“Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime.” Let’s face it the adage is a little dated and overused but as a philanthropic philosophy it has persisted because there is value in it.
What happens though if you’re like me and want to help but have no idea how to fish? I figure our aspiring fisherman could probably use new and better equipment or working capital to start a fishing business more than a fishing lesson anyway. He or she may still need a “hand up, not a hand out” but perhaps the adage needs to be updated with the times to: “Give a woman a fish you feed her for a day, help her start a fishing business and you change her life”. A few months ago I did just that.
For the past two years Juanilyn Bacala, a 20 year old single mother, has owned and operated a successful fish selling business in the village of Bitibut in the Philippines. The profits however have not been enough to grow her business sufficiently to provide for her family. She needed $225 in working capital to expand and along with 7 other investors worldwide I loaned her the money to make it happen.
I may not know how to fish, but I know a thing or two about investing and running a business. Juanilyn is a driven hands-on proprietor with a track record of success. She knows her business and has a solid plan to expand into a growing market. The opportunity had a low risk / high reward ratio and that’s why I invested in her. Doesn’t sound like traditional charity? It’s not and that’s why I like it.
I get the most satisfaction out of working with a charity or not-for-profit when my values are in sync with theirs and when I feel I’m investing my time and money, not just giving it away. I’ve had amazing life changing experiences with local organizations; however, I wanted to find a way to use my skills and expertise to do something bigger and with global impact. Luckily I found a way to do it. I found Kiva.
Kiva (www.kiva.org/lender/kevinmagee) is a not-for-profit organization that facilitates microfinance loans directly to entrepreneurs in developing nations. Generally the loans are small however the impact they make has remarkable potential to change a person’s life and a community’s future.
In Microfinance lending individual lenders, not banks, each contribute a small portion of the total loan which is made to the entrepreneur directly. The loan is then repaid over a set term and the interest collected funds the in-country lending organizations. While I don’t get a tax credit, when the loan is repaid I have the opportunity to re-invest the same $25 again and again in new entrepreneurs or even withdraw the money.
So far I’ve had unprecedented success with Kiva. I’ve made over 60 loans worldwide with no defaults to date. I think this is because I take the time to really qualify each investment that I make. It’s not all work though, I greatly enjoy reading the business plans and personal stories and really come to know the people that I have helped. As a bonus, I’ve also learned a great deal about other countries and cultures.
If you have $25, an entrepreneurial spirit and a desire to better the world why not invest it directly in someone’s future? Over time, you may find you’ll get a greater return on investment than you can possibly imagine.




