Today I want to feature United Prosperity, a truly innovative organization that takes the concept of microfinance to the next level. Most microfinance institutions (MFIs) simply provide small loans to poor entrepreneurs who want to pull themselves out of poverty through their small businesses. However, this approach does not strengthen the local banking system or create domestic linkages that allow the entrepreneur to eventually borrow from local banks. Instead, the entrepreneur is often constantly borrowing from MFIs and can never move on to the next stage.

United Prosperity tackles this problem in a very unique way. Instead of directly providing loans to people, United Prosperity invites you to donate part of a “loan guarantee” which a small business owner will receive. The entrepreneur can then take the loan guarantee to a local bank, use it as collateral, and then obtain a larger loan from the bank. This empowers entrepreneurs to be able to borrow from local banks, and thus strengthens local institutional linkages. I think it’s a very powerful and innovative idea, and I can’t wait to see how far it goes.

United Prosperity is also great at social media. I first stumbled upon the organization after following it’s founder - Bhalchander Vishwanath - on Twitter. Bhalchander consistently posts the latest news and resources related to microfinance, social business, and development. He interacts with his followers, getting to know people on a one-on-one basis. As a result, he’s created a powerful community around his passion for microfinance, and has been able to successfully leverage this community to bring attention to his organization - United Prosperity. After I ran across the organization, I was taken by the innovative idea and I suggested that we work together. Now, students from a group I am part of - the Student Microfinance Development Initiative - are working with United Prosperity on research, marketing, and publicity. This is a prime example of how social media can be utilized to empower nonprofits and how connections can be leveraged to bring attention to your cause. Ultimately, a personal brand can do much to raise awareness of an associated nonprofit - building and maintaining a community isn’t easy, but it’s vital. The bottom line is that social media works - and United Prosperity has been doing a great job of carving out a clear online space for itself!

As you can see, United Prosperity has a unique idea and a fresh approach. The organization is in need of more loan guarantors. So head over to their website today and provide a loan!