Charitable Giving

Where to Donate

Getting Started

Organizations like GiveWell conduct in-depth research to identify charities that are not only well-intentioned but also have a proven, evidence-backed track record of making a difference. They even go as far to calculate approximately how much it costs to save a life, with the latest figures being about $3k/life. Beyond just picking the right charity, consider the most effective way to give. The easiest option is to simply go with their top charities fund.

Strategies

Different sites not only explore and recommend effective charities, but they also have different causes to align your with preferences. Here are some causes from three popular sites:

Effective Altruism Funds

• Animal Welfare: High-impact opportunities to help animals

• Effective Altruism Infrastructure: Increases the impact of EA projects

• Global Health & Development: Improves health & economies for people around the world

• Long-Term Future: Addresses potential global catastrophes

The Life You Can Save

• Maximize Your Impact: Addresses all dimensions of poverty

• Education: Increases and improves educational opportunities

• Health: Mitigates mortality from diseases

• Quality of Life: Promotes financial security and sustainment

• Women & Girls: Promotes women safety and maternal healthcare

Taking Action

If you are well-off and consistently have extra money to give away, you can join thousands of others in pledging to donate 1-10% of your income at Giving What We Can. This site also offers charities recommendations across a few cause areas.

If you're looking for other ways to better the world, like through work, 80,000 Hours helps people with finding impactful careers.

Check out Effective Altruism for an overview of the philosophy and movement.

Tax Strategies

Depending on when and how you make your donations, you can get more money back on your tax return. For most people, the options are limited, as your options are limited if you take the standard deduction and don't itemize. If you do itemize however, there are a few ways you can go about it.

Without Itemizing

Individuals can claim an above-the-line deduction up to $1000, and married couples filing jointly can claim up to $2000. This is limited to money given to qualified 501(c)(3) public charities, which basically means a US-based non-profit.

If donate more than $2k/year but not enough to itemize, you could invest or save multiple years worth of donations and give it away every few years. This allows you to itemizing during those bulk-donation years and potentially take advantage of other itemized deductions you otherwise would not benefit from. You should still take advantage of the above-the-line deduction up to $1-2k, savings the rest for a bulk year.

Itemizing

With the ability to itemize, you can donate directly to charities and easily claim your donations on your tax return. An alternative strategy is to put your money in Donor-Advised Funds, or DAFs. Basically, you put money into a DAF, get the tax benefit immediately, and donate whenever you want, all while your DAF deposits can be invested into stocks.