i've found my non-profit

i have always been confused about charity (just like i have been confused about everything else).

* Why donate ?
- "because you should give back to society" is the most common answer I've encountered. Charity for me is helping someone get out of the rut and make a life for themselves. It should not involve just giving away. I've always felt - "Help not Donate" is the answer. There should be no free lunches.

* How to choose the right institution ?
- Most institutions I knew of were involved in the business of giving away. The feedback loop of what your money was being used for is generally mediocre. All in all, the gratification (in this case, the feeling that you made a difference) is not strong enough to warrant more donations. (I know it sounds against the idea of charity, but appropriate incentives always motivate people better)

I came across Kiva.org today. This to my mind appears to be the perfect charity. It resolves most of my confusions mentioned above. Based on the now famous model of Microfinance, it lets you lend money to someone who needs a loan. After the period of loan, you get repaid where you can choose to re-lend the money. This resolves both of my dilemma's mentioned above. It helps someone get going with their business and help them make a life for themselves. You are involved with the business you are lending to. The feedback loop is great because there is a journals tab which lets you know about the progress of the business at regular intervals.

So go ahead - Change Lives !

Warren Buffet Quote

Read this somewhere, it was said by Warren Buffet in one of his Berkshire Hathaway speeches

"The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities -- that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future -- will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands."

Source : Wikiquote