🌱🐰💰 Measuring Donation Impact and Efficiency

Colin Markham -

The Good, the Bunny and the Money is our monthly take on the latest impactful success stories from across the U.S. and around the World.‌
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‌'🌱 The Good' looks at nonprofits leading the way in impactful change;

'💰 The Money' takes a dive into the private-sector champions driving financial inclusion & economic development; and

'🐰 The Bunny' showcases the most promising collaborations between nonprofits and businesses working hand in hand for the People and the Planet.

It was reported that charity donations declined by 6% in 2020, experiencing a devastating loss of funds during a time when additional support was needed. Overall, the global COVID-19 pandemic reduced the amount of giving, but we also experienced a 17.2% increase in online fundraising, compared to the previous 12 months. Today we focus on innovators across non-profits, the private sector, and collaborations between the two that are revolutionizing how we ensure donations are high-impact, cost-effective, and backed by evidence and analysis.

🌱 The Good: GiveDirectly - finding the poorest people in the world and sending them cash using AI

The challenge: COVID-19 has been devastating for the world’s extreme poverty level with an estimated 150 million living on less than $1.90 per day by 2021. It is critical that funds raised by nonprofits are used as effectively as possible.

Enter GiveDirectly… a Non-profit that lets donors send money directly to the world’s poorest and offers individuals the freedom to invest in what they need instead of relying on aid organizations. In a new partnership with UC Berkeley GiveDirectly harness Machine learning, to make the targeting process faster, more accurate, and contactless.

The process works in three stages:

  1. Identifies the poorest villages in a region by analyzing high-res satellite imagery for hundreds of poverty markers (roof material, building density, sizes of farm plots).
  2. Finds Individuals most in need by analyzing mobile phone data for clues on cheaper phone usage (call length and frequency, inbound vs outbound calls, mobile data used).
  3. The poorest individuals are prompted to enroll via mobile, and then instantly paid.

The first rollout has begun across Kenya, Malawi, Liberia, and Rwanda and has enabled $0.88 per donated dollar to be sent directly to recipients.

💰 The Money: CharityStars is helping nonprofits raise funds while lowering costs

Raising money carries a financial cost for non-profits whether it be a marketing campaign or admin costs. Startup, CharityStars, has created what they claim to be the “least costly fundraising platform out there”. The platform allows celebrities and brands to donate experiences or unique items that are auctioned, and the winning bid is donated to the celebrities' charity of choice. CharityStars take care of the logistics for a maximum of 15% of the winning bid. To date, CharityStars has worked with Cristiano Ronaldo, Avril Lavigne, and Ferrari, and has raised over $20 million for charity.

Boosting efficiency: CharityStars has also partnered with Aidcoin - a cryptonised network token. This means Aidcoin holders can donate to CharityStars more frequently, with less effort and at lower costs, while also improving transparency of donations.

🐰 The Bunny: Charity: water partnering with Google to improve access to clean drinking water

The problem: The world is in a water crisis. 785 million (almost 1 in 10) people on the planet don’t have access to clean and safe drinking water.

Charity: water: Is a non-profit bringing safe drinking water to people in developing countries by partnering with local organizations. Since its inception, charity: water has funded 64,999 water projects helping over 12 million people.

Making an impact: Charity: water demonstrates its impact in a unique way. Every clean water project is verified with photos and GPS coordinates for full transparency and unprecedented levels of accountability. This site shows every project.

A sustainable water sector: Charity: water received a $5 million grant from Google to develop and deploy hand pump sensors. These sensors monitor and relay data on water flow to advance transparency and sustainability in the water sector.

🥕 What else we’re munching:

  • Internet users can now give free charity donations just by browsing online
  • Exposure to COVID-19 is associated with increased altruism, particularly at the local level says new research in Nature
  • Taking inspiration from pandemic trends and new payment technology could open new-doors for effective charity fundraising
  • Donors under the age of forty are driving change in charitable giving by focusing on specific issues rather than organizations
  • Nicklaus Children’s Hospital Foundation announces that donations can be made in digital assets enabling donors to support charity in a tax-efficient manner.

Image Credits: Cover Photo by Tamarcus Brown via Unsplash; GiveDirectly; AidCoin; Charity: water