What is the return on giving?

Abstract

This article discusses the concept of return on giving, defined as the marginal impact on real wealth over the long run, normalized as a percentage of total wealth. It argues that estimating this value is important for understanding the effectiveness of philanthropic interventions and for making more informed giving decisions. The article provides rough estimates of the return on giving for various types of interventions, including saving lives, funding research and development, and investing in capital. These estimates suggest that the return on giving can be substantial, ranging from around 10 for traditional philanthropic opportunities to 100-1000 for the best available opportunities. The article concludes that the return on giving is a valuable metric for understanding the impact of philanthropy and for optimizing giving decisions. – AI-generated abstract.