From all that I saw during this, I never once knew of a charity that provided any actual help. Around the holidays, several different charities, churches and caring folks would drop off food. But the food all had a shelf-life of less than a month, so we would eat really good for November/December and then immediately go back to how it was before. I've worked for a few charities/non-profits since dragging myself out of that. I wouldn't ever contribute a single dollar to a charity. However, my time is worth far more value (to me and to those receiving it) than a dollar could be. Volunteer regularly somewhere, like one Saturday a month. The day given up is less cost than a corresponding day's worth of salary and the benefit you can provide is larger than the dollar amount. In the past, I've provided efforts such as: plumbing/electrical/construction/maintenance at zero cost to the person receiving it (including replacement parts), child herding (three of us would take and pay for a trip to a local amusement park for the day, along the lines of a carnival in terms of rides), free tutoring (this one went a long ways, 2 kids and free "babysitting" all day, as well as providing a lot of benefit for the kids). It is much easier to find people who are in need via religious organizations or shelters.
The key takeaway is that if you give dollars, it will be spent on what they absolutely need to survive. There are no more decisions about sacrificing a little bit somewhere in order to do something "nice" such as fixing the leaking faucet because they just can't be made. By providing the things that are sacrificed, you give a glimpse that things can be better while providing for what they cannot manage to. I'm also of the opinion that it doesn't introduce a dependency on charity, which means that it would be better for them in the long term.
http://news.ycombinator.com/item?id=1467832
(article: http://www.boston.com/bostonglobe/ideas/articles/2008/03/30/... )
Her non-profit is the last step in this local ecosystem, taking people who are at about 75% of the local median household income and helping them with more affordable housing while they get back on their feet (or find their feet for the first time). However, it's no free ride. They require that the participants go through financial education, require that they continue making forward progress in bettering themselves, and monitor/mentor them all along the way.
They've taken nearly destitute families and guided them to the point of sustainable, unsubsidized home ownership, requiring far less monetary assistance along the way than comparable (less effective) government programs. I'm generally jaded by the waste, fraud, and ineffectiveness that we so often hear about regarding charities, but the work that her charity has done is amazing.
It's depressing to watch her smaller, deserving organization have to fight a desperately uphill battle against huge, inefficient organizations when it comes to funding and donations. So, I strongly second the notion of finding good, local charities to donate to.
</grammar nazi>
If you can, try engaging or tutoring pupils in low-income areas.
Living paycheck-to-paycheck (I've been there... although by my own fault and not for long enough to be desperate) means you can't make certain changes because they require some money up front, and those changes would help break the cycle of poverty (such as moving to take a better job).
Also, there is reason to believe that higher minimum wages encourage your workforce to become better skilled in order to compete on the world market at their higher price, as is the case in Germany.
Almost need some kind of subsidy somewhere to give these people at least a decent standard of living.
What would stop companies from increasing the costs of their goods and services because they know minimum wage is higher (and people can now afford it)?
Minimum wage in the US is $7.25/hour (many states are higher). A person couldn't support a family on this, but they could find a place to live (either renting a room, cheap apartment, or sharing a bigger apartment with friends) and have enough left over for the bare-minimum.
Contrast that with many right wing arguments about taxation, which usually take the form "Lower/more regressive taxes are always better, and here's why" - disturbingly many of those arguments are "valid" (i.e. if you accept the arguer's claims, the conclusion follows) no matter what the starting point is, and the end result would either be zero taxes for everyone or (surprisingly common) almost 100% taxation of the lower classes and no tax on the upper; hell, if we allow for redistribution, many of the conservative arguments actually imply that the upper class should be given money by the lower class, for the good of the economy.
If your argument pushes some number in one direction but doesn't turn around for some value of that number, then there's typically a problem with the argument; here, that's not the case, the poster explicitly provided that stopping point.