Note that GiveWell carefully tracks room for more funding in its charities. They channeled funding to VillageReach until it had a few years worth of funding at the margin, and then moved on in their recommendation. But they keep track, and when VillageReach again shows that it can use money effectively it will be recommended easily. The problem with Haiti was that there were a lot of donors giving because of the TV images and charity fundraising even though it was clear that there was a surfeit of funding.
If those donors had been more sensible they could have used the recommendations of a service like GiveWell to identify the top organizations. Likewise for scientific research one can back a lab or fund that can allocate resources among many different experiments (or unrestricted grants to Doctors Without Borders which it can allocate to locations of greatest need). This doesn't seem to be too much of a problem in practice, as well as theory.
Wow, GiveWell seems to be really good at what it does. The Haiti thing was a problem, but it DID spawn a lot of giving that otherwise wouldn't happen. Perhaps the organizations who advertise during emergencies shouldn't accept earmarked donations and instead take advantage of the surge of sympathy for disaster victims to acquire funding for the entire program. Or are there laws preventing that?
This topic is not really related to the things normally discussed here, but I think it's really important, and it might interest Less Wrongers, especially since many of us are interested in ethics and utility calculations that are essentially cost-benefit analyses. Bone marrow donation in the United States is managed by the National Marrow Donor Program. Because typing donors for matching purposes can be costly, they often require people signing up to donate to pay a registration fee, which probably prevents a lot of people from signing up. These costs are being covered until the end of the month by a corporate sponsor, which means that right now, all you need to do if you live in the US is go to http://marrow.org/Join/Join_Now/Join_Now.aspx and fill out a simple questionnaire. You will be sent a kit to collect a cheek swab, and then you will be entered into the donor database. Doing this does not require you to donate if a match comes up.
The reason I think this might interest Less Wrongers is that this is a really cheap way to improve the world. According to their website, about 1 in 500 potential donors are actually asked to donate, so registering doesn't actually make it all that likely that you will be asked to do anything more. If you ARE a match for someone who needs a donation, the cost to you is at most the temporary pain of marrow extraction (many donors are asked only for blood cells), whereas the other person’s chance to live is much improved. This looks like a huge net positive.
Unfortunately I only found out about this a few days ago, and it only occurred to me today that this might be a forum of people who would respond to the argument "you can make the world better at little cost to yourself." However, I ask that you go to the website and spend a few minutes signing up. This is like buying a 1 in 500 lottery ticket that SAVES SOMEONE’S LIFE. If the Singularity hits and an FAI can generate perfectly matched marrow for anyone who needs it from totipotency-induced cells, that will be wonderful, but this is a chance to make sure one more person gets there.