Comments on: More thoughts on “responsible investing” http://blog.givewell.org/2007/01/22/more-thoughts-on-responsible-investing/ Exploring how to get real change for your dollar. Thu, 17 May 2012 06:12:15 +0000 http://wordpress.org/?v=2.0.7 by: FX http://blog.givewell.org/2007/01/22/more-thoughts-on-responsible-investing/#comment-48327 Fri, 16 Jan 2009 01:48:52 +0000 http://blog.givewell.org/2007/01/22/more-thoughts-on-responsible-investing/#comment-48327 Please, "Run out of Worthy Recipients." Who are you kidding, all you have to do is look at the 1,000's if not 100,000's of orphanages world wide that are helping children to look for "Worthy Recipients." Who are they kidding, nobody is the answer. Just enhancing there wealth in order to keep there high paying jobs. Please, “Run out of Worthy Recipients.” Who are you kidding, all you have to do is look at the 1,000’s if not 100,000’s of orphanages world wide that are helping children to look for “Worthy Recipients.” Who are they kidding, nobody is the answer. Just enhancing there wealth in order to keep there high paying jobs.

]]> by: Holden http://blog.givewell.org/2007/01/22/more-thoughts-on-responsible-investing/#comment-23 Tue, 23 Jan 2007 03:18:37 +0000 http://blog.givewell.org/2007/01/22/more-thoughts-on-responsible-investing/#comment-23 We're talking about foundations, not charities. Foundations generally do not solicit or receive public support, so the "market mechanism" you describe doesn't apply. You raise good reasons for a charity to save money, and some of them apply to foundations as well. I'm not saying foundations should give it all away in 5 years. But how about 20? It's considered big news that Gates is trying to give away all their money <i>this century.</i> We’re talking about foundations, not charities. Foundations generally do not solicit or receive public support, so the “market mechanism” you describe doesn’t apply.

You raise good reasons for a charity to save money, and some of them apply to foundations as well. I’m not saying foundations should give it all away in 5 years. But how about 20? It’s considered big news that Gates is trying to give away all their money this century.

]]> by: Grant http://blog.givewell.org/2007/01/22/more-thoughts-on-responsible-investing/#comment-22 Tue, 23 Jan 2007 02:49:04 +0000 http://blog.givewell.org/2007/01/22/more-thoughts-on-responsible-investing/#comment-22 While your point is valid, I think there is also some good into not just spending it all in one go. There is some value in institutional memory. A foundation that lasts for one-hundred years (one would hope) has some perspective on what has worked and what has not. Also, it (one would hope) has an effective bureaucracy in place—something which cannot be created overnight. In addition, some charities may incur large unpredictable expenses, which they should plan for the best they can (for example, a community pool may have the pump go out). A charity without any savings will probably not last very long. If there is one bad year (economically) or one other disaster which sucks away many of the charitable contributions, it will be gone. There is benefit in the better charities sticking around. However, there are many charities that have endowments that keep them alive past their usefulness. Without any need to raise more money, the money already given can sit and support a cause hardly worth supporting. For example, there are Churches in areas where the churches up-number the congregants. This is a kind of market argument: If a charity is worth keeping around, people will support it; and if not, then not. Given that some money should be saved, it seems foolish not to receive some rate of return on it. While your point is valid, I think there is also some good into not just spending it all in one go. There is some value in institutional memory. A foundation that lasts for one-hundred years (one would hope) has some perspective on what has worked and what has not. Also, it (one would hope) has an effective bureaucracy in place—something which cannot be created overnight. In addition, some charities may incur large unpredictable expenses, which they should plan for the best they can (for example, a community pool may have the pump go out).

A charity without any savings will probably not last very long. If there is one bad year (economically) or one other disaster which sucks away many of the charitable contributions, it will be gone. There is benefit in the better charities sticking around.

However, there are many charities that have endowments that keep them alive past their usefulness. Without any need to raise more money, the money already given can sit and support a cause hardly worth supporting. For example, there are Churches in areas where the churches up-number the congregants.

This is a kind of market argument: If a charity is worth keeping around, people will support it; and if not, then not.

Given that some money should be saved, it seems foolish not to receive some rate of return on it.

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