Frequently Asked Questions
How much of my donation ends up supporting children and how much goes to staff wages, administration and fundraising etc.
We’ll keep the answer simple, ALL the money you give goes to children and their caregivers. A small amount may be deducted by banks as a transaction fee depending on the method used to donate. Private donors cover our operational costs, as a Direct Giving Charity our overheads are very low.
Is your charity 501(c) registered?
We ask for very little in way of donations, $20 a month would be enough to help one child on average but donations of less are welcome. The tax benefits of 501(c) do not yet justify the high cost of setting up a legal presence in the United States and filling with the IRS. Our team is set to begin the registration process when it makes financial sense. The same goes for other countries with similar tax codes. Volunteers with experience in this area are welcome to submit a resume.
Where is you charity based?
We are an international charity with our headquarters in Hong Kong and projects currently running throughout Cambodia, China and Nepal. Once we grow, refine our methods and review our research into direct giving we will expand into other countries.
At what age does support payments stop?
Maximum age is 18, we would prefer children stay in education until 18 but if they leave early, payments end too. Currently we maintain a list of local charities and agencies offering scholarships and apprenticeships. Ideally we’d like to see teenagers continue in education but we do not provide financial support to adults.
Would my sponsored child be an orphan?
Usually no, nearly all children in Cambodia, China and Nepal have at least one living family member. However in rare circumstances payments are made to orphans if our volunteers are convinced family support isn’t available. Usually your sponsorship helps us to keep families together, we consider this the main advantage of direct giving.
Some Charities focused on ending the Poverty Trap lend money to people, do you?
Absolutely no. The argument for lending money to get people out of the cycle of poverty is well studied and is valid. However it requires a lot of administration and is open to corruption and abuse. In some of the countries we operate lending is poorly regulated and very often reinforces the poverty trap, completely destroying familys and their childrens lives. We feel only highly regulated International Government Aid Agencies should be involved in lending money to the poor. We use the direct giving charitable model as it eliminates these problems whilst still being effective.
Does giving money to parents for each child encourage them to have more children?
It’s a good point and something we will be performing more research on. However many studies all over the world have reached the same conclusion, the more education someone has, the fewer children they have. The biggest influence on people having children is local culture, the more education they have the more options open to them. We only give money for children in education, there is a great deal of expense parents must meet on their own before a child is old enough to attend school. Our financial incentive should only work on getting kids into school not on familys to have more.
Why do you ask $20 a month when I see other charities asking more to sponsor a child?
Our overheads are a lot lower as we use the direct giving charitable model; reducing overheads. We also operate in some of the most improvised areas on Earth where people are already living on far less than $1 a day. Your support makes a big difference.