A Bigger Pie

KIVA Lending Team Started

Finally settled in back here in Geneva after almost 4 weeks of hectic travel to NY, LA, back to NY, and now back to Switzerland.  It's been kind of crazy, and it's good to have a Sunday to relax a bit.

But, today is not all about relaxation.  I just spent some time on my KIVA account, lending some more money (up to $500 now), and learning more about how "Lending Teams" work. 

For those of you that know me, my outlook on life and finances was transformed in the last 12 months or so after a friend suggested I read a book called "Secrets of the Millionaire Mind" by T. Harv Eker.  Shortly after reading the book, I attended one of Eker's free Millionaire Mind Intensive workshops, and, subsequently, participated in Enlightened Warrior Training Camp (we'll call it "warrior camp" going forward).  

"Warrior Camp" was a real life-changer.  I met so many amazing people there, and the exercises there helped me learn things about myself I might never have known.  I'm forever indebted to Eker and his work.  Not to be forgotten are the people who were there that week, my trainers and teammates, that helped me get so much out of the experience.

One of the lessons prior to warrior camp was the importance of giving.  And, a key thing I learned about myself at warrior camp was that I'm often willing to work harder, and go farther for others than I am for myself.

Putting all that knowledge, and all those great teammates to use, I've decided to create a KIVA lending team based on the principles tought by Eker, and the lessons learned by those of us who have read his books, and attended his Peak Potentials seminars and workshops.

I decided to name this group "Kiva Potentials", as a nod to the influence of Peak Potentials training.  You can view our team page at http://www.kiva.org/community/viewTeam?team_id=7764.

If you're not familiar with Kiva and the work they do, go here and learn more: http://www.kiva.org/about/what/

You do not need to be a member of our group to make a loan, and you do not need to be a graduate of warrior camp or any of Peak Potentials programs to belong to our group.  This group is not affiliated with Peak Potentials or T. Harv Eker.  However, I imagine (and hope) that Harv would very much be on board with the game plan, the motivation, and the goals of my group.

KIVA Update

How cool is this?  There's money paid back into my KIVA account....it's only about $7, but the entrepreneurs in developing countries are right on schedule with their paybacks.  I think I'll pop some more money into our account in a couple of weeks.  Still trying to get a feel for how this works.

Also, I'm thinking I will start a KIVA Lending Team.  I have a network of people, some of which I think would really take to KIVA.  And, since I just recently looked into KIVA, it's entirely possible that there are many others out there who've never heard of it, or who haven't really considered participating.

The next couple of weeks will be pretty hectic, with lots of travel, so this post is my first step.  Second step will be in mid-July.  I'm on the job!

A Sideways Start to 2009

Well, the "Big Idea" is on hold for now.  I did move it forward a bit since my last post.

Back in February, I met with a couple of prominent lawyers in the field, and got somewhat of a handle on what I'd be up against from the legal side of my idea.  The lawyers weren't cheap, and the legal fees to come (when I do move forward) will be pretty substantial.

Being committed to another major project at the start of this year, I decided now was not the right time to devote countless hours, and a large sum of money to the legal and software costs required.

My plan was to count the money I put into this project as my charitable donations for the year, and when I put the project on hold, I didn't replace the expenditure with donations to other groups.  Well, in the last month, 3 things happened that combined to kick me in the butt and get me going again.

1.  A friend asked for donations via Facebook for his Cystic Fibrosis walk after a friend of his passed away from the disease.

2.  Another friend (who I know through my wife) was raising money for his charity (The Flip-Flop Foundation), and I donated $50.  After I made the donation, I mentioned it to my wife, and she was kind of "embarassed".  She felt that if we're going to make a donation to an organization, it should be more substantial, considering our income, and the overhead of not-for-profits.

3.  A family member forwarded me an E-mail saying "We Did It!!"  I looked below, and saw that what he forwarded me was from The Smile Train.  I forgot that I mentioned The Smile Train to him a few months back.  Appearantly, after I mentioned it to him, he made a donation.  And, the E-mail he got from them showed him pictures of how his donation helped a child to get the surgery they needed.

I know I made the right decision to put the project on hold, and am not regretting it in any way.  The side effect, however, is that I haven't made any donations in 2009, except for the small ones mentioned above.

I had been meaning to research Kiva for months, and today, when I had some spare time, I went over to Kiva.org, and checked it out. 

This looks like an amazing opportunity to do some good.  It's not "giving" in the sense of making a charitable donation, as the loans Kiva gives are intended to be repaid (and, according to statistics, over 98% of the loans ARE repaid).  What you're really doing with Kiva is making an interest-free loan to an entrepreneur in a developing country. 

I signed up, and made a few small loans, as well as a small donation to Kiva.  I intentionally made my loans to people in 2 groups to accelerate my learning curve.  I made 2 loans to entrepreneurs who had agreed to faster payback schedules (6 months), and my other 2 loans were to entrepreneurs who were close to reaching their target for funds raised, so I was able to move those people from fund-raising mode into repayment mode.

I'm looking forward to learning more about how the process works as a participant, and will update everybody as we go. 

Wrapping up 2008

You're probably sick of hearing about how tough 2008 was.  Since April, it seems all we've been hearing about is how terrible the economy is.  OK, we get it. 

If you feel like you can't make a donation of "significance", you're wrong.  Every dollar counts.  To prove it, I'm working on launching a campaign that can show the impact of one dollar.  Hopefully, the campaign will be up and running by February of 2009.  And, if all goes according to the way I think it can, my first big venture into fundraising will make a splash, and show us all the value of a single dollar bill.

For now, if things feel tight, just find a cause, and donate $1.  Here are a couple of causes that are raising money via ChipIn, and you can donate as little as $1:

The Walk For Liberty

Rascally Rabbit Rescue 

 One dollar, collected from enough people, really adds up.  We have the tools to raise money this way...the goal of my fundraising project is to illustrate just how powerful we can all be, one dollar at a time.

About A Bigger Pie

This is a big project.  The "pie" of charitable contributions in the United States was over $300 Billion in 2007.  Not bad, right?

I know we're capable of so much more.  We can make the pie bigger, we can make the pie better.  That is the project mission.

Through committed giving, transparent reporting, community, and teamwork, we can do it.  Many people don't give to charity at all.  We can help them understand the value of trying, make it easier to give, and see if they like the benefits.  

Others give a little bit, and do it sporadically.  We can help them understand the benefits of committed giving, and make it more fun, and more interactive.

The tools exist.  The examples of what this integrated effort will look like already exist.  Look at Amazon, Woot, Charity Navigator, even Poker Stars and Yahoo games. 

The vision exists.  Let's get money in the pool, and let consumers know how these different non-profit groups put their funds to use.  Who is efficient?  Who is effective?  I want to know "Who is doing the work that's most important to ME?".

Let's help push all these groups to be better.  Let's help to "force" them to perform, and deliver.  I'd love to see them earning their donations through better performance out there in the real world, not by putting on a fancier fund-raiser, or through better websites or mailers or ad campaigns.

The fund-raising department needs to be responsible for one thing.  They need to make donors aware of how amazingly effecient and effective the people in the field are.   With the right platform, and the right tools, we can trim the costs of raising funds, allowing more money to end up in the field, and on the front lines.

Doing "good" is no longer enough.  As an individual donor, these groups need to prove to me that you're getting more out of my donation than the other guys.  The product is the marketing.  Put more money in the field, do more great stuff, let me know about it through an efficient platform, and more money will follow.  Not just mine, but I'll tell others.  I'll raise money for you.  I'll "win" money for you.

But, as long as we allow these groups to have to fight it out in the real world for donations, we're ensuring a less efficient, less effective charity system, where too much emphasis is placed on fund-raising, at the expense of more funds on the front lines.

The change is coming.  Perhaps I'll be at the forefront, under the banner "A Bigger Pie".  Or it may happen under some other title, with some other leader or leaders.  But, the change is coming, and I will be there.  This is big.  This is a big project.

Perspective

If you believe what you read in the papers and hear on the TV "news" every day, there's pretty much nothing good going on.  Everybody is going to get fired, we're all going to be homeless, and everything you eat is still bad for you.

Or, maybe it's not really that bad.  Maybe we just need a bit of perspective?

Maybe things are pretty good for most of us....maybe, if you're reading this blog, you have a roof over your head, your health needs are being met, and you have enough food to make it through today, as well as tomorrow (perhaps too much)?

There are many people out there that are not so fortunate.  It's true that thinking about the enormity of the problems of the world can be paralyzing (whether those problems are yours, or those of billions of people 10,000 miles away).  It's also true that, when a bit of perspective is needed, reflecting on the situations that others face can help us keep our heads on straight, and keep moving forward. 

The Power Of You (and Us)

Each of us has the power to impact the world around us.  Through our words and actions we can create change.  When we are aware of this impact, we can use it, but often we forget how much influence we really have.

This is a time of year when charity is at its height (at least in terms of dollars and cents).  If you are a registered "giver", if you're on the list of one or more chartities, you can expect many solicitations in the next few weeks...in fact, if you're on "the list", the solicitations might have already started rolling in.

With that in mind, there are two things I made sure to remind myself this morning:

First, in light of the current economic climate, be sure to give ANYWAY.  If times feel tough, and you feel you need to give less than you might otherwise, then give less.  Even if it's just a small fraction of what you might have given last year, five years ago, or what other people tell you is the "right amount".  Just give. 

Regardless of how you feel about the economy, the fear that we might otherwise allow to spread through our collective psyche can make any situation seem worse, and as a result, get worse.  On the other hand, making a donation is said to make us happier, and support our belief that our basic survival needs are being met.  So, give, in amounts small or large, and get an emotional boost.

The next thing I wanted to take note of this morning is a point that was made today by Seth Godin in his daily blog post.  Use your power to influence what these charitible organizations are doing.  Whehter it's in regard to the work they are doing in the field, or in their communications with you.

If you don't want to keep getting those costly direct mail pieces every quarter, don't just toss them in the garbage.  Contact the organization, and let them know to stop sending them.  You may choose to continue to give, or not, but at least the direct mail pieces will stop, perhaps allowing them to spend that extra dollar in the field?

If it's something deeper, let them know that too.  Maybe you've decided to stop giving to a group becuase you feel they are being inefficient with funds, or maybe you feel they are no longer doing important work, and your funds are better given elsewhere, let them know that as well.

These groups need our feedback to continue to improve and get better.

A charitible organization is like a business in that respect.  Donations, like sales, need to be earned.  And, if you decide to "spend" your money elsewhere, let the group know why you're making a shift.  that way, they'll at least have the opportunity to act on it if they choose to.  In that case, you can consider the feedback your donation!

Happy Thanksgiving

Year End Fundraising

Is it that time already????

That was my reaction.

It's a shame, really, that anybody would feel that way when asked for a donation to a cause they obviously believe in. But that was my reaction last week when 2 of my favorite charitable organizations contacted me in their "year end" fundraising drives.  Probably the first of many solicitations to come this year, a good portion of which are likely to reference the economy in their pleas for more funds.

I had just given to one of the organizations less than 2 months ago, and now they were asking for more.  It's a shame that the status quo is what it is.  I really don't like being asked to give, and from what I gather, I'm not alone.  Besides, giving in response to a request never quite feels as powerful to me as when I just give for the sake of giving.  And, as I write this it occurs to me that I feel the same way about gift-giving.  Something given "just for the hell of it" feels better and more impactful than the obligatory Christmas or Birthday gift.

Until these organizations are presented with a better way, this pattern of giving and then being asked again is not likely to change.  I don't know that any individual organization can tackle this on their own...that would be like an individual friend of yours developing Facebook just so they can stay in touch with their buddies.

However, when the right platform emerges, both consumers and organizations will flock to it, and we'll start to wonder how they ever got by doing it "the old way".

Lesson Illustrated

I was coming up out of the subway yesterday in the rain, at the corner of 60th & Lexington.  I didn't have an umbrella, so when I saw a guy selling them there for $5, I ducked under an awning and began fishing for my money.

As I'm going through my wallet looking for a five, rifling through a few new $20 bills fresh from the ATM, a guy approached me asking for money.  I kind of tried to ignore him, but he pulled out his wallet and showed me a card indicating that he was an ex-con.

Honestly, I don't know for sure if my empathy kicked in before or after he told me he was a convicted muderer.  I don't think I actually felt threatened...other than being close to me, and tell me he killed somebody (he explained why), what was there to fear?  He was asking for money, nothing more.  He told me he's trying to get his life back together, and needed some cash.

Normally, walking around New York, you can get asked for money on just about every street corner.  Typically, you don't really make eye contact, and that dehumanizes the "beggar" (not really sure what else to call the person asking for money).  In dehumanizing them, it makes it easier to ignore them, and their plight, and get from point A to point B.  The difference here was that I was listening.  I was listening, and interacting with somebody that I acknowledged as another human being.

But, after listening, I looked into this guys eyes.  I stared in there for a second, as I was thinking.  I wanted to see what was really going on.  And then, I peeled off a twenty, and handed it to him, kept my eyes locked on his, and told him to "do the right thing".  He said he would, thanked me, and moved on.

So, what was the lesson that I learned? 

It's not that I should give $20 to everybody on the street that asked for money.  If I did that, I'd never be able to leave my apartment. 

And, the lesson is not that I should always carry an umbrella when there is rain in the forecast.  Although I have known that for a long time, if it's not raining when I first go out, I don't take an umbrella.

So, what was the lesson?

I remember reading a long time ago that most of us use the same defense mechanism.  If we don't really acknowledge a problem, we can make believe it doesn't exist.  Don't look in the eyes of a beggar, and they're not really in need.  Don't think about the homeless people you see, or people that are sick, or even puppies and kittens getting killed in the pound.  And, if we don't really ponder it, and acknowledge it on some level, it's easy for us to go on about our lives.

On the other hand, if we were to really stop and think about all the problems and trouble and pain and suffering in the world, it would be difficult to funciton.  We might become paralyzed, and too focused on the problems to be at all productive.

As a New Yorker, I think it's easy to shut those things out so much that you can become uncaring and unfeeling.  After all, we all have our own probelems, right?  That guy was broke, and all, but I was getting rained on!  And, there was probably somebody else on that street with chapped lips, and maybe somebody else who might have lost $12,000 that day in the market off their $3,000,000 retirement portfolio .

So, while we can't always be caught up in all the troubles of the world, it might be useful and humbling to think about other people's problems every once in a while, and allow ourselves to feel for them, and empathize with them, and get in touch with those feelings, and maybe even do something about it.

Then, we can get back to worrying about the weekend golf forecast, our dinner reservations, and all of our other "important" problems.

The "Bigger Pie" Vision

The vision is to revolutionize the process of charitable giving.  With the tools we have at our disposal, it seems obvious to me there has to be a better way for these groups to raise money more efficiently, and use funds more effectively.

Every time my emotional connection to the vision wanes, something external shows up and rejuvenates.  This time, it was Seth Godin’s blog post about his $80K Squidoo give-away.

Rather than keep the idea to myself, I’m going to let it breathe here, and hope that the sparks will ignite into a healthy fire.  The non-profit fund-raising model is broken. Things need to change.  Again, we have the tools…we just need some entity to come along and execute the plan.

Here are the major points:

1.    We need to make sure that the field-work is the fundraising.  Rather than having groups spend money on advertising, direct mail, telemarketing, let’s set up a platform where the work that is done in the field can speak for itself.  By efficiently letting potential donators know what is going on in the field, groups can spend less on advertising and more on programs.

 

2.    “Committed Giving” – this is not “automated”, it is committed.  Automated giving implies a disconnect.  In “automated giving”, every month, money comes out of my bank account and goes to a charity.  Not much of an emotional connection there, and, as a result, I don’t get the same benefit of giving as I do when I give spontaneously.  With committed giving, the user allocates a certain amount of money each month to go into their Giving Account.  Then, the user goes online, logs in to the system, and actively choses what group to give the money to, based on reviews from other users, reports from the groups themselves, and other collaborative filtering and research tools that we put in place in our giving community.  In any given month, you can donate portions of your committed amount to different causes, either by dollar amount, or percentage.

 

3.    Winning money for your cause –  On the Squidoo give-away, there was money in a pool, and users got to vote to determine where the $80K went.  Great idea.  Let’s take it one step further now.  What if I have $100 in my give account for the month, and you have $150, and we decide to play a game of scrabble or chess for $10.  If I win, I get $10 of your money in my account, so now I get to choose where that money goes.  Remember, the money is already committed, and is not to be withdrawn.  Rather, the winner simply gets to choose which non-profit the funds go to.  The more you win, the more you can raise for your pet cause.  But, you’re at risk to lose too.  Poker, chess, hearts, any games of skill can be included.  Oh, and what about games of chance?  What about a “lottery”?  What if we have 100,000 users who agree to allocate $1 of their commitment per month to the lottery.  At the end of the month, $100K is in the pool, and one winner gets to choose which group gets the funds.

 

4.    More visibility for non-profits.  Rather than spending money on advertising and fundraising, a more efficient way to raise funds would be for a group to have somebody within their organization interface with the community on our site.  Reporting on work that’s being done in the field, pictures, videos from people that are being helped, those are the kinds of things that will get attention from our committed donors to allocate money to your cause.  Show us that annual report, more transparency will result in more funds being allocated.  We can use the Woot.com model, and highlight one non-profit group a day. 

There are so many other ideas to include, but this post is already quite long.  What we need is a group to decide to create this platform.  Facebook has some of the elements, Network For Good has others, Woot has others, Amazon has others, gambling websites have others.  We need to create a single platform, integrated, and designed to remove so much of this friction in the non-profit marketplace.

If we do, the long tail will grow.  The most efficient and effective charities will be rewarded with more funds, while the others will see their funding diminish, forcing them to die, or change and become better.

The vision is clear….the question is: how do we make it happen?

If you are interested in helping or being involved in any way, please E-mail or comment below.