The Trouble With Charity

I like to believe that the majority of people are naturally good and would act ethically given the opportunity. However, with the media constantly bombarding us with the worst of humanity and negative stories all around us, it’s easy to feel pessimistic about human nature. While this seems complicated, simply put it means that for some reason or another, people aren’t donating to charity because in their minds it doesn’t make sense. We naturally want to help our local communities, but there is a significant gap between domestic and international giving.

There are many reasons why this imbalance exists. One reason is that we often think about charity as an either/or decision. We spend money on ourselves and our family members now or save for future educational needs and retirement. You don't have to stop giving to great charities because of this. You can help now and in the future without hurting your family in any way. First, you can shift some of your current giving to charities that have been shown to have a significant impact. Second, give these very effective charities a small portion of the overall amount you donate to charity.

Another reason some people wrongly believe they cannot afford to give is that they think they need to make large contributions in order for their donations to make a difference.

In fact, even modest contributions can have a significant impact. For instance, an enemy of jungle fever bed net expenses just $2.50 and safeguards two individuals for as long as three years. In most cases, the costs of meeting basic human needs are significantly lower in the developing world than they are in the developed world.

Why don't people donate to charity? To answer this question, it's important to understand what causes extreme poverty. The World Bank defines extreme poverty as $1.90 per day. Right now, 702 million individuals, or 9.6 percent of the worldwide populace, fall into this class, attempting to make due on that sum or regularly less.

Numerous factors, including historical as well as current economic, political, and social factors, contribute to extreme poverty. However, helping people now not only lessens unnecessary suffering and saves lives, but it also contributes to the creation of conditions favorable to the elimination of extreme poverty and many of its sustaining factors.

It is true that giving food handouts directly to people living in extreme poverty has the potential to disrupt the local economy, by making it difficult for local farmers to competitively price their crops. Handouts are not a long-term solution to the issues associated with extreme poverty, except in the case of natural disasters, illness, or other emergencies.