Episode #217 Choose Better Charities

Six Problems

• We often spend, invest, or give our money impulsively rather than intentionally.
• Bad charities are rare, but ineffective charities are unfortunately common.
• Positive intentions do not guarantee positive impact.
• The most effective interventions are often unexpected or counterintuitive.
• We can never be an expert in everything.
• We occasionally give out of guilt, shame, or selfish intent.

Nine Principles

• In 2024, Americans gave over $600 billion to charities and nonprofits.
• We may not need to give more to make a difference, but only to give more deliberately.
• We can maximize the impact of our money without moving a single decimal point.
• We should give not only with our hearts but also with our minds.
• It is more helpful to consider per-dollar impact than to consider overhead costs.
• GiveWell is a nonprofit that conducts research to identify the most effective nonprofits.
• We don’t need to wait until we are fully established in our career to live a generous life.
• Most of us can afford to give a little bit more, and many can afford to give a lot more.
• When we become informed about our giving, our excitement about our giving will grow.

Six Practices

• Before giving to a charity, review their annual report and return on investment.
• Diversify the types of charities you give to without spreading your impact too thin.
• Ask friends who are experts in specific fields which charities they recommend.
• Revisit your charitable giving annually by researching evidence-based interventions.
• Practice giving a small amount monthly instead of a large amount annually.
• Consider what is best for others, not what makes you feel best about yourself.