What is the best way to give back?

Jano le Roux

Published in ILLUMINATION (Medium.com)

We’ve all heard the story:

Never give a homeless person money.

• Give them food instead.
• Give them clothes instead.
• Give them your time instead.

Otherwise they’ll buy:

• Drugs
• Alcohol
• Cigarettes

But is this even true?

That’s exactly what a group of scientists wanted to figure out.

So they gave a group of 50 homeless people $7,500 each and monitored exactly how they spent their coin.

The results are truly surprising.

Giving 50 homeless people $7500 each

In the vibrant backdrop of Vancouver, something remarkable was taking shape. The New Leaf Project, a venture by the Foundations for Social Change and the University of British Columbia, was all set to challenge some entrenched beliefs about homelessness.

Here’s how it unfolded:

1. Identify 50 individuals who had recently become homeless.
2. Hand each of them a cheque for $7,500 (CAD), no strings attached.

The goal: Foster a fresh start and instill a renewed sense of confidence.

Imagine stepping into Ray’s shoes, a man in his 50s who suddenly found a beacon of hope through this project.

The journey began with:

• Opening a bank account: A simple yet empowering step that marked the beginning of newfound financial independence.
• The realization: A week to absorb the reality that a golden opportunity to rebuild life was now within grasp.

As the clock ticked, the project team kept a watchful eye on these individuals, embarking on a journey marked by:

• Periodic check-ins: To gauge the progress and the transformative journey each participant was undertaking.
• Control group insights: A parallel study involving 65 individuals navigating life without the financial boost but with access to skill-enhancing workshops and coaching sessions.

The study explored three potential methods for transferring funds to the recipients:

1. Lump-sum payment: A one-time payment where the entire amount is given to the recipients at once.
2. Monthly installments: The total amount is divided into smaller portions and distributed monthly.
3. A combination of lump-sum and monthly installments: A part of the amount is given as a lump-sum, followed by the distribution of the remaining amount in monthly installments.

These options were considered to understand the most effective way to assist individuals in financial distress.

Parallel to the main study, a Public Perception Survey was conducted to gauge what the general populace thought about the spending habits of the homeless individuals who were given a financial boost. This survey involved around 1,100 people and aimed to capture the societal expectations and potential prejudices that exist regarding how homeless individuals might spend a sudden influx of money.

Interestingly, the survey revealed that a significant portion of the public expected the funds to be spent on “temptation goods” such as alcohol or drugs. However, the actual spending patterns of the participants debunked this theory, showcasing a stark contrast between public perception and reality. This aspect of the study serves as a powerful tool to challenge and change entrenched societal beliefs, fostering a more empathetic and informed community perspective on homelessness.

On what did they (actually) spend the money?

As the sun rose on a new beginning, the recipients of the New Leaf Project embarked on a journey of financial autonomy. Here’s a closer look at how they allocated the $7,500 that was handed to them:

• Housing: A significant portion was invested in securing stable housing, a cornerstone for rebuilding their lives. This move not only provided them with a safe haven but also instilled a sense of belonging and stability.
• Food and nutrition: The funds facilitated regular meals, ensuring a balanced diet and proper nutrition, which is often a luxury in the life of someone who is homeless.
• Clothing: A part of the money was spent on clothing, allowing them to step into society with renewed confidence and dignity.
• Personal development: Interestingly, some funds were channeled into personal development, including education and skill-building courses, paving the way for future employment opportunities.

Taking a step back to look at how the funds were used, it’s pretty clear that these folks made some really smart and thoughtful choices. Personally, I can’t help but be impressed by the level of savvy they demonstrated with their finances. Now, there’s this theory floating around, often dubbed the “temptation goods theory”, which suggests that individuals in such circumstances might splurge on things like alcohol or drugs. But guess what? These individuals broke that mold spectacularly.

They didn’t fall for the quick fixes or the fleeting pleasures that society often expects. Nope, they went straight for the solid, life-building stuff that lays the foundation for a brighter future. It’s like they grabbed this golden opportunity with both hands, steering clear of the usual pitfalls and stereotypes linked with homelessness. They focused on carving out a stable, respectable life for themselves, which honestly, is pretty inspiring.

This goes to show that, given a chance, people can make decisions that not only uplift their own lives but can also ripple out to create positive waves in the community. It’s a refreshing take, breaking away from the usual narratives and bringing a new, hopeful perspective to the table on tackling homelessness.

But it gets even better.

The study found that the lump-sum payment method was the most successful. This approach allowed individuals to have immediate access to a significant amount of money, enabling them to address pressing needs and make substantial investments in their well-being and future, such as securing stable housing or enrolling in educational courses.

It empowered them with the financial autonomy to plan and make decisions that best suited their individual circumstances, leading to more positive outcomes compared to the other methods.

It saved the state more money than it cost!

When we zoom out to look at the bigger picture, the societal benefits of this project become glaringly apparent. Let’s crunch some numbers to get a clearer perspective:

• Financial savings: The project hinted at a potential saving for the shelter system. By moving into stable housing quicker, the participants saved the system approximately $8,277 per person over the year. When you multiply this by the 50 participants, we’re looking at a whopping total saving of around $413,850 in a year.
• Positive ripple effect: These savings could potentially be redirected to other critical areas such as healthcare, education, and further homelessness prevention initiatives, creating a positive ripple effect in the community.
• Boosting the economy: By investing in personal development courses and skill-building, the participants are gearing up to re-enter the workforce. This not only contributes to personal growth but also adds value to the economy by increasing the pool of skilled labor.

Beyond the financial aspects, the project has the power to alter societal perceptions about homelessness. By showcasing responsible financial choices, it fosters a fresh perspective, encouraging empathy and understanding, which can lead to more inclusive policies in the future.

As the sun sets on the vibrant backdrop of Vancouver, a group of scientists and 50 individuals have written a new narrative, one that challenges the old adages and invites us to look beyond the stereotypes.

Here’s what they wrote:

• Give them trust instead.
• Give them opportunities instead.
• Give them a fresh start instead.

Because when given the chance, they bought:

• Stability
• Nutrition
• Education

Studies like this makes me proud of humanity. It makes me proud to see these people succeed. It makes me question which other stereotypes we have in society that we need to put to the test.

Written by Jano le Roux

·Writer for ILLUMINATION

An award-winning marketing consultant who helps high-growth brands craft marketing that doesn’t feel like marketing. Open for work—jano@likeflare.com—Join me ⤵️