Big news! GiveWell, a leading charity evaluator, has just increased their estimate of the cost-effectiveness of GiveDirectly's direct cash transfers by 3-4x in their first reassessment since 2019. Here’s why: 🛠️ Positive Spillovers: Cash helps more than just recipients—it boosts the local economy. Studies show cash transfers benefit entire communities. A study in Kenya found each $1 in cash created $2.50 in the local economy without serious inflation. GiveWell’s considering this research drove a significant increase in their estimate. 🗓️ Long-Lasting Impact: Cash transfers reduce poverty for years. Long-term studies reveal that families continue to see higher spending years after receiving cash. GiveWell adjusted their estimate to reflect these sustained benefits. 🏥 Lives Saved: Cash means fewer child deaths. Research shows cash transfers have life-saving effects: studies reveal significant reductions in child mortality. GiveWell found the results “surprisingly large,” and acknowledges the potential of these findings. While this won't effect GiveWell's top charity recommendations right now, they note this “3-4x update is far from the end of the story” with more cash research on the horizon. At GiveDirectly, we’re grateful for GiveWell’s thorough engagement with the data and are excited to keep building on this evidence. Get in touch if you want to help pilot promising new cash programs that may be even more cost-effective than our current work. 👉 Read more at our blog https://lnkd.in/gupqETy9
How much and for how long should receive the money for that money to be impactful in Kenya and Rwanda?
This is a big deal and well deserved. Congrats GiveDirectly!
Thanks Nick Allardice, GiveDirectly has been a blessing in Maryland. With the end of the project closed, I'm deeply touched by the level of change this project has made in this part of Liberia. Kindly think of continuation for other parts of the county that didn't benefit.
This is great to hear. Paul Niehaus Let's try the scale up idea and measure how the spillover effect multiplier changes as the transfer size increases. I bet that when the amount gets to "send your child to school in another city/country" levels, the long term effect will be huge.
This is good to hear! It seems like there is more great news to come. Do you know when GiveWell will update their recommendations?
It was about time they update their estimates! 🙌🏻
is there any research correlating spillover and amounts of transfer?
Absolutely,this is great news,thank you Nick
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1moVery glad to see this report! We decided to continue directing the majority of our personal monthly donations to GiveDirectly even though they didn’t make it to GiveWell’s top 4 at the time. In out gut and our hearts it feels like cash transfers are life saving so I’m glad to see the research continues to back this too. Thank you for all you do!