GiveDirectly: Providing New Hope to Poor Families in Uganda and Kenya

GiveDirectly is a not-for-profit organization that funnels charitable contributions to families in Uganda and Kenya who are in extreme impoverished conditions. The donations are transferred unconditionally; without strings attached. GiveDirectly’s concept is contrary to popular opinion that the poor need close guidance for spending. In GiveDirectly’s experience, its recipients seldom go hungry and financial investments yield near-double returns.

The American Institute of Philanthropy has cited GiveDirectly as one of the most efficient charitable organizations. GiveDirectly funnels the funds using mobile phone and keeps the funds from passing through greedy middlemen. In 2013 for instance, GiveDirectly has distributed over $6 million people to close to 30,000 individuals. GiveDirectly ensures that only families living under thatched roofs (meaning the neediest) pass the screening process. Over a period of nine months, grants that average $1,000 are sent to the recipient via SMS.

GiveDirectly was founded by students of advanced economic development in Harvard and MIT. The idea was inspired by the explosion of mobile banking. GiveDirectly started with Kenya and has included Uganda beginning November 2013.