Can Donations Reduce Poverty?

For those of us who work in the nonprofit sector, this question merits reflection.

 First, it’s important to clarify that poverty is a societal construct that is the consequence of generations of complex social-political-economic infrastructures that contribute to and reinforce what we refer to as “poverty”.

 Poverty itself is systemic and generational. The recurring cycles of cause and effect include low levels of income, education, nutrition, health, sanitation, and access to power.  

 Due to the systemic nature of poverty, a normal-sized donation would not reduce poverty in any significant or measurable degree. As Jesus said: “The poor you will always have with you.”

 Even though they acknowledge the poor will always be among us, it’s interesting that not only Jesus, but also all the great religious philosophers and teachers emphasize the importance of helping the poor in some direct, tangible way.

 The simple truth is that anyone with a heart and a conscience understands that the global distribution of wealth is out of balance and experiences an impulse to do something about it. Acknowledging the abundance in our lives is often accompanied by a desire to make a difference in the lives of those who are less fortunate.  

 With that fundamental desire as the starting point, we can rephrase the question as “how does donating help poverty?” This question allows us to consider the human scale of impact. One person’s donations can help a person or people who are poor.  In that case, donating to poverty is good. That’s how donating money to charity can help poverty. It’s a matter of scale.

 In other words, one donation to a random poor person doesn’t contribute to the diminishment of poverty as a historic phenomenon. However, if that person’s life is changed because of the donation, then that person’s relationships to poverty has been impacted.

 Now the question becomes: “How to donate to poverty” and “Where to donate to poverty?” How and where to donate are important considerations. The challenge is to identify organizations that maximize the donation. Generational multiplication of impact is in a combination of education, health (which includes understanding of basic sanitation), and sustainable livelihoods since the lack of these are central causes of poverty.