One choice a donor faces is whether to donate to the charity with the highest expected value, or diversify their giving across a portfolio of different charities or focus areas.

There are prima facie strong reasons for a risk-neutral donor seeking to maximize the expected value of their donation to donate to only one charity. It may seem as though, if the donor believes their first dollar will do the most good if donated to some charity, they should also donate the second dollar to that charity, and so on until they run out of dollars to donate (Landsburg 1997).

However, there are a number of reasons why diversifying donations may sometimes be justified....

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