Do you wonder what to do with the mountains of pennies and nickels that invariably collect around your home?
I have heard great stories of friends discovering that they had enough change to take their beloved out on a date to an elegant restaurant, to take a road trip they’ve always dreamed of, or to buy a new electronic device that they’ve longed for. How is that possible? Well, according to Coinstar (a national business that distributes and maintains coin-counting vending machines), the American household has an average of $99 in spare change lying around the house!
While you might want to lavish yourself, there is another way to use your “small change” to drive big changes, globally. In fact, globally, $100 is often all it takes for a poor person to work themselves out of poverty. And MicroPlace, a subsidiary of eBay, has created a powerful tool for us to aid the world’s working poor while still receiving modest interest on our investments.
First, the background on this form of investment, which belongs in the category of “socially responsible investing.” Investors (you and me) choose to invest in an institution that builds capital for microfinance lending organizations around the world. Those organizations provide direct loans to poor people who are working hard to become self-sufficient and sustainable. In return, our investments will yield us financial returns and has the added bonus of making a positive, long-term impact on the global economy.
Microfinance is a reliable and well-tested methodology for helping alleviate poverty, while respecting the need for poor people to maintain their dignity and self-respect in the process. It is a perfect complement to charity dollars—while donations (through charitable organizations) go one way from donor to recipient, microfinance investing is a two-way street. Poor people benefit hugely, but also repay their loans, hence, growing the investor’s capital.
Now, where does MicroPlace fit into this whole equation? They are a brokerage company that has partnered with Calvert Foundation (predominantly for international projects), ACCION USA and ACCION Texas, three reputable microfinance institutions. When you invest with MicroPlace, they, in turn, send your money to one of their three partner institutions, which will parse out the dollars as credit, loans or other financial services to low- and moderate-income self-employed entrepreneurs around the world.
Entrepreneurs are bound legally to these financial institutions and begin repaying their loans, as stipulated by their contracts. These dollars are then channeled back to MicroPlace and return to investors as modest financial interest (around 2 percent of the overall investment).
MicroPlace’s Website (www.microplace.com) provides potential investors with a wealth of well-organized information. An interactive world map provides information on micro-credit options around the world, describing projects that are supported, success stories from each region, and expected interest yields. You can choose exactly which region and project you would like to support and invest online efficiently. The minimum, first-time investment is $100. It’s easy to become a socially responsible investor, using your dollars to end global poverty.
So that mountain of change that has accumulated in your “penny” jar may mean the difference between poverty and prosperity to someone on the other end of the globe, giving them their only chance to elevate their economic standing, eventually improving the well-being of their family and community.
Subashini Ganesan organizes, researches, writes and implements efforts to create social and environmental change. She is a part-time resident of Maui and can be reached at subashinig@gmail.com.