The GiveWell Blog

Allocation of discretionary funds from Q4 2019

We recently allocated donations made from October through December 2019 to “Grants to recommended charities at GiveWell’s discretion.” We granted $11.9 million to Malaria Consortium’s seasonal malaria chemoprevention program and $1.5 million to Helen Keller International’s vitamin A supplementation program.

We allocate donations to “Grants to recommended charities at GiveWell’s discretion” (discretionary funds) quarterly, according to where we see the highest-priority funding needs. Malaria Consortium’s seasonal malaria chemoprevention (SMC) program and Helen Keller International (HKI)’s vitamin A supplementation (VAS) program had the top-priority needs among our top charities at the time we made this decision.

Malaria Consortium provides preventive anti-malarial medication to young children during the time of year when malaria transmission is highest. HKI supports provision of vitamin A supplements to young children, which reduces their risk of dying of infectious disease.[1] We estimate that the combined discretionary grants to these organizations will save 5,600 lives.[2]

In this post, we discuss:

  • Our process for deciding where to allocate discretionary funds. (More)
    • We share updates on:
      • HKI’s VAS program. (More)
      • Malaria Consortium’s SMC program. (More)
      • SCI Foundation. (More)
    • We also discuss uncertainties in our decision. (More)
  • Our bottom line for donors giving today. (More)

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Announcing our 2019 top charities

We’re excited to announce our top charities for 2019. After thousands of hours of vetting and review, eight charities stood out as excellent.

These charities work on evidence-backed and impactful health and poverty alleviation programs serving people in the poorest parts of the world. We’ve identified specific opportunities for our top charities to use an additional $75 million in donations to save 33,000 lives, $30 million to treat 36 million children for parasitic worm infections, and $450 million to provide unconditional cash transfers to 375,000 extremely low-income individuals. Our expectation is that our top charities can effectively use even more funding than that—that’s just a starting point.

Our 2019 recommendation: “Grants to recommended charities at GiveWell’s discretion”

Our top recommendation for donors giving in 2019 is to give to “Grants to recommended charities at GiveWell’s discretion.” We will grant these funds each quarter to the top charity or charities where we believe they will have the greatest impact.

The top charity we model as having the highest impact per additional dollar can change throughout the year. To inform our understanding, we ask our top charities to provide us with updated information on an ongoing basis. For example, a top charity may share that it has found new opportunities for impact, such as the potential to work in a new country with a significant need for its program.

In addition, top charities typically receive funding from GiveWell donors and other sources on an ongoing basis. We update our expectations of how much additional funding charities need each quarter by incorporating funding they have received since our last allocation of “Grants to recommended charities at GiveWell’s discretion.”

Summary

  • Our 2019 top charities (More)
  • How we prioritize our top charities’ funding needs (More)
  • New information we learned in 2019 (More)
  • Giving to GiveWell’s operations (More)
  • Tips for donating efficiently (More)
  • Questions? (More)
  • More information on our top charities and 2019 review process (More)

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Our recent visit to Burkina Faso

GiveWell staff recently visited Burkina Faso to meet with staff of one of our top charities, Malaria Consortium’s seasonal malaria chemoprevention (SMC) program, and observe its work. Through its SMC program, Malaria Consortium distributes preventative anti-malarial medication at a time of year when it is needed most.

As I write below, GiveWell donors have directed more than $37 million to Malaria Consortium over the last 18 months at our recommendation. We expect that this will provide preventative treatments to 4.8 million children and avert over 16,000 deaths. We’re so appreciative of the support of our community in enabling this tremendous impact.

We originally sent a version of the following message to supporters of Malaria Consortium’s SMC program in late August. We received positive feedback on this message and decided to share it more broadly on our blog. We plan to publish more information about the 2019 Burkina Faso site visit in the future.

Hello from Burkina Faso!

I’m here on a site visit of Malaria Consortium, one of our recommended charities, to see its malaria prevention program in action.

This visit helped me relate more deeply to the program by getting to know some of the people who run it and some of the people who benefit from it. I wanted to share my experience with you.

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Allocation of discretionary funds from Q4 2018

In the fourth quarter of 2018, donors gave a combined $7.6 million in funding to GiveWell for making grants at our discretion. In this post, we discuss the process we used to decide how to allocate this $7.6 million, as well as an additional $0.8 million designated for grants at GiveWell’s discretion held by the Centre for Effective Altruism and $1.7 million in the EA Fund for Global Health and Development (which is managed by GiveWell Executive Director Elie Hassenfeld), for a total of $10.1 million in funding. We’re so grateful to have a community of supporters that relies on our work and is open to allowing us to allocate funding to the top charity or charities we believe need it most.

We noted in November 2018 that we would use funds received for making grants at our discretion to fill the next highest priority funding gaps among our top charities. At the time, we wrote:

If we had additional funds to allocate now, the most likely recipient would be Malaria Consortium to scale up its work providing seasonal malaria chemoprevention.

Based on our analysis in 2018 as well as updates we have received from our top charities since that time, we have decided to allocate this $10.1 million in funding to Malaria Consortium’s seasonal malaria chemoprevention (SMC) program. The SMC program consists of treating children with a course of preventive antimalarial drugs during the time of year when malaria transmission is greatest.

We continue to recommend that donors giving to GiveWell choose the option on our donation form for “grants to recommended charities at GiveWell’s discretion” so that we can direct the funding to the top charity or charities with the most pressing funding needs. For donors who prefer to give to a specific charity, we note that if we had additional funds to allocate at this time, we would very likely allocate them to Malaria Consortium’s seasonal malaria chemoprevention program, which we believe could use additional funding for highly cost-effective work, even after receiving the $10.1 million in funding mentioned above.

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Why we don’t use subnational malaria mortality estimates in our cost-effectiveness models

Summary

We recently completed a small project to determine whether using subnational baseline malaria mortality estimates would make a difference to our estimates of the cost-effectiveness of two of our top charities, the Against Malaria Foundation and Malaria Consortium. We ultimately decided not to include these adjustments because they added complexity to our models and would require frequent updating, while only making a small difference (a 3-4% improvement) to our bottom line.

Though this post is on a fairly narrow topic, we believe this example illustrates the principles we use to make decisions about what to include in our cost-effectiveness model.

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Allocation of discretionary funds from Q1 2018

In the first quarter of 2018, we received $2.96 million in funding for making grants at our discretion. In this post we discuss:

  • The decision to allocate the $2.96 million to the Against Malaria Foundation (AMF) (70 percent) and the Schistosomiasis Control Initiative (SCI) (30 percent).
  • Our recommendation that donors give to GiveWell for granting to top charities at our discretion so that we can direct the funding to the top charity or charities with the most pressing funding need. For donors who prefer to give directly to our top charities, we continue to recommend giving 70 percent of your donation to AMF and 30 percent to SCI to maximize your impact.

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