philanthropy

Microformats (II): The limitations of microloans

In an article in this week's New Yorker, James Surowiecki ("The Wisdom of Crowds") scrutinizes the effectiveness of microloans in bolstering the economies of developing countries. He posits that the hype around micro-finance neglects the small-to-medium sized enterprises (SMEs), the "missing middle" that is vital for a stable economy: "This isn't because microloans don't work; it's because of how they work," so Surowiecki.

The focus on the micropreneur, he argues, is "understandably appealing, but thinking that everyone is, and should be, an entrepreneur leads us to underrate the virtues … Read more

Kiva humanizes microlending to third-world entrepreneurs

Updated at 1:40 p.m. PST with additional comments from Shah.

For $25, you can get four collector's stamps, 25 moving boxes, or a Care Bear cuddle pillow on eBay.

Or you could help Lucía Chávez Rivera, a single mother of three, buy shoes and linens to sell at a market in Peru, and get your money back within the year.

Kiva, a peer-to-peer online microlending nonprofit organization, is changing the dynamics of microfinance by linking people who have money to loan up with entrepreneurs in developing countries who need some capital, all over … Read more

Gates seeks 'creative capitalism'

UPDATE: The actual speech is available for viewing.

Few people have benefited more from capitalism than Bill Gates.

But these days, Microsoft's chairman is seeing first-hand the failures of the market system and is now calling on businesses to take greater responsibility for those left out in the cold by the free market.

In a speech Thursday at the World Economic Forum in Davos, Switzerland, Gates is calling on companies to think more broadly about how their products can benefit society.

Much of Gates' work at the Bill & Melinda Gates Foundation has centered on two particular shortcomings of … Read more

Bill Gates has grown up and made us proud

A friend once told me there are two reasons why people don't retire, and both are tragic: they either want to retire but can't, or they have no other interests but their work.

In July, Bill Gates will cease to be a full-time Microsoft employee. While he will remain the software giant's chairman, philanthropy will be the world's most famous geek's new full-time job.

With super-rich high-tech executives like Dell, Ellison, and Jobs still gainfully employed, who pegged Gates to opt out on the "other interests" clause? Not me; I thought he'd work at Microsoft until he keeled over. And philanthropy? That was doubly unexpected.… Read more

'Open source' public school philanthropy goes national

Teachers have an unlimited supply of interesting ideas for classroom projects, but have often been limited to the resources they could afford to contribute from their own pocketbooks.

Seven years ago, a history teacher in the Bronx started a Web site that directly connected teachers and donors to fund classroom projects. This week DonorsChoose announced that its program has expanded to include every public school in America.

This "open source" approach to supporting public schools encourages teachers to be innovative and entrepreneurial. Their proposals compete in the marketplace of ideas to attract support. Everyday citizens are invited to become philanthropists who can make a big difference by pooling their contributions, from $10 on up.

As a donor, I found that my experience on DonorsChoose channels reminded me of the thrill of an eBay purchase. But instead of making an impulse buy for something that I didn't really need, I was making a contribution to a worthy cause. In return, my family has received wonderful thank-you packets from teachers and students that include letters and photos of the projects we funded. … Read more

Former President Clinton visits Microsoft

Former President Bill Clinton was at Microsoft's campus Friday as part of the company's celebration of the end of its charitable giving campaign. The effort brought in $72 million in individual and company donations (including software), a total that Clinton praised.

Clinton, who just authored a book on giving, noted the role the Internet has played in making it easier to do charitable work, saying it "has changed the landscape of potential for private citizens doing public good."

He urged more individuals to tackle the world's big problems.

"Don't you think that because … Read more