Direct Giving
What Is Direct Giving?
Direct giving is a simple idea that is proving to be powerful and transformative.
A one-time cash transfer is given to a person who is living unhoused and can be spent according to individual needs. Growing evidence, including from our New Leaf project, demonstrates that money from cash transfers is well spent and that it can provide stability in a person’s life.
The direct giving model has been proven to empower recipients to find housing and purchase goods that improve their lives, while restoring dignity, confidence and a sense of well-being. Further, research has found that cash transfers do not increase spending on goods, such as alcohol, tobacco and drugs.
Building on this work, we lead the first program to provide cash transfers to people experiencing homelessness in the world. Our evidence shows that it made an impact, and that direct giving is an effective tool to quickly reintroduce stability into people’s lives.
The New Leaf project provided a one-time $7,500 direct transfer to qualified recipients to spend and/or save as they deem appropriate. It applied advances in behavioural sciences, cognitive psychology, and behavioral economics to direct cash transfers in a way that had not been done before.
“You never know what’s going to happen. Things can just change just like that. Sometimes you get sick, something drastic could happen, you never know. You’ve always got to be on your toes.”
Inspiration
The relentless struggle to make ends meet has serious effects on the brain. Rutger Bergman contends that poverty is not a lack of character – it’s a lack of cash.
Rutger Bregman shares a big idea... one that could fix our broken social security system and eradicate poverty.
Further Reading
New York Times, Let Them Eat Cake
The Economist, Cutting out the middle men: The most efficient way to spend money on the homeless might be to give it to them
Vice, It is stressful to be poor, and that stress can keep people in poverty
Behavioural Scientist, The Paradox of Helping: Endorsing for Others What We Oppose for Ourselves
Joseph Rowntree Foundation, Providing Personalized Support to Rough Sleepers
The New Leaf Project
A bold social research program, in which we provided direct cash transfers to individuals, to empower them to move beyond homelessness
The Research
With UBC, we launched a pilot project to rigorously evaluate the impact of direct cash transfers to recently homeless individuals
Impact
Direct cash recipients moved into stable housing faster and maintained a level of financial security and stability over 12 months
Believe in Someone
Make a meaningful impact for vulnerable people in your community. Be a part of our bold and proven movement.