Summary of How Donating to Charity Can Make People Poorer

00:00:00 - 00:10:00

The video discusses how donating money to charity can actually cost the charity money in terms of administrative costs. It goes on to say that, depending on the charity, the donation method, and other factors, the amount a person gave can be reduced by up to 50%. The video also says that, if you're looking for a recommended charity, you should check out GiveWell's website.

• 00:00:00 Charity can often lead to dead ends or worse by not properly utilizing donated funds. People can do their own research to ensure that their donations are going towards the right causes. Charity financials are published in many countries, and one website, Charity Navigator, provides detailed information about the spending habits of particular charities.
• 00:05:00 Charity donations can devastate local textile industries in African countries, leading to the unemployment of hundreds of thousands of people. In addition to destroying local businesses, these donations also undermine the livelihoods of those who sell or otherwise are connected to the mobile market. Rather than sending mountains of donated goods, it is suggested that charities focus their efforts on supporting the growth of local businesses. This would help to empower African communities and cut dependency on foreign aid.
• 00:10:00 The video discusses how donating money to charity can actually cost the charity money in terms of administrative costs. It goes on to say that, depending on the charity, the donation method, and other factors, the amount a person gave can be reduced by up to 50%. The video also says that, if you're looking for a recommended charity, you should check out GiveWell's website.