Cash transfers account for less than 5 per cent of development aid, yet there is strong evidence to suggest that they are effective, borne out by the experience of GiveDirectly. Its co-founder, Michael Faye, tells Charles Keidan how the approach works, dispelling some of the myths surrounding cash transfers on the way. So why is philanthropy so reluctant to adopt cash transfers? After all, giving money away to help others is a big part of what it does.
What do you mean by cash transfers?
Cash transfers are a type of social programme in which capital is provided directly to poor people, allowing them to spend it on what they want.