Raising Funds Online: What MFIs Should Know

Online platforms are changing the way we engage with the world. Web sites like eBay and Facebook link people, ideas, products, and markets. So it is no surprise that online philanthropy is changing the nature of how and where people give. Social investing through online platforms like Kiva.org and MicroPlace.com has become wildly successful in raising funds for microentrepreneurs from individual online lenders and investors.

As the phenomenon of online social investing evolves, CGAP has released a focus note entitled Microfinance Managers Consider Online Funding: Is it Finance, Marketing or Something Else Entirely?. The paper highlights some important issues MFIs may want to keep in mind before borrowing online.

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