Paul Niehaus: World’s Fastest Growing Charity Gives Cash Directly

Summary:

In this episode, we speak to Paul Niehaus. Paul is an economist and entrepreneur. He is the co-founder, director, and former president of GiveDirectly, the leading international NGO specializing in cash transfers, and rated one of the most impactful ways to give. He is also an assistant professor at University of California, San Diego, which works on anti-poverty programs around the world. He holds a PhD in Economics from Havard. He professionally always wanted to do something that would reflect his Christian background and would make the world better, and this drove him to co-found GiveDirectly to tackle global poverty, as well as fintech non-profits.

Some things we touch on in this episode:

  • How poverty alleviation through direct cash transfers works.

  • Whether people receiving direct cash transfers use funds appropriately.

  • Whether poverty alleviation is about meeting spiritual or physical needs.

  • How much we need to give to end extreme poverty.

  • The role of the local Church.

  • Paul’s career advice to young Christians looking to be impactful in the world.

Articles, organizations, and other media discussed in this episode

  • GiveDirectly is a nonprofit organization operating in East Africa that helps families living in extreme poverty by making unconditional cash transfers to them via mobile phone.

  • Segovia is a financial technology company co-founded by Paul that improves the efficiency of aid by making it faster, cheaper, and more secure to transfer funds directly to vulnerable populations.

  • Kiva is a 501(c)(3) non-profit organization headquartered in San Francisco, California, that claims to allow people to lend money via the Internet to low-income entrepreneurs and students in 80 countries.

  • The Global Innovation Fund is a non-profit, impact-first investment fund that invests in the development, rigorous testing, and scaling up of new products, services, business processes, or policy reforms that are more cost-effective than current practice and targeted at improving the lives of the world's poorest people.

  • GiveWell is an independent nonprofit focused on helping people do as much good as possible with their donations.

  • Development Innovation Venture is USAID's open innovation program that funds breakthrough solutions to the world's toughest development challenges.

  • Development in Mission by Rob Gailey is a book that encourages Christians to respond to Jesus’ words "Blessed are you who are poor" by embracing a holistic approach to poverty alleviation.

  • When Helping Hurts by Brian Fikkert is a book that articulates a biblically based framework concerning the root causes of poverty and its alleviation.

  • EconTalk podcast, a weekly podcast where Russ Roberts interviews authors, economists, innovators, and people from all walks of life.

  • Happier Lives Institute connects donors, researchers, and policymakers with the most cost-effective ways to increase global well-being.

  • Shrewd Samaritan by Bruce Wydick covers the root causes of poverty, on the mindset that flows from the teachings of Jesus.


Episode Highlights:

“The Spirit of the Lord is upon me to proclaim good news to the poor”

[00.04.44] “‘The Spirit of the Lord is upon me to proclaim good news to the poor’…and right there that’s an essential centerpiece of the ministry of Jesus. So it’s just a very easy choice for Christians as well.”

Just simply giving money to people living in extreme poverty just seemed to work

[00.08.23] “Just simply giving money to people living in extreme poverty just seemed to work a whole lot better than we were led to believe… There was a huge gap between people’s perceptions and the reality.”

Creating a healthy balance between humility and ambition

[00.11.33] “ We felt this tension where on the one hand the ambition of saying let’s really think big and consider dramatic changes to the way we fight extreme poverty and at the same time this humility of saying, it’s largely not going to be us we are just an intermediary vehicle through which money can flow to other people and it is going to be them and their efforts and the things that they do… thus creating a healthy balance between humility and ambition.”

Others will praise God because they see your generosity

[00.13.09] “ Others will praise God because they see your generosity inspired by your faith in the Gospel. Let your light shine before men…I think that’s a big issue, I don’t think that people of today look at Church and say ‘Wow! It’s surprising how generous they are so there must be something to it so I think that’s a wake-up call for the Church and something to take very seriously. ”

We have a core challenge that people don’t give enough.

[00.23.20] “ We have a core challenge that people don’t give enough, we’re just nowhere near generous enough to seriously address Global Poverty. ”

“Forget what I like and what I wanna do.

[00.41.42] “I think we’ve got to find some way to get to communities that are much more like people getting together and saying ‘forget what I wanna do. What is God doing? How can I be a part of that? What is He inviting me into and calling me into?;’”

Be open to the possibility that an idea could have an impact through any one of those institutional mechanisms or challenges

[00.52.45] “It’s wonderful if you can not define yourself by any one of those sectors but sort of be open to the possibility that an idea could have an impact through any one of those institutional mechanisms or challenges… be open to all of those things and not to narrow yourself too early.



 

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