Giving Compass' Take:
- GiveDirectly is a cash transfer donation program that challenges the traditional model of giving - in-kind donations - to address poverty.
- What are the benefits of direct cash donations? How is this a sustainable giving model?
- Read about the problems that may occur with conditional cash transfer donations.
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GiveDirectly announced that it will give every adult in an impoverished village in Kenya an extra $22 each month for the next 12 years — with no strings attached. The money is wired to bank accounts linked to each villager's phone.
The payouts are part of a grand and unprecedented experiment that is motivated by an equally sweeping question: What if our entire approach to helping the world's poorest people is fundamentally flawed?
Today practically all aid is given as "in-kind" donations — whether that's food, an asset like a cow, job training or schoolbooks. And this means that, in effect, it's the providers of aid — governments, donor organizations, even private individuals donating to a charity — who decide what poor people need most. But what if you just gave poor people cash with no strings attached? Let them decide how best to use it?
GiveDirectly has actually been advocating for this kind of cash aid for the past decade. Founded by four grad students in economics who wanted to challenge traditional aid, the charity has already given $65 million to people across Kenya, Rwanda and Uganda, provided by a mix of Silicon Valley foundations and ordinary citizens who contribute through GiveDirectly's website. And GiveDirectly has shown through rigorous, independent study that people don't waste the money.
Read the full article about how to fix poverty by Nurith Aizenman on NPR.