Of late, we have been generating quite a lot of buzz about our interns, field trips, fellows and other feats we've achieved. This time, we decided to get back to the basics and share our two bits about raising money for the poor, way it’s done and how Milaap is related to it. Read on…
Fundraising for the poor largely refers to providing monetary solutions to people from low-income groups residing in rural and economically backward areas. Institutions offering funding solutions often pool money from a diverse range of individuals and distribute the collected amount among the people in need.Fundraising companies arrange and extend required funds in exchange of minimal or no collateral. Finances raised are used for purposes as diverse as funding vocational training, constructing toilets, expanding small businesses or providing steady water supply.
How does it benefit the poor?1. Eliminates the need for loans - With almost no assets to pledge as collateral, poor people in most countries don’t qualify for bank loans. Add to this, the exorbitant amount of interest charged by local moneylenders – until the last decade rural borrowers in the Indian state of Odisha had to pay upto Rs 120 as interest on a loan of Rs 100, and that’s 120%!Hence, with small amounts of funds being collected from individuals or  groups, fundraising companies often comes as a boon to them; they get to go to school, light a solar lamp, build a ladies’ toilet…The list goes on.
2. Builds awareness - Lack of education, employment and empowerment often keep the poverty-stricken population in dark – it’s not rare that they don’t know the importance of educating girls, need for hygiene & sanitation and why babies should be vaccinated. Fund providers, while arranging the funds for these functions, also act as an eye-opener for them.
3. They get to live better - And that’s the whole purpose of fundraising for a cause or institutions offering loan solutions. With small amounts of money raised from various lenders, a lot gets changed. With the help of individuals, large organizations, university interns and volunteers, fundraising initiatives go a long way in lighting up lives of the poor.
Fundraising for the poor largely refers to providing monetary solutions to people from low-income groups residing in rural and economically backward areas. Institutions offering funding solutions often pool money from a diverse range of individuals and distribute the collected amount among the people in need.Fundraising companies arrange and extend required funds in exchange of minimal or no collateral. Finances raised are used for purposes as diverse as funding vocational training, constructing toilets, expanding small businesses or providing steady water supply.How does it benefit the poor?1. Eliminates the need for loans - With almost no assets to pledge as collateral, poor people in most countries don’t qualify for bank loans. Add to this, the exorbitant amount of interest charged by local moneylenders – until the last decade rural borrowers in the Indian state of Odisha had to pay upto Rs 120 as interest on a loan of Rs 100, and that’s 120%!Hence, with small amounts of funds being collected from individuals or  groups, fundraising companies often comes as a boon to them; they get to go to school, light a solar lamp, build a ladies’ toilet…The list goes on.2. Builds awareness - Lack of education, employment and empowerment often keep the poverty-stricken population in dark – it’s not rare that they don’t know the importance of educating girls, need for hygiene & sanitation and why babies should be vaccinated. Fund providers, while arranging the funds for these functions, also act as an eye-opener for them.3. They get to live better - And that’s the whole purpose of fundraising for a cause or institutions offering loan solutions. With small amounts of money raised from various lenders, a lot gets changed. With the help of individuals, large organizations, university interns and volunteers, fundraising initiatives go a long way in lighting up lives of the poor.
