Wokai is an organization that allows people to contribute directly to microfinance institutions in China which in turn lend the money to entrepreneurs in rural China.[1][2] It is a 501(c)(3) non-profit organization based in Oakland, with core operations in Beijing, supported by individual donors, corporate sponsorships, fundraising events and grants.[3]
 | |
| Founded | March 2007 |
|---|---|
| Founder | Casey Wilson Courtney McColgan |
| Focus | Economic development |
| Location | |
Area served | China |
| Method | Microcredit |
Key people | |
| Website | www.wokai.org |
History
Wokai was founded in March 2007 by Casey Wilson and Courtney McColgan after meeting while studying at Tsinghua University in Beijing.[4] As of November 2009, it has a staff of 8 and maintains 5 chapters of local volunteer representatives in New York, San Francisco, Seattle, Beijing and Hong Kong[5] and has raised $106,600 in loan capital from 660 contributors to distribute to 150 recipients.[6]
Purpose
Wokai allows accredited microfinance institutions in China, called "Field Partners", to post profiles of qualified local entrepreneurs on its website.[1] Lenders browse and choose an entrepreneur they wish to fund.[1] Wokai aggregates loan capital from individual lenders and transfers it to the appropriate Field Partners to disburse to the entrepreneur chosen by the lender.[3] The average loan is around $300 and is used by farmers to invest in simple business improvements such as adding additional livestock or buying new products for dry goods stores.[2] As the entrepreneurs repay their loans, the Field Partners remit funds back to Wokai and the lender is alerted of this repayment.[3][7] Once the loan is repaid, the Wokai lenders can re-loan it to another entrepreneur, up to a total of three loan cycles.[3]
Donors' funds are transferred to Wokai through Google Checkout.[8] Wokai's Field Partners charge between 15% and 20% interest rates.[8] Field Partners use the interest from borrower loans to cover staff salaries, transportation, and operating costs.[8]
References
- ^ a b c Tiny loans, big difference at Bay Area Web site
- ^ a b "Role-reversal: Americans provide loans to Chinese - World Blog - msnbc.com"
- ^ a b c d "About" on Wokai.org
- ^ China Calling : Facebook for China's Farmers
- ^ "Team" on Wokai.org
- ^ "Home" on Wokai.org
- ^ "Bay Area Microfinance Reaches Rural Chinese : AsianWeek"
- ^ a b c "Help Center" on Wokai.org