The GiveWell Blog

Perspectives on donor irrationality

Jeanne Panossian left two very interesting comments on our blog discussing donor irrationality, from the point of view of someone running a small charity.

  • On donor illusions: ” … It takes extraordinary ethical fortitude to openly tell people how complicated your organization is, normally a donor has made their basic decision in the first 15 to 30 seconds of a conversation …”
  • On the administrative expense ratio: “…While I love to talk all day about [my charity’s impact], I have learned it is not worth my while. Waving a flag and telling people how we pay for our paper clips yields me more funds faster …”

Recommended reading.