Thursday, December 10, 2009

microfinance gift

Cash is almost always the most practical gift you can get somebody. I have trouble not feeling that it's too crass, though. Here's one possible solution.

Microplace, my favorite microcredit site, recently introduced a Gift feature where you can give an investment to somebody else. You pay the money, it goes to the developing world as a loan, and the interest and eventual repayment go to your gift recipient. Everybody wins!

This makes the most sense when you know somebody will need the money more later than they do now; it's a nice way to put the money "in transit" to them - and it does some good on the way. For instance, my sister is facing a gap in her income for maternity leave this spring; I chose a gift that would mature then. It was a perfect solution! Future students are other obvious recipients. Seasonally employed people... people planning an upcoming major trip... etc.

(Incidentally, another great microfinance site is Kiva, and there's actually a Pythonistas' lending team.)

1 comment:

Joseph Lisee said...

That sounds nice, but what about when the person you loaned the money to defaults? The solution is to make sure the people you are gifting to don't actually need the money to put food on the table, but to instead buy that extra comfort/luxury item they are missing out on.