Canadians are so friendly, they gave homeless people $7,500. Here’s what happened.
If I see a homeless person, should I give them money? Can you count how often you’ve been asked that question?
As a professional in the homeless services sector, I’m asked at least once a week. My stance is, it’s a personal choice. It’s your money. It’s ok if you give money and it’s ok if you don’t. What is not ok is not acknowledging a neighbor’s existence. We are all deserving of basic dignity and kindness.
The Foundation for Social Change recently conducted a project that addresses this issue. It’s been named the New Leaf Project. The charitable organization directly gave $7,500 lump sums to 50 individuals experiencing homelessness. Another 65 individuals participated, but received no cash.
Here’s what happened
Cash recipients on average:
· Moved into stable housing faster
· Spent fewer days unhoused
· Retained over $1,000 in savings through 12 months
· Increased spending on food, clothing, and rent
· Decreased spending on alcohol, cigarettes, and drugs by 39%
· Reduced reliance on supportive services.
Giving money directly to the homeless is considered radical. There’s a fear destructive behavior is being enabled and resentment that those resources could be better spent on someone more deserving.
This scientific, evidence-based study proves the opposite is true. Homelessness can be solved. Unhoused people can be responsible with their finances. People want to be housed, healthy, and value community support. It can also be deduced that alcohol, cigarettes, and drugs are not a matter of a degenerate lifestyle, but as a means to cope and self-medicate.
Here’s why it worked
Innovation and success like this doesn’t happen without the right partnership between a “charity” and its donors.
Among the nonprofit organization’s concerns are providing additional services with a workforce that is by nature, stretched thin. It’s unfair to ask social workers, care coordinators, and clinicians to take on the added workload. Burnout from being over worked or developing empathy fatigue are the leading causes of poor retention in the field. Hiring new staff for the project would make it much more expensive. Also, it’s unfair to hire additional staff for jobs that aren’t guaranteed to be funded a year later.
Another concern is optics. Organizations like nonprofits that accept public dollars make their financials public information. Reckless spending and poor fiscal management is a fast way to lose donors. Just “giving away” money without supportive services qualifies as both.
Among the donors concerns are wasteful giving and minimal impact. There’s an endless list of deserving organizations addressing an underserved need. Giving to one means giving less or nothing to another. Making a transformational, philanthropic gift that pays off can cement a legacy. Missing the mark can lead guilt, shame, and resentment.
Here are questions to evaluate your philanthropic partner
· How long has the organization been in business?
· Historically, how has it met expectations?
· What does it’s leadership and retention look like?
· Does it have a history of being innovative?
· Does it have the infrastructure to execute?
The faith and investment by philanthropists in this nonprofit has been rewarded with an $8,100 savings per individual, or $405,000. That’s a wonderful return on investment and example of a beautiful, duplicable partnership.