How to give more effectively to charity
We all know donating to charity is good. So wallets out folks, time for your daily virtuous deed. How about the charity Eton College? Just £5 could help the next PPE loving (or not it seems), Machiavellian, second rate Churchill impressionist become our dear Prime Minister. Or perhaps the numerous charities linked to fraudulent activities tickle your fancy?
Charity is not synonymous with doing good - it is only as effective as the causes it promotes, and the approaches it pursues. Surely, no-one would argue that public schools, which specialise in reinforcing elitism and hindering social mobility, are deserving of dipping into our debt-riddled accounts? It is unbelievable that they are even given charity status, exempting them from business tax! Let's face it, how often do we research the influence of the latest trendy charity challenge flashing up on our feeds before we dutifully thumb in our card details?
We have all heard a heartbreaking anecdote or been inspired by a great local initiative. Should we donate? Sometimes. Charity is not zero-sum - it is undoubtedly worth contributing money otherwise destined for yet another Starbucks latte. However, it is still important to check how the resources donated are used. Not all funds received support projects; other expenses include staff costs or fundraising activities, which are particularly high in large charities. These costs are inevitable and don’t necessarily mean a charity is less effective. There is a trade-off between increased proportional fundraising expenditure as charities get bigger and economies of scale. But this can be abused. For example, Cancer Survivors Fund, which on the face of it is a worthwhile sounding charity, only spends 8.5% of funds on projects. Unbelievably 88.6% of donations are used to generate more funds. The more they receive, the more they generate, creating a highly unethical charity pyramid scheme, crowding out organisations with legitimate practices. In the UK, the government's Charity Commission makes such information publicly, breaking down financials, spending ratios and associated activities.
So you want to donate, great, there are only 166,000 registered charities in the UK (and millions abroad) to sort through. A starting point is which charities would maximise the impact of a donation. Two websites dedicated to this are Givewell and The Life You Can Save; both rigorously examine charities’ practices and their influence. The organisations fit into the broader umbrella of Effective Altruism, a utilitarian movement focusing on increasing collective wellbeing and reducing suffering as much as possible given personal constraints by applying scientific methods rather than emotion to charity. They provide a list of the most effective charities, publishing a detailed account of the evaluation process, and the charities’ projects. Causes commonly include malaria, deworming and vitamin supplements, all of which can vastly improve people's quality of life at very low costs.
Givewell estimates that it costs approximately £1800 donated to Malaria Consortium (seasonal malaria chemoprevention program) to prevent one premature death. To put this into perspective, each one of us invests enough money in our education each year to prevent 5 malaria-related deaths. If used correctly, even our small donations as students can go a long way.
Notably, none of these charities address issues in the UK. This is partially attributable to charities in richer countries focusing on complicated and expensive goals, rather than easily rectified conditions that blight poorer countries. And why should we base the value of a person on the country they live in, or any particular demographic? NICE, which contributes guidelines to the NHS, recommends that up to £30,000 can be spent per each year of perfect health (QALY). Contrasting this annual figure to the £1800 for a life shockingly displays the disparity we create between the value of a British life versus one overseas, and undoubtedly the racist attitudes that underpin this. If we collectively cared about other communities as much as our own, these issues would not even exist. We can make so much more of a difference.
Although an extremely effective method of contribution, simply placing a value of an action on a person or society can be reductive. Effective Altruism falters in regards to large scale or global problems, especially with unknowns. How could you calculate the likelihood and value of a donation reducing climate change or dismantling systemic racism? These should not be neglected, donating extends far beyond the direct benefit of a monetary gift. It is a political statement of solidarity and support, changing views, political agendas and driving the previously apathetic into action. These issues of our time would greatly benefit from widespread support. Creating change is much harder alone and donations can be a start for mobilising popular support for a cause.
Last year Queen Mary and Barts and The London students raised £113,000 through RAG and tens of thousands more through individual effort at the university. These figures demonstrate the collective power students have to affect change. We have a responsibility to harness this position to not just settle for doing good but instead strive to have an even greater impact. Next time you are deciding where to donate, don’t give indiscriminately. Instead, consider pressing global issues and Effective Altruism: the charities promoted by the movement are transparently proven to significantly reduce suffering. Let's make our contributions count.