Astral Codex Ten Podcast Contra MR On Charity Regrants
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Jun 5, 2025 The discussion dives deep into the complexities of USAID funding and how it impacts local communities versus NGOs. It raises questions about the legitimacy of funding and the critical role of expertise in effective international development. Trust and accountability in charity work come to the forefront, with a spotlight on the successes of the PEPFAR program. Misconceptions about charity mismanagement are also challenged, emphasizing the dedication of healthcare professionals in developing nations.
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How USAID Channels Funds
- USAID funds are mostly channeled through third-party NGOs and contractors, not directly to local governments or recipients.
- This structure aims to ensure expertise and accountability but causes misunderstandings about overhead and fund usage.
Overhead Costs Are Necessary
- Expect overhead costs around 30% for charities managing USAID funds; they cover salaries, compliance, and audits.
- Overhead isn’t waste; it supports ensuring funds reach intended beneficiaries effectively.
Overhead Accounting Complexity
- Overhead estimates vary across organizations, and sometimes university-affiliated groups have overhead buried in university charges.
- Comparing overhead percent rates needs context of accounting structures to be meaningful.