Crowdfunding is all the rage these days. With sites like Kickstarter and Indiegogo, you can post a request for anything from a $50 art project to a $1 million for a new museum. Individuals can donate as little (or as much) as they want to your campaign to help you get there.
Though an old hat at crowdfunding, Kiva has launched a new project called Kiva Zip, which pairs business principles with crowdfunding loans. Each loan, broken into $25 increments and set at 0% interest, goes to an individual looking to start a business. Lenders can specify any number of $25 loans they would like to donate, and specify which business they want to support. “Through this initiative, small business owners and entrepreneurs in the D.C. area will be able post profiles on Kiva's crowd-funding website,” says Jonny Price, Program Director of Kiva Zip.
In DC, Kiva has already facilitated two loans, and is partnering with Capital One Bank and the Latino Economic Development Center. LEDC will be identifying interested entrepreneurs to apply for loans and take part in the program.
These type of loan program may have important implications for the nonprofit sector, says our Interim President Audrey Alvarado, “this may be the next exciting step in social entrepreneurship- linking good ideas with available no interest loans. Many times nonprofits leaders have great ideas to advance their reach and impact but no funder is willing to invest in their untried but innovative ideas. This may capture and extend on the creativity of the nonprofit sector".Has your nonprofit found new ways to connect with individuals to get funding? Let us know!