Comment author: wdmacaskill 04 March 2013 01:38:23AM 13 points [-]

(part 3; final part)

Second: The GWWC Pledge. You say:

“The GWWC site, for example, claims that from 291 members there will be £72.68M pledged. This equates to £250K / person over the course of their life. Claiming that this level of pledging will occur requires either unreasonable rates of donation or multi-decade payment schedules. If, in line with GWWC's projections, around 50% of people will maintain their donations, then assuming a linear drop off the expected pledge from a full time member is around £375K. Over a lifetime, this is essentially £10K / year. It seems implausible that expected mean annual earnings for GWWC members is of order £100K.”

Again, there are quite a few mistakes:

First, in comments you twice say that “£112.8M” has been pledged rather than “$112.8M”. I know that’s just a typo but it’s an important one.

Second, you say that the GWWC site claims that, “there will be £72.68M pledged” (future tense). It doesn’t, it says, “$112.8mn pledged” (past tense). It’s a pretty important difference – the pledging is something that has happened, not something that will happen. This might partly explain the confusion discussed in point 4, below. Third, and more substantively, you don’t consider the idea, raised in other comments, that some donors might be donating considerably more than 10%, or that some donors might be donating considerably more than the mean. Both are true of GWWC pledgers.

Fourth, you seem to wilfully misunderstand the verb ‘to pledge’. I regularly make the following statement: “I have pledged to give everything I earn above £20 000 p.a. [PPP and inflation-adjusted to Oxford 2009]”. Am I lying when I say that? Using synonyms, I could have said “I promise to give…”, “I commit to give…” or “I sincerely intend to give…”. None of these entail “I am certain that I will donate everything above £20 000 p.a.”. Using my belief that I will earn on average over £42 000 p.a. [PPP and inflation-adjusted to Oxford 2009] over the course of my life, and that I will work until I’m 68, I can infer that I’ve pledged to give over £1 000 000 over the course of my life, which is also something I say. Am I lying when I say that? (Also note that if only 73 people made the same pledge as me, then we would have jointly pledged the current GWWC amount).

Fifth, I don’t know why you took us to use the $100mn pledged figure as an estimate of our impact. In fact you had evidence to the contrary. In a blog post that you cite I said: “As of last March, we’d invested $170 000’s worth of volunteer time into Giving What We Can, and had moved $1.7 million to GiveWell or GWWC top-recommended development charities, and raised a further $68 million in pledged donations. Taking into account the facts that some proportion of this would have been given anyway, there will be some member attrition, and not all donations will go to the very best charities (and using data for all these factors when possible), we estimate that we had raised $8 in realised donations and $130 in future donations for every $1’s worth of volunteer time invested in Giving What We Can.” (emphasis added).

Finally, I think that the GWWC pledge is misleading only if it’s taken to be a measure of our impact. But we don’t advertise it as that. We could try to make it some other number. We could adjust the number downwards, in order to take into account: how much would have been given anyway; member attrition; a discount rate. Or we could adjust the number upwards, in order to take into account: overgiving; real growth of salaries, and inflation. It could also be adjusted downward to take into account that not all donations are to GW or GWWC recommended charities, or (perhaps) upwards to take into account the idea that we will have better evidence about the best giving opportunities in a few years’ time, and thereby be able to donate to charities better than AMF, SCI or DtW. But any number we gave based on these adjustments would be more misleading and arbitrary than the literal amount pledged. It would also be more confusing for the large majority of our website viewers who haven’t thought about things like counterfactual giving or whether the discount rate should be positive or negative over the next few years; they’re used to the social norm which is to advertise pledges as stated. Until you, no-one who does understand issues such as counterfactual giving and discount rates has understood the amount pledged figure as an impact-assessment.

In comments there was some uncertainty about how we come up with the total pledged figure. What we do is as follows. Each member, when they return their pledge form, states a) what percentage they commit to (or, if taking the Further Pledge, the baseline income above which they give everything); b) their birthdate; c) their expected average earnings per annum. Assuming a (conservative) standard retirement age, that allows us to calculate their expected donations. In some cases, members understandably don’t want to reveal their expected earnings. What we used to do, in such cases, is to use the mean earnings of all the other members who have given their incomes. However, when, recently, one member joined with very large expected earnings (pursuing earning to give), we raised the question whether this method suffers from sample bias, because people who expect to earn a lot will be more likely to report. I’m not sure that’s true: I could imagine that people who earn more often don’t want to flaunt that fact. However, wanting to be conservative, we decided instead to use the mean earnings of the country in which the member works.

Bottom Line for Readers If you’re interested in the question of whether 80,000 Hours and Giving What We Can have acted optimally or will act optimally in the future, the answer is simple: certainly not. We inevitably do some things worse than we could have done, and we value your input on concrete suggestions about how our organisations can improve.

If you’re interested in the question of whether $1 invested in 80,000 Hours or Giving What We Can produces more than $1’s worth of value for the best causes, read here, here, here and here and, most of all, contact me for the calculations and, if you’d like, our latest business plan, at will dot crouch at 80000hours.org. So far, I haven’t seen any convincing arguments to the conclusion that we fail to have a ROI greater than 1; however, it’s something I’d love additional input on, as the outside view makes me wary about believing that I work for the best charity I know of.

Comment author: wdmacaskill 04 March 2013 01:38:11AM 14 points [-]

(part 2) The most important mistakes in the post

Bizarre Failures to Acquire Relevant Evidence As lukeprog noted, you did not run this post by anyone within CEA who had sufficient knowledge to correct you on some of the matters given above. Lukeprog describes this as ‘common courtesy’. But, more than that, it’s a violation of a good epistemic principle that one should gain easily accessible relevant information before making a point publicly.

The most egregious violation of this principle is that, though you say you focus on the idea that donating to CEA has a ROI greater than 1, and though you repeatedly ask for a ‘calculation’ of impact and claim that CEA is not credible for not being able to provide such a calculation, you haven’t contacted me for the calculation of GWWC’s impact per dollar invested. This isn’t something I’ve been shy about — in a blog post that you link to (as well as elsewhere) I prominently describe this calculated impact-assessment, and invite people to contact me if they want the spreadsheet with the calculation. Insofar as this was the cornerstone of your concern, it’s odd that you didn’t contact me for the spreadsheet. Comments on that impact-assessment would have been helpful, but as far as I’m aware you haven’t read it.

Another example is where you suggest that little thought went into the change of the 80,000 Hours’ declaration of intent. Again, this is information that would have been easily accessible via a quick email to me or Ben Todd. As it happens, the declaration has gone through several iterations; there has been discussion on the core 80,000 Hours’ lists; Ben, myself and other have independently written proposals; and we commissioned one of our best interns to research the topic as part of our general marketing strategy. We concluded that having a lower initial barrier to entry was wise, because it would increase the total number of members, allow us to be more mainstream, and increase the total (though not the proportion) of members who make significant changes to their careers and thereby make the world a significantly better place. (We are also currently discussing whether to introduce a further pledge along the lines of “I intend to dedicate my life to whatever does the most good.”) It wouldn’t be an underestimate to say that several person-weeks of thought and research have gone into the pledges.

A further example is where you guess the number of researchers we have. Again, you could have e-mailed for this information, rather than trying to guess on the basis of the names listed on the website. For this reason, you substantially overestimated how many person-hours we command. Between CEA, over the last six months we have had the equivalent of 3.7 full-time staff. The first 2.6 of these started in July last year, another joined in late September and another in January. GWWC currently has the equivalent of two full-time staff; 80,000 Hours has the equivalent of two and a half full-time staff. For this reason (and perhaps also the planning fallacy), I think you severely overestimate the amount of research we could reasonably expect to deliver in that time.

Another example is where you quote the number of people we have on our mailing lists. This is a good example, because it’s one where I spoke incorrectly in Cambridge. I said that one third of Oxford students were on our mailing list; what I should have said was that about 20% of students coming through fresher’s fair were on our mailing list. It’s precisely errors like these — easy to make in the context of an impromptu group discussion — that show the value of making sure that one’s evidence is reliable.

A further example is where you say “it has been stated that GWWC has an internal price of around £1700 for new pledges” and then, in your response to my query about where this number came from, said that it came from Jacob Trefethen — a volunteer at a chapter, and not currently involved with core GWWC and 80k activities. Again, this is not the sort of evidence on which it’s rational to base a critique — when the option of simply asking me or someone else who works on strategy within CEA was merely an email away.

Another example was: “a large fraction of the people involved with 80,000 hours or GWWC behave like dilettantes”… “Nor do they seem to act as if they wish to seriously optimise the world.” But, as far as I know, you know only one person who works at CEA, Adam Casey, who is an unpaid intern, and you have about one hour’s worth of contact with me. I doubt that, if you knew us personally, and not through material written for an audience encountering the ideas of effective altruism for the first time, you would doubt our intention and commitment to "seriously optimise the world" as you put it. Seeing as this is LessWrong, I'll quote Eliezer Yudkowsky (stated in an independent internet conversation on Ycombinator). In response to the question, “What application of $4B would, right now, generate the most utility for humanity?” he replied: “If you know the word "utility", the people who actually seriously try to figure out the answer to that question live at: * http://www.givingwhatwecan.org/ * http://www.givewell.org/ * http://80000hours.org/

Embarrassingly Poor Arguments First: You ask: “For example, the world bank throws ~$43B/year around. Which is easier: To upscale GWWC by a factor of ~17000, or double the mean effectiveness of the World Bank? This should not be a hypothetical question; it should be answered.”

There are a few mistakes here:

First, your comment suggests that you know that we haven’t thought about this. But that’s misleading, because you haven’t ever asked us if we’ve thought about it.

Second, I have no idea where your numbers come from. After searching (inc. here) I still don’t know where $43bn number comes from. And, after trying to figure it out, I also don’t know where your “17 000” figure comes from. GWWC has so far moved $2.5 million and raised $100mn in pledges. Even discounting the literal pledges by 99% and valuing them at $1mn (which would be far too steep in my view), the appropriate figure would be 12 300. So, whatever the basis, 17 000 seems too high.

Third, even neglecting the above points, your figure would only be correct if the cost-effectiveness of the World Bank’s spending were the same as the cost-effectiveness of GWWC top-recommended charities. But we think, and presumably you agree, that the cost-effectiveness of GWWC’s top-recommended charities are significantly better than the World Bank’s mean cost-effectiveness. Aside from anything else, there’s a major difference between donations and loans. Fourth, if you want to maximize impact yours is not the correct question to ask. If it will get progressively harder to grow GWWC, and if one think that the likelihood of achieving either outcome is very low (both reasonable assumptions), then it could be true that (i) it is easier to double the mean effectiveness of the World Bank than to increase GWWC’s size by a factor of 17000 and (ii) that one ought to use one’s marginal time and resources to grow GWWC. The reason these could both be true is that the marginal benefits from growing GWWC are greater than the marginal benefits of trying to double the effectiveness of the World Bank. Given this, it’s unclear why this question “should be answered”. Fifth, the question implicitly neglects the fact that growing GWWC has substantial knock-on benefits, including increasing the ability of some GWWC members to influence major international organisations like the World Bank (see the background on Toby’s activities, above).

In general: i) Starting with something smaller and easier to achieve has instrumental cumulative benefits and option value in a way that staking everything on one big goal does not. ii) Directly doubling the effectiveness of the World Bank – and other similar projects – is not the comparative advantage of existing EAs in Oxford. Given our success generating and mobilising talented altruists, I think the team here will have greater success taking an indirect route than by attempting to do it directly ourselves. We can use e.g. 80,000 Hours to identify precisely those who have or could develop the requisite skills, credentials and values, and provide them the encouragement, information and practical assistance required to get into positions of major influence over aid effectiveness. Finding and convincing someone to pursue this career is much easier than dedicating your entire life to it yourself, which is what led us to set up 80,000 Hours in the first place.

That’s not to say we aren’t open to the idea. It’s one of my main concerns about my current activities. But it’s misleading to suggest that you have good evidence to believe that we haven’t considered it.

Comment author: wdmacaskill 04 March 2013 01:36:51AM *  14 points [-]

(part 1) Summary Thanks once again, Jonathan, for taking the time to write publicly about CEA, and to make some suggestions about ways in which CEA might be falling short. In what follows I’ll write a candid response to your post, which I hope you’ll take as a sign of respect — this is LW and I know that honesty in this community is valued far more than sugarcoating. Ultimately, we’re all aiming here to proportion our beliefs to our evidence, and beating around the bush doesn’t help with that aim.

In your post you raise some important issues — often issues that those within CEA have also been thinking about. In general, however, the methodology by which you researched and wrote your post was poor. For this reason, there are crucial factual errors in your post that could easily have been avoided, and errors of argumentation that border on embarrassing. This is unfortunate. Powerful criticism of CEA’s activities is extremely important to us: in fact, in the absence of more direct forms of feedback (like profit and loss), it’s vital. But writing poorly researched and poorly thought-through criticism adds more noise than signal; this makes it harder for us in the future to distinguish the incisive and well-evidenced criticism from the rest, which just harms everyone.

I’ll mention some of the issues that you’ve raised that I think are important to think about, before going on to detail some of the mistakes you make in your post. I’ll note just now that, because of other commitments, this post will be the last I make on this thread.

Some Important Points

Individuals vs Large Organizations You ask why we focus on individuals, rather than large foundations, or governments, or intergovernmental institutions like the World Bank. This is a good question, and something we wrestle with. Indeed, it’s also something we’ve pursued. The media attention generated by Giving What We Can has provided a platform for Dr Toby Ord, the principal founder of GWWC, to travel to and speak to the UK Secretary of State for Development, the UK’s Department for International Development, the Centre for Global Development, 10 Downing Street, the Disease Control Priorities Network, the WHO and as it happens, the World Bank, about aid cost effectiveness and how to increase it. He has already had some success in this regard, which wouldn’t have been possible without GWWC, and he expects to spend a significant proportion of his career on this issue.

The question of whether to spend marginal resources influencing individuals versus governmental and international organisations is non-trivial to answer: international organisations have larger budgets, but are more difficult to access and more difficult to influence. If you think it obvious that we should be influencing the latter, I’d be interested to know your reasons. Later in this response, I’ll discuss your suggestion in more depth.

Transparency You raised concerns about the transparency of GWWC and 80,000 Hours. I agree that this is something that both organisations could work on. We have taken steps so far in the direction of transparency, especially in making the organisations transparent to donors and potential donors. Both 80k and GWWC have in-depth 6-monthly reviews, where their progress is assessed internally by the trustees (myself, Nick Beckstead and Toby Ord), and externally, by people, often donors, within the effective altruism community who are not closely involved with the running of the organisation. GWWC has posted on this here, and noted that if you wanted to read the reports from the review you are able to request them. 80,000 hours will make a similar post soon.

In addition, at the request of Giles, I opened CEA up for questioning on LessWrong, and wrote a detailed response to the questions posted there. I try to provide in-depth responses to any questions I receive via e-mail. And I provide the spreadsheet and explanation of an in-depth calculation of GWWC’s impact per dollar to anyone who asks (accurate as of ~March 2012 – we plan to do this annually).

One issue in keeping a start-up organisation transparent is that the nature of our activities changes rapidly. The very idea of 80,000 Hours as primarily a service organization, providing free careers advice, was only thought up in early July 2012. People switch positions regularly while we get a better understanding of whose comparative advantage lies where. It’s difficult to be transparent and non-misleading when you know that the facts might change radically within the space of a few months. There are also many things to be done, and investing in increased transparency has to be weighed against raising more money, or pledges, or making more career changes. So far, we’ve focused on being transparent to our donors and potential donors, which I still think is the right call — but it’s important to think about and reassess this on a regular basis. I’d welcome further thoughts on if you think that we’ve made the wrong trade-off here.

Publishing You briefly suggest the idea that we should use publications as a metric of research output. This is also something that’s worth thinking about. Publishing increases one’s academic reputability, and the scrutiny of peer review improves the reliability of one’s research. However, it is far more time-consuming than one might expect, because one has to tailor one’s research to the norms of the journal, and is especially slow if one is publishing within philosophy journals. (A paper of mine was under review for 10 months from one journal.) It also biases research towards ideas that are publishable, even if less important. So it’s a difficult issue.

For reasons of time, GiveWell don’t publish at all (but the resulting lack of peer review is something I’ve raised as a concern about their research); whereas, in order to boost reputation, MIRI are aiming to publish. At the moment, publishing isn’t a high priority for us, but we do some. I’ve published the central argument in favour of earning to give (it’s forthcoming in Ethical Theory and Moral Practice, available here), and I’m planning to write a book on effective altruism over the next year, from which I might publish a few articles. But beyond that, we’d rather focus on getting the ideas right. However, that’s something we could easily be mistaken about, and is worthy of discussion.

With these points noted, I’ll move on to the mistakes made within the post.

Some misleading aspects of the post

Factual Errors I mention these in my other comment on this post.

One other thing to note is that the 80k pledge was never focused on global poverty. The previous declaration was: I declare that I aim to pursue a career as an effective altruist.

This means that I intend to: (i) Devote a significant proportion of my time or resources to helping others. (ii) Use the time or resources I give as effectively as possible in helping others. (iii) Choose my career based at least in part on how it enables me to further my altruistic aims. And prior to that the declaration was: I pledge that, over my lifetime, I will dedicate 10% of my time or money (or any combination of the two) to those causes that I believe will do the most good with the resources I give them. I understand that it is difficult to know the best way of doing good in the world, and so I will choose those cause(s) on the basis of the best evidence that is available to me at the time. Further, I will deliberately pursue a career that will considerably improve my ability to further those causes I believe to be best.

The new declaration is: "I intend, at least in part, to use my career in an effective way to make the world a better place." More discussion on these changes later.

Misleading statements “In recent conversation with Will Crouch”… “In conversation with Will Crouch”… “these discussions” I mention this in my other post but it’s worth repeating. Though your post suggests that we had at least two one-on-one conversations, this never happened. We spoke only during a question-and-answer session after a short talk I gave.

“There wasn't any particular defence of the choice of wording [of the 80k declaration of intent] or any indication that there had been deep thought about precisely what that pledge should constitute.” This is technically true. However, it’s misleading insofar as I wasn’t asked why the declaration of intent was changed, nor was I asked how much time had gone into thinking about revising the declaration of intent.

“The key argument in favour of donating money to CEA which was presented by Will was that by donating $1 to CEA you produce more than $1 in donations to the most effective charities. We present some apparent difficulties with this remaining true on the margin.” This suggests that your post was primarily about difficulties with inferring marginal cost-effectiveness from past average cost-effectiveness. I think that that’s a very important topic (hey, maybe 99.9% of the value of CEA comes from me! In which case marginal cost-effectiveness would be much lower than past average cost-effectiveness), but as far as I can tell in your post you don’t address that issue anywhere.

Comment author: wdmacaskill 21 February 2013 11:54:54PM *  32 points [-]

Hi Jonathan,

First off, thanks for putting so much time into writing this extensive list of questions and doubts you have about CEA. Unlike for-profit activities, we don't have immediate feedback effects telling us when we're doing well and when we're doing badly, so criticism is an important countermeasure to make sure we do things as well as possible. We therefore really welcome people taking a critical eye to our activities.

As the person who wrote the original CEA material here on LessWrong, and the person who you mention above, I feel I should be the one to collate a response to your questions. However, because of other commitments (managing; fundraising; writing my first piece for a magazine column), it will be a few days before I can get this to you in a form I'd feel happy with. I hope that's ok.

Before then I'll just mention a few things in order to make things a bit clearer to the audience.

  • In what you wrote a couple of comments made it sound as if you'd had an in-depth conversation with me on these issues; whereas really the context of the only exchange we've had is my giving a short talk to a group of about 15 people, of very varied backgrounds. You asked a few questions and there was discussion afterwards, but this must have only taken up about 10-15 minutes of time. Though I would very much like to, I haven't ever spoken with you or Alexey one-on-one.

  • Similarly, in your response to Luke you say that Adam works full-time at CEA. I think there's some disagreement between the two of you on the extent to which he had signed off on the content. But, at any rate, it's worth noting that Adam is an intern at CEA. This means he does contribute a full working week for CEA, but he is not an employee. He's therefore not the person to go when it comes to high-level evaluation of CEA.

  • You mention an internal estimate of £1700 for the value of a new pledge. None of us are familiar with this figure, and we're confused about where it could have come from.

  • You suggest that CEA has ~4000 people on its mailing lists. The correct figure is less than half that (unless you include TLYCS, which you might have been thinking of, which does have in excess of 4000 on its mailing list).

  • You estimate GWWC's research capacity at 6 staff for last year. This is actually more than an order of magnitude higher than the true figure. In fact, the average number of paid employees (full-time equivalent) we have had working on all aspects of 80,000 Hours and Giving What We Can over the last six months is only 3.7.

As a more general point, I think we should also be careful to distinguish whether CEA has acted optimally in terms of utility-maximization (to which the answer is certainly not), and whether it gets a return on investment which is better than 1:1.

In my follow-up comment, I'll talk about some of the many concerns you've raised that we share, and the issues over which we might be making big mistakes. I'll also be able to give a bit more background about our activities, and I'll be able to answer your questions. Thanks again for taking the time to comment.

Best Wishes,

Will

Comment author: Kaj_Sotala 21 November 2012 06:23:52AM *  5 points [-]

Is there any good introductory "this is the CEA and it's made up of THESE AWESOME ORGANIZATIONS" page that I could link to on Facebook and such? http://www.centreforeffectivealtruism.org/ is rather dry, and requires clicking on links in order to properly find out what the organizations are all about.

Comment author: wdmacaskill 23 November 2012 06:27:48PM 0 points [-]

At the moment the best thing to do would be to link to each of the organisations' websites individually.

Comment author: jkaufman 21 November 2012 02:14:13AM 3 points [-]

Each employee is paid a starting salary of £18 per annum, significantly below market rates for graduates even within the not-for-profit world, and without accounting for the fact that our employees are significantly more qualified than the average graduate.

If it happens that all the good people you find are the sort of fully committed people who would be living on £18/year and donating the rest, then it's probably fine. But if you miss out on good hires because you're paying so far below what others would offer then it could be really harmful.

One idea which I've heard kicked around is paying people what they're worth and hoping that they'll choose to donate much of the money back. I don't know about organizations having tried this.

Comment author: wdmacaskill 23 November 2012 06:24:33PM 1 point [-]

It's a good point. So far it hasn't been an issue. But if there was someone who we thought was worth the money, and for some good reason simply wouldn't work for less than a certain amount, then we'd pay a higher amount - we don't have a policy that we aren't able to pay any more than £18k.

Comment author: Giles 21 November 2012 01:37:40AM 5 points [-]

This is really detailed, and exceeded my expectations! Thank you!

Comment author: wdmacaskill 23 November 2012 06:20:34PM 2 points [-]

Thank you!

Comment author: wdmacaskill 20 November 2012 10:42:42PM 1 point [-]

My response was too long to be a comment so I've posted it here. Thanks all!

Responses to questions on donating to 80k, GWWC, EAA and LYCS

27 wdmacaskill 20 November 2012 10:41PM

Giles, and some others, have asked questions about donating to one or more of CEA’s sub-organisations. In what follows, I address these questions. I felt it would be clearest for me to mainly cluster questions under general headings, rather than address the specific wording of every question. (Note: thanks to help from Ben Todd on this!)

A couple of clarifications

Centre for Effective Altruism is a legal entity that comprises 4 organisations: Giving What We Can, 80,000 Hours, Effective Animal Activism, and The Life You Can Save. EAA is formally still a sub-project of 80,000 Hours, but should be thought of as separate for accounting purposes and may well become a separate organisation. In the previous blog post I talked about GWWC and 80k only, but because there’s been interest, here I’ll discuss the other two as well, albeit more briefly.

Some numbers follow. These are true as of Nov 20th 2012 (or, rather, are best estimates as of that date), but are very likely to change in the near future. They should therefore be taken as illustrations merely.

Finally, because all the organisations that comprise CEA are young, there are certain policy issues that still have not been decided upon; and some that have been decided upon may change in the near future as we learn. Where possible, I have tried to flag which policies are as yet undecided.

What’s your expenditure?

Below are rough estimates for expenditure from start Q2 2012 (when we first took staff) until end Q4 2013 (our short-term fundraising horizon). All numbers are in thousands.

80k (basic): £118.8 = ~$190

80k (inc. some expansion): £139.1 = ~$220

GWWC (basic): £87.4 = ~$140

GWWC (inc. some expansion): £107.7 = ~$170

LYCS (basic): £47.88 = ~$76

EAA (basic): £32.76 = ~$52

The large majority of our expenditure is on staff. 80k (basic) comprises one full-time staff member from Q2 2012, two staff members working 0.4 time from Q2 2012, and one full-time staff member from Q1 2013. GWWC (basic) comprises one 5/8 staff member from Q2 2012, and two staff members working 0.6 time from Q2 2012. LYCS (basic) comprises one full-time staff member from Q2 2013, and some money earmarked for on-line marketing by one funder. EAA (basic) comprises one full-time staff member from Q1 2013. Across CEA, we typically employ one intern-year for every employee-year.

For both GWWC and 80k, the difference between the ‘basic’ scenario and the ‘expansion’ scenario is that we would hire one additional person from Q3 2013, and employ one additional intern-year for 2013. The ‘expansion’ scenario indicates a cautious limit on our use for more funding; though it certainly seems to us that we could spend money well above that amount, we would need to discuss whether it could be detrimental in the long-run for the organisations to grow that fast. We could very comfortably spend within the ‘expansion’ scenario, and would feel hindered if we were not able to spend up to that amount.

Each employee is paid a starting salary of £18 per annum, significantly below market rates for graduates even within the not-for-profit world, and without accounting for the fact that our employees are significantly more qualified than the average graduate. Interns are unpaid, but are typically given expenses. A significant proportion of our labour is still voluntary.

What’s your income? What’s your shortfall?

All numbers are now in $000s. I'll measure 'shortfall' relative to the 'basic' budget. The fundraising numbers below include both income that we have already received and income that we expect to receive, discounted according to a conservative estimate of its likelihood (50%). I’ll assume that CEA unrestricted money is divided as follows: 0.4 to 80k, 0.4 to GWWC, 0.12 to LYCS and 0.08 to EAA. (This division does not represent a policy about how we divide unrestricted funds. Currently that policy is not yet determined, so I’ve chosen these numbers as illustrative. More on use of unrestricted money in “earmarking and fungibility” below.)

80k raised: 85.1. Shortfall = 190 - 85.1 = ~$105

GWWC raised: 117.9. Shortfall = 140 – 117.9 = ~$22

LYCS raised: 63.4. Shortfall = 76 – 63.4 = ~$12.5

EAA raised: 27.2. Shortfall = 52 – 27.2 = ~$25

For both GWWC and 80k, to get the shortfall for the 'expansion' budget – which represents spending which we could easily accommodate without sacrificing quality of work —  add 30 to the 'shortfall' number.

How would you spend additional money?

As the numbers above suggest, in most cases additional donations would be spent on basic costs — principally, paying staff — over 2013. If GWWC or 80k exceeded their ‘basic’ budget, then additional money would be put towards on their ‘additional’ budget: principally, hiring one new staff member each.  The desired marginal hire for GWWC is a Communications Director.  The desired marginal hire for 80,000 Hours is a Careers Researcher and Adviser.

Where’s that income from?

Our donations come from a variety of sources. Private donors, of varying degrees of wealth, make up the large majority of our income. GWWC has received a grant from one foundation. The majority of donations come from within the effective giving community, though a sizable proportion comes from outside that community and we’re actively pursuing further leads there, including high net worths. If we ever had a significant donation commitment that used up our room for more funding, we’d let other donors know immediately.

Room for More Funding, and a Co-ordination Problem

Suppose that, within the effective giving community, there is $N that people would want to donate to CEA, conditional on CEA having room for more funding. But CEA only had room for $M, where M<N. Every giver thinks, “well, CEA is going to reach its room or more funding anyway. So there’s no reason why I should given.” So no-one gives to CEA. That would be a bad outcome on our part. Alternatively, perhaps every giver thinks, “well, I’ll just give to CEA anyway”. So CEA receives $N, whereas it can only spend $M well, and there is an $N-$M excess. That would be a bad outcome on the part of the giver. So what’s the solution?

One solution to that problem (though I haven't thought about it that much) is as follows: we decide upon a funding limit for each organisation. We say that if we receive donations above that limit (before a designated time), we will donate the excess to the most cost-effective charities. Different givers think that different causes are the most important, so we’ll donate to the different cause areas depending on what proportion of CEA donations would have been given to those causes if they hadn’t been donated to CEA. So if we received 70% of donations that would have been donated to global poverty, we’ll give 70% of the excess to AMF; similarly for animal welfare and x-risk.

The advantages of this are as follows. It safeguards against CEA having less money than it needs because of the co-ordination problem. It ensures that givers can donate to CEA while knowing that the money won’t be spent on CEA above its room for more funding. It’s also what GiveWell does, and insofar as GW appear to us to be a very well-run organisation, it’s worth imitating them.

What are the alternative solutions? Well, we could bank the money and use it the following year. So the excess money donated to CEA is used one year later than the giver might have expected, and we spend less time on fundraising for the following year. Or we could go ‘first come first served’: we keep accepting donations until we hit our RFMF. I think that the latter suggestion is a bad one. The former is potentially good I think, and simple, and I’m open to comments on which solution potential donors think is preferable.

Different Cause Areas

GWWC and LYCS are focused on global poverty, and have no plans to change that. EAA is focused on animal welfare. 80,000 Hours is open to any plausibly high-impact activity. There is currently no organisation within CEA dedicated purely to x-risk mitigation, but, given demand, it’s not unlikely that one will be created in the mid-term future.

“Earmarking” and Fungibility

Some comments mentioned “earmarking”. I think that’s a misleading term in this context. “Earmarking” normally refers to donations that are tied to a specific activity. Whereas, when one donates to GWWC, the donation is not tied to a specific activity. CEA shouldn’t be thought of as an organization over and above the four organisations.

We actively encourage donations that are restricted to one organization only, if you think that one organization is more cost-effective than the others. In order to avoid the fungibility problem, I considered asking only for restricted donations. It seems to me on balance that the costs of this policy outweigh the benefits, but I’m not sure.

My current preferred solution is as follows. Every 6 months, after the reviews of each organization (see next section), the trustees decide how to allocate unrestricted funding. The default they use is that unrestricted funding is allocated in proportion with restricted funding. If this default holds — either exactly or approximately — then fungibility of donations is not an issue. In fact, if the default holds, then fungibility is negative: donating $1 to GWWC would move slightly more than $1 to GWWC, because it would also increase the proportion of CEA unrestricted money that it receives. The trustees deviate from this default if there are compelling reasons for doing so (e.g. a major donor for one organization unexpectedly drops out, rendering basic expenditure uncertain). In the long run (and ex ante), we wouldn’t expect these deviations to favour one organization over another, so, in the long run (and ex ante), fungibiltiy is again not an issue. Moreover, from this arrangement we would expect each organization to benefit in terms of financial stability and from the success of their sister organisations.

Self-Evaluation and Impact Assessment

I’ll describe 80k’s process. GWWC’s is very similar.

Every 6 months, 80k will have to write a report of its progress over the last 6 months, including achievements and failures, how its progress compares to the goals stated 6 months ago, and write concrete, measurable goals for the next 6 months. This report will then be reviewed by two boards. The trustees of CEA: myself, Nick Beckstead, and Toby Ord. And an "Advisory Committee", consisting of 80k supporters (and often donors) who aren't in any way involved with the running of 80k. The Executive Director of 80k (and one or two others) will meet with these boards, and they'll discuss the report. Each board will write a summary of conclusions. All three documents (initial report, and two commentaries from the boards) will be posted on the blog.

Every year (probably in spring or early summer - a quiet time for us), we'll complete a more in-depth impact-evaluation, at least in terms of money moved, person-hours moved, money pledged and person-hours pledged. All-year round, we measure progress with respect to pre-chosen goals. The ED of 80k sends progress reports to the 80k team every week. Currently, because marketing and recruitment are our key priorities, our principal metrics are number of new members per week, % of members who say that they’ve changed their career plans because of 80k, income pledged per member, unique visitors to the website, and number of advising sessions given.

Miscellaneous CEA Questions

Which is more useful, regular donations or lump sums?

Either is good. Most charities prefer regular donations because people are likely to give more that way (they forget about the direct debit). But I'd rather you were giving on the basis of perceived cost-effectiveness, rather than status quo bias! Financial forecasting is really important for us, though, so if it's lump sums, we really appreciate knowing the chance they'll be repeated in future years. And we have a steep discount rate (perhaps 20%?) so we greatly prefer money sooner rather than later.

If you had funds to hire an extra person, do you know how that person would be? How important is it to find talented people to work for you?  Are you trying to find someone from the top 5%? The top 1%?

It's difficult to give a meaningful reply to that — 1% in terms of general ability, or fit for us? I'll answer for 'general ability' (whatever that means).  We're generally selecting only from top universities, which filters out a large majority of the population. As an approximation (but merely a very rough approximation): There are roughly 772,000 18 yr olds in the UK, of which 7000 go to Oxford or Cambridge. We mainly select from those universities (or equivalent standard elsewhere), so that already filters out 99% of the population.

Within such universities, we normally recruit very high-performing graduates — perhaps in the top 10% or 5%. Which would suggest that we're recruiting from the top 0.1% from the population. But, like I say, I'm not sure that that number is that meaningful. I'm not certain why, but we do seem to be able to recruit exceptionally talented people. (Like Niel, who's starting with us from January).

How much personal connection and communication is there between CEA and these orgs?
- THINK
- Global Catastrophic Risk Institute
- Center for Applied Rationality
- Future of Humanity Institute
- GiveWell


Lots. Mark Lee, founder of THINK, came through GWWC. I gave a talk for the Brown THINK chapter the other day, and helped their co-President with plans for the year. We've met a couple of times with Seth Baum. We know Julia and Anna well, and support CFAR. Toby Ord (a trustee of CEA) is a research associate at FHI, and Will participates in FHI events. We're in regular contact with GiveWell. A core CEA volunteer is considering working for them.

I could say much more, but it would get long-winded. We support all the above organisations, and aim to co-ordinate with them all, so that we don't get in each others' way, and can help each other out.

Where do you see the delineation between what CEA does and what other effective altruist orgs do?

We worry a lot about needlessly doubling up on or competing with work done by other effective altruist organisations. Taking our four organisations in turn:

GWWC: Along with LYCS, the only group in the world promoting major individual cost-effective giving. Does charity effectiveness research, but only where we think we can usefully add to what Givewell does.

80k: The only effective altruist organisation doing careers advice. The most broad focused effective altruist organisation except for THINK, but we’re distinct from THINK in that we provide careers advice through web content and one-on-one sessions rather than setting up meet-ups.

EAA: The only animal focused effective altruist organisation (EAA is effectively doing what 80k would have done in this area, except we thought it was useful to give it separate branding.

TLYCS: Similar in aims to GWWC, but lower-bar entry for most members. Planning different outreach routes

What are you planning in the way of financial transparency?

We'll publish an annual financial report, with a breakdown of costs. We’d like to be able to regularly explain room for more funding (etc.) as we do above, but doing so uses considerable time of high-level people within the organization, so we can’t promise that.  In general, we take GiveWell as a model organisation, and will often emulate their practices.

Miscellaneous GWWC Question

You said in your LW post that you have "much more information available" on GWWC's impact.

Yes. If you email me (will [dot] crouch [at] 80000hours.org), you can see the calculations by which we estimated GWWC’s impact.

Miscellaneous 80k Questions

You do a bunch of different but related things - website content, speaker events, career counseling,
- Do you imagine yourself specialising in just one of these in the future?
- Are you at the stage of experimenting to find out which activity is the most effective?
- Is there synergy between them? (e.g. if career advice sessions and website content are both a lot more effective if you're also doing the other one)


We’re creating a new type of organisation, and there’s a great deal we don’t know. We see our priority as testing these different approaches and improving them. Having a basket of methods lets us gain more information, and prevents us from stalling if one method turns out not to work.

For each method, we track a bunch of metrics which ultimately relate to our bottom line: resources shifted to the most effective causes that wouldn’t have been shifted otherwise. We propose tests for ways to improve these metrics. If our hypotheses about what we expect to work are disconfirmed, we change our approach. Otherwise, we move to scale up the method.

Whether we end up specialising, therefore, depends on whether one of the methods ends up being significantly more effective than the rest. And whatever happens, since we’re constantly seeking to improve, I imagine we’ll always be experimenting with new processes.

At the moment, we broadly see the web content and one-on-one advice as our most important services, and we’re expecting to scale them the most (though there’s a lot of flexibility within where we take these). We pursue some lectures, especially in Oxford, since they have high marginal returns, but we don’t currently expect to scale them. We’re exploring some other methods, but have not tested them yet.

I have very little idea about what the 80K community is like or how exactly you invest in it
- in what ways does your team interact with your community, other than one-on-one career advice and hosting speaker events?
- do you invest in members' skills such as critical thinking and the ability to evaluate organisations?
- what other skills and qualities do you want to develop in your members, and how do you plan to go about it?
- to what extent do you think talents and abilities are inherent (or at least beyond your control), and to what extent are they trainable?


Probably one of the most useful things we do is forge links between people in the community who can help each other out. For instance, we’ve introducing people who have successfully navigated applications to finance jobs to others who want to do the same. We brought together a bunch of people interested in the animal cause to set up EAA. We’ve introduced people who are in the same research field. At the minute, this mainly happens via personal introductions, but we’re developing tools to make this easier online.
Besides this, the team interacts with the community via the members’ googlegroup and our online discussion forum, 80000hours.org/discussion.

Our current focus in our providing our members with really useful information about which career they should enter in order to have the most impact. Our main way of improving their skills is by introducing them to mentors. We also sometimes coach people through tough career stages in our one-on-one advice (e.g. we recently helped get one of our interns a Marshall scholarship). Longer term, we might switch to have a greater focus on self-improvement, but that niche has a lot more competition (e.g. if you care about becoming more rational, go to Less Wrong).

Is 80K planning activity in any new physical locations?
- If so, where?
- If there's already a THINK community in that location, what do you imagine the relationship between THINK and 80K looking like?

We encourage any 80k members who’d like to start an 80k meet-up to do so, and we’ll happily give them advice and support; but we don’t plan to invest significant staff time in setting up new physical locations. This is because our current focus is on our web content and one-on-one advice. The exception is that we’d like to intensify existing involvement in Oxford, Yale and Princeton, which we see as test grounds and already have some infrastructure.

We could easily change our minds, however, and we’re pretty interested in the idea of doing a lecture tour (which we could support with the web content and one-on-one advice).  We wouldn’t set up an 80k presence in a new location, as opposed to sending people to THINK, unless we thought that there was good reason that having two organisations in the area would be more effective.

There's apparently a lot of interest in x-risk among 80K members. Do you know why this is?

I think that the 34% is higher than the percentage of x-risk concerned members in the long-run (which I'd guess will end up at about 10%), due to initial selection effects (we got quite a few members from the x-risk network, and others who would have been GWWC members were if not for the fact that they were principally concerned about x-risk). However, there does seem to be a strong positive correlation between how dedicated members are, and whether they are concerned by x-risk. And we haven’t yet really discussed x-risk as a cause area. So it’s difficult to say what proportion of resources we generate will be x-risk focused.

A number of people are convinced by x-risk but just don't think that there currently exists a good enough giving opportunity. So the proportion would increase considerably if a really clear x-risk giving opportunity arose (e.g. if GW ever recommended an x-risk org).

Do you know of any other organisations that do anything similar to what you do? (other than ones I've already mentioned). In particular any groups that give career advice to philanthropists.

As far as we can tell, there’s no-one else providing careers advice focused on how you can make a difference. All that exists is informal advice about impact given by friends and within other effective altruist communities (e.g. LW, GWWC).
Making a difference aside, it seems like the average quality of careers advice in general is pretty low, and rarely evidence-based or aware of decision making biases.

From several perspectives, we think we’re in a very interesting market niche. As far as philanthropy goes, there are some groups focused on fostering it e.g. http://youngphilanthropy.org.uk/, but they tend to have little focus on effectiveness.

Miscellaneous EAA Questions

What are the plans for EAA? When will it be spun off? Is there much interest in it from new members of 80k? Is anybody other than Eitan Fischer (who's in school) working on it at the moment?

EAA is taking on a full-time Executive Director some time between Jan and Sept. The initial priorities will be scaling up the charity effectiveness research, taking it to major philanthropists and fundraising. If EAA achieves enough scale, we’ll promote it to a full member of CEA.

Around 10-20% of our new members are interested in the animal cause (and we haven’t promoted it much directly, beyond a couple of blog posts). They tend to make use of EAA. Eitan has a small team of volunteers and advisers helping him out part-time. There’s probably about 4-8 people involved in some capacity at most times. This should increase significantly once we recruit an Executive Director.

Giving What We Can, 80,000 Hours, and Meta-Charity

44 wdmacaskill 15 November 2012 08:34PM

Disclaimer: I’m somewhat nervous about posting this, for fear of down-voting on my first LW post, given that this post explicitly talks in a positive light about organisations that I have helped to set up. But I think that the topic is of interest to LW-ers, and I’m hoping to start a rational discussion. So here it goes…

Hi all,

Optimal philanthropy is a common discussion topic on LW. It’s also previously been discussed whether ‘meta-charities’ like GiveWell — that is, charities that attempt to move money to other charities, or assess the effectiveness of other charities — might end up themselves being excellent or even optimal giving opportunities.

Partly on the basis of the potentially high cost-effectiveness of meta-charity, I have co-founded two such charities: Giving What We Can and 80,000 Hours. Both are now open to taking donations (info here for GWWC and here for 80k). In what follows I’ll explain why one might think of Giving What We Can or 80,000 Hours as a good giving opportunity. It’s of course very awkward to talk about the reasons in favour of donating to one’s own organization, and the risk of bias is obvious, so I’ll just briefly describe the basic argument, and then leave the rest for discussion. I hope I manage to give an honest picture, rather than just pitching my own favourite idea: we really want to do the most good that we can with marginal resources, so if LW members think that giving to meta-charity in general, or GWWC or 80k in particular, is a bad idea, that’s important for us to know. So please don’t be shy in raising comments, questions, or criticism. If you find yourself being critical, please try to suggest ways in which GWWC or 80k could either change its activities or provide more information such that your criticisms would be addressed.

What is Giving What We Can?

Giving What We Can encourages people to give more and to give more effectively to causes that fight poverty in the developing world.  It encourages people to become a member of the organisation and pledge to give at least 10% of their income to the charities that best fight extreme poverty, and it provides information on its website about how people can give as cost-effectively as possible.

What is 80,000 Hours?

80,000 Hours provides evidence-based advice on careers aiming to make a difference, through its website and through on-one-one advice sessions. It encourages people to use their careers in an effective way to make the world a significantly better place, and aims to help its members to be more successful in their chosen careers. It provides a community and network for those convinced by its ideas.

What are the main differences between the two?

The primary differences are that 80,000 Hours focuses on how you should spend your time (especially which career you should choose), whereas Giving What We Can focuses on how you should spend your money. Giving What We Can is focused on global poverty, whereas 80,000 Hours is open to any plausibly high-impact cause.

Why should I give to either?

The basic idea is that each of the organisations generates a multiplier on one’s donations. By giving $1 to Giving What We Can to fundraise for the best global poverty charities, one ultimately moves significantly more than $1 to the best global poverty charities.  By giving $1 to 80,000 Hours to improve the effectiveness of students’ career paths, one ultimately moves significantly more than $1’s worth of human and financial resources to a range of high-impact causes, including global poverty, animal welfare improvement, and existential risk mitigation.

How are you testing this?

Last March we did an impact assessment for Giving What We Can. Some more info is available here, and I can provide much more information, including the calculations, upon request. As of last March, we’d invested $170 000’s worth of volunteer time into Giving What We Can, and had moved $1.7 million to GiveWell or GWWC top-recommended development charities, and raised a further $68 million in pledged donations.  Taking into account the facts that some proportion of this would have been given anyway, there will be some member attrition, and not all donations will go to the very best charities (and using data for all these factors when possible), we estimate that we had raised $8 in realised donations and $130 in future donations for every $1’s worth of volunteer time invested in Giving What We Can. We will continue with such impact assessments, most likely on an annual basis.

We have less data available for 80,000 Hours, but things seem if anything more promising. A preliminary investigation (data from 26 members, last May) suggested that the average member was pledging $1mn; 34% of were planning to donate to existential risk mitigation, 61% to global poverty reduction. Member recruitment currently stands at roughly one per day. 25% of our members state that their career has been ‘significantly changed’ by 80,000 Hours. A little more information is available here.

Why might I be unconvinced?

Here are a few considerations that I think are important (and of course that’s not to say there aren’t others).

First, the whole idea of meta-charity is new, and therefore not as robustly tested as other activities. Even if you find the idea of meta-charity compelling, you could plausibly reason that most compelling arguments to new and optimistic conclusions have been false in the past, an so on inductive grounds treat this one with suspicion.

Second, you might have a very high discount rate. Giving $1 to either GWWC or 80k generates benefits in the future. So working out its cost-effectiveness involves an estimate of how one should value future donations versus donations now. That’s a tricky question to answer, and if you have a high enough discount rate, then the investment won’t be worth it.

Third, you might just think that other organisations are better. You might think that other organisations are better at resource-generation (even if that’s not their declared aim). Or you might think that it’s better just to focus on more direct means of making an impact.

Finally, you might just have a prior against the idea that one can get a significant multiplier on one’s donations to top charities. (One might ask: if the idea of meta-charity is so good, why don’t many more meta-charities exist than currently do?) So you might need to see a lot more hard data (perhaps verified by independent sources) before being convinced.

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