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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 September 20, 2018

7 Powerful Questions To Find Out What You Want To Do With Your Life

7 Powerful Questions To Find Out What You Want To Do With Your Life

What do I want to do with my life? It’s a question all of us think about at one point or another.

For some, the answer comes easily. For others, it takes a lifetime to figure out.

It’s easy to just go through the motions and continue to do what’s comfortable and familiar. But for those of you who seek fulfillment, who want to do more, these questions will help you paint a clearer picture of what you want to do with your life.

1. What are the things I’m most passionate about?

The first step to living a more fulfilling life is to think about the things that you’re passionate about.

What do you love? What fulfills you? What “work” do you do that doesn’t feel like work? Maybe you enjoy writing, maybe you love working with animals or maybe you have a knack for photography.

The point is, figure out what you love doing, then do more of it.

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2. What are my greatest accomplishments in life so far?

Think about your past experiences and the things in your life you’re most proud of.

How did those accomplishments make you feel? Pretty darn good, right? So why not try and emulate those experiences and feelings?

If you ran a marathon once and loved the feeling you had afterwards, start training for another one. If your child grew up to be a star athlete or musician because of your teachings, then be a coach or mentor for other kids.

Continue to do the things that have been most fulfilling for you.

3. If my life had absolutely no limits, what would I choose to have and what would I choose to do?

Here’s a cool exercise: Think about what you would do if you had no limits.

If you had all the money and time in the world, where would you go? What would you do? Who would you spend time with?

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These answers can help you figure out what you want to do with your life. It doesn’t mean you need millions of dollars to be happy though.

What it does mean is answering these questions will help you set goals to reach certain milestones and create a path toward happiness and fulfillment. Which leads to our next question …

4. What are my goals in life?

Goals are a necessary component to set you up for a happy future. So answer these questions:

Once you figure out the answers to each of these, you’ll have a much better idea of what you should do with your life.

5. Whom do I admire most in the world?

Following the path of successful people can set you up for success.

Think about the people you respect and admire most. What are their best qualities? Why do you respect them? What can you learn from them?

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You’re the average of the 5 people you spend the most time with.[1] So don’t waste your time with people who hold you back from achieving your dreams.

Spend more time with happy, successful, optimistic people and you’ll become one of them.

6. What do I not like to do?

An important part of figuring out what you want to do with your life is honestly assessing what you don’t want to do.

What are the things you despise? What bugs you the most about your current job?

Maybe you hate meetings even though you sit through 6 hours of them every day. If that’s the case, find a job where you can work more independently.

The point is, if you want something to change in your life, you need to take action. Which leads to our final question …

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7. How hard am I willing to work to get what I want?

Great accomplishments never come easy. If you want to do great things with your life, you’re going to have to make a great effort. That will probably mean putting in more hours the average person, getting outside your comfort zone and learning as much as you can to achieve as much as you can.

But here’s the cool part: it’s often the journey that is the most fulfilling part. It’s during these seemingly small, insignificant moments that you’ll often find that “aha” moments that helps you answer the question,

“What do I want to do with my life?”

So take the first step toward improving your life. You won’t regret it.

Featured photo credit: Andrew Ly via unsplash.com

Reference

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