My Giving in 2021
I have just donated 1,725€ or >2% of my net income this year (plus donation tax savings, see "How" section for calculation) to various highly effective organizations working on some of our societies' greatest challenges.
?Why...
?... Am I doing it? First, and easiest of all: Because it does not affect my lifestyle in any meaningful way. My income puts me in the top 1% of the global population [1], and this donation does not change that at all.
Second, because I feel it is the right thing to do. The world faces many challenges like global poverty and health crises, existential risk for example from climate change, or animal welfare challenges in factory farming. A lot of these can at least in part be tackled by further funding for goods or people working to solve them. How could I spend the money for this donation on a new tech gadget that brings me a little more comfort, when I can also contribute to solving the world's challenges?
And third, because I feel like it is my responsibility. While I ascribe some of my income situation to personal capabilities, a lot of it is due to chance. I was lucky being born in a highly developed nation, into an upper middle class family. I feel like this luck also raises a responsibility to give back to the world and help others rise up.
??
...Am I telling you about it? Most importantly: To motivate you to think about giving this year! The majority of my network is likely in a similar income situation to me. I hope this post gives you pause, and makes you think about opportunities you could use to help solve the worlds greatest challenges, be it through money or your time. I also invite discussion around my own giving approach, in the hope of improving it in the future.
?
What...
... Am I donating for? This year, I spread my donation equally over three areas/organizations:
1) Malaria: Against Malaria Foundation
~400,000 - 600,000 people die from Malaria each year [2]. That means every 3-4 years, Malaria kills as many people as COVID-19 has killed in Europe so far [3]. And that is regardless of a specific pandemic occurring - year in year out. At the same time, $5 are enough for the Against Malaria Foundation to provide one bed net keeping mosquitoes transmitting Malaria away [4]. A fantastic opportunity to save lifes. Let's hope the recently developed Malaria vaccine soon puts an end to the need for bednets [5] so that we can use the resources for other urgent causes.
2) Climate Change:?A max. Impact fund for organizations like Clean Air Task Force (CATF)
This year's IPCC report again highlighted the grave dangers the world population faces from unmitigated climate change, as well as our lack of adequate action to prevent a climate catastrophe. With 1€, it is estimated that the CATF can effectively prevent up to >1 ton of CO2eq of emissions through regulatory advocacy [6], which makes this a great donation opportunity, also compared to other options I personally have to influence CO2 emissions. Even though this year climate change has been high on the agenda of many corporates, as well as governments at COP26, we still need to accelerate and do more.
3) Animal welfare: A max. Impact fund for organizations like The good food institute
We are currently slaughtering >70bn land animals per year globally for their meat [7] and often hold them in gruesome conditions before that. Apart from the grave moral issues with this, climate and environmental implications are also terrible. With meat so ingrained in our culture, competitive meat alternatives might be the only option to quickly get off meat. Using donations, the Good Food Institute consults the food value chain on meat alternatives, fights for consumer protection on meat substitutes, and develops regulatory advice and scientific studies on the topic. Until 2050, it is expected that meat production will rise by >80% driven by population and wealth growth, which would only worsen the moral catastrophe of current meat production, unless we can get meat substitutes off the ground [8].
?How...
... am I implementing my donation? I looked at two things to maximize my donation's impact this year: tax deductibility and matching.
Using tax deductibility, I am able to increase my donation from originally intended 1,000€ to 1,725€ without "really" raising my own contribution. Here is how it works: In Germany, donations reduce taxable income (up to maximum amount of 20% of your total income which my donation does not even come close to). Since my marginal tax bracket is 42%, this means that my donation of 1,725€ lowers my taxes by ~725€. So I am only really paying 1,000€ out of my own pocket. The rest comes back with next years tax return.
Using matching, I am likely further able to increase my donation's impact. In matching initiatives, large donors promise to donate more based on what other, often smaller donors donate. In my case, I found two initiatives where large donors promise to match my donation 100%, thereby potentially doubling the impact: Effektiv-spenden [9, Germany focused] and DoubleupDrive [10]
I am a bit cautious and often say "potentially" here, because in these matching initiatives, it must be clear the large donors would not just have donated their money without me making my donation anyway. Because then it would not have really been my donation motivating them. That is also why I use two organizations, to "spread the risk" of me not reaching a donor that only donates because of my donation.
?
I hope this post helped you think about your own contribution to solve some of the worlds most pressing problems, or has otherwise sparked new ideas. I am more than happy to discuss on any of the parts outlined above: the why, the what and the how, either below this post or via direct messages.
A successful 2022 to all of you!
Sources:
Senior Consultant @ d-fine, Effektiver Altruist, Unterzeichner des ??10% Pledges
3 年Hi Daniel, great to read about your donations! And thanks for writing! Let's hope that the article motivates lots of people to do the same. :-)
Great job!
Empower and Evolve.
3 年I think the first initial step (how much? Where to?) is the hardest and holds people back. Thats why we are starting to work on https://myonepercent.org/ Everyone gives 1% of their income and companies top them up!
Non-profit founder in Global Health (HIV/Syphilis prevention)
3 年Thank you for sharing, Daniel! Love to read your motivation to donate a significant amount to highly effective charities. Hope it inspires others as well. Personally, I can just echo the great work of effektiv-spenden.org
Strategy Consultant at Boston Consulting Group (BCG) | Harvard Public Policy
3 年Thanks for sharing! Definitely made me think about making some donations!