Ask HN: Would you donate directly to poor Kenyans?

Last week I got scammed by some guy that came to my door asking for money so he can have a hand surgery, he showed me his hand which was severly disformed and I got sentimental and gave him some spara change (a few bucks), which considering I'm a student still hurts my tight budget a bit. Anyhow I felt good giving him the money, because I thought it might help him if even just a bit. Turns out he got arrested for being a scammer the next day, I recognized his face in the local news article. The takeaway lesson from that was that if I were ever in a position to help people out, I'd do so only through legal chanells and organizations that have proved themselves to actually give something meanigful for the people in need.

I have mixed feelings. A tragic injury used to solicit sympathy has been a staple of beggars for 1000 years (its in 1000 and 1 nights?) And what makes a beggar 'a scammer'? The injury is fake? Well, the need might have been genuine.

I don't know; helping is helping, whatever the path it took.

Sorry to hear that. Sadly, things like this can happen. It seems like a lot of that comes from adverse selection, though. By helping those that ask you for help, you become a target for fraud. Instead, I seek individuals out by looking at the "Seeking Work" section of Olx, so it'd be pretty difficult for a scammer to actually target me.

I did something like this for 2 years using MTN as well to pay a farmer family in rural Uganda every month but I had met them first through a friend, wouldn't trust Olx and other sites though a few times I sent money randomly that way. It was literally spare bitcoin change I had in various wallets that inflated to a ridiculous price and I exchanged them directly to mobile money, then transferred it for 24mos.

As other posts point out, it is a risk to flood a foreign market with capital though, you could help one family but screw over people you don't know about who's income ceases because you interfered and your patronage displaced their daily hustle somehow. When I discovered another large bounty of old coins I was hesitant to try this again since I know jack about the local economy. Paying for education seems a better plan, through somebody you know to take a pro makeup/hair course or some other trade. Pro training they can then start their own small business and train an assistant, there's no work in any of these countries like Uganda.

Edit, there's a Gambian newspaper where people can go to their office and request help that's published. Better than random CL/Olx giving http://foroyaa.gm/category/those-who-need-help/

This isn’t addressing your point and I’m not saying your doing this, but, as I’ve told people here and elsewhere about my idea, it’s interesting how readily they come up with criticisms. I guess this is the classic reaction to cash transfers, but it’s still interesting to see it in action. I wonder how much of it is just people finding excuses not to be generous.

I’m a pretty generous person in general, but it’s amazing how much my heart has opened upon having a personal connection to people in such need. Right now I’m not only giving as much as I can, but I’m looking for ways to earn more so I can give more. That personal connection and everything that flows from it is, I think, the unique benefit of this approach.

As for finding people via Olx, I should be clear (as I think I stated in another comment), I’m not putting up a post saying that I’m looking to give money away to those in need. That would just make me a target. Instead, I go through various sections of the site and contact posters that seem like they might be on the lower end of the socioeconomic spectrum. Given this approach and given the scale I’m doing this on, there’s basically zero chance that I’m sending money to someone that set out to scam me. I’d actually be more leery of a system like you mentioned with The Gambian newspaper, because it has the potential to attract scammers.

There’s some chance that folks may be exaggerating their need to receive more money than I’d otherwise give them, but I talk to my recipients extensively and form very real, meaningful and lasting relationships with them and, in the process, collect a lot of what you could call “collateral evidence” (like photos), so I end with what I really think is a very accurate picture of their lives. Moreover, if this type of exaggeration is happening it’s netting people something on the order of tens of dollars. Both through correlating what different recipients have told me and through independent research, I’ve got a good sense of what the cost of living is there and what is and isn’t a reasonable amount of money. So if someone says they need $310 a month (the most I send anyone) to support their family when they really need $300, it really matter doesn’t matter, and I don’t care.

That's really interesting! I have a couple of questions, if you don't mind.

1) How do you make sure you're not getting scammed? I mean you probably can't really get scammed in the literal sense, because you'd still be helping out a poor person somewhere (just maybe a 20-something year old guy in Nigeria rather than a single mom in Kenya).

2) Was it difficult to sign up for M-Pesa (and top it up with credit) given that you're not in Africa?

3) Why did you decide to give directly, rather than support, say, a charity that builds schools for girls in Kenya? A friend of mine is paying the college tuition for a student in Nigeria (wired directly to the University), which I think is great, as the recipient is less likely to see it as a 'handout', but rather as an investment into their future.

Hi and thanks for the questions.

1. To be clear, I'm not advertising on Olx saying I'm giving away money, so I don't have adverse selection to deal with. Rather I use to the "Seeking Work" section to proactively reach out to individuals that seem like they might be in need. And when I do reach out, I don't just open with "Do you need help? Can I give you some money?" Rather I try to build rapport and develop a real relationship. Most of the people I contact are just excited about talking to an American even before money enters the picture.

So I think the remaining risk isn't that the person isn't who they say they are but that they'd exaggerate their circumstances to get more money from me. The way I counter that is by developing a real relationship with the recipients. I talk to most of them on a daily basis. See pictures of their house and children. Get their whole backstory. And, in general, just end up with enough collateral documentation about their lives that it'd be hard to fake.

And, in fact, it's these relationships that are the most rewarding part of the whole thing. You're not just helping an abstract stranger. You're helping a very real person that's become a part of your life. My first recipients, the single mom, has become something of a sister.

2. I don't use M-PESA directly. Rather I use WorldRemit (https://www.worldremit.com), which connects to M-PESA, to send the money. Other than the occasionally delay, it's a pretty seamless experience. When you factor in the poor exchange rate you get, the cost of sending money is about 1%.

3. Honestly, it's just more rewarding to give directly. I know keep saying this but to talk to the recipients and see how grateful they are and how life changing the money is just an amazing experience. And it's motivating. I want to keep giving and find ways to give more.

As for the handout question. None of my recipients seem to attach any stigma to receiving the money and none of them treat it as a handout. They all keep working in one way or another and most use the funds to start a business of some sort.

Sounds great, thanks for your response. I love your approach and will try this out myself.

Thanks! Hit me up if you have any questions. My email is in my profile.

You should read the book “When Helping Hurts” to get a better idea of the harm you can cause by just giving poor people money without addressing root causes and more systematic issues.

In fact, I will buy you a copy if you are interested.

I would love a copy, if you don’t mind. I’m certainly open to criticisms of my approach, but looking at “When Helping Hurts”, it looks like they approach the problem from the context of Christian ministry in the First World, which is far different from poverty alleviation in the developing world. In that context, there has actually been a lot of research in recent years on the effect of cash transfers, as they’re called, and the effects have been found to be positive. The GiveDirectly website is a good place to start if you want to know more about the evidence for this approach.

You give a man a fish, he eats for a day. He eats for a day Don't imagine that doesn't matter. Its easy to give up because its not permanent. Nothing is permanent, but helping is helping, no matter what the cynics say.

The really interesting thing about cash transfers in the developing world is how often the funds are used not just to meet immediate needs but are invested in some form or another. GiveDirectly has tons of examples, but it may be anything from paying for a child’s education to buying a motorcycle to start a delivery business to, and this is my favorite, upgrading from a thatch roof to a tin one (this is an interesting win and one that might not be obvious to outsiders: not only is the tin roof more effective but it is also cheaper in the long run because the thatch roof has to be replaced twice a year at considerable cost in both labor and materials whereas the tin roof lasts for years; and this is a perfect example of how the poor can get locked in to an expensive cycle for lack of capital up front).

I’ve seen the same in the people I’ve given to. No one just wants to take the money and do nothing and become dependent. Everyone, literally everyone to a one, wants to start a business.

What happens when the people you are helping become dependent on you and you disappear?

The discussion isn’t helping or not helping, but determine how to best help and allocate your resources accordingly.

As long as it doesn't turn into stasis, where nobody is helped at all because we're not sure its the perfect solution. Which cynical me thinks is selfish and shortsighted.

And, what happens when they eat for a day and then you disappear is, they ate for a day.

What's the problem with GiveDirectly.org? How likely is that the poorest have internet access?

There's absolutely no problem with GiveDirectly, and, if you want the most impact for your dollar, absolutely give to them. My approach has the benefit of being much more tangible. I'm helping people I've gotten to know and become friends with. I keep saying this, but it's truly an amazing and perspective altering experience. You don't realize just how much we all have in the West compared to even middle-class person in Kenya.

And while cellphone penetration in Africa is pretty astounding, the poorest might not have reliable electricity let alone a smartphone. I'm under no illusions that I've reaching the poorest Kenyans. But the people I'm reaching are definitely in need, and I feel good helping them.

I'm not saying this is an alternative to GiveDirectly, but I think it's an interesting approach that has some unique benefits.

While a donation through GD comes with no strings attached for the receiver, would you say that your method does? Is there a chance that they feel an obligation towards you that affects them negatively?

Great initiative though, I admire your spirit. If you're not already introduced, givewell.org and 80000 hours would be interesting for you to look up, I think.

Yes, I’m very familiar with GiveWell.org and 80,000 Hours. They’re great orgs.

I attach absolutely no strings to any of my donations, but I think you bring up a great point. There’s a huge inherent power differential, so you really have to make sure the the relationship doesn’t become subtly coercive in some way. I spend a great deal of talking to my receipients and get a lot from it. I think they do too, but I’m sure they also realize I enjoy it and may feel some obligation to indulge me. I try my best to make sure they don’t feel like there’s any quid pro quo, but there’s a chance that they feel like there is, and that obligation, in theory, could affect them negatively.

Perhaps I’m gravely misjudging, but the relationships I’ve formed seem very genuine and, in some cases, almost familial. The mere fact of someone half a world away reaching out and opening their wallet for a total stranger really warms people’s hearts and leads to a kind of bonding that seems to be about more than mere self interest. It’s quite amazing, really.

And, because of that, I’m donating $1k a month to people who, at the very least, need it more than me. Would the best choice and the morally right choice been to just have donated $1k a month to GiveDirectly? Absolutely, but I don’t think I’d ever have done that.