The challenge of charity giving is often the overwhelming number of worthy causes coupled with the feeling of finite resources. How do we ensure our contributions do the most good?
This effectiveness concern is at the heart of the effective altruism movement, which applies evidence and analysis to determine the most beneficial ways to impact the world. It's relevant for anyone from individual donors to business owners looking to maximise their social responsibility efforts through strategic frameworks for impactful philanthropy.
The Heart and the Head of Giving
Giving is often a battle between emotion and reason. People often wonder how to spend their time and money in the most effective way. Emotional giving, while sincere, can be impulsive and short-sighted. In contrast, effective altruism prioritises a rational approach through research and pragmatic support of perhaps less visible causes, without completely discarding the emotional aspect. The effective altruism movement is about doing the most good you can do.
Strategic Giving for Maximising Impact
Strategic giving, while seemingly complex, starts with assessing what causes to support and the impact of your donation. Effective altruism also advocates 'cause neutrality’, which focuses on globally pressing issues, ensuring efforts address humanity’s biggest challenges.
How to Choose the Right Charities
Selecting impactful charities requires scrutiny–evaluating their impact model, governance, transparency, effectiveness, and financial model–to ensure your support is well placed.
Consider these 5 questions, for choosing a charity, career and a cause to increase your impact in all areas of your life - when you're donating, signing up to volunteer, supporting an emergency appeal or shopping to buy ethically produced goods:
- How many people benefit and by how much will this improve people's lives?
- Is this the most effective thing you can do?
- Is this area neglected?
- What would have happened otherwise?
- What are the chances of success and how good would success be?”
Giving unrestricted and multi-year funding can be the best way to support a charity you trust. Ask the charity what is underfunded, what they really need support with (not what they think you want to fund) and truly listen and seek to understand. Through your assessment and engaging the charity to understand their model, you can ensure that you're supporting organisations that are doing good and doing it well.
Earning to Give: Thought-Provoking Perspectives
One of the more controversial aspects of effective altruism is the notion of 'earning to give'. This idea challenges the traditional view that working in the for-profit sector can't be as altruistic as working for a non-profit or charitable organisation. 'Earning to give' suggests that individuals can maximise their positive impact by working in lucrative fields and committing a significant portion of their income to effective charities.
The rationale is that not all skill sets are equally valuable in the philanthropic space. By seeking high-paying jobs and donating the resulting income, individuals can often do more good than they would in less remunerative roles. It also means not taking up a job in the for-purpose sector that could be taken up by someone else, instead applying your intellect and skills to a job with higher earning capacity. This isn't an argument against dedicating your career to serving others; rather, it's an alternative path that can be equally — if not more — impactful.
Philanthropy Beyond Donations
While financial contributions are crucial, philanthropy is not limited to the act of giving money. Time and talent are equally valuable resources that can be leveraged to create change. Testimonials for a charity is another way you can help - advocating for a charity to bolster more support is impactful.
For individuals who may not have significant financial means, volunteering and pro bono work can be avenues to contribute. Meanwhile, business owners can explore how their core competencies can be used for social good, whether through skilled volunteering, partnerships with not for profits, or conscious/ sustainable business practices that prioritise social and environmental impact alongside profits.
Explore Effective Philanthropy Strategies with BlueRock
The complexity of philanthropy necessitates an informed approach to effective charity giving. Seeking professional guidance in crafting impactful giving strategies and measuring outcomes can be crucial.
By integrating strategy into philanthropy, effective altruism maximises impact and transforms charitable giving into a thoughtful investment in humanity. It underscores that the true value of giving lies in its potential for change. Get in touch with our philanthropy consultants to discuss your giving strategy.
SOURCES:
- William Macaskill's book "Doing Good Better" (2016)
- Peter Singer's book "The Most Good You Can Do" (2016)
