I assume that one reason individual donations can be especially valuable is if they free FHI researchers up from writing grant proposals so they can spend more time doing actual research.
Correct.
In fact, it might be the best use of additional funding for FHI. An additional 10 hours of x-risk work (rather than grant-writing) from Nick Bostrom or Stuart Armstrong is hard to beat in terms of x-risk reduction purchased per dollar. (The other 'core' FHI researcher, Anders Sandberg, seems to do x-risk work less frequently than Nick and Stuart.)
Similarly, at SI we're always trying to find ways to spend money to "free up" Eliezer, since additional hours of x-risk work from Eliezer are also very hard to beat in terms of x-risk reduction purchased per dollar.
Is he still teaching a bayes class at minicamps?
In case you didn't already know: The Future of Humanity Institute, one of the three organizations co-sponsoring LW, is a group within the University of Oxford's philosophy department that tackles important, large-scale problems for humanity like how to go about reducing existential risk.
I've been casually corresponding with the FHI in an effort to learn more about the different options available for purchasing existential risk reduction. Here's a summary of what I've learned from research fellow Stuart Armstrong and academic project manager Sean O'Heigeartaigh:
Although neither Stuart nor Sean mentions this, I assume that one reason individual donations can be especially valuable is if they free FHI researchers up from writing grant proposals so they can spend more time doing actual research.
Interesting comment by lukeprog describing the comparative advantages of SIAI and FHI.