As earn to giver, I found contributing to funding diversification challenging
Jeff Kaufmann posted a different version of the same argument earlier than me.
Some have argued that earning to give can contribute to funding diversification. Having a few dozen mid-sized donors, rather than one or two very large donors, would make the financial position of an organization more secure. It allows them to plan for the future and not worry about fundraising all the time.
As earn to giver, I can be one of those mid-sized donors. I have tried. However, it is challenging.
First of all, I don't have expertise, and don't have much time to build the expertise. I spend most of my time on my day job, which has nothing to do with any cause I care about. Any research must be done in my free time. This is fine, but it has some cost. This is time I could have spent on career development, talking to others about effective giving, or living more frugally.
Motivation is not the issue, at least for me. I've found the research extremely rewarding and intellectually stimulating to do. Yet, fun doesn't necessarily translate to effectiveness.
I've seen peer earn to givers just defer to GiveWell or other charity evaluators without putting much thought into it. This is great, but isn't there more? Others said that they talked to an individual organization, thought "sounds reasonable", and transferred the money. I fell for that trap too!
There is a lot at stake. It's about hard-earned money that has the potential to help large numbers of people and animals in dire need. Unfortunately, I don't trust my own non-expert judgment to do this.
So I find myself donating to funds, and then the funding is centralized again. If others do the same, charities will have to rely on one grantmaker again, rather than a diverse pool of donors.
Ideas
What would help to address this issue? Here are a few ideas, some of them are already happening.
* funding circles. Note that most funding circles I know r
Last night, I quickly thumbed through the websites (and Ambitious Impact listings) of some smaller charities as I started thinking about my end of year giving plans.
I'd encourage smaller orgs to refer to something on their website dated within the past few months -- an event, a dated blog post, etc. -- that the median website visitor will ~quickly see. This is particularly true if the website refers to more distant events, has older-dated blog posts, etc. Without some indicator of freshness, the visitor may be left uncertain whether the org is still meaningfully active and potentially worth funding. After all, the closure rate for small, new orgs is not low.
[Caveats: the thumbing was on mobile, while taking a bath, and at the end of a difficult day, so there could easily have been misses on my part]
Anyone know any Earn-To-Givers who might be interested in participating in an AMA during Giving Season? If a few are interested, it might be fun to experiment with an AMA panel, where Forum users ask questions, and any of the AMA co-authors can respond/ co-authors can disagree.
Why? Giving Season is, in my opinion, a really great time to highlight the earn-to-give work which is ongoing all year, but is generally under-celebrated by the EA community. + Earn-to-givers might have good insights on how to pick donation targets during the donation election, and Giving Season more generally.
I was going through Animal Charity Evaluators' reasoning behind which countries to prioritize (https://animalcharityevaluators.org/charity-review/the-humane-league/#prioritizing-countries) and I notice they judge countries with a higher GNI per capita as more tractable. This goes against my intuition, because my guess is your money goes further in countries that are poorer. And also because I've heard animal rights work in Latin America and Asia is more cost-effective nowadays. Does anyone have any hypotheses/arguments? This quick take isn't meant as criticism, I'm just informing myself as I'm trying to choose an animal welfare org to fundraise for this week (small, low stakes).
When I have more time I'd be happy to do more research and contact ACE myself with these questions, but right now I'm just looking for some quick thoughts.
David Rubinstein recently interviewed Philippe Laffont, the founder of Coatue (probably worth $5-10b). When asked about his philanthropic activities, Laffont basically said he’s been too busy to think about it, but wanted to do something someday. I admit I was shocked. Laffont is a savant technology investor and entrepreneur (including in AI companies) and it sounded like he literally hadn’t put much thought into what to do with his fortune.
Are there concerted efforts in the EA community to get these people on board? Like, is there a google doc with a six degrees of separation plan to get dinner with Laffont? The guy went to MIT and invests in AI companies. In just wouldn’t be hard to get in touch. It seems like increasing the probability he aims some of his fortune at effective charities would justify a significant effort here. And I imagine there are dozens or hundreds of people like this. Am I missing some obvious reason this isn’t worth pursuing or likely to fail? Have people tried? I’m a bit of an outsider here so I’d love to hear people’s thoughts on what I’m sure seems like a pretty naive take!
https://youtu.be/_nuSOMooReY?si=6582NoLPtSYRwdMe
A hack to multiply your donations by up to 102%
Disclaimer: I'm a former PayPal employee. The following statements are my opinion alone and do not reflect PayPal's views. Also, this information is accurate as of 2024-10-14 and may become outdated in the future.
More donors should consider using PayPal Giving Fund to donate to charities. To do so, go to this page, search for the charity you want, and donate through the charity's page with your PayPal account. (For example, this is GiveDirectly's page.)
PayPal covers all processing fees on charitable donations made through their giving website, so you don't have to worry about the charity losing money to credit card fees. If you use a credit card that gives you 1.5 or 2% cash back (or 1.5-2x points) on all purchases, your net donation will be multiplied by ~102%. I don't know of any credit cards that offer elevated rewards for charitable donations as a category (like many do for restaurants, groceries, etc.), so you most likely can't do better than a 2% card for donations (unless you donate stocks).
For political donations, platforms like ActBlue and Anedot charge the same processing fees to organizations regardless of what payment method you use.[1] So you should also donate using your 1.5-2% card.
1. ^
ActBlue: 3.95% on all transactions.
Anedot: For non-501(c)(3) organizations, 4% + 30¢ on all transactions except Bitcoin and 1% on Bitcoin transactions. 501(c)(3) organizations are charged a much lower rate for ACH transactions.
I'm concerned about the new terms of service for Giving What We Can, which will go into effect after August 31, 2024:
This is a significant departure from the Effective Ventures' TOS (GWWC is spinning out of EV), which has users grant EV an unlimited but non-exclusive license to use feedback or suggestions they send, while retaining the right to do anything with it themselves. I've previously talked to GWWC staff about my ideas to help people give effectively, like a donation decision worksheet that I made. If this provision goes into effect, it would deter me from sharing my suggestions with GWWC in the future because I would risk losing the right to disseminate or continue developing those ideas or materials myself.
Marcus Daniell appreciation note
@Marcus Daniell, cofounder of High Impact Athletes, came back from knee surgery and is donating half of his prize money this year. He projects raising $100,000. Through a partnership with Momentum, people can pledge to donate for each point he gets; he has raised $28,000 through this so far. It's cool to see this, and I'm wishing him luck for his final year of professional play!