If that's the case, it seems plausible to me that MIRI and CFAR both have interest rates higher than 7.9%, possibly substantially higher. On the other hand, for an individual, the value of having money now as opposed to later is larger than what interest rates would suggest: having more money now makes it easier for you to quit jobs, move places, obtain training, and generally do things that could substantially affect your earning potential.
If you were alive in 1900 do you think that the best charitable opportunities available to you would have been over 5,000x as valuable as the best ones available today?
Do you think that in 2063 effort spent on the best options then available, will be less than 3% as effective as spending today? Do you think that spending in 2100 will be less effective by a factor of ~746?
Topic: I will be in debt for several years, but will eventually have a disposable income. Should I donate now or later?
Here's my situation: I am a student, with student loans and no income. I can take out more loans than I need. Grad PLUS loans have a fixed interest rate of 7.9% - higher than, say, a mortgage rate, or expected stock returns. Some day, I will have those loans paid off, and will have money that I intend to give to charity.
My objectives: to live on less than my means, and give a significant fraction of my income to charity.
Question: When, if ever, should I give to charity before paying off those loans?
My initial reaction is to keep a record of how much I feel like I should be giving now, then give it later, adjusted for interest (at some rate equal to or less than 7.9%) - this would result in a bigger donation, but the same impact on my finances.
The only times I think I should give now, and not later:
1)If I don't believe I will make good on my commitment later on. (I'll presumably have a family and bills, etc, and while I am perfectly happy to live on little myself, I know I will want my kids to have nice things. This is somewhat illogical, but I'm imperfect.)
2)If the most worthwhile charity I find see has a higher interest rate than 7.9%.
3)If I find an opportunity to use my money charitably in which I can do more good than others, or where no one else can or will donate. (Mainly, random acts of kindness to strangers or friends - or, someone is matching my donation)
I doubt I will ever see 2) happen (or if it does, I should raise awareness)
3) doesn't happen very often, but when it does I think it is an acceptable use of funds
1) is the main scenario that concerns me. I've heard that "giving charitably is a habit" (that's why my parents had me tithe as a kid). I think that's true, though I haven't read any research on that. Either way, though, as I have no meaningful income (and my loan "allowance" is way more than I care to borrow), how much should I donate to help form the habit?
What do you think? Also, are there any other reasons to donate sooner and not later?
Edit: Givewell has an article on giving now vs later. Not all of it is relevant to my situation, but one point:
>"Economic growth, increased giving, and smarter giving may mean that giving opportunities are worse in the far future."