Researchers from the University of British Columbia in Canada have challenged the belief that giving money to homeless people is pointless or even harmful, a notion that many people still hold. This finding appears in a study that appeared in a prestigious science journal, illustrating that financial support can alter circumstances in meaningful ways when applied thoughtfully. The core idea tested was whether cash assistance would simply be spent on substances or vices, a concern commonly cited in public discourse.
A broader survey conducted in the United States found that a large share of respondents—about eight in ten—believed that a homeless person given seven thousand five hundred dollars would spend the money on alcohol, tobacco, or drugs. The study sought to move beyond such assumptions by implementing a real-world program in Toronto. In collaboration with the Foundation for Social Change, the Canadian team provided fifty homeless individuals with seven and a half thousand dollars each and watched outcomes over twelve months. The participants selected for the program did not include individuals with severe substance dependencies or acute mental health disorders, ensuring safety and ethically responsible oversight.
Over the course of the year, the recipients spent an average of ninety to one hundred days living outside shelters, reflecting a shift in housing stability patterns. This change led to noticeable savings for taxpayers, estimated at around thirty-nine thousand dollars in aggregate when compared to the control group. Importantly, those who received money did not exhibit higher levels of alcohol use than their non-receiving counterparts. The data suggest that cash transfers can empower choice and stability without accelerating harmful behaviors, when appropriate safeguards are in place.
Lead author Jiaying Zhao highlighted a striking counterpoint to common stereotypes: money given with clear purpose often goes toward everyday needs such as housing, clothing, food, and transportation, rather than toward drugs or alcohol. The findings also shed light on the broader misperception that the homeless are uniformly likely to misuse funds. This work underscores the value of evidence-based policies and careful program design, which can help communities reduce strain on public resources while supporting vulnerable populations in a respectful and humane way.
In evaluating the study, researchers emphasize that perceptions about homelessness can lag behind what data show in practice. The experiment demonstrated that generosity, when paired with appropriate evaluation and oversight, can contribute to shorter times spent on the streets and reduced pressure on public services, challenging long-held biases about how money is spent by those experiencing homelessness. The implications for policymakers and nonprofit groups are clear: careful cash interventions, combined with supportive services and monitoring, may yield positive outcomes for both individuals and communities. This research invites ongoing discussion about how best to allocate resources to address homelessness with dignity and effectiveness, rather than relying on assumptions that may not reflect real outcomes. (Source: University of British Columbia researchers during the Toronto program, cited with attribution to the PNAS publication and supporting partners.)