Why it's so hard to have confidence that charities are doing good (with Elie Hassenfeld)

Abstract

GiveWell distinguishes itself from other charities by rigorously evaluating the effectiveness of interventions, focusing on maximizing impact through evidence-based research. Its small list of recommended charities reflects its high standards and focus on high-impact giving. GiveWell acknowledges that different moral frameworks may value causes differently, but it prioritizes interventions that address the greatest unmet needs with a focus on health-related causes due to their strong evidence base and potential for impact. While GiveWell relies on both moral philosophy and empirical data to inform its recommendations, it acknowledges the uncertainty inherent in impact measurement, leading to low confidence levels for some highly-recommended interventions. GiveWell emphasizes the importance of understanding second-order effects and acknowledges the challenges in measuring the overall effectiveness of charities. Despite the common practice of venture capital portfolio diversification, GiveWell prioritizes investing in a smaller number of high-performing organizations, believing that maximizing impact is achieved through concentrated funding of proven interventions.