Service Spotlight: An interview with philanthropy chair Rachel Simmons

Q: What is Kiva?

A: Kiva is an online, international nonprofit based in California. It’s mission is to connect people by lending money in efforts to reduce poverty. This is accomplished by providing loans to the underprivileged who are typically excluded by financial service providers. By lending as little as $25, anyone can help a borrower start a business, go to school or even to access to clean energy.

Q: This is our chapter's first year having an official philanthropy. Why is important that we dedicate ourselves to one set cause and why Kiva?

A: By supporting one specific organization, we are able to develop a relationship and make a larger impact. A portion of the money our fraternity raises will be donated to Kiva itself in order to financially support the organization, while the rest will go towards a borrower of our choice. 100% of the money lent to a borrower on Kiva goes towards funding the loan. Through supporting individual borrowers, the brotherhood is able to directly witness where their money is being used. This money will then later be repaid and recycled back into the process. The goal is to continue growing the fund over the years so we have the ability to support more borrowers around the world.

Alpha Kappa Psi is a professional business fraternity, so we wanted to support an organization that integrates business with a cause the brotherhood is passionate about. Kiva is a micro financing institution, meaning it provides financial services to those that wouldn’t normally have access to any. As opposed to giving food or clothes, Kiva helps these people create some sustainability in their life through the loans. If a borrower uses a loan to create a business such as selling jewelry, this creates a stable income. By having a stable income, this borrower will be able to provide for him or herself. It is the difference between giving a hand up as opposed to providing a hand out.

Q: How will the chapter go about picking a borrower to fund and what will this relationship look like?

A: The chapter will collectively decide on which borrower(s) will receive funding for a loan. Kiva divides the borrowers into various categories based on what the loan will be used for: location, gender, etc. The brotherhood will first vote on a category to support and then further narrow down the choices to a specific borrower. Depending on how much money the chapter ultimately raises will determine how many borrowers can receive funding. It can take up to three years to be fully repaid on the loan so the chapter will stay updated on each other borrowers with outstanding loans.


Q: What do you anticipate in the future for Beta Upsilon's relationship with Kiva?

A: This is the first semester that the Beta Upsilon chapter supported a philanthropy, and this relationship will continue to develop over the next few years. Since this money will continuously be recycled back into Kiva, the goal is to grow the fund and support more borrowers around the world. I anticipate the fund should double each year and that is why it was important to support one specific organization. It will be imperative for the brotherhood to continue its education on global poverty and spread awareness on this issue. Half of the battle is convincing people why they should care. Teaching the brotherhood how poverty affects people’s lives will have a more grounding impact than solely financially supporting the organization. I anticipate for this to be a main focus over the next few years.

Visit www.kiva.org/ for more information.

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