← The Happiness Lab with Dr. Laurie Santos

Giving Away Cash Makes You Happy... and Transforms Lives

Nov 27, 2023 27m 45s 12 insights
<p><strong>YOU </strong>can boost your happiness and transform the lives of people in one African village with a cash gift by going to <a href="givedirectly.org/happiness">givedirectly.org/happiness</a></p> <p>Giving money to others makes you happier than spending the same cash on yourself. That's been proved by science. But new research also shows that giving people in need cold hard cash is an amazing way to help them improve their lives. We explore why trusting people to help themselves is a cheaper and more effective way to solve poverty - and hear about Kibobo in Rwanda, where any money you donate will have a <em>huge</em> impact.   </p> <p>Read more about Kibobo at <a href="givedirectly.org/happiness">givedirectly.org/happiness</a>  </p> <p>Former British politician Rory Stewart used to manage billions of dollars in aid money - and like other international donors thought poor people needed to be told what to do with charitable gifts. He was shocked how effective no-strings-attached cash turned out to be, and now promotes "giving directly". He was also surprised how good giving away even small amounts of money made him feel.  </p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>
Actionable Insights

1. Prioritize Direct Cash Transfers

Adopt direct cash transfers as the most effective and respectful method to alleviate poverty and homelessness, as scientific evidence shows they consistently outperform traditional aid programs and empower recipients.

2. Support GiveDirectly’s Mission

Consider donating to GiveDirectly (givedirectly.org/happiness), an organization that provides unconditional cash transfers directly to people in extreme poverty, trusting them to spend it to improve their own lives.

3. Donate to Kobobo Village

Contribute to the GiveDirectly campaign for Kobobo, Rwanda (givedirectly.org/happiness), to help lift an entire village out of extreme poverty by providing direct cash transfers to nearly 100 households.

4. Maximize Charitable Impact

Prioritize giving to ‘super effective’ charities, which are orders of magnitude more impactful per dollar than typical charities, to maximize the good your donations can achieve.

5. Utilize GivingMultiplier.org

Use GivingMultiplier.org/HappinessLab to split your donations between a charity you already care about and a ‘super effective’ organization, allowing you to contribute to both causes efficiently.

6. Challenge Poverty Stereotypes

Dispel the misconception that people in poverty misuse cash transfers; data consistently shows they spend money on necessities like rent and food, often leading to a decrease in substance use.

7. Re-evaluate Aid Approaches

Critically assess traditional, paternalistic aid programs that dictate how people in poverty should spend money, as these approaches are often ineffective and counterproductive compared to direct cash transfers.

8. Advocate for Cash Transfer Policy

Advocate for governments to redirect existing, costly homelessness and welfare spending towards direct cash transfer programs, which have been shown to be more cost-effective and meaningfully reduce poverty.

9. Respect Recipient Dignity

Adopt a ‘recipients first’ mindset in charitable giving, trusting that individuals in poverty know their needs best and can make the most effective decisions for themselves when given direct financial resources.

10. Small Donations Make Big Impact

Donate any amount, even small sums like $3, $50, or $100, directly to people in extreme poverty, as these contributions have a significantly amplified impact compared to giving to traditional non-profits.

11. Experience Giving Happiness

Engage in direct giving to experience deep personal fulfillment and happiness, knowing you are making a simple, straightforward, and significant positive impact on others’ lives.

12. Give on Giving Tuesday

Participate in Giving Tuesday, the Tuesday after Thanksgiving, by committing to donate to good causes and helping people in need, following a season of consumption.