The new new thing in philanthropy? Cash.
When writing about foundations and nonprofits, I try to keep something in mind: Surprisingly few social programs are effective. When subjected to rigorous evaluation, most fail to produce "meaningful progress in education, poverty reduction, crime prevention and other areas," as Arnold Ventures puts it. This is one reason why my favorite charity remains GiveDirectly, which sends money to those living in extreme poverty, mostly in Africa.
Cash, at the very least, makes people a little less poor.
Few foundations, though, have funded direct cash transfers--until now. So I was heartened to learn last week that some big, influential funders are supporting programs to give away money, with no strings attached, to Americans suffering from the economic impacts of the COVID-19 pandemic.
I wrote about this for Medium. Here's how my story begins:
The well-educated folk who lead America’s big foundations have over the years devised no end of theories about how to do what they do. Strategic philanthropy. Collective impact. Venture philanthropy. Big bets. Participatory grantmaking. Trust-based philanthropy.
Now, in response to the economic devastation caused by COVID-19, they are trying something completely different: Giving money, with no strings attached, to those who need it.
Foundations that are supporting direct cash transfers include Blue Meridian Partners (a funding collaborative) and the Robert Wood Johnson Foundation, as well as the foundations of Charles Koch, Pierre Omidyar, Steve Ballmer and Sergey Brin.
You can read the rest of my story here.
My charitable donations in 2019
My wife Karen Schneider and I gave away about nine percent of our pretax income in 2019. Like most people, I delayed my charitable giving until the end of the year--a bad practice, because nonprofits have needs all year--so I’m just now writing my annual blogpost about where the money went. The Life You Can Save, a nonprofit inspired by the moral philosopher Peter Singer, has a calculator that recommends the percentage of your income that you should give, as well as an excellent list of top charities.*
My biggest gift went to GiveDirectly, which makes unconditional cash grants to people living in extreme poverty. Give Directly is my favorite charity. In 2018, I traveled to Rwanda to see how the organization operates and talk to recipients of its grants. I could say a lot about GiveDirectly but my biggest takeaway from the trip was this: The money that well-to-do Americans spend on a few restaurant meals, or for a single night in a nice hotel, is enough to make a meaningful difference to the life of a poor person in Africa. If you care about inequality--and it seems that more and more people do--there’s no better charity than GiveDirectly.
Next on the list is GiveWell, a donation platform that identifies and analyzes effective charities in depth. If you want to do the most good you can for each dollar that you spend on charity, GiveWell is essential. Most of the money it raises flows to charity that improve global health, in particular by helping poor people protect themselves against malaria.