Should charities spend your money now — or save it to help people later?

Abstract

GiveWell, a charity evaluator, has shifted its strategy to giving away a portion of its growing funds over the next three to five years, rather than immediately sending it to charities, as it had done in previous years. GiveWell believes that the best charities it has identified today don’t have the capacity to absorb hundreds of millions more in funding, and that over the next few years it will be able to identify new charities that would be as effective as its top existing options, and that would be able to do more with the funds it donates. This decision has sparked a debate within the charity world, with some arguing that GiveWell is “thinking too small” and missing an opportunity to help people today with today’s money. Others, however, defend GiveWell’s position, pointing out that spending money wisely sometimes takes time and that many charities make similar decisions with vastly less transparency. The article explores the complexities of this debate, highlighting the challenges of a small organization that has grown rapidly, and considering the potential impact of GiveWell’s decision on the future of philanthropy. – AI-generated abstract