Elie Hassenfeld, Co-founder and CEO of GiveWell, shares insights from his journey in philanthropy after leaving the finance world. He discusses the importance of rigorous data in evaluating charities, emphasizing the balance between local and global giving. The conversation dives into GiveWell’s recommendations for high-impact charities tackling global health issues, and the complexities of measuring charitable success. Hassenfeld also explores the nuances of altruism, donor behavior, and the role of transparency in enhancing philanthropic efforts.
GiveWell identifies the charities that save or improve lives the most for every dollar given.
GiveWell employs an evidence-based approach, using academic research to select organizations with strong evidence of impact.
In addition to quantitative criteria, GiveWell considers qualitative factors such as unmodeled upside and the track record of an organization in their funding decisions.
Deep dives
The Origins of GiveWell and Its Mission
GiveWell was founded in 2007 by Ellie Hasenfeld and Holden Karnofsky, who were frustrated by the lack of useful information to guide charitable giving decisions. They wanted to identify outstanding organizations that could do a lot of good with the funds they received. Over the years, GiveWell has evaluated many organizations, recommending four top charities that have proven success in specific areas, such as malaria prevention and vitamin supplementation.
The Evaluation Process and Metrics
GiveWell's evaluation process starts with a wide range of organizations that work to help people in low-income countries. They use academic research, particularly randomized control trials, to determine what programs work best. The evidence-based approach guides GiveWell in selecting organizations with strong evidence of impact. They also strive to be transparent about the uncertainty inherent in their analysis and continuously learn and improve their recommendations.
The Challenges of Scaling Programs and Uncertainty
GiveWell acknowledges the challenges of scaling programs and the inherent uncertainty in their work. They have made some mistakes in the past, supporting programs that didn't work at scale or underestimating implementation difficulties. They have learned to commit to longer time frames for experimental programs and strive for continuous improvement. GiveWell also appreciates the importance of transparency and engages with critics to address uncertainties and improve their work.
Criteria for top charities selection
The podcast episode discusses the criteria employed by the speaker in selecting top charities for funding. The first criterion is a high confidence level in the organization's potential to have a significant impact. The second criterion is the estimated impact per dollar, with a focus on ensuring that the organization exceeds their current funding threshold. The third criterion is the provision of significant funding for at least a year before an organization can be considered as a top charity. These criteria help identify organizations that receive about two-thirds of the funds directed by the speaker.
Qualitative factors in the decision-making process
In addition to the quantitative criteria, the speaker also considers qualitative factors when making funding decisions for charities. They reflect on unmodeled upside, which refers to the potential opportunities that may arise from supporting a young organization. The speaker also emphasizes the importance of transparency and the ability to learn from the organization, which influences their confidence in continuing funding. Additionally, the track record of an organization and their ability to overcome challenges play a role in the decision-making process. These factors contribute to a nuanced analysis along with the quantitative side of the evaluation.
When then-hedge fund manager Elie Hassenfeld began his philanthropic journey in 2006, he knew that he wanted to get the most charitable bang for his buck. He quickly realized, however, that detailed data on charitable impact simply didn't exist. So he and Holden Karnovsky founded GiveWell, an organization inspired by effective altruism that identifies the charities that save or improve lives the most for every dollar given. Listen as Hassenfeld, GiveWell's CEO, explains to EconTalk's Russ Roberts how GiveWell determines the small number of charities they recommend to achieve optimal impact. They also discuss the dangers of an over-reliance on data and the case for bucketing our philanthropy to allow for local or personal giving.
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