knb comments on It's okay to be (at least a little) irrational - Less Wrong
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This is not necessarily true. For some charities, the marginal utility is very high up to, say, the first $10 million. After that point, returns on each dollar donated might start to rapidly decline.
Admittedly this is mainly a problem for larger donors, though.
The rule becomes general as long as the income you have available for altruism is orders of magnitude lower than the budgets of the charities you might wish to fund.