"Donors have given over $170,000 for water bills for over 900 families in Detroit." 170 children's lives could have been saved for the same amount.
If you asked the beneficiaries of this project whether they would prefer a life was saved over their water bill being paid, I think most would say save a life.
Though these people are desperately poor (and probably rationally hopeless), they are citizens of a wealthy and powerful nation that will not let them suffer too much like over a billion other people with real problems do.
Watsi.org is a good place to start if you are serious about helping people.
I'm astounded that the practical and serious people at YC are participating in a goofball project like this that is competing for resources with serious efforts to do good.