Canadian researchers donated a sum of $7500 to each homeless person. Since there are so many homeless people, a research project realized that giving homeless people money will help to change their situations. The New Leaf Project selected 115 homeless persons who were not into substance abuse and then gave 50 of them a sum of $7,500 each to see if they could have a better life.
After a year, most recipients had $1,000 in their savings and a good number of them could still feed themselves daily. This is a good thing as the project was able to accomplish its objectives. The average age of the selected few was 42 and 1 in 3 recipients reported they had a child, while 1 in 4 employed somewhere.
According to the study, there were self-surveys on expenditures and conditions on a monthly basis. Many people believed that the money would be used irresponsibly, for instance, recipients might spend it on alcohol or drugs, but the results proved otherwise. The results of the study revealed that not all homeless people are into substance abuse, some homeless people use money given to them judiciously.
The Foundation for Charitable Giving reported that recipients got accommodation two months faster than those who weren’t given the $7,500 allowance. The recipients’ spending habits were more frugal than those that didn’t receive the money.
However, the Canadian researchers did a thorough check on how the money was spent and they realized that 52% of the money was spent on rent and food, while 15% was spent on medication and transportation.
By spending fewer nights in shelters, the cash group saved the shelter system approximately $8,100 per person for a total of roughly $405,000 over one year. Factoring in the cost of the cash transfer, that’s a savings of $600 per person for society.Impacts report
One of the recipients maintained that the money brought hope and the courage needed to live a new life, and another recipient explained that he was able to pursue his career and with that, he would be able to achieve his aim of being a counselor for drug addicts.