GiveDirectly

Organisation

GiveDirectly is an international non-profit organization that delivers direct cash transfers to people living in extreme poverty. Founded in 2009 by development economists from Harvard and MIT, GiveDirectly follows an evidence-based approach: households in impoverished regions receive unconditional cash transfers that they can use according to their own priorities.

GiveDirectly operates primarily in countries like Kenya, Uganda, Rwanda, Malawi, and Liberia, working closely with local partners to ensure efficient and secure distribution of funds.

The Problem: Extreme Poverty

Around 700 million people worldwide live below the extreme poverty line of $2.15 per day (World Bank, 2023). Extreme poverty is often associated with:

• poor health
• malnutrition
• lack of access to education
• limited economic opportunities

Traditional aid programs are often expensive to implement and fall short of their goals. Direct cash transfers offer an evidence-based alternative that empowers recipients and has been shown to effectively reduce poverty.

Approach

GiveDirectly identifies households in extreme poverty using standardized surveys and satellite data. After verification, recipients receive a one-time or recurring payment via mobile money or bank transfer.

This approach is characterized by:

• minimal administrative costs
• direct use of funds by recipients
• high transparency
• continuous external evaluations

Transfers are intentionally unconditional, allowing recipients full autonomy over how to use the money.

Impact

Randomized controlled trials (RCTs) show that unconditional cash transfers:

• significantly increase spending on food, medicine, and education
• improve income and asset-building in the long term
• enhance mental health and life satisfaction

Approximately 90% of donated funds reach the recipients directly – an exceptionally high efficiency rate.

GiveWell rates GiveDirectly as one of the most cost-effective organizations fighting poverty.

Transparency

GiveDirectly regularly publishes:

• independent evaluations
• comprehensive monitoring reports
• detailed impact analyses

The organization adheres to high standards for evidence-based impact measurement and transparency.

Current Projects

GiveDirectly continues to run programs in several African countries.
It is also currently testing new projects focused on particularly vulnerable groups such as climate refugees and disaster survivors.