Effective Altruism & Giving Well w/ Elie Hassenfeld #752
Nov 22, 2023
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Elie Hassenfeld, co-founder of GiveWell, discusses effective altruism, finding impactful charities without breaking the bank, and the internal change that occurs when giving money away.
Be proactive in giving locally and globally, allocating separate budgets for each.
Consider using donor-advised funds for tax benefits and flexibility in donating.
Recognize the importance of transparency, learning from mistakes, and acknowledging limitations in the nonprofit sector.
Deep dives
Being proactive in giving locally and globally
Ellie encourages individuals to be proactive in giving both locally and globally. He suggests having separate buckets for charitable giving, one for supporting the local community and institutions, and another for making an impact on a global scale. He emphasizes the importance of recognizing our privilege and the responsibility to help others as much as possible.
The benefits of donor-advised funds
Ellie discusses the benefits of donor-advised funds, acknowledging their ability to provide tax benefits and facilitate non-cash donations. He highlights the flexibility they offer in terms of giving to a variety of organizations and the ease of donating appreciated securities. However, he recommends consulting a financial advisor for specific advice.
Transparency and learning from mistakes
GiveWell's commitment to transparency is demonstrated through their inclusion of an 'Our Mistakes' tab on their website. Ellie believes that sharing their mistakes and learning from them is crucial for continuous improvement. He also expresses the importance of being honest about limitations and challenges in the nonprofit sector.
Finding a balance between local and global giving
Ellie suggests earmarking a portion of charitable giving for local causes and institutions, supporting the community directly, while dedicating another portion for effective altruism on a global scale. He highlights the impact that can be made by giving globally and encourages individuals to start giving, even if it's a small amount, and revisit their giving strategy in the future.
The value of giving and the privilege of helping others
Ellie reminds us of the importance of recognizing our privilege and how fortunate we are to be in a position to help others. He emphasizes that giving is not solely a financial act, but also an opportunity to serve and make a positive impact on the world. By giving, we become part of a larger community working towards a better future.
Here on the podcast we're always on the lookout for the biggest bang for our buck. Picture this: you, in the grocery store aisle, pondering the cosmic significance of toilet paper prices and whether the fancy stuff is going to be worth it! Or maybe you’re weighing a couple job offers: you're not just negotiating salary, you're out there considering the 401k match, turning job hunting into a strategic sport! We're all about optimizing our lives for maximum value, but are we extending this same strategic approach to the dollars we give to charity? Maybe... or maybe not! That's why we've roped in the philanthropic virtuoso, Elie Hassenfeld, co-founder of GiveWell, a nonprofit committed to finding charities that perform life-saving and life-improving work without breaking the bank. It’s financial optimization meets world-saving wisdom. Listen as we discuss the founding of GiveWell, the ways some charities have fallen short, SBF and his impact on effective altruism, Elie’s rule of thumbs for how much to give, if it’s OK to give locally even if it doesn’t have the biggest impact, and plenty more!
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