How many causes should you give to?

Abstract

So you’ve decided to donate to effective charities, and figured out how you’re going to do it. Now comes the hard part: figuring out where to donate! In this post I look at whether to donate to one organization, or multiple—an interesting question touching on economics, cognitive bias, decision theory, and more. Contents In favor of one charity Theoretical optimality Simplicity Making yourself more thorough and rigorous In favor of multiple charities Diminishing returns Psychological risk aversion Signaling Less predictable funding Coordination problems Conclusion In favor of one charity Theoretical optimality The most common argument for donating only to one charity is that, in principle, it follows mathematically from trying to maximize the expected good that your donation does.