The GiveWell Blog

All Cost-effectiveness analysis Posts

How we work, #1: Cost-effectiveness is generally the most important factor in our recommendations

(updated on: ) | by Isabel Arjmand

This post is the first in a multi-part series, covering how GiveWell works and what we fund. We’ll add links to the later posts here as they’re published. Through these posts, we hope to give a better understanding of our research and decision-making.

Why cost-effectiveness matters

The core question we try to answer in our research is: How much good can you do by giving money to a certain program?

Consider how much good your donation could do if you give to a program that costs $50,000 to save a life versus one that costs $5,000 to save a life (which is roughly what we estimate for our top charities). Giving to the latter would have 10 times more impact. While in an ideal world both programs would receive funding, we focus on identifying the most cost-effective programs so that the limited amount of funding available can make the greatest difference.

The basics

We’ve written in detail here about our approach to cost-effectiveness analysis and its limitations. Our bottom-line estimates are always uncertain, and we don’t expect them to be literally true. At the same time, they help us compare programs to each other so that we can direct funding where we believe it will have the greatest impact.

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The winners of the Change Our Mind Contest—and some reflections

| by Isabel Arjmand

In September, we announced the Change Our Mind Contest for critiques of our cost-effectiveness analyses. Today, we’re excited to announce the winners!

We’re very grateful that so many people engaged deeply with our work. This contest was GiveWell’s most successful effort so far to solicit external criticism from the public, and it wouldn’t have been possible without the participation of people who share our goal of allocating funding to cost-effective programs.

Overall, we received 49 entries engaging with our prompts. We were very happy with the quality of entries we received—their authors brought a great deal of thought and expertise to engaging with our cost-effectiveness analyses.

Because we were impressed by the quality of entries, we’ve decided to award two first-place prizes and eight honorable mentions. (We stated in September that we would give a minimum of one first-place, one runner-up, and one honorable mention prize.) We also awarded $20,000 to the piece of criticism that inspired this contest.

Winners are listed below, followed by our reflections on this contest and responses to the winners.

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Announcing the Change Our Mind Contest for critiques of our cost-effectiveness analyses

| by Isabel Arjmand

We’re extremely excited to be announcing the Change Our Mind Contest to encourage critiques of our cost-effectiveness analyses that could lead to substantial improvements of our overall allocation of funds. For all the details, see this page.

Cost-effectiveness is the single most important input in our decisions about what programs to recommend, and we believe it’s possible that we’re missing important considerations or making mistakes that lead us to allocate funding suboptimally. We’ve been excited to see people engaging with our cost-effectiveness analyses, and we’d like to inspire more of that engagement.

With that in mind, we’re inviting you to identify potentially important mistakes or weaknesses in our existing cost-effectiveness analyses and tell us about them!

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An update on GiveWell’s funding projections

| by Elie

As little as six months ago, we were in the position of having more funding available than we could spend on opportunities that met our very high cost-effectiveness bar. Today, the opposite is true—we don’t expect to have enough funding to support all the cost-effective opportunities we find.

In this post we will: provide an update on GiveWell’s projected funding position, explain how we have been successful in identifying cost-effective opportunities, and share our initial thoughts about what this update means for GiveWell’s forward-looking grantmaking strategy.

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We aim to cost-effectively direct around $1 billion annually by 2025

(updated on: ) | by Ben Bateman

A little over a decade ago in 2010, GiveWell directed around $1.5 million to the charities we recommended. In 2021, we expect we’ll raise at least $500 million, and may raise as much as $560 million or more.

We never anticipated that we’d grow this large this quickly. We’ve seen rapid growth from donors of all sizes, the most recent of which is a commitment of $300 million from Open Philanthropy.

While this growth comes with challenges—we’re working hard to hire enough researchers—it’s a testament to our donors’ trust in us and enthusiasm for our mission.

But these big numbers are relatively small in the long-term scope of what GiveWell hopes to achieve. We believe there are billions of dollars’ worth of annual cost-effective giving opportunities that we have yet to identify.

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New research on moral weights

| by Josh Rosenberg

Each year, GiveWell identifies more great giving opportunities than we are able to fully fund. As a result, in our charity recommendation decisions, we necessarily face very challenging questions, such as: How much funding should we recommend for programs that reduce poverty versus programs that reduce deaths from malaria? How should we prioritize programs that primarily benefit children versus adults? And, how do we compare funding those programs with others that have different good outcomes, such as reducing suffering from chronic health issues like anemia?

We recently received results from research we supported to help us answer these questions from the perspective of communities similar to those our top charities operate in. This blog post provides a brief summary of the project and results. Additional details are available on this page.

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