Private & Public Fundraising
Learn about Kiva’s unique social underwriting and what we expect from our borrowers.
What’s the difference between Private & Public Fundraising?
Private Fundraising
It starts as soon as your loan is approved (unless you select a different start date).
It lasts up to 15 days.
Your loan campaign is only visible to people with whom you share your loan link.
Each loan acts as a character reference (as part of our social underwriting) and also goes towards the total amount you’re crowdfunding for this loan).
It’s focused on establishing your creditworthiness.
You are responsible for getting the word out and sharing the link with your network (and remind them that this is a loan, not a donation – they will be getting their money back!)!
Public Fundraising
Starts as soon as you finish the Private Fundraising Period.
Lasts up to 35 days.
Your loan campaign is visible to the entire Kiva lender community worldwide.
In this phase, your goal is to crowdfund the rest of your loan (building off of what you raised during Private Fundraising).
Being public on the Kiva site will help you get more lenders as well as introduce you to new potential customers!
Why have Private Fundraising?
We have found that the number of lenders invited by the borrower and endorsements a borrower receives to be an incredibly powerful predictor of a loan’s repayment rate.
Through this emphasis on character, Kiva U.S. hopes to help people who don’t meet the criteria set by traditional financial institutions. At Kiva U.S., what matters is whether you’re trusted by your community, and this trust will show in Private Fundraising .
It’s as simple as this: if your community and lenders trust you and believe in your business and entrepreneurial spirit, so will we.
Because here at Kiva, we believe that your creditworthiness is determined by the strength of your character and standing in your community.
Kiva-borrower-provided tips for success in Kiva Private Crowdfunding
Cornelius, CEO of SlimStrength ActiveWear and Helen, founder of Construction Cleaners, LLC; share their experiences in Kiva’s Private Crowdfunding along with tips for successfully advancing into Public Crowdfunding.
*Please note that the borrower refers to 10 Private Lenders; depending on various factors, including one’s loan size, the Private Lender # will vary between 5-40.
WHAT IS THE PRIVATE FUNDRAISING PHASE?
PRIVATE FUNDRAISING IS THE FINAL STEP OF THE REVIEW PROCESS.
While banks and most other financial institutions use a data-based system, examining credit score, cash flow, and collateral value, we conduct social underwriting – a more personal, character-based approach. The Private Fundraising Period (PFP) is integral to Kiva’s social underwriting process. Your loan is approved partly based on your character, and PFP is how we ask you to prove your character to us.
Kiva will give you a maximum of 15 days* to gather the support of 5-40 friends, family, and community members to kickstart your fundraising campaign. Once you reach your lender target (in terms of # of individuals, not loan value), you will have proven your creditworthiness with Kiva and will proceed to Public Fundraising!
* Please note that the total number of days of your PFP and the total number of lenders you need will vary based on the size of the loan you qualify for. Larger loans will typically require more lenders to endorse you during PFP.
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During the call, explain what Kiva is, provide details about your business, walk them through the lending process (emphasize that they WILL be repaid!), and ultimately encourage them to act and contribute to your campaign.
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Here are some templates we recommend. Think outside the box in terms of your network — invite not only your friends and family, but also your customers, neighbors, co-workers, and greater network of peers. Remember to emphasize that they can make a difference for you and your business with only a minimum contribution of $25, which they will get back.
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Help others understand what this loan is for and how it will help your business grow and develop!
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It’s also vital that you explain to your network that this is a loan, not a donation. Therefore, as you make your monthly repayments, your lenders will slowly be paid back and can either withdraw the amount to their PayPal account, or recycle the funds and lend to another borrower on Kiva!
To succeed during your Private Fundraising Period, we recommend these steps:
You have a maximum of 15 days to get enough lenders during the Private Fundraising Period. If you don’t receive enough, your loan will unfortunately expire. Over three quarters of loans are successful though, and it takes about 8 days on average. Lenders are welcome to donate $50, $100, or more if they want, but remember, it is not the amount of money you raise in this period that’s important, just the total number of people.
You are responsible for getting the necessary amount of people, so make sure you reach out to your network to secure their loan and support.
Still have questions about Private Fundraising? Click here
WHAT IS THE PRIVATE FUNDRAISING PHASE?
WHAT IS THE PUBLIC FUNDRAISING PHASE?
YOUR LOAN IS NOW LIVE ON KIVA.ORG!
As soon as you reach your required number of supporters in the Private Fundraising Period, your loan automatically transitions to Public Fundraising! Your loan profile appears publicly on Kiva’s website for all of our 1.7 million lenders to see. Now your community and the global Kiva community will have up to 35 days to fund the rest of your loan, with loans of $25 or more.
Once your loan is publicly fundraising, you will have 35 days to fully fund your goal – the loan amount you had originally qualified for. Though being visible to the Kiva lender network gives you a huge boost, borrowers who also continue to fundraise on their own fund faster and are much more likely to raise the full amount. For that reason, continue to create awareness about your business, lean on your network, ask your friends to spread the word about your business and share your loan link, and use social media as much as you can during this fundraising phase. If you put in the effort to rally your friends and family, you have a 93% chance of fully funding during this Public Phase!
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The Fundraising Calendar recommends daily steps you can take to leverage your network and tell new people about your business.
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High quality photos and stories are appealing to lenders. Find tried and true best practices on how to create an exceptional profile here.
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Your updates tab is the best way to thank your lenders and provide updates about your business. Lenders favor borrowers who are engaged throughout the fundraising process. Learn how to update your borrowers here!
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Think creatively about other groups, organizations, or networks that may not be in your immediate network. Even if you haven’t worked directly with them, you can always get your friends to spread the word to their networks, colleagues to share the news at church, etc. Maybe your neighborhood has a discussion forum or newsletter? Be entrepreneurial! We believe in you and your ability to get the support you need.
To succeed during your Public Fundraising Period, we recommend these steps:
Between your community and the local and global Kiva community, the success of your loan is determined by the wisdom of the crowds — so show the crowd you’re worth it.
If you feel self-conscious asking for a loan, check out these tried and true Private Fundraising tips and templates that you can use to succeed throughout the crowd-lending process.
Still have questions about Public Fundraising? Click here
Public Fundraising