This was in USA Today yesterday (6.13.02) and I just checked it out. What an amazing idea!
This professor has started a small charity service (for lack of a better term) to help those people who need a small amount of money to get back on their feet (e.g. $50 for food for a week, paying an electric bill, etc.)
You can read all about it at the website (it has FAQ's and also a good general explanation of the purpose).
Modest Needs.org