If Giving Money Directly To Poor People Works Best, Then What Are Non-Profits Organizations to Do?

People in poverty lack money. It seems obvious that the best way to end their poverty is to give them money. Increasingly, studies support this obvious approach to reducing poverty. Yet the vast majority of poverty-reduction organizations and agencies offer goods and services, not cash. What is the impact on nonprofits of giving cash to poor people?

Why We Don't Give Cash To Poor People?

Individually and collectively, we avoid direct payments to those in poverty for several reasons:

• We believe that people will waste the money on frivolous purchases.
• We believe that people will use the money to pursue vices such as smoking, drinking, gambling or prostitution.
• Our tools don’t measure the impact of direct cash transfers.
•  Our donors want their money to pay for goods and services in which they believe, not direct cash transfers.

The truth is, these reasons are mainly opinions. If we’re truly interested in making an impact, we should be willing to question our existing methods and try new ones.

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