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The Secret To Giving Wisely

The Secret To Giving Wisely

It feels great to see hope light up in the eyes of a beggar in the street as you stop to look at them when others pass them by without a glance. Their faces widen in a smile as you reach into your pocket and take out your wallet. “Thank you so much” is such a heartwarming phrase to hear from them as you pull out five bucks and put the money in the hat in front of them. You walk away with your heart beaming as you imagine them getting a nice warm meal at McDonalds due to your generosity.

Yet you can multiply that positive experience manifold! Imagine that when you give five dollars, you don’t give just to one person, but to seven people. When you reach into your pocket, you see seven smiles. When you put the money in the hat, you hear seven people say “Thank you so much.”

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You can get that benefit through giving directly to people in the developing world. We don’t see those seven people in front of us and thus we don’t pay attention to the impact we can have on them, a thinking error called attentional bias. Yet if we know about this thinking error, we can solve what is known as the “drowning child problem” in charitable giving, namely not intuitively valuing the children who are drowning out of our sight. If we keep in our minds that there are poor people in the developing world, just like the poor person we see on the street in front of us, we can remember that our generosity can make a very high impact, much more impact per dollar than in the US, in developing countries through our direct giving.

GiveDirectly is a nonprofit that enables you to give directly to poor people in East Africa. It provides direct cash transfers to poor people who live on an average of $.65 per day. You certainly can’t buy a McDonald’s meal for that, but $.65 goes far in East Africa.

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GiveDirectly locates poor people who can benefit most from cash transfers, enrolls them in its program, and then provides each household with about a thousand dollars to spend as it wishes. The large size of this cash transfer results in a much bigger impact than a small donation. Moreover, since the cash transfer is unconditional, the poor person can have true dignity and spend it on whatever most benefits them.

Helida, for example, used the cash transfer she got to build a new house. You wouldn’t intuitively think that was most useful thing for her to do, would you? But this is what she needed most. She was happy that as a result of the cash transfer “I have a metal roof over my head and I can safely store my farm produce without worries.” She is now much more empowered to take care of herself and her large family.

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HelidaFamilyPhoto

    What a wonderful outcome of GiveDirectly’s work! Can you imagine building a new house in the United States on a thousand dollars? Well, this is why your direct donations go a lot further in East Africa.

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    With GiveDirectly, you can be much more confident about the outcome of your generosity. I know that when I give to a homeless person, a part of me always wonders whether he will spend the money on a bottle of cheap vodka. This is why I really appreciate that GiveDirectly keeps in touch and follows up with the people enrolled in its programs. They are scrupulous about sharing the consequences of their giving, so you know what you are getting by your generous gifts.

    GiveDirectly is back by rigorous evidence. They conduct multiple randomized control studies of their impact, a gold standard of evidence. The research shows that cash transfer recipients have much better health and lives as a result of the transfer, much more than most types of anti-poverty interventions. Its evidence-based approach is why GiveDirectly is highly endorsed by well-respected charity evaluators such as GiveWell and The Life You Can Save, which are part of the Effective Altruist movement that strives to figure out the best research-informed means to do the most good per dollar.

    So next time you pass someone begging on the street, think about GiveDirectly, since you can get seven times as much impact, for your emotional self and for the world as a whole. What I do myself is each time I choose to give to a homeless person, I set aside the same amount of money to donate through GiveDirectly. That way, I get to see the smile and hear the “thank you” in person, and also know that I can make a much more impactful gift as well. Whatever you choose, aim to supercharge your generosity to achieve your giving goals!

    Featured photo credit: Confidence via flickr.com

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    Dr. Gleb Tsipursky

    President and Co-Founder at Intentional Insights; Disaster Avoidance Consultant

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    Last Updated on January 2, 2019

    7 Steps For Making a New Year’s Resolution and Keeping It

    7 Steps For Making a New Year’s Resolution and Keeping It

    Are you keen to reinvent yourself this year? Or at least use the new year as a long overdue excuse to get rid of bad habits or pick up new ones?

    Yes, it’s that time of year again. The time of year when we feel as if we have to turn over a new leaf. The time when we misguidedly imagine that the arrival of a new year will magically provide the catalyst, motivation and persistence we need to reinvent ourselves.

    Traditionally, New Year’s Day is styled as the ideal time to kick start a new phase in your life and the time when you must make your all important new year’s resolution. Unfortunately, the beginning of the year is also one of the worst times to make a major change in your habits because it’s often a relatively stressful time, right in the middle of the party and vacation season.

    Don’t set yourself up for failure this year by vowing to make huge changes that will be hard to keep. Instead follow these seven steps for successfully making a new year’s resolution you can stick to for good.

    1. Just pick one thing

    If you want to change your life or your lifestyle don’t try to change the whole thing at once. It won’t work. Instead pick one area of your life to change to begin with.

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    Make it something concrete so you know exactly what change you’re planning to make. If you’re successful with the first change you can go ahead and make another change after a month or so. By making small changes one after the other, you still have the chance to be a whole new you at the end of the year and it’s a much more realistic way of doing it.

    Don’t pick a New Year’s resolution that’s bound to fail either, like running a marathon if you’re 40lbs overweight and get out of breath walking upstairs. If that’s the case resolve to walk every day. When you’ve got that habit down pat you can graduate to running in short bursts, constant running by March or April and a marathon at the end of the year. What’s the one habit you most want to change?

    2. Plan ahead

    To ensure success you need to research the change you’re making and plan ahead so you have the resources available when you need them. Here are a few things you should do to prepare and get all the systems in place ready to make your change.

    Read up on it – Go to the library and get books on the subject. Whether it’s quitting smoking, taking up running or yoga or becoming vegan there are books to help you prepare for it. Or use the Internet. If you do enough research you should even be looking forward to making the change.

    Plan for success – Get everything ready so things will run smoothly. If you’re taking up running make sure you have the trainers, clothes, hat, glasses, ipod loaded with energetic sounds at the ready. Then there can be no excuses.

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    3. Anticipate problems

    There will be problems so make a list of what they’ll be. If you think about it, you’ll be able to anticipate problems at certain times of the day, with specific people or in special situations. Once you’ve identified the times that will probably be hard work out ways to cope with them when they inevitably crop up.

    4. Pick a start date

    You don’t have to make these changes on New Year’s Day. That’s the conventional wisdom, but if you truly want to make changes then pick a day when you know you’ll be well-rested, enthusiastic and surrounded by positive people. I’ll be waiting until my kids go back to school in February.

    Sometimes picking a date doesn’t work. It’s better to wait until your whole mind and body are fully ready to take on the challenge. You’ll know when it is when the time comes.

    5. Go for it

    On the big day go for it 100%. Make a commitment and write it down on a card. You just need one short phrase you can carry in your wallet. Or keep it in your car, by your bed and on your bathroom mirror too for an extra dose of positive reinforcement.

    Your commitment card will say something like:

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    • I enjoy a clean, smoke-free life.
    • I stay calm and in control even under times of stress.
    • I’m committed to learning how to run my own business.
    • I meditate daily.

    6. Accept failure

    If you do fail and sneak a cigarette, miss a walk or shout at the kids one morning don’t hate yourself for it. Make a note of the triggers that caused this set back and vow to learn a lesson from them.

    If you know that alcohol makes you crave cigarettes and oversleep the next day cut back on it. If you know the morning rush before school makes you shout then get up earlier or prepare things the night before to make it easier on you.

    Perseverance is the key to success. Try again, keep trying and you will succeed.

    7. Plan rewards

    Small rewards are great encouragement to keep you going during the hardest first days. After that you can probably reward yourself once a week with a magazine, a long-distance call to a supportive friend, a siesta, a trip to the movies or whatever makes you tick.

    Later you can change the rewards to monthly and then at the end of the year you can pick an anniversary reward. Something that you’ll look forward to. You deserve it and you’ll have earned it.

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    Whatever your plans and goals are for this year, I’d do wish you luck with them but remember, it’s your life and you make your own luck.

    Decide what you want to do this year, plan how to get it and go for it. I’ll definitely be cheering you on.

    Are you planning to make a New Year’s resolution? What is it and is it something you’ve tried to do before or something new?

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