Doing charity is the responsibility of every single individual belonging to the fortunate section of the society, but that charity does not necessarily have to be in the form of a donation. There are other better methods of using your money for a noble cause but in an unconventional way. Micro financing is the name of that new concept.
This is the procedure by which individuals pool in their money and give it out as a small loan to the more needy and unfortunate individual, intending to begin or expand a business of their own. This is done through a network of global micro financing institutions or organizations known as the MFIs. There are other non-profit organizations such as Joe Johnson Mercy Foundation who help individuals live a better life and come out of the shackles of poverty. They have been funding innumerable people across the globe in more than fifty countries and over six continents.
However, unlike other organizations, this particular organization makes funds available through a business in commercial real estate. They help the prospective buyer find appropriate underutilized asset and sell them quickly so that the buyer can get cash and remaining cash benefit from the equity of the asset which they donate to the foundation. Thus, this foundation does not have to depend on donations for providing the funds for micro financing.
Micro financing is a one of the most efficient and appropriate methods of alleviating poverty from the society at large. It is by helping the small businessmen who are unable to find funding options from banks, that the misery of the poverty stricken can be reduced. To eradicate poverty form the society, it is not enough to sympathize with the poor and give them some donation once in a while. It is by helping them overcome the difficult conditions of that poverty can be struck at its roots.
The Joe Johnson Mercy Foundation has made a great difference in the lives of so many people in Asia, Africa, Latin America and other places by giving a ‘hand out’ as oppose to a ‘hand up’. They help these poverty stricken realize their inner worth and carry forward their business ideas, so that they are at least able to give themselves the scope to make it big in life.
Any regular MFI functions with the contributions of its individual members, who are the lenders. These lenders are everyday people who have the intention of contributing towards some noble cause; they look at the profiles of several business entrepreneurs and select the one they would like to fund. After the funds are collected by the organizations, they get in touch with their micro financing partners across the globe.
The funds are then distributed through these partners to the selected entrepreneur, along with some training and other advice that would potentially increase the chances of success of the selected individual. The entrepreneur repays the loan in small amounts after keeping sufficient amount for his future use. This is how they achieve their self sufficiency and financial independence.