People like donating to charity as it makes them feel good about themselves. They believe that they are doing to and their money is going to help those most in need. Recent research is showing though that it has minimal impact and it could actually damage poor countries. In this article, I will discuss the impact of donations and what can be done to better improve the system.

#1: Sustainability

One of the most common problems with grand donations such as new wells for clean water is that it is impossible for the impoverished community to maintain it. There is a lot of effort that is directed towards the implementation but very little thought is given to how to maintain and support it. That means that without the correct maintenance within a few years it becomes broken and unusable. The community is back to where they were and vital money has been wasted.

#2: Not Understanding The Problem

Most donations are made without fully understanding the problems that need resolving. In a large number of cases, organizations make the wrong assumptions what is actually required and a great amount of money is wasted. The best way to donate is direct to the community in need as they know exactly what is needed.

#4: Forward Planning

One common mistake of donors is to think that once they have donated that the problem will be solved. Without offering training, online education and continued financial support these donation projects tend to fail. They have a short-term impact but fail dreadfully over the long term. A prime example of this is water wells as a very large percentage of these fail through the water getting contaminated or drying out. These problems stem from the lack of forwarding planning and financial support for maintenance.

#5: Local Economies

One major consideration that donors do not take into consideration is what affects their donation will have on the local economy. A prime example of this is the donation of clothes. If millions of different items of clothing are donated it means that the local economies will suffer due to no one having the need to buy clothing. This will have a knock on effect and weaken the economy as a whole.

Rather than buying goods for donations in your home country you are far better buying from the local businesses. It will put more money in the pockets of those that need it and will help to boost the overall economic prosperity.


The best way to donate money is via the local economy directly as so much money is lost when you use a charitable organization. By using your money to empower local entrepreneurs it can help boost the economy and improve its future prospects. Always take into account the sustainability over the long term for any projects you are considering donating money. You will need to check that there is a robust forward-thinking action plans to help make it sustainable.