva B4B Launch Party

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Last week in Philadelphia, Advanta threw a party to celebrate the official launch of the KivaB4B program. It was official and it was fun. The food and drinks were flowing and Senerita and Senio, our honored guests from Samoa, performed a traditional Siva dance. In addition to Senio and Senerita, we had a truly royal showing. Dennis Alter, the Chairman/CEO of Advanta and Ami Kassar, the Chief Innovation Officer, joined forces to welcome both Matt Flannery, CEO/Founder of Kiva and Premal Shah, Kiva's President. Here's the red carpet photo of some of the VIP's.

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From left to right:
Premal Shah, Senio and Senerita Mataomile, Dennis Alter, Karil Daniels and who's that uber-handsome guy on the far right??? Ami Kassar.










Although Karil and Senerita met earlier in the day (see the post below), the official meeting at the event was historic as it was the first time that a Kiva borrower came to the US to meet a Kiva lender.

Senerita and Karil at party.jpg
      
















Finally, the highlight of the evening for me was Advanta's presentation of a $100,000 check to Kiva. Not everyone realizes that Kiva takes no cut from the transactions between borrowers and lenders. They are a nonprofit dependent on external funding. I was thrilled to see the big check and enjoyed watching Premal fold it up and put it in his back pocket.

check presentation to kiva.jpg
















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This past weekend, my co-worker, Pauli Tiefling and I

 

 

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had the privilege to take the Samoans, Senerita & Senio to the Phillies vs. NY Mets game at Citizens Bank Park.

 

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It was their first baseball game ever, and they were already dressed to impress.  We arrived at their hotel to see the couple both wearing blue Phillies t-shirts.  They were instant fans in the City of Brotherly Love. 

On the way to the game, I told Senerita how much I liked her straw bag made in Samoa and she generously told me how she wanted to give it to me as a token of her appreciation.  But she needed a bag herself if I was to receive hers as a gift.  So I took her to the Phils store in the stadium, and got her a cute Phillies backpack to keep her things.

samoans4.jpg
 

At the game, the couple enjoyed many pleasant American experiences.  We were fortunate enough to have a suite at the game where there was a buffet of amazing food.  It included hot sausage, hot dogs, chicken fingers, pizza, stromboli, veggies, fruit, cookies, cake and ice cream.  So let's just say they got their eye and stomachful of American delights.  Senerita wanted hot sausage with a roll for her and her husband.  But, I have to say Senerita really enjoyed cotton candy the most at the game.

 

 

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They sat in our awesome seats during most of the game.  Senio enjoyed a couple beers to quench his thirsts.  Here's a view...

 

Samoans2.jpg

But after 5 innings the couple told me they were tired of good ol' American baseball, and they wanted to head back to the hotel to prepare their things for a NYC trip the following day.  Their only request...fish and chips for dinner. 

 

 

samoans7.jpg
 

 

So once we returned to the hotel in downtown Philly I went into a neighboring bar, Mace's Corner and ordered them fish, chips, and veggies to eat in their hotel room.  Let's just say enough food came out to feed them for a week.  Gotta love American portions!

It was sad to leave them.  Senerita especially, because I think she really liked Pauli & I.  She gave Pauli a sarong with Samoa stitched in the fabric as a parting gift.

 

samoans8.jpg

She had tears in her eyes when I hugged her goodbye, and she waited on the sidewalk by her hotel watching us as our car pulled away in an almost movie-like moment. 

 

samoans5.jpg
Overall, the day was beautiful, 80 degrees, and ALMOST perfect for a day of baseball in Citizens Bank Park...we lost (2-4).

In the Samoans minds however, I know we won :-)

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Pierre Omidyar is the mastermind of eBay - and, of course, is a multi billionaire.  He also operates Omidyar Network, which is known as a "philanthropic investment firm."


No doubt, Omidyar is a major supporter of microfinance.  So, today he announced that Omidyar Network will donate $9 million to Unitus, which is an organization that focuses on financial services for those people living on less than $2 a day (which is about 3 billion or so).  To this end, Unitus partners with a variety of microfinance institutions (MFIs)

The goal for the $9 million:

"Unitus will continue to support a rapidly growing portfolio of start-up and early-stage MFIs in developing countries by employing its proven acceleration model. Using this model, in 2007 Unitus partners grew seven times faster than the industry average, as measured by the total number of clients added. Since 2001, Unitus and its partners have reached more than 3.5 million of the world's poor, making it one of the fastest growing MFI networks."

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Professor Muhammad Yunus is the pioneer of the microfinance industry.  His Grameen Bank has provided more than $6 billion in loans (over the past 30 years). 

Last year, he was a speaker at the Skoll World Forum.  Here's a YouTube video:

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My head has stopped spinning and I've finally settled down after traveling with Senerita and Senio. After one day in Los Angeles, we were on a plane to Philadelphia for the official launch of the KivaB4B program, (The launch party itself deserves a few pictures of its own, so I'll save that for another post). When we arrived in Philadelphia, we had a few hurdles to get over. For example, the escalator was a bit daunting, although the moving walkway was a treat.

Here's Senio braving the escalator. Senerita chose the steps.

Escalator.jpgAfter a dinner with Ami and Darren from Advanta, we set off the next day for a tour of the city with Karil Daniels, the independent filmmaker who was one of the original lenders to Senerita on Kiva. This was actually the first time that a Kiva borrower came to the US and met a Kiva lender. Karil met us for breakfast, camera in hand, documenting the occasion. After spending time talking and getting to know each other, the four of us took a trip up a skyscraper (the tallest building in Samoa is five stories), visited beautiful Rittenhouse Square and then set off on a journey to Fabric Row.

Rittenhouse Square.jpg 
Here's Senio and Senerita in Rittenhouse Square on a truly spectacular spring day.















And then Fabric Row with Karil:

Fabric Row.jpg
 































And the fabric shop:

Fabric shop.jpg



Senerita was in heaven as she chose fabrics to bring back to Samoa. Senio stood outside and waited like a typical husband.











After I left Philadelphia, Senerita and Senio decided they really wanted to go see a Wal-Mart...Independence Hall didn't seem to capture their imagination. Combined with a Phillies game the next day and Senio's fascination with 75 channels on the hotel TV, they had a full course meal of American culture before leaving Philadelphia.

After a mass at St. Peter's Cathedral, they headed up to NYC with my brother as escort and took the requisite trip to the Statue of Liberty and the chachke stands in Chinatown to buy knock-off "gold" watches. This evening, they'll be attending SPBDs (Southern Pacific Business Development) fundraiser. I'll be picking them up tomorrow afternoon at the airport in LAX. Tomorrow evening, they'll meet up with Senio's brother who lives in Compton with his daughter, son-in-law and grandchild. After nice hotels and big city tours, their week in Compton should give them a much fuller picture of the extremes in America.


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KivaB4B is born!

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After lots of hard work, we launched KivaB4B last week in Philadelphia.  It's a joint initiative between Kiva - which is a non-profit organization that created the first peer-to-peer microfinance platform - and Advanta (through Advanta Bank Corp.), which is one of the nation's largest credit card issuers.

Here's how it works:  If you have a KivaB4B card, Advanta will match your grants to Kiva (up to $200 per month).  We like to say that it's "double the capital, double the impact."

In fact, we got quite a bit of interest from the blogosphere.  Here are some clips:

Startup BizCast, April 9, 2008
"Corporate Philanthropy" by Steve Mullen
Corporate Philanthropy is simply "good works" on a slightly larger scale. Instead of an individual volunteering time or money to a local nonprofit or helping a neighbor, it's the weight of an entire company moving toward the goal of helping the community. This week's guest on Startup BizCast is Ami Kassar of credit card company Advanta. He's the company's Chief Innovation Officer and also developed the KivaB4B program, which launches on April 15. It allows Advanta customers to donate money to entrepreneurs overseas who have a great idea, but not a great deal of money.
 
Small Biz Resource, April 10, 2008
"Entreprenuer Gives Back" by Gayle Keston
I haven't seen the numbers to confirm whether last night's "Idol Gives Back" show made the "googillions" that Ben Stiller hyped. But I do know about another charitable initiative set to launch next week that will enable entrepreneurs here at home to help budding businesses in third-world countries.
 
The Entrepreneurial Mind, April 15, 2008
"A Credit Card Offer Worth Considering" by Jeff Cornwall
I have written before about Kiva, "the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world. Kiva's mission is to connect people through lending for the sake of alleviating poverty."
 
Gift Hub, April 15, 2008
"KivaB4B Launches April 15" by Phil Cubeta
Kiva B4B launches today, April 15, in partnership with Advanta.  Advanta issues credit cards to business owners. They have put together a matching program for card holders who loan money through KIVA to small businesses in developing countries.
 
The Chronicle of Philanthropy, April 16, 2008
"Helping Small Businesses Give to Charity" by Nicole Wallace
Charity marketing deals with credit-card companies aren't new, but Advanta -- one of the largest credit-card issuers in the small-business market -- hopes that its new partnership with Kiva will help both the charity and Advanta's customers.
 
The Entrepreneurial Mind, April 16, 2008
"Kiva Business for Business Blog" by Jeff Cornwall
I blogged about the Kiva business for business credit card project with Avanta yesterday. Here is a link to the blog that they have created to chronicle some of the stories from this project and the on-line community of entrepreneurs they are helping to create.
 
Entrepreneur.com Daily Blog, April 16, 2008
"Kiva Makes Twice the Impact" by Kristin Edelhauser
Last October, we told you about the microlending site, Kiva.org. Now, the site--which helps developing-world entrepreneurs achieve their business dreams--has partnered up with Advanta to up the ante. It's called KivaB4B, and through it, customers can make small loans to Kiva entrepreneurs using Advanta business credit cards. Once a grant has been issued by an Advanta small-business customer, Advanta will match each grant dollar for dollar, capping at $200 per month, per account.
 
Cause Related Marketing, April 17, 2008
"Cause Related Marketing Meets Microfinance" by Paul Jones
You'd have had to have been in Ulaanbaatar, Mongolia the last year or so to have missed the run up of microfinance. Between 2004 and 2006 more than $4 billion of capital flowed into microfinance institutions. All told experts say the total loan microfinance loan portfolio may be as much as $12.5 billion. And of course the father of microfinance, Muhammad Yunus won the 2006 Nobel Peace Prize. Microfinance is now so respectable, so effective, (so profitable!) that it's already enjoying its first global backlash.
 
901am Media News, April 17, 2008
"Advanta and Kiva launch KivaB4B Project to empower entrepreneurs in developing countries" by Dennis Bouchand
Advanta Corp. and Kiva have launched the KivaB4B Project, a joint initiative that encourages small business owners and entrepreneurs in the U.S. to support entrepreneurs in developing countries. Through the initiative, Advanta customers can make grants - using an Advanta business credit card - to Kiva for entrepreneurs of their choice, and Advanta will match each grant, dollar for dollar, up to $200 per month per account. That's double the capital, double the impact.
 
bizSugar, April 17, 2008
"Entrepreneur Gives Back" by John Holsen
With the tagline "Change the world...one business at a time," Kivab4b.org offers entrepreneurs and small businesses an easy way to participate in cause-related marketing.

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The Kiva Story

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kiva2.jpgLast week, I attended the Penn Microfinance Conference.

One of the presenters was Matt Flannery, who is the co-founder and CEO of Kiva, which is an online platform that facilitates microlending to the Third World.  In fact, he talked about the humble beginnings of Kiva.

The idea got its start back in late 2004.  Matt and his wife - Jessica - took a three-month trip to East Africa.  While she wanted to get involved in microfinance, Matt was more interested in putting together a tech startup.

So why not compromise and combine the two things? 

At first, Kiva was mostly a side project, as Matt coded the platform while he was a programmer at Tivo.  But seeing the huge potential, he decided to devote his full-time efforts to Kiva.

By March, there were seven loans on Kiva (for a total of $3,500).  Within six months, the first loan was paid off.

Despite this, there was much skepticism.  "We visited VCs, but they weren't interested," said Matt.  "The feeling was that it would not scale and was perhaps even illegal."

Well, Matt talked to some lawyers and even the SEC.  From what he could tell, he was OK on the legal front.

But, would people be interested?

That's where the power of the media made its impact.  At first, there were a variety of bloggers that promoted Kiva.  Next, the site got a profile on PBS's Frontline.  And then, the mighty Oprah highlighted Kiva.

"It was publicity that funded our efforts," said Matt. 

Right now, there are more than 250,000 lenders on the site.  What's more, Kiva is still thinking big; that is, over the next five years, it wants to fund $1 billion in loans and attract ten million lenders.

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yunus.jpgFor the most part, microfinance is a recent phenomenon, getting its start in the mid 1970s.  The pioneer of this movement is Muhammad Yunus, who won the 2006 Nobel Peace Prize for his efforts.

His belief is that extending credit - in even small amounts - can have a big impact on dealing with poverty.  The loans help to finance such things as supplies and equipment.  The amounts typically range from $25 to $300 or so.

To deal with the risk of non-payment of loans, microfinance relies on some key requirements.  First, the loans are made to small groups (say four or five people).  This helps to create peer pressure.  After all, if there is a default, the whole group is responsible.

Next, the loans are typically for women, who tend to use the loans for the intended purposes.

What's more, loans are paid off in small increments - not lump sums.  This makes the loan process much more manageable for borrowers.

So, how large is the microfinance market?  According to the World Bank, there are more than 7,000 microlending institutions.

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