Recently, 80,000 Hours wrote that they think only a small proportion of people should earn to give long term. They asked their team “At this point in time, and on the margin, what portion of altruistically motivated graduates from a good university, who are open to pursuing any career path, should aim to earn to give in the long term?” and got a median answer of 15%.
I’m not confident in my response, but when thinking about the movement as a whole, I’d suggest a ratio closer to 50%, if not as high as 80%.
The ratio of donation opportunity generated per staff of EA orgs suggests a need for a higher-earning to give ratio.
This consideration is definitely more speculative, but depending on how you look at the numbers, it’s possible to justify an earning-to-give ratio above 29% and possibly as high as 99%.
The Size of the Opportunity
The biggest example of generating a lot of donating opportunity per staff member is the Against Malaria Foundation. They only havetwo full-time staff, yet according to GiveWell their 2015 room for more funding was around $5M. This suggests that a very high talent EA direct worker could generate as much as $2.5M for earning-to-give people to attempt to fill with donations.
Give Directly has 25 staff and has a room for more funding of somewhere between $1M to $25M (with the potential for much more), which is somewhere between $40K to >$1M per staff member.
How Much Do People Earn to Give?
80K found in their 2014 survey that people doing earning-to-give were donating on average $13K/year for 2013, with an expectation to rise to $56K/year within three years if people's plans are taken at face value. A follow-up in 2015 found a new average of $16.5K/year for 2014, though for a more limited sample.
According to the EA Survey (focused on 2013 data), the mean donation in our sample from EAs who met the criteria for earning-to-give (>=$60K annual income and >=10% donations) was $9.5K/year.
Now Let’s Do Math
Using the best possible numbers for earning-to-give, imagine that an additional direct work person was like the AMF staff and generated $2.5M in donation opportunity. Now imagine I took the low value of earning-to-give, $9.5K/year. Using these two numbers, it would take 263 people earning to give to match one person doing direct work, suggesting that 99.6% of people should earn-to-give.
If instead I look at GiveDirectly’s low number of $40K per staff member compared to a high value of earning-to-give ($56K/year), I calculate you need 1 person earning to give for every 1.4 people doing direct work, suggesting a ratio of 29%.
The Problem With Funding Salaries
Of course, it does seem clear that marginal direct workers won’t be as productive at creating earning-to-give opportunity as AMF staff have been, so there will be less to fund per marginal direct worker.
Furthermore, AMF may not be typical of charities marginal direct workers are moving into. Charities like CEA or MIRI scale not by creating opportunities to fund programs, but rather through hiring staff, and this ends up with a lower amount of donation opportunity to staff member (equal to their salary).
Still, even if we expect earning-to-give people to be primarily focused on funding salaries, we may need more than 15%. Consider the classic story of ETG who takes a job in finance to fund two direct workers, doubling their impact. First, if salaries + overhead per staff are ~$50K/yr (though they can be much lower), a 15% earning to give ratio would require the average earning to give donation to be over $330K, which seems unrealistically high, even for the next three years. A more realistic ratio where the average (not median) earning-to-give person donates $50K/year (still more than is currently happening) would be 1:1, or 50%.
Second, the AMF model should not be ignored when thinking about donation opportunity created per marginal direct worker, and it’s quite possible that in some scenarios we may need many earning-to-give people to support the opportunities created. It’s an open question what proportion of EA resources should be going to GiveWell’s scalable health charities, which often generate millions of dollars in donation opportunity per employee, than other EA orgs where the donation opportunity per employee is quite less. Those who think the majority of EA funding should focus on GiveWell’s top charities, or that GiveWell top charities should be the default giving opportunity for the typical donor absent good reason to donate elsewhere, should also be far more inclined to think that more people should earn-to-give.
EA Orgs Have More Room For More Funding Than People Are Giving Credit For
Recently I’ve been involved in some EA projects that I’ve wanted to fundraise for. On three occasions with three separate EAs the reaction was always “Huh, I’m really surprised that hasn’t been funded already.” ...And many of those projects still need money.
There is supposed to be an explosion in earning to give. But I don’t think it’s arrived quite yet. From my point of view many plausibly important projects still want more funding.
Just to mention a few projects I’m aware of --
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According to Jacy’s speech at EA Global, Animal Charity Evaluators is quite funding constrained and would hire more researchers if they had the money.
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The Machine Intelligence Research Institute believes they could have as much as $5.5M in room for more funding according to their fundraiser (though I don’t know if they think of themselves as funding constrained or not).
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Charity Science feels talent constrained but also could really use more money for planned expansions we can’t afford yet.
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Some people close to GBS Switzerland told me they feel funding constrained.
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Several projects currently going through EA Ventures have not yet raised the funding that they wanted.
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And, of course, GiveWell top charities have $500K to $23.4M in room for more funding according to the latest analysis.
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And other projects I’m aware of are on the horizon and may make more public pitches soon.
...Of course, it’s possible you may not believe in supporting these projects. If so, depending on what you want to support, it’s possible the remaining room for more funding may be quite small. But the belief I’ve been hearing from some that all EA projects are getting fully funded all the time and that EA Ventures will simply take care of the rest is not currently true.
Earning to Give May Have Better Career Capital
Career capital, as 80,000 Hours defines it, are the skills, credentials, connections, and other benefits you get from a career that help you have more impact in the future. Since what matters is your total impact and not your current impact, it’s quite plausible that young people (including myself) should be focusing much more on career capital than having an impact now.
Earning to give careers usually have good career capital opportunities. Usually the most important skills (80K suggests computer programming, web development, statistics, machine learning, independent work, self-motivation, sales, communication, and management) are typically found in abundance in good for-profit careers that also happen to have good earning to give potential.
Yes, you can certainly find this capital in non-ETG careers, and I want to be careful to not fall into a charity vs. for-profit ETG dichotomy when many additional options exist (e.g., research, academia, and politics). But I generally believe that it is easiest to find career capital within earning-to-give careers and it becomes much easier to transition out of earning to give and into other careers than vice versa (with maybe the exception of academia).
Earning to Give Fits More People
Furthermore, psychologically, earning-to-give seems to me to be a better fit for the average EA than direct work. Many EAs are already working in a company and can simply move to donate more of their salary or focus on increasing their salary, rather than quit their job and start a new one. Furthermore, EA direct work is frequently concentrated in certain cities that require relocation, which can be a big choice.
Another advantage to earning to give is it’s often easier to accomplish for people who have less altruistic motivation or direct work talent. Of course, this certainly misses 80K’s point because they were talking about people on the margin and people who were high-talent and high-motivation who were open to many career paths. That is a different question. But in the actual movement, it’s important to note that many people are not in the top 0.1% of drive and talent. Yet they still have a valuable thing to contribute -- a share of their job through earning to give. It’s often much easier to get, keep, and do an earning-to-give job than it is to do EA direct work.
Lastly, earning to give frequently gives much more career capital than other jobs early on in one’s career, which would allow for people to launch more successful non-ETG careers in the future. It’s generally a lot easier to move from earning to give to not earning than vice versa, given constraints on personal savings and on various industries.
Conclusion
Obviously the choice between earning to give or something else is a personal one that is sensitive to your personal skills and fit. But I think if you have the ability to enter a particularly high-earning career, there are good reasons to do so, and more people should be considering it than the current wisdom seems to suggest.
There are certainly good reasons to think 80K’s argument is correct -- there is already a lot of money in EA through Good Ventures and other high net-worth individuals and there is a potential that existing earning-to-give EAs may start donating much more soon. I’m excited how much the EA movement might grow through more direct work. However, I think we are still a ways off until earning-to-give people start reliably funding the remaining 85% of the movement.
But until things change, I’d suggest that 15% seems to me to be quite small, and I’d suggest an earning-to-give ratio at 50% or even as high as 80% for the movement as a whole.
Thanks for this; I agree with much that is said.
My numbers are a little different to yours at around 25-50%. I think the reason is that I envision many EAs going into 'influence' areas like foundations, other NGOs, politics, academia, journalism, and policy. Those that do probably won't earn large sums but neither will they be drawing substantial funding from the EA community; they are sort of excluded from both sides the earning-to-givers vs. direct-workers analysis you do above. When I do a similar analysis, I get a similar conclusion of wanting very roughly 1 ETG person for each 1 direct EA org person, but then I envisage 0 - 50% of EAs doing the orthgonal 'influence' options, hence 25-50% in both ETG and 'direct' work.
Part of the disagreement here is also surely how narrowly you define 'Earning to Give'; I think 80k probably meant something much stronger than ">=$60K annual income and >=10% donations"; more like >$100k gross annual income and >=50% donations. I think both definitions have merit, it's just worth clarifying from the outset what you are talking about.
Edit: I would also add that my experience of funding things this year is that we are indeed a few years away from the projected (and I think reasonable to expect) Earning-to-Give explosion. I can't think of a major cause area that doesn't currently have both a meta-charity and direct charity constrained by funds. Obviously this is subject to potentially rapid change, but this was a significant update for me so I wanted to share.
Interesting post, thanks Peter!
I need to think about this issue more, but I think there might be a couple of problems with the estimates.
1) Let's divide problems into the world into 'funding constrained' and 'talented constrained'. What you've done is pick the most funding constrained causes we know (Givedirectly and AMF) and then say "wow these can absorb a lot of funds", which is not surprising, because they were selected for that property.
But there are other causes where it looks like a talented person could make a big difference but where it's not easy for money to buy progress. These are causes that are more constrained by innovation, leadership, coordination, and so on. Some areas that might fall in this category include EA movement building, much of research, green energy, much of policy, international relations. We asked Holden to speculate on what they might be here: https://80000hours.org/2014/10/interview-holden-karnofsky-on-cause-selection/
We asked biomedical researchers to estimate how much money they would trade for a researcher with good personal fit, and they often named figures of around $1m per year, more than most people could donate.
Taking talent ga... (read more)
I want to push back a bit against point #1 ("Let's divide problems into 'funding constrained' and 'talent constrained'.) In my experience recruiting for MIRI, these constraints are tightly intertwined. To hire talent, you need money (and to get money, you often need results, which requires talent).
I think the "are they funding constrained or talent constrained?" model is incorrect, and potentially harmful. In the case of MIRI, imagine we're trying to hire a world-class researcher for $50k/year, and can't find one. Are we talent constrained, or funding constrained? (Our actual researcher salaries are higher than this, but they weren't last year, and they still aren't anywhere near competitive with industry rates.)
Furthermore, there are all sorts of things I could be doing to loosen the talent bottleneck, but only if I knew the money was going to be there. I could be setting up a researcher stewardship program, having seminars run at Berkeley and Stanford, and hiring dedicated recruiting-focused researchers who know the technical work very well and spend a lot of time practicing getting people excited -- but I can only do this if I know we're going to have the money to... (read more)
A couple points (with opposite signs):
Why didn't you mention GiveDirectly [ETA: in the 'orgs with room for more funding' section], an organization with nigh-boundless room for more funding? It just took $25MM from Good Ventures, has a history of extremely rapid growth, and its model should eventually allow it to take many billions of dollars per year.
Also, contrast earning to give with other paths to influence large quantities of funds, e.g. working at a large foundation, at IARPA, or in a government aid bureaucracy. The average money moved in the relevant roles in those fields looks a lot larger than for earning to give.
Hey this is a great discussion to have so I'm really glad you posted it. You haven't changed my views, and I don't have time right now to go into details, and I haven't read the comments yet, but I just wanted to raise a couple of points where you think we disagree where we don't. Note the question we answered:
"At this point in time, and on the margin, what portion of altruistically motivated graduates from a good university, who are open to pursuing any career path, should aim to earn to give in the long term?”
I agree with your conclusions here. A few weeks ago at Stanford EA we discussed career alternatives to earning to give, and took a somewhat different approach from you here. We threw out a number of ideas about careers we personally could pursue and how valuable we thought they were. We more or less reached a consensus that we could all do more good by earning to give than by doing anything else. This may have been more true for the people present than for EAs in general, but even so I suspect it's still the case that 50+% of EAs should be earning to give.
As you know, I endorse your position, and think that in the ideal distribution - the one in which all of those not earning to give are doing the most valuable things - even more than 80% of people would be ETG. (More precisely, they'd be doing good primarily by donating, as this is the real issue here, not whether they do ETG in the sense of taking high-paying jobs primarily in order to donate.)
As always your posts are very clear, constructive and go straight for the key points!
Here's why I don't agree, and am not much moved from my original estimate:
Firstly, as you note, the claim was only about the most motivated/talented people, in the long run. The first point was there to deal with the fact that many people who are less motivated will find it much easier to earn to give than the alternatives. The second is there to deal with the career capital point - that many people should earn to give early on, but transition out later on to have a dire
A big thing this seems to be missing is that there are other sources of money than "EAs earning to give". Philanthropists and foundations could easily fill GiveWell's charities' room for more funding.
(I had taken a similar approach a while ago, and no longer think that's the right comparison to make.)
I noticed that I'm confused about this argument because it implies that the worse earning to give is, the more people should do it.
Could you explain more why these are the correct things to compare? I get and agree with your second comparison where you compare salaries.
It seems like this would depend a lot on how you define EA. If you mean "people who attend EA Global" or even "people who read EA forums", that's probably a larger percentage who should do direct work than "people whose choices we hope will be influenced by EA philosophy".
Great post! Here's another possible counter-point: The traditional EA interventions have been easy to quantify: bed nets, cash transfers, deworming, online-ads, leaflets, etc. As we get better at evaluating interventions we tend more towards harder-to-quantify stuff such as influencing politics. What makes the former interventions easy to quantify? One attribute is the fact that they consist of small things bought in large quantities. These are easy to study with RCTs. Running RCTs on areas where salaries are the thing to be funded is impractical.
So if the... (read more)
I think this would vary greatly by cause area - I see global poverty as primarily funding constrained (largely due to the fact that much of it involves transferring wealth). Unsure about existential risk, but I think animal causes are more human capital constrained. It's interesting what Jacy said about ACE - I'm curious if he would extend that to animal charities more broadly. It seems to me like the sorts of things that would make a difference for animals could use more organizers and charismatic personalities relative to money.
This may not be the best place to ask, but I'm wondering why "the criteria for earning-to-give" includes ">=$60K annual income"? To me, that seems to be a high minimum that would exclude many who are (at least in their own minds) E2G.
I want to expand what's in the second sentence here. There are a substantial number of EAs already working at a job that they like, that makes them enough money to be able to reasonably donate lots of it. But most of them are probably over 25. Which is onl... (read more)
Here's a completely different route for arguing that giving money may be one of the most effective possibilities for improving the lives of others.
Income inequality is at historic high levels, both globally and in the US (see e.g. http://www.networkideas.org/networkideas/pdfs/global_inequality_ortiz_cummins.pdf)
Income inequality is robustly correlated with unhappiness (see e.g. http://www.lisdatacenter.org/wps/liswps/614.pdf)
Therefore, there may be a large opportunity in income redistribution.
I realize this is not a quantitative analysis, partiall... (read more)
I believe one aspect of Earning to Give which is understudied and would have significant impacts on these calculations, is the long term viability of giving rates on an individual level. The earning to give strategy necessarily places altruistic people in the midst of largely non-like minded individuals for decades at a time. In what world do we not think this will have an effect on the working givers? To not consider defection rates is naive at best and sloppy science at worst.