A common argument regarding CBOs (nonprofits) and the poor was unsurprisingly featured in this Forbes article recently: Your Help Is Hurting: How Church Foreign Aid Programs Make Things Worse

“And anyone that’s been involved in philanthropy eventually comes to that point. When you try to help, you try to give things, you start to have the consequences. There’s an author Bob Lupton, who really nails it when he says that when he gave something the first time, there was gratitude; and when he gave something a second time to that same community, there was anticipation; the third time, there was expectation; the fourth time, there was entitlement; and the fifth time, there was dependency. That is what we’ve all experienced when we’ve wanted to do good. Something changes the more we just give hand-out after hand-out. Something that is designed to be a help actually causes harm.” 7/30/13

The logic that the poor become dependent on charity seems plausible, but is not true. The evidence suggest the contrary to the above anecdote, research has found that unconditional cash transfers are usually invested in vocational training and lead to substantial increased earnings. For a recent example, you can read this study by Blattman, Fiala, and Martinez (2013): http://cega.berkeley.edu/assets/cega_events/53/WGAPE_Sp2013_Blattman.pdf.