What is a direct giving charity?

A direct giving charity transfers support directly to recipients rather than routing it through local implementing or lending organizations. Models vary: some provide unconditional household cash, while Zidisha lets donors fund projects proposed by individual entrepreneurs.

How is Zidisha different from GiveDirectly?

GiveDirectly provides unconditional cash for recipients to use as they choose. Zidisha allows backers to directly fund entrepreneur-proposed projects. Zidisha funding recipients voluntarily pay the amounts they receive forward to others at the end of their projects.

Why does Zidisha ask entrepreneurs to pay it forward?

Paying forward turns a recipient into a participant in helping someone else. When an entrepreneur becomes financially able and chooses another project to fund, the original gift can continue to change lives instead of ending with one cash transfer.

Are Zidisha projects loans?

No. Zidisha backers make non-refundable contributions to an entrepreneur's project. The entrepreneur is asked to pay the amount forward if financially able, but this is voluntary and is not a legally enforceable debt.

Do Zidisha entrepreneurs pay interest?

No. Zidisha projects carry 0% interest. A 5% service fee is reserved from the amount raised to cover transfer costs.

Why would recipients voluntarily pay funds forward to others?

Most of our members wish to give back to the community and help others as they were helped. In addition, entrepreneurs who pay forward may become eligible for repeat fundraing opportunities, so they can continue to grow their businesses in partnership with the Zidisha community.

Direct giving as effective altruism

Direct giving, multiplied

Zidisha lets you give directly to entrepreneurs in Africa and other developing regions, with a twist. You choose a person and project to fund. When the project is completed, your recipient pays the amount forward to fund someone new, multiplying the impact of your gift.

Meet an entrepreneur

A different kind of direct giving

Microfinance leverages greater impact through relending, but carries high interest costs and risks leaving recipients with debts they cannot afford. Unconditional cash transfers are cheaper and less risky, but lack the multiplier effect of lending programs.Zidisha's voluntary Pay It Forward model combines the advantages of both approaches. Recipients commit to contribute the amount they received to another entrepreneur at the conclusion of their project, if and when they are financially able.Opportunities for repeat fundraising incentivize responsible participation and help direct funds to entrepreneurs who invest effectively. There is no interest, debt, or coercive collection, and participants experience the satisfaction of becoming backers in their turn.

Zidisha and unconditional cash transfers compared

Both models provide unrestricted funds to low-income recipients in developing countries. Here's how they differ.

	Zidisha	Direct cash transfers
Who receives funding	Low-income, aspiring entrepreneurs with vetted business proposals	The most economically disadvantaged households in a community
What recipients receive	Funding for an entrepreneur-proposed project	Unconditional cash for household priorities
How donors participate	Choose an entrepreneur, contribute any amount, and follow their updates	Donate to a cash-transfer program
What happens afterward	Financially able recipients pay it forward to other entrepreneurs	No repayment or pay-forward expectation
Impact generated	Multiplies as funds are recycled	Remains with the original recipient

Why Zidisha uses pay it forward instead of a one-time cash gift

Recipients become fellow backers

Every project begins with a person who has chosen a practical goal for their work. If that project succeeds and they become financially able, they can then choose another entrepreneur to support.

The relationship changes from donor and recipient to a community in which today’s recipient can become tomorrow’s backer.

One gift continues to change lives

When a recipient becomes financially able to pay forward what they received, those funds become available for another entrepreneur.

Thanks to the recycling of funds, a single gift can enable many follow-on projects.

Recycling funds without the pressure of debt

The promise of recycling money attracts many donors to microfinance. The danger is that mandatory repayments, interest, collateral, or collection pressure can leave a struggling borrower worse off. Zidisha separates recycling from enforceable debt.

0% interest
No debt
No collection pressure

Frequently Asked Questions

What is a direct giving charity?: A direct giving charity transfers support directly to recipients rather than routing it through local implementing or lending organizations. Models vary: some provide unconditional household cash, while Zidisha lets donors fund projects proposed by individual entrepreneurs.
How is Zidisha different from GiveDirectly?: GiveDirectly provides unconditional cash for recipients to use as they choose. Zidisha allows backers to directly fund entrepreneur-proposed projects. Zidisha funding recipients voluntarily pay the amounts they receive forward to others at the end of their projects.
Why does Zidisha ask entrepreneurs to pay it forward?: Paying forward turns a recipient into a participant in helping someone else. When an entrepreneur becomes financially able and chooses another project to fund, the original gift can continue to change lives instead of ending with one cash transfer.
Are Zidisha projects loans?: No. Zidisha backers make non-refundable contributions to an entrepreneur's project. The entrepreneur is asked to pay the amount forward if financially able, but this is voluntary and is not a legally enforceable debt.
Do Zidisha entrepreneurs pay interest?: No. Zidisha projects carry 0% interest. A 5% service fee is reserved from the amount raised to cover transfer costs.
Why would recipients voluntarily pay funds forward to others?: Most of our members wish to give back to the community and help others as they were helped. In addition, entrepreneurs who pay forward may become eligible for repeat fundraing opportunities, so they can continue to grow their businesses in partnership with the Zidisha community.

Watch your impact grow.

Connect with remarkable people around the world and help them reach their goals.

Meet an entrepreneur

A different kind of direct giving

Zidisha's voluntary Pay It Forward model combines the advantages of both approaches. Recipients commit to contribute the amount they received to another entrepreneur at the conclusion of their project, if and when they are financially able.

Opportunities for repeat fundraising incentivize responsible participation and help direct funds to entrepreneurs who invest effectively. There is no interest, debt, or coercive collection, and participants experience the satisfaction of becoming backers in their turn.

Zidisha

Direct cash transfers

Who receives funding

Low-income, aspiring entrepreneurs with vetted business proposals

The most economically disadvantaged households in a community

What recipients receive

Funding for an entrepreneur-proposed project

Unconditional cash for household priorities

How donors participate

Choose an entrepreneur, contribute any amount, and follow their updates

Donate to a cash-transfer program

What happens afterward

Financially able recipients pay it forward to other entrepreneurs

No repayment or pay-forward expectation

Impact generated

Multiplies as funds are recycled

Remains with the original recipient