Giving Cash Directly to People in Need Is a Growing Trend, as Evidence Shows It Works [philanthropy.com]

By Kristen Griffith, Photo: GiveDirectly, The Chronicle of Philanthropy, May 16, 2022

Charitable efforts that give cash directly to people in need so they can do whatever they want with the money are sweeping across the United States, fueled by infusions of donations from foundations and individuals and growing evidence that the approach is more effective than traditional social-service programs.

Nonprofits that give people cash instead of offering them services was “one of the most significant changes in giving norms during the pandemic,” according to Benjamin Soskis, a researcher at the Urban Institute who has studied the trend.

One nonprofit, Mayors for a Guaranteed Income, started by former Stockton, Calif., mayor Michael Tubbs, has helped leaders in more than 30 cities start direct-cash programs by providing $17 million total. Bloomberg Philanthropies, the W.K. Kellogg Foundation, the Wells Fargo Foundation, and others helped fund the effort, which is based on the success of work Tubbs did in his city.

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