How to Start Your Own Social Entrepreneur Group

Believe it or not, you can start lending to developing world entrepreneurs in minutes. And with a little more work, in a couple weeks you could have a student group raising thousands and fighting poverty. Here's a basic outline of how to begin:

First, find some friends and spread the word on campus about your idea. Facebook, postering, and campus email are great ways to build excitement. Set up a time for a first meeting and gauge the interest!

Second, use your meeting to come up with ways to raise money for loans. Here are some solid ways to start:

  • Table outside cafeterias and the student union with a little information on what the money will go to (this is also a good way to gain new members)
  • Go door to door in dorms collecting change and small bills.
  • Write a letter (we have some examples that we can share, just ask) to the trustees of your college, to professors, or to prominent alumni explaining your group's mission and soliciting donations

Third, start your bank account (you'll find simple instructions below).

Fourth, start an account with kiva.org. Once you transfer money into an account with Kiva, your group can begin lending to individuals in the developing world. Kiva allows you to choose specific entrepreneurs, and to fund their entire loan or just a portion. Soon, you will receive frequent updates on the status of your loan. Once it is repaid, the money you loaned will come right back to you, ready to go out again.

And that's it! You're fighting poverty.

Once you're up and running, you may be interested in starting a website. Websites increase exposure and help raise money. A simple blog could be sufficient, but more a robust could be even better.

If you have any other questions, don't hesitate to contact us: socentre@grinnell.edu. If you're going to start a group, we'd love to hear about it! We want to facilitate communication between groups like yours and ours, so everyone can share ideas and strategies and even work together down the line. We look forward to hearing from you!


Financial Creation of a Social Entrepreneur Group

  1. Apply for a business checking account. Make sure that it is a zero interest account, so there will be no interest accumulated. Also, make sure there are no fees attached so all funds raised can go towards loans. Local banks are usually the easiest to sign up with. An account with internet accessibility is a huge help.
  2. When you set up the account, the banker there should create an IRS Employee Identification Number (EIN) in the name of your group. If they don't, you can apply by yourself here: https://sa1.www4.irs.gov/sa_vign/newFormSS4.do. Go back to the bank with your EIN, and they should set up the account from there.
  3. You will have to put at least one member's name and social security number on the account to act as a representative for the group. This person can sign the checks to be deposited. You can add more representatives later.
  4. Unless your group files for non-profit status (a long and complicated process), your donations are not tax deducitable. However, you are not required by law to file for this status until your organization is bringing in over $5,000 annually.
  5. Once you have a bank account, set up a Pay Pal account on paypal.com. This is what Kiva.org uses for their funds transfer. It is completely free and all you need is a check to find out the routing number of the bank account.
  6. Once the bank account is verified by Pay Pal, (which takes about two days or so), you can start making loans!