GiveDirectly
Short description
GiveDirectly is a nonprofit that delivers unconditional cash transfers to households in extreme poverty in sub‑Saharan Africa; this page focuses on its Cash for Poverty Relief program. Recipients typically receive a one‑off transfer of about US$1,000 (nominal) via mobile money, with universal targeting within poor villages as the default. The program currently operates in Kenya, Malawi, Mozambique, Rwanda, and Uganda; GiveDirectly coordinates with authorities and mobile money providers and ensures quality through follow‑up calls and independent audits. Randomized trials show substantial increases in consumption and investment with no credible rise in spending on “temptation goods,” plus positive local spillovers to nearby non‑recipient households. Health benefits (e.g., reductions in under‑5 mortality) may occur but are a smaller share of total benefits than consumption and spillovers. Following its 2024/25 update, GiveWell estimates cost‑effectiveness to be roughly 3–4x higher than previously modeled and about 30–40% as cost‑effective as its marginal opportunity; transfers typically account for 70–85% of total program costs. Key uncertainties include the persistence of consumption gains, the magnitude of spillovers, and moral weighting of consumption gains versus lives saved; GiveWell incorporates these with discounts and sensitivity analyses.
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.
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Organization's Website
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GiveWell Analysis
View detailed impact research and cost-effectiveness analysis from GiveWell
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