I am a big fan of this initiative and really like the combination of peer to peer lending for health. Changemakers is looking to support programs that not only are innovative and have impact but that are also sustainable. I am wondering if you can provide some additional information on your plans to scale Lend4health. Do you have any significant plans for financial sustainability? If you could elaborate on that point it would be great!
Also, where do you see the nudges coming in to play here? Where is the behavior change?
In the near-term, my plan is to become a 501(c)(3) non-profit so that I have access to more contest prizes, grants, and donations than I would otherwise. I anticipate that I will need some grants/donations to keep things afloat while the L4H infrastructure is built and the model is tested and refined (see separate comment on Scale). One potential "market" for these grants/donations, I believe, is the community of for-profit medical practitioners who are treating these children, as well as the private companies who support these efforts through sale of equipment, supplements, special foods, and other services. Their grants/donations to support L4H makes sense because, in turn, L4H is helping families utilize their products and services. It would be a win-win. As the initiative scales, a larger amount of funds will come through in the form of optional lender donations. I would copy the Kiva model, whereby a lender is given the option to make a small donation to help cover the administrative costs of running the non-profit. Kiva President Premal Shah has stated that 70% of the lenders do this. In the longer-term, I have a vision to create a for-profit/B corp type venture so that L4H's revenue model is congruent with its mission (H/T @PeterDeitz of Social Actions). I believe it is important to help the borrowers become lenders and that L4H can provide a unique opportunity for its borrowers to gain more than just a loan. Specifically, I envision a for-profit structure that could offer its users employment as freelancing/part-time employees, earning a fair wage, with flexible hours, and good health care coverage. A portion of the proceeds could be fed back into the non-profit as loans. This is a longer-term vision that I am still researching, but I have some ideas that I'm pursuing, and I am excited about the potential. [more in subsequent comment]
Chloe: I understand how Lend4Health might not fit the anticipated response to the "nudge" concept, but I believe that it does in two ways. First, I believe that L4H provides a nudge to the family seeking the loan. For example, we have had families who were interested in trying biomedical treatments for their children, but the $500 (or so) needed up-front to pay for the doctor visit was a turn-off, or at best a major cause of delay. With L4H, though, a family has no "excuse" not to seek treatment, or to delay it further (also realizing that early intervention is a key to success). As another example, we have had families who have been doing treatment for years, but there are treatments they have been unable to try (even though they are doctor-recommended) because of the cost. Again, L4H is an opportunity that nudges them in the direction of being able to proceed with those treatments, because by breaking a larger cost down into smaller chunks (and offering 0% interest), the treatment is much more manageable for them financially. Secondly, I believe that L4H provides a very strong nudge to the lenders. Many, many people are aware of the incidence of autism (1 in 150 kids) and are saddened by it but don't know how to help. Even close friends and relatives of these families want to help but don't know what specifically they can do. L4H nudges both these groups of people to reach out and help because (1) they know specifically what they can do to help and what their money will be used for (2) they have a strong chance of getting their money back, and (3) their loan can be leveraged (by repaying it) to help many other families in similar situations. In short, L4H nudges people out of apathy and into empathy, because it's easy, it's low-risk, it's personal, and they can see the impact of their actions directly.
Hi Chloe! Thanks for the q's! In regards to scale, I want to preface this by saying that I have learned the importance of keeping the L4H community at the core, and scaling with them and their needs in mind, as opposed to the needs and expectations of the NPTech community. Christine Egger of Social Actions told me when I first started, "If you build in response to demand, you will always be the appropriate size." As such, my plan for scaling hinges on getting some infrastructure solidified (more automated website, direct communications between families and lenders, appropriate tax structure and accounting tools, capable volunteers). Otherwise, growth would be L4H's downfall. Then, the plan is to increase awareness of L4H within the potential user community (outreach at upcoming conferences, engaging with autism-focused media outlets). Then, I plan to partner with an autism non-profit so that they can use the L4H platform independently, effectively taking me out of the "middleman" role (similar to how Kiva loans are posted and updated by the microfinance institutions in the field, not Kiva staff in San Francisco). The next step would be to survey, assess, and refine based on user feedback. I want to make sure the model is working effectively and that users feel good about their participation (both lenders and recipients) before it is replicated for another health cause. At this point, I expect another cause community (MS, cancer, diabetes, preemies, etc) will come forward and ask to have access to the L4H platform for its community's need. (And if not I am currently developing relationships that would facilitate this "pitch.") With an automated platform in place, a high level of visibility, a reputation for excellence, and a commitment to honesty and community building, I think L4H will (almost!) scale itself. :) Indeed, its growth to this point has been very organic and user-driven.
Another idea I am looking into for longer-term (hinging upon increased scale/user base) is to facilitate microloans for more than just families - but microloans for development of new products and services that could be used by the community. For example, I have spoken with people who would like to build schools for autistic children and create a new line of food products for the allergen-conscious community. These ventures would be for-profit, and they are seeking startup funds. I believe that L4H could be leveraged to collect larger microloans for these types of endeavors, and that an Islamic Finance model could be used so that L4H shares ownership of the entity, with the amount owned decreasing gradually until the loan is paid back. I am still researching this, but I believe there is an opportunity here for traditional microfinance (loans to entrepreneurs), health, and Islamic finance to intersect. I believe this model also could be used for a community-funded scientific research endeavor to create the "green vaccines" many in the autism community are asking for, and then using sales from these vaccines to sustain L4H financially. [Thinking big, yes, but I wanted to let you know that I do see some larger potential here that I haven't really told people before!] :)
With all the knowledge us parents have accumulated since we first began our journey with our children, we have discovered a wealth of information that has been banked and ready to "loan" out to others facing the same journey. We can provide tools and encouragement to the caretakers, work schools and classrooms, develop charter schools and food markets that specialize in the nutrition and diets of children within the spectrum. We need adult care facilities specifically for autistic adults. We need lobbyists working the halls of our state legislature for help with treatment. We can do this, we can do it as not for profit organizations and as business models to encourage the involvement of others interested in providing services for a fee. But most of us have been hurt financially by the cost of raising and rescuing our children and no typical lender would touch us with a ten-foot pole.
We need documentaries done on these startups and distributed into the population in order to educate the masses on our future and how to help.
Thank you for your hard work and vision. We all stand with you! All the best!
I think that this is such a great idea and would like to help out in my spare time if possible. I'm also an entrant to the competition, a budding social entrepreneur with an eye towards microfinance, and I live in NOVA (Arlington). In my case I'm trying to work with the idea of microphilantrhopy and default contributions to health savings accounts. I think if you're interested you can click on my user name to quickly get to my entries. Please contact me if I might be of help and good luck!
Best,
Wayne Smith
Engineer & Social Entrepreneur
waynejsmith-at-gmail-dot-com
Before I knew about lend4health I was in a position I'm sure many parents face. I had done as much as I could to help my 7 year old son who has Autism. I read and researched as much as possible. I had our pediatrician do what she could that was covered by our insurance. It was time for biomed. professional help an advice but I did not have the money to move forward nor did my sons insurance cover the costs. I learned about lend4health from a friend. I must admit I was skeptical because I had never tried or heard of anything like it before. It turned out to be one of the best decisions I have made. It was easy and helpful beyond words. The emotional stress of feeling stuck was lifted. I was able to move forward in obtaining more help and advice for my son. Thanks to lend4health and everyone that is a part of helping families through lend4health, I have been given a chance to care for my son now and not years from now when it might be to late. Because of lend4health, I was able to seek help from a DAN doctor in just a few weeks after applying for a loan. I was funded very quickly. They changed my life. I know my journey with Autism is far from over but lend4health put me so much closer to the finish line. I'm very thankful.
We used Lend4Health to help us see our DAN doctor sooner. If we hadn't been assisted by the generous supporters of this wonderful program, our son would have had to wait for treatment. Anyone in the autism community knows that time is of the essence, and we are trying to be as proactive as possible to help him make a full recovery. Tori has done an amazing thing here, reaching out to people she doesn't even know and following her natural instincts of philanthropy and compassion for others. We are so grateful that Lend4Health is available and we hope that more families are able to take advantage of its rewards. Our kids are so worth it.
Peace,
dory hubbard
(blessed mom to Carson)
As an active investor/donor in L4H - I have been very impressed with the organization and its founder (Tori).
I plan on providing new micro-loans through L4H to individuals in the near future.
Tori is helping to grow this new and exciting web-based micro-loan format that allows individual investor/donors to connect in a personal and targeted manner with well vetted individuals with fully documented family-based medical treatments and associated needs!
On May 11, 2009, the judges reviewed the entries for the Changemakers “Designing for Better Health” competition and would like to pass on the following feedback (listed below) for your entry. Thank you for applying and for your hard work in the field. We are excited to archive your entry to serve as a leading solution for the worldwide community of innovators who are seeking solutions that help people make better choices regarding their health and the health of others. We wish you continued luck with your innovative, sustainable, and socially impactful initiatives.
All the best, The Changemakers Team
“This is a great use of a concept deployed in the developing world to use it back home. However, on the web site it seems like it's more of a charity project than a micro-finance one. Can you explain more about the "investment" piece? Is there a way that people with certain ailments could solicit micro loans in return for payments out of their future earnings? That would fit the microfinance model better.”
“Are there any eventual plans to link to for-profit agencies – especially those related to health issues such as autism? For autism and many other chronic illness,there are often many expensive and unproven treatments that are marketed to vulnerable families who are easily taken advantage of. How do you propose to avoid the risk of such exploitation?”
“This idea connects people all over the world and helps to excite people to promote awareness and health. My only question is around trust and proven due diligence—because the money is given to individuals not to organizations, how does Lend4Health guarantee results and positive outcomes?"
- Changemakers “Designing for Better Health” Judges: Doutores da Alegria, The Robert Wood Johnson Foundation, Cornell Food and Brand Lab: Cornell University, Innovations in Health @ Massachusetts Institute of Technology, Department of Pediatrics: University of California San Francisco.
Comments
Hi Tori,
I am a big fan of this initiative and really like the combination of peer to peer lending for health. Changemakers is looking to support programs that not only are innovative and have impact but that are also sustainable. I am wondering if you can provide some additional information on your plans to scale Lend4health. Do you have any significant plans for financial sustainability? If you could elaborate on that point it would be great!
Also, where do you see the nudges coming in to play here? Where is the behavior change?
Chloe Feinberg
Ashoka
Full Economic Citizenship
In the near-term, my plan is to become a 501(c)(3) non-profit so that I have access to more contest prizes, grants, and donations than I would otherwise. I anticipate that I will need some grants/donations to keep things afloat while the L4H infrastructure is built and the model is tested and refined (see separate comment on Scale). One potential "market" for these grants/donations, I believe, is the community of for-profit medical practitioners who are treating these children, as well as the private companies who support these efforts through sale of equipment, supplements, special foods, and other services. Their grants/donations to support L4H makes sense because, in turn, L4H is helping families utilize their products and services. It would be a win-win. As the initiative scales, a larger amount of funds will come through in the form of optional lender donations. I would copy the Kiva model, whereby a lender is given the option to make a small donation to help cover the administrative costs of running the non-profit. Kiva President Premal Shah has stated that 70% of the lenders do this. In the longer-term, I have a vision to create a for-profit/B corp type venture so that L4H's revenue model is congruent with its mission (H/T @PeterDeitz of Social Actions). I believe it is important to help the borrowers become lenders and that L4H can provide a unique opportunity for its borrowers to gain more than just a loan. Specifically, I envision a for-profit structure that could offer its users employment as freelancing/part-time employees, earning a fair wage, with flexible hours, and good health care coverage. A portion of the proceeds could be fed back into the non-profit as loans. This is a longer-term vision that I am still researching, but I have some ideas that I'm pursuing, and I am excited about the potential. [more in subsequent comment]
Chloe: I understand how Lend4Health might not fit the anticipated response to the "nudge" concept, but I believe that it does in two ways. First, I believe that L4H provides a nudge to the family seeking the loan. For example, we have had families who were interested in trying biomedical treatments for their children, but the $500 (or so) needed up-front to pay for the doctor visit was a turn-off, or at best a major cause of delay. With L4H, though, a family has no "excuse" not to seek treatment, or to delay it further (also realizing that early intervention is a key to success). As another example, we have had families who have been doing treatment for years, but there are treatments they have been unable to try (even though they are doctor-recommended) because of the cost. Again, L4H is an opportunity that nudges them in the direction of being able to proceed with those treatments, because by breaking a larger cost down into smaller chunks (and offering 0% interest), the treatment is much more manageable for them financially. Secondly, I believe that L4H provides a very strong nudge to the lenders. Many, many people are aware of the incidence of autism (1 in 150 kids) and are saddened by it but don't know how to help. Even close friends and relatives of these families want to help but don't know what specifically they can do. L4H nudges both these groups of people to reach out and help because (1) they know specifically what they can do to help and what their money will be used for (2) they have a strong chance of getting their money back, and (3) their loan can be leveraged (by repaying it) to help many other families in similar situations. In short, L4H nudges people out of apathy and into empathy, because it's easy, it's low-risk, it's personal, and they can see the impact of their actions directly.
Hi Chloe! Thanks for the q's! In regards to scale, I want to preface this by saying that I have learned the importance of keeping the L4H community at the core, and scaling with them and their needs in mind, as opposed to the needs and expectations of the NPTech community. Christine Egger of Social Actions told me when I first started, "If you build in response to demand, you will always be the appropriate size." As such, my plan for scaling hinges on getting some infrastructure solidified (more automated website, direct communications between families and lenders, appropriate tax structure and accounting tools, capable volunteers). Otherwise, growth would be L4H's downfall. Then, the plan is to increase awareness of L4H within the potential user community (outreach at upcoming conferences, engaging with autism-focused media outlets). Then, I plan to partner with an autism non-profit so that they can use the L4H platform independently, effectively taking me out of the "middleman" role (similar to how Kiva loans are posted and updated by the microfinance institutions in the field, not Kiva staff in San Francisco). The next step would be to survey, assess, and refine based on user feedback. I want to make sure the model is working effectively and that users feel good about their participation (both lenders and recipients) before it is replicated for another health cause. At this point, I expect another cause community (MS, cancer, diabetes, preemies, etc) will come forward and ask to have access to the L4H platform for its community's need. (And if not I am currently developing relationships that would facilitate this "pitch.") With an automated platform in place, a high level of visibility, a reputation for excellence, and a commitment to honesty and community building, I think L4H will (almost!) scale itself. :) Indeed, its growth to this point has been very organic and user-driven.
Another idea I am looking into for longer-term (hinging upon increased scale/user base) is to facilitate microloans for more than just families - but microloans for development of new products and services that could be used by the community. For example, I have spoken with people who would like to build schools for autistic children and create a new line of food products for the allergen-conscious community. These ventures would be for-profit, and they are seeking startup funds. I believe that L4H could be leveraged to collect larger microloans for these types of endeavors, and that an Islamic Finance model could be used so that L4H shares ownership of the entity, with the amount owned decreasing gradually until the loan is paid back. I am still researching this, but I believe there is an opportunity here for traditional microfinance (loans to entrepreneurs), health, and Islamic finance to intersect. I believe this model also could be used for a community-funded scientific research endeavor to create the "green vaccines" many in the autism community are asking for, and then using sales from these vaccines to sustain L4H financially. [Thinking big, yes, but I wanted to let you know that I do see some larger potential here that I haven't really told people before!] :)
Tori
With all the knowledge us parents have accumulated since we first began our journey with our children, we have discovered a wealth of information that has been banked and ready to "loan" out to others facing the same journey. We can provide tools and encouragement to the caretakers, work schools and classrooms, develop charter schools and food markets that specialize in the nutrition and diets of children within the spectrum. We need adult care facilities specifically for autistic adults. We need lobbyists working the halls of our state legislature for help with treatment. We can do this, we can do it as not for profit organizations and as business models to encourage the involvement of others interested in providing services for a fee. But most of us have been hurt financially by the cost of raising and rescuing our children and no typical lender would touch us with a ten-foot pole.
We need documentaries done on these startups and distributed into the population in order to educate the masses on our future and how to help.
Thank you for your hard work and vision. We all stand with you! All the best!
Hello Tori,
I think that this is such a great idea and would like to help out in my spare time if possible. I'm also an entrant to the competition, a budding social entrepreneur with an eye towards microfinance, and I live in NOVA (Arlington). In my case I'm trying to work with the idea of microphilantrhopy and default contributions to health savings accounts. I think if you're interested you can click on my user name to quickly get to my entries. Please contact me if I might be of help and good luck!
Best,
Wayne Smith
Engineer & Social Entrepreneur
waynejsmith-at-gmail-dot-com
Before I knew about lend4health I was in a position I'm sure many parents face. I had done as much as I could to help my 7 year old son who has Autism. I read and researched as much as possible. I had our pediatrician do what she could that was covered by our insurance. It was time for biomed. professional help an advice but I did not have the money to move forward nor did my sons insurance cover the costs. I learned about lend4health from a friend. I must admit I was skeptical because I had never tried or heard of anything like it before. It turned out to be one of the best decisions I have made. It was easy and helpful beyond words. The emotional stress of feeling stuck was lifted. I was able to move forward in obtaining more help and advice for my son. Thanks to lend4health and everyone that is a part of helping families through lend4health, I have been given a chance to care for my son now and not years from now when it might be to late. Because of lend4health, I was able to seek help from a DAN doctor in just a few weeks after applying for a loan. I was funded very quickly. They changed my life. I know my journey with Autism is far from over but lend4health put me so much closer to the finish line. I'm very thankful.
We used Lend4Health to help us see our DAN doctor sooner. If we hadn't been assisted by the generous supporters of this wonderful program, our son would have had to wait for treatment. Anyone in the autism community knows that time is of the essence, and we are trying to be as proactive as possible to help him make a full recovery. Tori has done an amazing thing here, reaching out to people she doesn't even know and following her natural instincts of philanthropy and compassion for others. We are so grateful that Lend4Health is available and we hope that more families are able to take advantage of its rewards. Our kids are so worth it.
Peace,
dory hubbard
(blessed mom to Carson)
As an active investor/donor in L4H - I have been very impressed with the organization and its founder (Tori).
I plan on providing new micro-loans through L4H to individuals in the near future.
Tori is helping to grow this new and exciting web-based micro-loan format that allows individual investor/donors to connect in a personal and targeted manner with well vetted individuals with fully documented family-based medical treatments and associated needs!
On May 11, 2009, the judges reviewed the entries for the Changemakers “Designing for Better Health” competition and would like to pass on the following feedback (listed below) for your entry. Thank you for applying and for your hard work in the field. We are excited to archive your entry to serve as a leading solution for the worldwide community of innovators who are seeking solutions that help people make better choices regarding their health and the health of others. We wish you continued luck with your innovative, sustainable, and socially impactful initiatives.
All the best, The Changemakers Team
“This is a great use of a concept deployed in the developing world to use it back home. However, on the web site it seems like it's more of a charity project than a micro-finance one. Can you explain more about the "investment" piece? Is there a way that people with certain ailments could solicit micro loans in return for payments out of their future earnings? That would fit the microfinance model better.”
“Are there any eventual plans to link to for-profit agencies – especially those related to health issues such as autism? For autism and many other chronic illness,there are often many expensive and unproven treatments that are marketed to vulnerable families who are easily taken advantage of. How do you propose to avoid the risk of such exploitation?”
“This idea connects people all over the world and helps to excite people to promote awareness and health. My only question is around trust and proven due diligence—because the money is given to individuals not to organizations, how does Lend4Health guarantee results and positive outcomes?"
- Changemakers “Designing for Better Health” Judges: Doutores da Alegria, The Robert Wood Johnson Foundation, Cornell Food and Brand Lab: Cornell University, Innovations in Health @ Massachusetts Institute of Technology, Department of Pediatrics: University of California San Francisco.
Post new comment