The GiveWell Blog

How GiveWell uses cost-effectiveness analyses

Our cost-effectiveness analysis plays a critical role in the recommendations we make to donors. For example, as a direct result of our cost-effectiveness calculations, we place a higher priority on filling funding gaps at the charities we recommend that work on deworming programs and distributing malaria nets than we do directing funding to GiveDirectly, a GiveWell top charity that distributes direct cash transfers. We believe that GiveDirectly is the strongest organization we’ve ever seen, but according to our analysis, cash transfers are less cost-effective in terms of impact per dollar donated than deworming treatments and malaria nets.

Accordingly, cost-effectiveness analysis is a major part of GiveWell’s research process. We dedicate a large part of a full-time staff member (Christian Smith)’s capacity to this work and others involved with GiveWell research spend a considerable amount of time engaging with our cost-effectiveness model throughout the year. We consider this analysis a key part of our output and publish our model online so that anyone can check our calculations, enter their own inputs, and see if they agree with our approach and outputs.

This post will provide some basic information about how our cost-effectiveness analyses inform our charity recommendations.

Allocation of discretionary funds and new recommendation for donors

Since we released our 2016 recommendations in November, we have received about $4.9 million in funding for making grants at our discretion. We noted at the time that we would use these funds to fill the next highest priority funding gaps among our top charities. We have now reassessed the funding gaps for our top charities and plan to allocate $4.4 million to the Against Malaria Foundation (AMF) and $0.5 million of the funding we received for granting to the Deworm the World Initiative.

Our updated recommendation for donors

We have also updated our bottom line recommendation for donors seeking to follow our recommended allocation. We now recommend that donors give 100% of their donation to AMF, which will continue to have a pressing need for funding after the grant from GiveWell’s discretionary funds and after accounting for expected fundraising.

This is an update on the recommendation we made in November 2016 of giving 75% to AMF and 25% to the Schistosomiasis Control Initiative (SCI). We will update this recommendation again in November, and may do so sooner if we have new information that affects where we think additional donations would have the greatest impact.

We continue to recommend all seven of our current recommended charities as top charities and think all offer outstanding opportunities for donors to accomplish significant good with their donations. We have not completed any updates on our standout charities, and that list remains the same.

Just a few days left in 2016…

There are only a few days left to give to charity this calendar year.

The majority of donors who support GiveWell’s recommendations choose to make their gifts in December, for tax reasons or due to the holiday season.

This blog post contains quick tips and information about donating to GiveWell’s recommended charities.

Front-loading my personal giving this year

I’ve decided to give a little more than double what I normally give to charity this year, and skip giving next year. I see many reasons to give a larger-than-normal gift this year, and no countervailing reasons. If it weren’t for some idiosyncratic factors in my situation, I would roll my next three years of… Read More