Wokai
 | |
| Founded | March 2007 |
|---|---|
| Founder | Casey Wilson Courtney McColgan |
| Focus | Economic development |
| Location | |
Area served | China |
| Method | Microcredit |
Key people | |
| Website | www.wokai.org |
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]
History
Wokai was founded in March 2007 by Casey Wilson and Courtney McColgan after they met studying at Tsinghua University in Beijing.[4] As of November 2010, Wokai has a leadership team of 5, a Board of Directors and an Investment Committee in addition to its 11 chapters of volunteer representatives in Beijing, Boston, Hong Kong, Los Angeles, Nanjing, New York, San Francisco, Seattle, Shanghai, Toronto and Washington, D.C. (with upcoming chapters in Atlanta, Brussels, Chicago, Dallas, Kunming, London, Singapore, Taipei and Vancouver)[5]. Wokai also maintains a fellowship program called "Wokai Fellows", which allows selected individuals to work directly with one of Wokai's field partners in rural China. Wokai has raised almost $380,000 in loan capital through over 6,800 contributions from 46 countries in order to distribute 504 loans.[6] As of November, 2010, Wokai is still the only online, P2P microfinance platform servicing rural China.
Activities
Wokai allows accredited microfinance institutions in China, called "Field Partners", to post profiles of qualified local entrepreneurs on its website.[1] Wokai currently has two Field Partners, the Association for Rural Development of Yilong County (ARDY), which is based in Sichuan, and Chifeng Zhaowuda Women's Sustainable Development Association (CZWSDA), in Chifeng, Innter Mongolia. 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]
See also
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