November 27, 2008 | Read Time: 2 minutes
When FINCA International sets up a village bank in a developing country, neighbors come together to borrow money to start and expand small businesses. Because very few residents have collateral, the borrowers guarantee one another’s loans — making the success of the whole village as important as the success of any single borrower.
The Washington development organization has started a new fund-raising program that draws on that same spirit of teamwork — and it’s harnessing the Internet to help drive the effort.
In the Friends Asking Friends for FINCA program, groups of people get together to raise $5,000, the amount it costs to start a new village bank.
Each group sets up its own Web site to accept online donations, track fund-raising progress, and allow members to communicate with one another.
“We understand the power of groups,” says Diane B. Jones, public-relations manager for FINCA. “We wanted to be able to take that dynamic that we have experienced over the years and give that to donors.”
The Red Door Community, a close-knit group in Salem, Ore., that gathers several times a week for yoga, coffee, and conversation, was one of the first organizations to take part in the effort.
The group has a long tradition of fund raising, largely with the “buck a week” that members place in a ceramic jar shaped like a monk. Red Door has used the money to make gifts to local charities, help students buy art supplies, and pay for members to attend meditation retreats.
The campaign to finance a village bank in Haiti — one of the Red Door Community’s first forays into international giving — grew out of the group’s discussions about social-justice issues and members’ growing awareness of the needs outside their own city, says Tim Buckley, a freelance writer and a member of the group.
“The money that we can pool together here can have a big impact in another country,” he says.
Through a combination of events — including a Pancakes and Poetry breakfast and a group yard sale — and contributions from individuals, the group has raised more than $8,400, surpassing its initial goal of financing one bank. Red Door hopes to reach the $10,000 mark by the end of the year.
To get there: Go to http://villagebankingfriends.com.
