A study found that when people first pledge an amount and later decide on the specific charity, they give more money and allocate it more effectively. Decoupling these two decisions reduces cognitive load, allowing for more rational consideration of impact when choosing a recipient.
Related Insights
The key insight in effective giving is not just comparing charities, but recognizing that most individuals can dramatically increase their positive impact by redirecting donations to highly effective opportunities they are likely unaware of, achieving up to 100 times more good with their money.
To avoid guilt, divide spending into three buckets: 1) yourself, 2) causes you're passionate about, and 3) high-impact, evidence-based charities. This approach encourages adding effective giving without demanding the sacrifice of personal or local donations, making the practice more sustainable.
Your personal donations are just one part of your potential impact. By talking about your giving and inspiring just one other person to match your commitment, you can effectively double your philanthropic output. This interpersonal multiplier is a powerful and often overlooked form of leverage in doing good.
A critical flaw in philanthropy is the donor's need for control, which manifests as funding specific, personal projects instead of providing unrestricted capital to build lasting institutions. Lasting impact comes from empowering capable organizations, not from micromanaging project-based grants.
Avoid being preachy when discussing effective giving. Instead of telling people what to do, share your own journey and what motivates you. Then, genuinely ask for their thoughts and what they care about. This approach fosters an open conversation and strengthens relationships, making it more effective than a direct pitch.
Committing to a lifetime pledge can seem daunting. A better mental model is to treat it like marriage: a very serious commitment not entered into lightly, but one that can be exited if fundamental circumstances change. This "de-pledge" option makes the initial commitment more approachable.
Frame philanthropic efforts not just by direct impact but as a "real-world MBA." Prioritize projects where, even if they fail, you acquire valuable skills and relationships. This heuristic, borrowed from for-profit investing, ensures a personal return on investment and sustained engagement regardless of the outcome.
Instead of pitching a single idea, which invites a yes/no response, present two or three pre-approved options. This gives the other person a sense of autonomy and changes their mental calculus from rejecting your one idea to choosing the best option for them.
A charity like Make-A-Wish can demonstrably create value, even exceeding its costs in healthcare savings. However, the same donation could save multiple lives elsewhere, illustrating the stark opportunity costs in charitable giving. Effective philanthropy requires comparing good options, not just identifying them.
Unlike efficient markets, the charitable sector often rewards organizations with the best storytelling, not those delivering the most value. This lack of a feedback loop between a donation and its real-world impact means incentives are misaligned, favoring persuasion over proven effectiveness.