Wokai Adventures

Who knew Tzu Chi and Wokai have something in common?

Cary Lin

Cary is an intern with Wokai headquarters for summer 2008. She is an undergraduate majoring in Economics and East Asian Studies at Harvard University.

Anyone familiar with Taiwan philanthropy has undoubtedly heard of the Tzu Chi Foundation. With its founder nominted for the Nobel Peace Prize in 1993 and awarded the Order of Brilliant Star from the President of Taiwain in 2003, the organization has become a household name.

But who would have thought that Tzu Chi - that most recently mobilized $6 million dollars for disaster relief in Sichuan - was started with the change of 30 housewives?

In 1966, Master Cheng Yen started Tzu Chi by asking each of thirty followers (mostly house-wives) to set aside fifty cents of daily grocery money and deposit it into a small bamboo "savings bank". In the first month, they collected a mere $18 USD. By the end of the year, they has collected $435 USD allowing them to assist 15 families including 31 individuals.

Since that time, Tzu Chi has grown from its initial location in Taiwan's eastern coast to 31 countries. It has 12 offices in the United States alone! Tzu Chi has also expanded its focus. It has been involved in disaster relief in countries all over the world including South Africa, El Salvador, Guatamala, and many more. Some notable relief efforts include the South Asia Tsunami in 2005 and the World Trade Center Disaster in 2001.

To think, mere grocery money started Tzu Chi.

I couldn't help but thank about the possibilities for Wokai. Even though Tzu Chi does not provide loans, the organization does lend itself to Wokai in its empowerment of the individual. Tzu Chi and Wokai package many small conrtibutions into one large one to help others,

And this is not the only similarity. Both organizations utilize the web to increase their impact. The interent has enabled Tzu Chi to expand its reach from housewives in Taiwan to individuals across the whole world. Wokai wants to create this same global outreach. It wants to allow all those with a connection to China - regardless of where they are in the world - to have the means to have an immediate impact on an individual in China.

Wokai also sees eye to eye with Tzu Chi's motto: "serving with compassion" (printed on the top of their brochures.) Like Tzu Chi, Wokai aspires to serve others with compassion. Tzu Chi's way is direct relief, where Wokai's way is through self-empowerment.

Wokai and Tzu Chia also are not that different in their connections to spirituality. Tzu Chi is a Buddhist organization. While Wokai is not tied to any one religion, it does have a uniting faith - not necessarily of the religious kind, but of the belief kind: believing that real change can be affected through the actions of one person, through the means of one dollar, through the assistance of one united international network.

By harnessing the power of the individual, the internet and faith, I have no doubt that Wokai will like Tzu Chi be able to achieve its mission of alleviating poverty in China one loan at a time.

Thank you to the Stanford Asian American Graduate Association and Tzu Chi Foundation for organizaing the China Earthquake Relief Party on June 7, 2008.

Hand-Out or Hand-Up

Casey

In the double and triple bottom line Hand Up, not Hand Out World that we live in today, I would like to take a moment to stop and appreciate the Hand Out. One fascinating phenomena that we've discovered since starting Wokai is the Non-profit Discount. It seems that whether we're negotiating our office lease or bargaining the price of our outdoor Ma Jiang table from $8.00 down to $7.50, the fact that we're working to help the poor has a powerful effect on our bargaining ability.

My recent highlight was when I was heading back to the US. Along with my business suit, Reef sandals, and beach skirts, I lugged 3000 Wokai brochures, 6000 Wokai business cards, 60 Wokai t-shirts, and 3 seven foot Wokai banners. All in all, my suitcases weighed about 200 lbs. When I arrived at the ticket counter, the atendant weighed my bags and informed me that I exceeded the overweight bagage limit's limit. The fee for overweight bagage would be $25 per bag and since I exceeded that limit's limit, I would owe $200 per bag...totaling about $400 in shipping for our Wokai parfenelia.

I scratched my head and thought..."there's gotta be a way around this...". So I brought out the brochures and showed the pictures of the people in rural China that these overweight brochures, name cards, banners, and t-shirts would be supporting. He finally agreed to help, and came up with a plan where I would remove half of the brochures from one bag to a new box and only pay to overweight limits and an additional fee for carying a second bag. This would get the fees down to a little over $140. I went to the cashier to pay the fee and my credit card didn't go through...meaning that even with the new scheme, there was no way the brochures were getting through. (Note that by this point my arms and legs are bruised and bloody from moving around 200 pounds of brochures from bag to box to cart again.) I had given up on my cause and was prepared to sacrifice Wokai's brochures to the Beijing International Airport.

I returned to the attendant and my bags were gone. He had already shipped them onto the plane, assuming that my payment would go through. When I told him that my credit card transaction couldn't go through, he replied that he'd already stuck his neck out on the line already and there was no way that he was going to give me my boarding pass unless I gave him a reciept for the $140 overweight/excess bagage fee. All of a sudden, my plan to sacrifice the Wokai gear to PEK had turned into my trip back home on the beach with my family being sacrificed in the name of the Wokai name cards. :-(

With the system no registering my credit card, there was no way that I was going to be able to pay the $400 fee. I went to the manager and he finally let me go, paying the $25 in cash that I had in my pocket. I boarded the plane and am back in San Francisco with my Wokai gear and vacationing self all intact.

Here are a list of some of the top Non-profit Discounts we've received over the past two months:

- Wokai Office Rent : 10% Discount.

- Casey's Treo: 12.5% Discount.

- Truck from 2nd Hand Furniture Market back to Wokai Office: 50% Discount.

- Wokai Ma Jiang Table: 6.25% Discount.

- Fruit Out of the Back of the Local Produce Vendor's Van: 15% Discount.

- Air China Wokai Gear Shipping: 90% Discount.

Does Wokai need Chapters?

Courtney

Does an online organization need on the ground presence to be sustainable?

According to Matt from Kiva, it does not. A website should be able to last online without PR, marketing, or an on-the-ground presence. It should be so appealing, so dynamic, and so addicting that users will naturally want to go back, get involved, and refer friend --- without having to see a billboard like the one below to remind them. 

So how does one create a website that can exist, grow, and floursh on the web without the help of marketing and completely reliant on the web's own networks and communities?

Lets take a look at the sites that are pillars of the online community to kick off the discussion.

Consider Google, Skype, Youtube, Ebay, and Facebook? What do those sites provide? Why are they pillars? Why are they so appealing?

They all relate to human nature. According to philosopher Hobbes, all of man's voluntary acts are for his own self presevation. In caveman times that self preservation translated into shelter and food. In America today, that self preservation takes on a different form. Self preservation translates into saving time and saving money. More time and more money allows more choices and more freedoms. Think about the extreme of this exemplified in Hollywood stars like Oprah and Angelina & tech entrepreneurs like Steve Jobs and Pierre Omidyar. All of these people have time to do what they want and the economic backing to make it happen. Pierre can start his own foundation - Omidyar Network to fund cool social ventures and Angelina can make action movies while serving as ambassador for the UN.

Revisiting our pillars. Google essentially is a time-saver. It helps you find what you need in the least amount of time. Youtube and Facebook are as well. Youtube allows you to watch, send and post video more efficiently then ever before. Facebook allows you to network in a way that no black book could ever beat. Ebay and Skype? They are money savers. On Ebay, you can buy a Ipod Nano for half the price you would pay at an Apple store. And on Skype, you call China for a dime when it costs more $1.20 per minute by cell. 

But even appealing to these basic needs, these organizations still need on-the-ground operations with marketing and business development teams. Google - the mega monkey of them all - has well over 60 offices in 20 countries worldwide (according to their most recent public filing.)

So how can Kiva exist on internet land with only internet marketing and networking?

I don't think it can. And neither can Wokai.

Wokai is a website dedicated to alleviating poverty in China. With its China focus, it  appeals to specific group of people - individuals that have a connection to China (whether that be ethnically, socially, or culturally). These people are spread out across various groups, but they are unique and niche. Without Chapters, we would have no way of reaching them and letting them know about Wokai.

Or would we? According to Matt, maybe we are underestimating the power of the internet? Maybe the internet could bring us all the users we need. He believes a website should rely on the developing land (the web) just as much as it does (if not more so) the developed land ( brick-and-mortar). 

As much as I love the idea, my gut tells me the special sauce for Wokai is a combination of the two - working both web world and brick-and-mortar world to spread the Wokai message. But hats off to Matt if he can figure out a web-only special sauce for Kiva. Thats a huge undertaking that even Google has yet to conquer!

Out of Office Autoreplies

Casey

In 24 hours I will officially be on vacation. This will be my first real vacation since we started Wokai almost a year and a half ago. I took this opportunity to create my first Out of Office Autoreply. It says:

"Thank you for writing.  I am on vacation until Saturday July 12.  If you need immediate assistance please contact Courtney McColgan at courtney.mccolgan@wokai.org."

Out of Office Autoreplies seem to be the norm, but this is a pretty exciting step for me. Although I'm not yet officially on vacation, I posted the reply today to test out what might happen. So far, the only findings I've seen is that Courtney has emailed me at least ten times for random Wokai stuff and presumibly has received a reply saying:

"Thank you for writing.  I am on vacation until Saturday July 12.  If you need immediate assistance please contact Courtney McColgan at courtney.mccolgan@wokai.org."

Although I'm assuming she's received the repsonse, it hasn't decreased the number of emails that I have received from her over the course of the day.

On average, I receive about 100 emails a day and I'm wondering whether when people start receiving my Out of Office message this number will decrease or I'll simply have 900 unread emails in my email inbox.

I figure there are probably 3 scenarios:

I. People take the autoreply's advice and begin emailing Courtney instead of me when they need help or feedback on something Wokai related. (This is my preferred option).

II. I end up with 900 unread emails in my inbox to respond to once my beach paradise vacation is over.

III. The number of emails decreases as people find other resources to answer their questions or wait until after the 12th to contact me.

Kai-Fu Lee, Head of Google China, touched on this idea in one of his speeches. He spoke about a friend of his who rarely emailed and then discovered the BlackBerry. His friend got addicted to his Black Berry and somehow the number of emails that he received kept increasing continually over time. It got to the point where he was a slave to his BB and couldn't sit for more than 5 minutes at a dinner table with his wife and children without recieving an urgent email that he had to immediately respond to. One day his friend tried an experiment, he threw away his Black Berry and told everyone that he would only reply if people physically came to his office with questions or called him over the phone. He discovered that everyone that had been emailing him before found answers on their own to their questions and discovered ways of solving the issues that arrose on their own. His life returned to its earlier balance and he was happier than ever...Food for thought.

Shout Out to Matt

Casey

Courtney and I just came back from dinner with Matt Flannery, Co-founder and CEO of Kiva. This was a big day for us because, on top of having a fascinating conversation and learning a lot from Matt's wealth of insights and experience in innovating the online P2P microfinance model, we found out that Matt reads our blog! After 15 months of work we hit the micro-big time! Since we started, we've alway been in awe of Matt and Kiva. The fact that Matt created this model coding at night in a local doughnut shop and has since turned it into a platform that raises over $3 million in loan capital a month is incredible. To learn more, check out Matt's Blog, Kiva Chronicles.

Go Wokai!

Wokai gets Oriented

Courtney

On June 26, 2008, Wokai Chapters in New York and San Francisco hosted a happy hour with Oriented - a global network of international professionals interested in Asian business and professionals . The event was held at Lava Lounge in San Francisco and at Moomia Lounge in New York.

The Oriented Happy Hour provided a great networking opportunity for Wokai as a Chapter as well as a great team-building event for Wokai Chapter Representatives.

Check out the video of the San Francisco Chapter event below. Thank you to Bay Area located Yummy Porky Productions for creating the video in less than 24 hours!

Is it wrong for Wokai to promote itself as "green"?

Amy Shi

Amy is intern with Wokai headquarters for summer 2008. She is an undergraduate majoring in Economics at Wellesley College.

As some of you may know, Wokai plans to highlight the fact that they promote green borrowers on their website. But without the environment as their core competency, is it okay that they wave the green flag when trying to attract users?

I found myself wondering this a few weeks ago when I attended the Silicon Valley Green Fair to test how Wokai is received amongst "environmentalists". (I am working on fundraising strategy for Wokai this summer. One component of this project is reaching out to potential users to determine their responsiveness to our organization.)  But when I got there, what I found was far from the environmentalists I expected.

Let me paint a picture. Outside, the parking lot was full of SUVs - not the multitude of hybrid cars I expected. Inside, the convention center was filled with not-so-environmentally-friendly companies like Clark Pest Control and AAA  putting on their green hats to highlight the most green parts of their business - not the GreenPeace and Pacific Environment NGOs that I expected to see. 

Seeing this somewhat "two-faced" presentation of self got me thinking: is it hypocritical or wrong to promote sustainability or green when the issue is not an organization's core focus?

Take Wokai. It concentrates on China, not the environment, but the organization does encourage contributors to fund green initiatives. Few would argue that this is a bad policy, as one loan has the potential to benefit two initiatives: poverty alleviation and the immediate environment. But is it right for Wokai to put on its green hat to reach out to environmentalists?

Lets reflect on me for a moment. I am like the AAA. I care about green issues, but often succumb to driving down the block for groceries instead of walking. My hemp sandal wearing friend who attended the conference with me, on the other hand, is like Greenpeace. She is all green all the time. But I don't believe my not-so-green actions rob me of the right to be concerned about the environment. In my eyes, both of us have just as much right to promote sustainability as the other.

In the future, household pests will continue to be extinguished, vacation packages will continue to be sold, and (hopefully) p2p microfinance websites will continue to flourish. It is much better that these trends take a green approach with organic pesticides, ecology education tours, and loans that highlight green borrowers, than not. Any policy that changes the environmental status quo - especially in China - is a good policy in my book.

Calling on Potential Wokai COOs

Casey

Wokai is looking for a COO... The position would be located in Beijing and the major areas that the COO would will on are: planning, management, operations, document publications (writing, supervising and editing), and event planning.

We would appreciate your help in finding the right person for the job. If you know anyone that you think might be a good fit or are a part of a network (say Princeton in Asia or SAIS) that might have individuals who would be interested, would you please refer them on to the job description below?

WOKAI OPERATIONS DIRECTOR

Wokai seeks a responsible, detail oriented, creative, energetic and highly professional individual who is committed to Wokai’s mission for the position of Operations Director. The Operations Director will manage all of Wokai’s Beijing Chinese and international staff and volunteers as well as lead Wokai’s global operations.

OPPORTUNITIES:
•    Learn about and have a positive impact on China microfinance.
•    Be a part of building a dynamic, young, international, web-based nonprofit.
•    Gain a host of new and valuable skills in a range of areas in a short amount of time.
•    Meet interesting people from around the world and across sectors.
•    Work with a fun team in a 200 year-old courtyard.

RESPONSIBILITIES:
Management
•    Recruit and train Wokai staff (typically 3-6 people) and volunteers (ranging between 2-8).
•    Motivate staff and volunteers.
•    Manage all Wokai fundraising, marketing, website, and public relations projects.
•    Create a welcoming, fun, and positive environment for the Wokai Beijing team.

Planning
•    Work with Wokai CEO on long and short term planning.
•    Find creative ways to execute plans.
•    Ensure that staff and organization is meeting planned goals and benchmarks.

Writing & Editing
•    Write and/or edit and finalize all Wokai PR materials, website content, grant proposals, informational documents, presentations, board reports, press releases, and Wokai produced documents.

Operations
•    Oversee everyday operations related to accounting, finance, and reporting.
•    Oversee the maintenance of the Wokai office and China operations.
•    Manage all website activity and immediately respond to all issues that arise.
•    Liaise with Wokai’s Director of US Operations and US Chapters (composed of over 60 Representatives in Seattle, San Francisco, and Beijing)

Event Planning & Outreach
•    Organize and lead Wokai’s monthly Drinks for a Better World networking event.
•    Meet with potential donors, corporate sponsors and supporters.

QUALIFICATIONS
•    Native English ability, with EXCELLENT English writing and editing skills.
•    1-2 years professional work experience.
•    Management and operations experience.
•    Rigorous attention to detail.
•    High tolerance for ambiguity and love of new challenges (someone who needs clear structure will not succeed in this position).
•    Proven time-management and planning skills.
•    Ability to quickly adapt and learn new skills.
•    Willingness to work long-hours and weekends when necessary.
•    Excellent inter-personal skills; positive presence and ability to inspire and motivate others.
•    Ability to come up with innovative solutions to problems and challenges.
•    Excellent creative writing skills.
•    Keen style and design sense.
•    Fluency in written and spoken Mandarin preferred.
•    Interest in finance, accounting, and/or IT would be beneficial.

COMPENSATION
•    8000RMB starting salary (with potential 25%-50% raise over time based off of performance), plus generous international health insurance package.

COMMITMENT
•    2-3 years. There will be an initial 2-month trial period.

START DATE
•    Some time in the next 6 weeks.

TO APPLY
•    Please send your resume, a writing sample, and fill out the attached application form:

Download wokai_application1.doc . Please return your responses to casey.wilson@wokai.org.

Tree Huggers & Techie Geeks

Casey

After almost three months of development, we finally officially signed our website development contract with Zhong Rui Pu Si. I guess this is what happens when you put together open source coding genius’ and an NGO trying to save the world…entertaining. But seriously, it is interesting to see how partnerships form and trusts evolves within Generation (web) 2.0.  Is the traditional idea of a contract no longer as appropriate or relevant?

When we were drafting the contract, and after our last experience having no real legal power to take action against our developer for producing a sub-par site, it became clear that, no matter what language we write into the contract, whether or not we ended up with a quality site that meets our requirements depends on the character and quality of our developers, not the contract that we sign with the red Chinese chop that seals the deal. However, the signing and cool chop ceremony was fun.

The Important of Measuring Risk

Casey

 I met the other day with Zac Hinton. Zac is starting up a credit risk consulting firm called JZ Consulting to be based in Hong Kong and Mainland China. The new international standard for Financial Institutions in evaluating risk is the Basel II, which measures client credit risk, market risk and operational risk to come up with an overall model for a financial institution’s risk level and calculate the reserve funds that it needs to balance this risk. Technology and IT systems are crucial for analyzing these factors and providing real-time risk measures.

While financial sector regulators in developed countries around the world already require financial institutions to use the Basel II, China’s Central Banking and Regulatory Commission (CBRC) recently implemented new policy that will require the Big 4 Banks to adopt the Basel II standards by 2009 and will conceivably  subsequently impose these requirements throughout the tiers of financial institutions (eventually reaching microfinance institutions…?).

It was interesting talking with the Zac about the potential opportunity that better credit risk measurement systems and techniques could offer to microfinance institutions. He had the logical idea that these tools would allow microfinance institutions to quickly gage each client’s risk and the total amount of risk that they are taking on at any given time with their portfolio of loans. By entering some basic data into a simple computer system MFIs could immediately see a client’s credit score and know how much reserve funds they have to hold to match the level of risk at which they’re operating. The right system could eliminate the need for lots of man hours and financial expertise.

This type of risk rating tool could be powerful for microfinance institutions, but it relies on the key assumptions that the information entered in the system is accurate and that accounting and information systems are in place for tracking and controlling funds. If an employee can falsify information that’s being entered into the system or an institution does not have the risk controls to prevent a loan officer from running away with the MFI’s with funds, risk rating systems are nothing more than cool computer systems. Unfortunately this is the case for the vast majority, if not all, microfinance institutions in China at this point.