Well there are many ways to double your money and every one is looking for one of them 🙂 Here I am sharing with you one of the way to double your charity money impact. In less than 2 years, I made loans worth $1475 by just spending $630.
Around 2 years back in Dec 2009, I started an experiment. I came across a website www.Kiva.org that helps you Loan (not donate) a small sum of money to a needy but enterprising person in a remote country through the internet. It is a loan and not just one time donation, since the person to whom you lend the money is supposed to return it back to you.
So almost every month I started giving loan of $25 (around Rs1200 ) to a new person for different reasons. Eg. To buy seeds and farm supplies, to repair a home, to buy a new sewing machine or to expand a grocery shop. See some of the needy ones below.
After 3-4 months, I received around $10 back. I added more money to make it $25 and loaned it to another person. Soon I started getting more of my loan money back and I kept on reloaning the same money again. In total I loand around $30 every month.
To cut a long story short, in 21 months, I spent around $630 in loans (approximately $30 per month). But when I counted my loans, I had given 59 loans which is around $1475 worth of money to people. So effectively in 21 months my $630 were used for making loans worth $1475 which is more than double the amount I had put aside for charity.
And the best part is that if I want to come out of these loans, in 6-9 months I would get most of my $630 back.
If I look at the following curve, it is increasing in a non-linear manner. It took me 8 months to make 10 loans, but it took me 7 months to make 20 more loans. Even though I spend a fixed amount ($25) every month, the number of loans I make is increasing every month. This is due to my previous loan amounts becoming available for re-loaning.
Overall, I am very pleased with my experiment and these results. If you would also like to join me and enjoy doubling your charity money impact, you can do so on www.kiva.org
Following is my complete portfolio numbers as of Oct 2010.