Donors prefer giving money to producers (charities) rather than directly to indigent recipients because they want to constrain how it is used—funding a specific need like health care or clean water—so giving consumers vouchers or cash, which economists typically recommend, would generate far fewer donations.

causalpending

Speaker

Russ Roberts

Evidence Quote

it is interesting that the donor is probably at least as concerned about improving the welfare of indigent people in a specific way

Source

Mike Munger on Love, Money, Profits, and Non-profits 04/19/2010EconTalk
Created: 6/17/2026, 10:31:45 AM

My Notes

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