Web Site Lets Donors Give Aid Directly to People in Need

A firm launched last year is pioneering an online-giving model in which donors can direct help to specific individuals and families who post their stories and detail their needs on the Internet, writes USA Today.

GiveLocally.net is run by Brad Newman, a California attorney, and Bo Young, the son of civil-rights activist and former diplomat Andrew Young. In the past six months about 850 people have given tens of thousands of dollars through the for-profit site to people who need emergency help to buy food or cover bills.

The site screens potential recipients before posting their appeals, keeps 18 cents per dollar donated to cover administrative expenses, and distributes contributions in the form of vouchers or direct bill payments rather than handing out cash.

“The philanthropic model needs to be more accountable, so we are accountable to our donors and our investors,” Mr. Newman said. “We operate like a business. We operate as a Web start-up. Our product is to help people. Our mission is to do it efficiently.”