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How To Pick The Most Cost-Effective Charities For Your Donations On Giving Tuesday

How To Pick The Most Cost-Effective Charities For Your Donations On Giving Tuesday

Giving Tuesday is on November 29th and is the biggest day for donations in the year.

But, how exactly do you give wisely on Giving Tuesday?

There are millions of charities out there. Some charities are local and give back to their immediate communities, addressing local issues like homelessness and poverty in cities around you. Others give back on a global scale and do good by addressing suffering and increasing abundance around the world through charities that address world hunger, disaster relief, epidemics and pandemics, etc.

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So what does that mean for your donations? Well, every time you donate, you make a choice of how much good you want to do with your money. By making a donation, you are using your money to produce a certain amount of “good” in the world. By donating to a “less effective” charity, you are doing less good. This concept is known as opportunity cost in economics.

Don’t believe me? Let’s work through a specific example.

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Let’s say you have two charities who share the same goal of saving children’s lives. Charity A spends $20 million per year to save 100 children from cancer. Therefore, Charity A saves 1 life at a cost of $200,000.

Let’s take a second charity – Charity B – that saves children from a deadly tropical disease, such as Against Malaria Foundation. Research shows that it takes this charity just under $3,000 to save a life, which means that for $20 million, it can save over 6,600 children! By using the metric of cost-effectiveness in saving lives, we can see that Against Malaria Foundation is 66 times more effective at saving children’s lives than Charity A.

Cost-effectiveness is a critical metric to use in evaluating how much good we can do with our money when giving back, since that’s how we can measure the amount of good done per dollar.

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Let’s look at another example.

Make-A-Wish Foundation helps terminally ill children fulfill one grand wish. For example, they can take a child to Disneyland to be a Princess For A Day, or help the child be a Police Officer or Fighter Pilot For A Day, or another grand wish. Make-A-Wish has great stories that draw at people’s heartstrings and move them to donate over $300 million per year to their organization. Make-A-Wish spends over $10,000 on one wish, and the outcome, in terms of good being done, is a child and the child’s family having one day of joy.

In comparison, GiveDirectly does direct cash transfers of $1,000 to poor people in East Africa. With that amount of money, a family with several children transforms their lives. That kind of money can build a house and buy crops. Their children can go to school. They are healthier physically and mentally. According to rigorous research, the recipients of these cash transfers have substantially better lives. Giving money to GiveDirectly results in much more joy being created in the world than giving to Make-A-Wish. Yet, a lot more people donate to Make-A-Wish, because they fall for the narrative fallacy, which is our tendency to like and believe in something just because it has a good story associated with it. We fall for the story of addressing the wishes of terminally ill children, as opposed to achieving our actual goals of making the most difference for doing the most good in the world.

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So how can you give wisely this Giving Tuesday to do the most good that you can per dollar?

There are high-quality nonprofit charity evaluators that serve as consumer report organizations to help donors choose the most cost-effective charities:

  • The Life You Can Save uses a rigorous selection methodology to recommend a number of charities oriented toward poverty reduction. It has an impact calculator to help donors see the specific impact of their giving.
  • GiveWell provides in-depth research reports on top charities focused on reducing poverty. Both The Life You Can Save and GiveWell give high marks to GiveDirectly and Against Malaria Foundation.
  • Animal Charity Evaluators gives recommendations on the most effective charities to prevent animal suffering. It has recommended The Humane League, Mercy For Animals, and Animal Equality, and you can see its current top picks here.
  • Giving What We Can unites a community of people dedicated to giving 10 percent or more of their money to effective charities.
  • Intentional Insights provides articles, videos, and other content to help you make wise decisions about your donations.

By relying on these organizations, you can make sure you will give wisely this Giving Tuesday!

Featured photo credit: Woman giving apple/Flickr via flickr.com

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Dr. Gleb Tsipursky

President and Co-Founder at Intentional Insights; Disaster Avoidance Consultant

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Last Updated on July 15, 2019

41 Beautiful Pictures That Show What True Love Is All About

41 Beautiful Pictures That Show What True Love Is All About

Some things in life are hard to describe, yet we can recognize them when we see them.

Love is one of those things.

True love comes in many different forms, but here are some that many of us know well.

True love means supporting those who can’t support themselves

supportive couple

    A young man comforts his date in Times Square, New York City. Image by mbtrama

    strong hug

      A young man holds his significant other close to him. Image by Brad Fults

      running help

        A young track competitor helps one of her injured opponents over the finish line. Image from ViralNova.com

        feeding kitten

          A soldier in the Korean War takes time to feed a baby kitten. Image from US Naval Insititute

          It’s having the perfect selfie partner

          mom and daughter selfie

            A mother and her daughter take a selfie together. Image by Andrew Fysh

            girlfriends

              Two young girls pose for the camera. Image by Rolands Lakis

              selfies

                A happy couple takes a picture together. Image by Kayla Heineman

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                selfie

                  Two best friends take a selfie together. Image by Jason Wahido

                  dude selfie

                    Friends take a selfie together. Image by Glenn Scofield Williams

                    It’s all the warm fuzzies

                    12748262703_84c008f4e5_z

                      A young man spends time with his dog on a beach. Image by Magdalena Roeseler

                      DSC06952

                        A pet owner hugs his dog while on a day trip in San Francisco. Image by Taro the Shiba Inu

                        It means having a friend to photobomb you

                        photobomb

                          A boy makes a funny face as he poses for a picture with his brother. Image by Michael Bentley

                          old man photobomb

                            A man photobombs his wife while their grandson snaps a picture. Image by Frank

                            family photobomb

                              Family members photobomb their relatives’ Thanksgiving day family photo. Image by Beth Scupham

                              boyfriend photobomb

                                A friend photobombs the photographer and their friend, the woman in the foreground of this photo. Image by Lachlan Hardy

                                True love means being there even when life gets unbearably hard

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                                shoulder to cry on

                                  A family watches the Vermont National Guard depart for Afghanistan. Image by The U.S. Army

                                  flood dog

                                    During a monsoon in the Philippines, a boy carries his dog to safety. Image by Romeo Ranoco

                                    A woman is rescued from flood waters by a resident standing on top of her car during heavy rain in Chalandri suburb north of Athens

                                      A man helps a woman out of her vehicle during a flood in Chalandri, Greece. Image by John Kolesidis

                                      lunch

                                        A woman has lunch with her husband every day, even after he’s passed away. Image from ViralNova.com

                                        hug

                                          A woman hugs the mother of 6-year-old Noah Ponzer, who was one of the victims of the Sandy Hook shootings. Image by Spencer Platt

                                          rubble

                                            An Oklahoma couple pauses while trying to salvage belongings from a family member’s home after a tornado. Image by Adrees Latif

                                            sister and brother

                                              A girl puts her arm around her little brother as they wait outside of Sandy Hook Elementary after gunshots are fired. Image by Reuters.

                                              headstone

                                                A woman sits at her husband’s grave the day before their wedding anniversary. Image from NBC news

                                                It means taking the time for long goodbyes

                                                110321-N-BT887-100

                                                  A man says goodbye to his son before deploying. Image by Official U.S. Navy Page

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                                                  national guard goodbye

                                                    A South Carolina man says goodbye to his son before deploying for Afghanistan. Image by The National Guard

                                                    saying goodbye

                                                      A Sergeant hugs both of his sons before being deployed to Afghanistan. Image by The National Guard

                                                      And cherishing reunions

                                                      husband home

                                                        A woman hugs her husband as she sees him for the first time since his deployment to Iraq. Image by The U.S. Army

                                                        boyfriend home

                                                          A young  woman hugs her significant other as he returns home for Kuwait. Image by The National Guard

                                                          mother hug

                                                            A mother drops to her knees as she hugs her son on her return home from the Persian Gulf. Image by The National Guard

                                                            True love is letting yourself feel young when they’re around

                                                            elderly women

                                                              Two friends on their smartphones. Image by Robert Neff

                                                              feeling young

                                                                A young couple getting their picture taken. Image by db Photograph

                                                                sprinkler dad

                                                                  A father plays in a sprinkler with his daughter at Millennium Park in Chicago. Image by Ben Forsberg

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                                                                  subway couple

                                                                    A young couple on a subway enjoys sharing time together, while the girlfriend’s father sneaks a photo of them. Image by Gareth Williams

                                                                    wheelchairs

                                                                      A couple holds hands on a fall day. Image by David Amsler

                                                                      It’s letting yourself be silly… just because they’ll enjoy it

                                                                      silly faces

                                                                        A grandfather makes faces at the camera with his granddaughters. Image by Tim Pierce

                                                                        vote for pedro

                                                                          A woman’s father wears a Napoleon Dynamite t-shirt to make his daughter laugh. Image by emdot

                                                                          True love is allowing yourself to show how you really feel

                                                                          date night

                                                                            A young couple kisses in the back of a restaurant in Washington, D.C. Image by Derek Key

                                                                            playing violin

                                                                              Violinist Nancy Dinovo plays at a memorial service for the victims of 9/11. Image by Christopher Morris

                                                                              True love is timeless

                                                                              old friends

                                                                                Friends spending some time together. Image by Cristian Bortes

                                                                                sitting around a fire

                                                                                  A group of friends sits around a campfire eating. Image by New Old Stock

                                                                                  elderly couple

                                                                                    An elderly couple walks down a street together. Image by Matteo Paciotti

                                                                                    Featured photo credit: Matteo Paciotti via flickr.com

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