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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 April 8, 2020

11 Things Overachievers Do Differently

11 Things Overachievers Do Differently

We all know some overachievers: supermoms who manage to get online degrees between cleaning, cooking, and taking kids to practice; students who write 10-page papers when the directions call for 4; managers whose resumes look more like pages from the Guinness book of Records.

How do they do it all? How is it possible that one person can graduate at the top of their class, found an orphanage in India, run 30k marathons, write a best-selling book, travel all over the world and learn to speak Mandarin Chinese while having a full-time job?

What’s the secret of an overachiever? Here’re 11 things overachievers do differently that you can learn from.

1. They Know How to Manage Their Time

It’s pretty simple actually – you can never become an overachiever if you don’t know how to organize your time efficiently.

The great thing is that overachievers are ready to share their knowledge and time management talent with the rest of the world. Read The 4-Hour Workweek or The 4-Hour Body by Timothy Ferriss, and you’ll know what I’m talking about.

2. They Don’t Spend Hours Watching TV or Playing Computer Games

Mostly because they have better things to do, like exercising, reading, spending an evening with their family or volunteering to work in the local soup kitchen. Their philosophy is simple – the world is full of wonderful things to try, explore and experience. Watching TV is not one of them.

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3. They Are Obsessed With Perfection

Imagine Steve Jobs’ work approach and you’ll understand the level of perfection and painfully high standards that overachievers set for themselves and those around them. Often it pays off (especially if they focus on just one domain). But sometimes compulsive over-striving turns into a sure-fire road to disappointments and unfinished tasks.

Learn how to strike a balance: How Not to Let Perfectionism Secretly Screw You Up

4. They Know How To Inspire

Overachievers learn quickly that it is much easier to achieve goals through collaboration (and especially delegation). So they know how to inspire, encourage, persuade and motivate people around them. Even though they often drive their team crazy with their stubbornness and perfectionism, people quickly follow under the spell of their enthusiasm and greater vision.

Learn these 10 Powerful Ways to Influence People Positively.

5. They Set Clear Goals

The term “overachiever” itself implies that they know how to achieve goals. That is kind of hard to do if your goals are vague, unclear and lack specific deadline, which is why overachievers educate themselves, read goal-setting books, and think about the best way to approach a new task.

Although, it’s worth mentioning that overachievers usually use their time management and goal-setting skills towards competitive, “I want to kick butt” type of goals rather than self-improvement, mastery goals.

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Take a look at these tips to help you set clearer goals: What Are SMART Goals (And How to Use Them to Become Successful)

6. They Are Organized

It’s hard to imagine a disorganized overachiever, isn’t it? Their great organizational and planning skills usually serve three main purposes: keeping track of time, keeping track of progress and keeping track of achievements.

This hasn’t been confirmed by scientific research yet, but overachievers might actually get a “runner’s high” from crossing tasks off their to-do lists, and making new to-do lists.

Here’s How to Organize Your Life: 10 Habits of Really Organized People

7. They Try to Avoid Failure at All Costs

Some psychologists believe that overachievers place their self-worth on their competence, driven by an underlying fear of failure. Rather than setting and striving for goals based on a pure desire to achieve, their core motivation becomes avoiding failure. This may explain the fact that overachiever beat themselves up for even little setbacks and seemingly-insignificant mistakes.

But be aware that having a strong fear of failure can wrek havoc your productivity. So the best thing to do? Learn to conquer the fear: Why You Have the Fear of Failure (And How to Conquer It)

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8. They Love Awards

Who doesn’t love them, right? True enough, but unlike most people who like to feel acknowledged and appreciated for their efforts, overachievers are bent on collecting ‘awards’, be it university degrees, spelling bee prizes or unusual destinations.

While loving awares isn’t bad, it’s even better if you’re driven by internal motivation instead of external ones which could be quite uncontrolable or unstable: Why Is Internal Motivation So Powerful (And How to Find It).

9. They Don’t Understand the Concept of Work Hours

Don’t get surprised if you receive a work-related email anywhere between 8 p.m. and midnight. It’s something overachievers usually do and you weren’t the only one. At least 20 more emails have been sent during these hours to other people. The concepts of over-achieving and working overtime usually go hand in hand.

The downside of this is an imbalnced life, which may need to problems in other aspects of life including health and relationships. A better way is to Achieve a Realistic Work Life Balance.

10. They Rest

Overachievers might often be labeled as “workaholics”, because they often ignore bodily signs of hunger, fatigue and even a full bladder, hoping to finish just one last little part. This doesn’t mean that overachievers don’t know how to disconnect and relax.

True that they tend to work in the highest gear, but they also have enough sense to give themselves time to rest and recharge. Of course, they do it in their own overachieving way, preferring climbing Mount Kilimanjaro or hiking through the Amazon jungle to lazing on the beach.

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11. Overachievers Continuously Educate Themselves

A great quality that most overachievers have is the hunger for knowledge. They surround themselves with bright people. They know how to listen, and most importantly, they get tons of mentoring.

Despite the fact that overachievers want to excel at everything they set their minds on, they are humble enough to admit that to get on top of their game, they need help. And they are willing to pay someone to push, coach and guide them.

You too can learn How to Create a Habit of Continuous Learning for a Better You.

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Featured photo credit: Nghia Le via unsplash.com

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