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9 Strategies for Effective Donors

-4 Gleb_Tsipursky 29 February 2016 06:33PM

Summary: This piece is mainly of relevance to EA-oriented Less Wrongers. It provides 9 strategies meant to help donors be more effective. It's prompted by conversations about the desire for more introductory-style pieces on various issues aimed at newer members of the EA movement who are trying to get up to speed on both intellectual and pragmatic issues around becoming full-fledged participants. I welcome you to suggest improvements on the strategies described here, and also add other strategies that you think are important.

 

Acknowledgments: Thanks to Rhema Hokama for providing feedback on this post. Any mistakes or oversights and I take full responsibility for all opinions expressed here. Versions of this piece will be published on The Life You Can Save blog and the Intentional Insights blog.

 

 

Introduction

You're generous and kind. You care about other people and want to help them have great lives. You want to make a positive impact on the world and give from your heart to worthy causes. You're a great person!

Yet there's a niggling feeling of doubt at the back of your head when you donate. How do you know that you're giving to the right causes? How do you know that you're giving the right amount and at the right time? How do you know that your generous gifts of time and money actually have the kind of impact you want on the world?

Yet some donors don't have that doubt. They are confident that they give to the right causes, the right amount, and that they are getting what they paid for with their generosity and kindness. They are effective donors!

What are their secrets? They still listen to their heart -- that's why they want to give in the first place -- but they combine the heart and the head to give effectively and avoid giving regret. You can be an effective donor too, and be truly confident that you're making the best decisions with your giving by following nine simple strategies.


1. Be Intentional

Knowledge is power! Effective donors are intentional about figuring out their aims and strategies for giving. They take the time to sit down and decide what goals they want to achieve through their generosity. They think about the kind of impact they want to have in the world. They decide what causes are most important to them - poverty, disease, animal welfare - and rank them by order of importance. Consider the benefit of donations to meta-charities that promote effective giving in the first place. Now, this ranking can be quite difficult to achieve, and there's no right answer, as it depends on your values. Follow this strategy, and you'll know that you are giving to the causes that are right for you!


2. Listen To Yourself

Another rule that effective donors use to give to the right causes is to make sure to listen to themselves above everyone else. They know that they themselves should determine their giving decisions. While they don't let anyone dictate to them what to do, they listen to and consider the opinions of others, and shift their mental maps of reality based on new information they did not know before. Indeed, effective donors are masters at changing their minds with appropriate evidence. However, the key is that they do so for their own reasons, not to please others.


3. Budget Well

There are so many great causes out there that you can't reasonably contribute to all of them. Effective donors prevent that problem by preparing a giving budget! They decide in advance how much resources they want to spend, of both time and money. They distribute their resources to the causes they outlined above by order of importance to themselves. If you do so yourself, you'll be confident that you are giving the right amount!


4. Plan Ahead

Effective donors plan their giving in advance. They know that most people tend to give during the winter holidays, but charities need money throughout the year. So they time their giving to counter the "holiday effect." They also know that charities most benefit from monthly donors who automate monthly donations from their bank accounts or credit cards. Monthly donors enable charities to plan ahead themselves and make the most effective use of each dollar. Another benefit of monthly donations is that effective donors get to feel positive emotions every month when they get a warm thank-you note from the nonprofit. Since both giving and experiencing gratitude are science-based strategies for improving happiness, effective donors are happier! Likewise, effective donors take advantage of holidays to give to nonprofits. By using this strategy, you can ensure that you are giving at the right time, for your own happiness and satisfaction, and for the charities to which you give.


5. Be Flexible

Effective donors are flexible about their giving. They know that their resources change over time in unexpected ways. For example, they might get an unexpected bonus, and decide they have more to give each month. However, they might be laid off and then have less money to give, but more time. They revise their giving budget and plan to make sure it aligns with their resources and priorities. You can commit to giving something every month but allow yourself to change this plan as your circumstances change. Doing so will enable you to make sure you keep giving the right amount and at the right time, no matter what happens.

6. Be Smart

You're a smart shopper. You don't buy the first thing you see on television or in the store window. You take the time to gain confidence that you'll get what you want, for example by reading reviews from well-known websites. Similarly, effective donors don't give to the first charity that puts a commercial on television, or has volunteers going door-to-door or standing in the street and asking for money. In fact, super-donors know that the charity that spends its money on commercials and volunteer time on gathering donations is not using those resources to make an impact in the world. Super-donors read reviews of charities by reputable charity evaluators. For example, GiveWell provides extensive research and makes recommendations for the kind of charities that make the most powerful and positive impact on the world in various cause areas. The Life You Can Save provides not only recommendations, but also an Impact Calculator that can help you see right away what kind of impact your giving can make! Using such tactics will help you make sure that you make the impact you want on the world with your generosity and kindness.


7. Be Effective

You can also gain confidence about your shopping decisions by talking to other smart shoppers. Those shoppers are generally glad to give you advice - they feel good helping you make wise shopping decisions and get to share their knowledge! Similarly, you can talk to effective donors to ensure that your generous donations are going to the best place. More broadly, they can share lots of strategies for being an effective donor. To get some good tips online, you can check out the Effective Altruism Facebook group, read the Effective Altruism Wiki, or simply put the phrase "Effective Altruism" into a search engine and see what comes up. Even better is joining in-person meetings, and you can find a local one near you at the Effective Altruism Hub, or by contacting the Local Effective Altruism Network.

 

8. Be Committed

It’s not easy to keep remembering to make donations and overcoming that part of us that wants to keep the money for ourselves. Fortunately, there’s an easy fix for that used by effective donors! Precommitment is a psychological strategy to help us ensure that our future selves will act in accordance with our current desires. In other words, you can help ensure that your future you will keep making the kind of donations that you want to make. The easiest way of doing so is to take a pledge, such as the Giving What We Can or The Life You Can Save pledge, to commit a portion of your income to charity.


9. Be Proud

Effective donors are not only committed to giving intentionally, but also proud of doing so! They spread this message of the benefits of being an effective donor to others they know. They know that doing so helps other people have better lives by getting rid of that niggling doubt at the back of their heads, and also channels their giving in the most effective fashion. Following this strategy by starting conversations with friends and family, being public about your good deeds, as well as sharing this article with others, can help you multiply the kind of positive impact you have on the world!

 

Conclusion

I hope these strategies prove helpful to you. I welcome your thoughts about this piece, and encourage you to suggest improvements on the strategies described here, and also add other strategies that you think are important.

Conveying rational thinking about long-term goals to youth and young adults

8 Gleb_Tsipursky 07 February 2016 01:54AM
More than a year ago, I discussed here how we at Intentional Insights intended to convey rationality to young adults through our collaboration with the Secular Student Alliance. This international organization unites over 270 clubs at colleges and high schools in English-speaking countries, mainly the US, with its clubs spanning from a few students to a few hundred students. The SSA's Executive Director is an aspiring rationalist and CFAR alum who is on our Advisory Board.

Well, we've been working on a project with the SSA for the last 8 months to create and evaluate an event aimed to help its student members figure out and orient toward the long term, thus both fighting Moloch on a societal level and helping them become more individually rational as well (the long-term perspective is couched in the language of finding purpose using science) It's finally done, and here is the link to the event packet. The SSA will be distributing this packet broadly, but in the meantime, if you have any connections to secular student groups, consider encouraging them to hold this event. The event would also fit well for adult secular groups with minor editing, in case any of you are involved with them. It's also easy to strip the secular language from the packet, and just have it as an event for a philosophy/science club of any sort, at any level from youth to adult. Although I would prefer you cite Intentional Insights when you do it, I'm comfortable with you not doing so if circumstances don't permit it for some reason.

We're also working on similar projects with the SSA, focusing on being rational in the area of giving, so promoting Effective Altruism. I'll post it here when it's ready.  

The Valentine’s Day Gift That Saves Lives

-6 Gleb_Tsipursky 01 February 2016 05:00PM

This is mainly of interest to Effective Altruism-aligned Less Wrongers. Thanks to Agnes Vishnevkin, Jake Krycia, Will Kiely, Jo Duyvestyn, Alfredo Parra, Jay Quigley, Hunter Glenn, and Rhema Hokama for looking at draft versions of this post. At least one aspiring rationalist who read a draft version of this post, after talking to his girlfriend, decided to adopt this new Valentine's Day tradition, which is some proof of its impact. The more it's shared, the more this new tradition might get taken up, and if you want to share it, I suggest you share the version of this post published on The Life You Can Save blog. It's also cross-posted on the Intentional Insights blog and on the EA Forum.

___________________________________________________________________________________________________________

 

The Valentine’s Day Gift That Saves Lives

 

Last year, my wife gave me the most romantic Valentine’s Day gift ever.

We had previously been very traditional with our Valentine’s Day gifts, such as fancy candy for her or a bottle of nice liquor for me. Yet shortly before Valentine’s Day, she approached me about rethinking that tradition.

Did candy or liquor truly express our love for each other? Is it more important that a gift helps the other person be happy and healthy, or that it follows traditional patterns?

Instead of candy and liquor, my wife suggested giving each other gifts that actually help us improve our mental and physical well-being, and the world as a whole, by donating to charities in the name of the other person.

She described an article she read about a study that found that people who give to charity feel happier than those that don’t give. The experimenters gave people money and asked them to spend it either on themselves or on others. Those who spent it on others experienced greater happiness.

Not only that, such giving also made people healthier. Another study showed that participants who gave to others experienced a significant decrease in blood pressure, which did not happen to those who spent money on themselves

So my thoughtful wife suggested we try an experiment: for Valentine’s Day, we'd give to charity in the name of the other person. This way, we could make each other happier and healthier, while helping save lives at the same time. Moreover, we could even improve our relationship!

I accepted my wife’s suggestion gladly. We decided to donate $50 per person, and keep our gifts secret from each other, only presenting them at the restaurant when we went out for Valentine’s Day.

While I couldn’t predict my wife’s choice, I had an idea about how she would make it. We’ve researched charities before, and wanted to find ones where our limited dollars could go as far as possible toward saving lives. We found excellent charity evaluators that find the most effective charities and make our choices easy. Our two favorites are GiveWell, which has extensive research reports on the best charities, and The Life You Can Save, which provides an Impact Calculator that shows you the actual impact of your donation. These data-driven evaluators are part of the broader effective altruism movement that seeks to make sure our giving does the most good per dollar. I was confident my wife would select a charity recommended by a high-quality evaluator.

On Valentine’s Day, we went to our favorite date night place, a little Italian restaurant not far from our house. After a delicious cheesecake dessert, it was time for our gift exchange. She presented her gift first, a donation to the Against Malaria Foundation. With her $50 gift in my name, she bought 20 large bed-size nets that would protect families in the developing world against deadly malaria-carrying mosquitoes. In turn, I donated $50 to GiveDirectly, in her name. This charity transfers money directly to recipients in some of the poorest villages in Africa, who have the dignity of using the money as they wish. It is like giving money directly to the homeless, except dollars go a lot further in East Africa than in the US.

We were so excited by our mutual gifts! They were so much better than any chocolate or liquor could be. We both helped each other save lives, and felt so great about doing so in the context of a gift for the other person. We decided to transform this experiment into a new tradition for our family.

It was the most romantic Valentine’s Day present I ever got, and made me realize how much better Valentine’s Day can be for myself, my wife, and people all around the world. All it takes is a conversation about showing true love for your partner by improving her or his health and happiness. Is there any reason to not have that conversation?

 

Open Thread: What are your important insights or aha! moments?

16 Emile 09 November 2014 10:56PM

Sometimes our minds suddenly "click" and we see a topic in a new light. Or sometimes we think we understand an idea, think it's stupid and ignore attempts to explain it ("yeah, I already know that"), until we suddenly realize that our understanding was wrong.

This kind of insight is supposedly hard to transmit, but it might be worth a try!

So, what kind of important and valuable insights do you wish you had earlier? Could you try to explain briefly what led to the insight, in a way that might help others get it?