GiveDirectly

GiveDirectly

GiveDirectly is a nonprofit organization that provides direct cash transfers to people living in poverty. Founded in 2009, the organization aims to improve the efficiency and transparency of charitable giving by using technology to deliver cash directly to recipients in need. GiveDirectly operates primarily in countries in East Africa, including Kenya, Uganda, and Rwanda, and has expanded its operations to other regions in response to global crises.

History

GiveDirectly was founded by four graduate students from Harvard and MIT: Michael Faye, Rohit Wanchoo, Paul Niehaus, and Jeremy Shapiro. The founders were motivated by research suggesting that direct cash transfers could be a more effective way to alleviate poverty compared to traditional aid models. The organization began its operations in Kenya, where it used mobile money technology to transfer funds directly to recipients' mobile phones.

Mission and Approach

The mission of GiveDirectly is to "deliver a world-class cash transfer product that enables donors to send money directly to the extreme poor." The organization believes that cash transfers empower recipients to make their own decisions about how to improve their lives, whether by investing in education, health, or business opportunities.

GiveDirectly's approach involves identifying eligible recipients through a rigorous targeting process, often using data from national poverty surveys and satellite imagery. Once recipients are selected, they receive unconditional cash transfers, typically delivered in installments over a period of time. The organization uses mobile money platforms to ensure secure and efficient delivery of funds.

Impact and Research

Numerous studies have evaluated the impact of GiveDirectly's cash transfer programs. Research has shown that recipients often use the funds to improve their living conditions, invest in income-generating activities, and enhance their overall well-being. A randomized controlled trial conducted in Kenya found that cash transfers led to significant increases in household consumption, asset holdings, and psychological well-being.

GiveDirectly has also been involved in innovative research projects, such as the Universal Basic Income (UBI) experiment in Kenya, which aims to assess the long-term effects of providing a guaranteed income to individuals.

Criticism and Challenges

While GiveDirectly's model has been praised for its simplicity and effectiveness, it has also faced criticism. Some critics argue that cash transfers may not address the root causes of poverty, such as lack of infrastructure or education. Others express concerns about the potential for misuse of funds by recipients.

GiveDirectly addresses these concerns by emphasizing the importance of recipient autonomy and by conducting rigorous evaluations to ensure accountability and transparency.

Funding and Partnerships

GiveDirectly is funded by individual donors, philanthropic foundations, and institutional partners. The organization has received support from prominent figures in the tech industry, including Facebook co-founder Dustin Moskovitz and Google.org.

In addition to its direct cash transfer programs, GiveDirectly collaborates with governments and other organizations to explore the potential of cash transfers as a tool for poverty alleviation and economic development.

Also see

• Universal Basic Income
• Poverty Alleviation
• Mobile Money
• Nonprofit Organizations