Actor Charlie Sheen has been in the news a great deal lately, mostly for all the wrong reasons. In fact, Sheen has created quite a buzz with his spontaneous micro lending to charity. Since the beginning of Sheen’s Violent Torpedo of Truth Tour, the actor has devoted a portion of ticket sales to helping various charity organizations in need of support.
Lending for Charity Organizations at the Forefront
During the Toronto portion of Sheen’s tour, part of the total ticket sales went to support disaster relief organizations in Japan. Sheen also asked fans to participate in a two kilometer walk to raise funds for the Organization for Bipolar Affective Disorder. The actor also announced that he would match the donations dollar for dollar.
Last week, Sheen’s publicist announced the actor’s plans to donate funds from merchandise sales to the Bryan Stow Fund. Bryan Stow is a baseball fan that was viciously attacked and severely beaten at a San Francisco Giants game. Currently, Stow’s doctors are attempting to revive Stow from a medically induced coma. Stow, 42, was attacked in the parking lot of the stadium by two men that have not yet been identified. There is a $100,000 reward to anyone that can identify Stow’s attackers.
Stow’s co-workers have planned a micro charity fund raiser. Supporters wishing to make online donations may do so through the family’s Facebook page. Sheen’s micro lending donation to the Bryan Stow Fund is the first from Sheen’s Korner Foundation.
Small loans are trending up as a viable source of capital for small businesses across the States. Businesses expected to capitalize on financing from funds through the American Recovery and Reinvestment Act of 2009, have not been successful in securing credit from major lenders. So firms in the energy business such as small biodiesel companies have turned to micro lenders for short term working capital.
Small Loans Average $13,000 in the US
Fortunately, for small businesses, in February 2009, President Obama signed the Recovery Act into law. The Act included $56.1 million directed as micro loan funds available through the Small Business Administration (SBA). Provisions in the 2009 Act were expanded by the President when he signed the Small Business Jobs Act (SBJA) of 2010. Under the SBJA of 2010, the loan cap was raised from $35,000 to $50,000 but the average loan is $13,000.
Biodiesel companies such as Tri-State Biodiesel LLC have found this avenue to capital to be a god-send. Tri-State, like many of its competitors, was in extreme need of working capital for equipment upgrades. When other lenders refused to help, Tri-State sought a five-year $50,000 loan through the Boc Capital, an SBA approved micro lender intermediary. The SBJA requires that the fiscal intermediary provide the small business with technical assistance for the period of the loan. This was an advantage to Tri-State; they benefited from advice on staffing and administrative structure.
Small loans are an important source of funding for small businesses and individuals throughout the US. However, individuals can also benefit from organizations such as Microgiving.com that provide micro charity – or peer-to-peer donations. If you would like to help others through online donations of small loans, please search our website.
A Haitian micro lending program known as Zafèn has seen wild success since its inception six months ago. An online financing effort, Zafèn’s success has awarded lending to 300 projects for the Haiti effort. Businesses ranging from small to medium-size have received up to $140,000.
Zafèn’s Micro Lending Results in Quick Repayment
To qualify for funding from Zafèn, the business project must demonstrate a positive impact throughout the community by going green, hiring additional employees or creating work efficiencies. Four organizations came together to found Zafèn: the International Vincentian Family, DePaul University in Chicago, Fonkoze (a bank in Haiti set up to help the poor), and the Haitian Hometown Associations Resource Group. These four agencies have collaborated to create access to funds that would result in a sustainable difference, rather than simply providing financial aid. The agencies credit the idea behind establishing Zafèn to micro financing leaders such as Kiva and the Grameen Foundation.
Zafèn’s micro lending efforts are particularly well-placed. Program funds have allowed 1,500 children to receive scholarships and 51 entrepreneurs have been supplied with micro-loans. Already, entrepreneurs that have been awarded loans have already started repayments. In fact, two of the businesses have fulfilled their loan repayment completely, while another seven are in the repayment process. Some of the projects that have been awarded range from milk distribution to a solar water pump for a plant nursery, to farmer training on crop diversification – all efforts that can make a huge difference.
Microgiving is excited to hear of the success of Zafèn. When agencies and people collaborate, the results can be astounding. Like Zafèn, Microgiving works with donors and recipients to create sustainable differences across all communities. If you would like to join Microgiving and take part in micro lending, please visit our website – and prepare to be astounded!
MicroGiving.com has a unique history. Inspired by micro-lending and the story of Muhammad Yunus, MicroGiving’s founder and philanthropist John Ferber envisioned a place where anyone could find, connect and give micro donations to people in need.
In 2006– Bangladeshi economist, Muhammad Yunus, was awarded the Nobel Peace Prize for the innovation of micro lending to poor people. This enabled those with little or no credit who don’t qualify for traditional bank loans, to receive funding to buy startup materials. Micro-lending eventually uprooted the poor and stimulated economies of third world countries.
Inspired by Yunus and the concept of micro lending, Baltimore born entrepreneur and philanthropist John Ferber envisioned a similar model, but instead of micro loans John envisioned micro giving, or the extension of micro donations.
In 2007– MicroGiving.com was born, a place that enables anyone to search, find and give as little as $1 directly to people who don’t qualify for help through traditional charities.
To date, MicroGiving has empowered hundreds of Donors to help struggling individuals and families ward off foreclosure, prevent loss of utilities, sustain through a temporary loss of job, restore homes after disaster and fund urgent requests for health care.
MicroGiving changes the traditional face of charity by making the experience of giving micro donations more personal, transparent and financially feasible for those who have to give to those who need.
We’d love to hear your thoughts on micro giving. Are traditional charity infrastructures impersonal? And should more charities make an effort to expand their outreach to people in need on a local level?