Web 3.0 - Web 2.0 and Philanthropy

Web 2.0 and Philanthropy

The spread of participatory information-sharing over the world, combined with recent improvements in lower cost internet access in developing countries, has opened up new possibilities for peer-to-peer charities, which allow individuals to contribute small amounts to charitable projects for other individuals. Websites such as Donors Choose and Global Giving now allow small-scale donors to direct funds to individual projects of their choice.

A popular twist on internet-based philanthropy is the use of peer-to-peer lending for charitable purposes. Kiva pioneered this concept in 2005, offering the first web-based service to publish individual loan profiles for funding. Kiva raises funds for local intermediary microfinance organizations which post stories and updates on behalf of the borrowers. Lenders can contribute as little as $25 to loans of their choice, and receive their money back as borrowers repay. Kiva falls short of being a pure peer-to-peer charity, in that loans are disbursed before being funded by lenders and borrowers do not communicate with lenders themselves. However, the recent spread of cheap internet access in developing countries has made genuine peer-to-peer connections increasingly feasible. In 2009 the US-based nonprofit Zidisha tapped into this trend to offer the first peer-to-peer microlending platform to link lenders and borrowers across international borders without local intermediaries. Inspired by interactive websites such as Facebook and eBay, Zidisha's microlending platform facilitates direct dialogue between lenders and borrowers and a performance rating system for borrowers. Web users worldwide can fund loans for as little as a dollar.