The Growth Effect

Charities can invest directly into communities.^[4] A study found that philanthropists give to charities that improve a community’s amenities such as a zoo, theater, the local football team, etc. Philanthropic efforts can also go towards city beautification. Such cultural amenities improve a specific location and provide the people with opportunities to get together. Giving to charities and other nonprofits, especially a local one, allows the giver to return money to the local economy and community, which benefits homeless people.^[5] Charities can invest directly into young people and entrepreneurs, promoting business growth, and providing jobs.^[6] Philanthropists can invest in college scholarships for young people or for programs that help under-resourced students receive a better K-12 education. Other charities focus on job-training. Charities can target donated funds and efforts to specific people, such as the homeless, giving them the tools and skills to become self-reliant and give back to their community.^[5] Philanthropic efforts, especially of those with more money, can inspire other philanthropists to donate as well. Not only does giving to charity increase the charity’s reach, but also being vocal about giving can inspire others to give as well, further increasing charity’s potential impact on helping homeless people or a community.^{[5] [4]}

[P1] Organized efforts are more effective than individual efforts. [P2] Philanthropies, charities, and nonprofits can invest directly into communities and people.