We recently looked at Kiva’s largest partner MFI, LAPO (Lift Above Poverty Organization), as part of our evaluation process for an economic empowerment grant in sub-Saharan Africa. In brief, we found two surprising pieces of information: LAPO is very profitable. There’s good reason to be concerned about LAPO’s social impact. As Natalie recently described on…
The GiveWell Blog
All Microfinance charities Posts
When donations and profits meet, beware
David Roodman raises the concern that Kiva capital could be effectively “padding profits” at a profitable microfinance institution. He concludes, If social investors provide capital at prices below commercial rates to enterprises with “double bottom lines” (profit and social benefit), how do the investors assure that their cheap capital isn’t being used to boost just…
Two charities, one microfinance institution
We’re looking for a good option for U.S. donors interested in supporting microfinance. We’ve been examining the largest, most prominent U.S.-registered charities in this area: Grameen Foundation, Unitus, Accion, Women’s World Banking, Opportunity International and FINCA. All of these are large organizations that list a variety of “partner” microfinance institutions. One thing that might surprise…
Not our last word on the Kiva controversy
Nathaniel Whittemore writes that it’s “time to move on” regarding the recent Kiva controversy. I disagree. It’s true that Kiva handled the criticism admirably, and made significant changes to its website to improve clarity for donors. It’s also true that Kiva has a stronger case than many for being generally transparent and impactful. Finally, it’s…
Whiplash
Jenny Aker and Michael Clemens: “Privately and publicly, donors, MFIs and practitioners are expressing concern about the impact of [recent] studies on the future of microfinance.” David Roodman: “I’ve been surprised by the predominant negativity of the new wave of comments from the NYT article.” Ultimately, the idea of “true” person-to-person lending is somewhat silly,…
My greatest fear about microfinance
How much of microfinance’s popularity in the world of philanthropy comes straight from this story? I was shocked to discover a woman in the village, borrowing less than a dollar from the money-lender, on the condition that he would have the exclusive right to buy all she produces at the price he decides. This, to…