The future of Kiva
Since Kiva is a non-profit organization, their focus is obviously self-sustainability. Kiva sends 100% of the loan to the Field Partner, so how are they able to sufficiently support themselves? According to Kiva’s website, they support themselves principally on “optional fees” their lenders voluntarily pay in addition to loans they make. However, as the company grows, will this method continue to to prosper? Kiva does have future plans to consider the possibility of partnership fees. Kiva also hopes to one day offer interest to individual lenders. Due to government regulations, the complexity of this process makes it infeasible. Kiva’s Field Partners also charges interest to the entrepreneur in order to maintain self-sustainability. However, these funds do not go to the individual lender. Even if their future profit plans come to fruition, at what point would the extra income detract from Kiva’s primary goal of fighting poverty? The difference between profit and greed must be clearly defined.
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