“The GWWC site, for example, claims that from 291 members there will be £72.68M pledged. This equates to £250K / person over the course of their life. Claiming that this level of pledging will occur requires either unreasonable rates of donation or multi-decade payment schedules. If, in line with GWWC’s projections, around 50% of people will maintain their donations, then assuming a linear drop off the expected pledge from a full time member is around £375K. Over a lifetime, this is essentially £10K / year. It seems implausible that expected mean annual earnings for GWWC members is of order £100K.”
Again, there are quite a few mistakes:
First, in comments you twice say that “£112.8M” has been pledged rather than “$112.8M”. I know that’s just a typo but it’s an important one.
Second, you say that the GWWC site claims that, “there will be £72.68M pledged” (future tense). It doesn’t, it says, “$112.8mn pledged” (past tense). It’s a pretty important difference – the pledging is something that has happened, not something that will happen. This might partly explain the confusion discussed in point 4, below.
Third, and more substantively, you don’t consider the idea, raised in other comments, that some donors might be donating considerably more than 10%, or that some donors might be donating considerably more than the mean. Both are true of GWWC pledgers.
Fourth, you seem to wilfully misunderstand the verb ‘to pledge’. I regularly make the following statement: “I have pledged to give everything I earn above £20 000 p.a. [PPP and inflation-adjusted to Oxford 2009]”. Am I lying when I say that? Using synonyms, I could have said “I promise to give…”, “I commit to give…” or “I sincerely intend to give…”. None of these entail “I am certain that I will donate everything above £20 000 p.a.”. Using my belief that I will earn on average over £42 000 p.a. [PPP and inflation-adjusted to Oxford 2009] over the course of my life, and that I will work until I’m 68, I can infer that I’ve pledged to give over £1 000 000 over the course of my life, which is also something I say. Am I lying when I say that? (Also note that if only 73 people made the same pledge as me, then we would have jointly pledged the current GWWC amount).
Fifth, I don’t know why you took us to use the $100mn pledged figure as an estimate of our impact. In fact you had evidence to the contrary. In a blog post that you cite I said: “As of last March, we’d invested $170 000’s worth of volunteer time into Giving What We Can, and had moved $1.7 million to GiveWell or GWWC top-recommended development charities, and raised a further $68 million in pledged donations. Taking into account the facts that some proportion of this would have been given anyway, there will be some member attrition, and not all donations will go to the very best charities (and using data for all these factors when possible), we estimate that we had raised $8 in realised donations and $130 in future donations for every $1’s worth of volunteer time invested in Giving What We Can.” (emphasis added).
Finally, I think that the GWWC pledge is misleading only if it’s taken to be a measure of our impact. But we don’t advertise it as that. We could try to make it some other number. We could adjust the number downwards, in order to take into account: how much would have been given anyway; member attrition; a discount rate. Or we could adjust the number upwards, in order to take into account: overgiving; real growth of salaries, and inflation. It could also be adjusted downward to take into account that not all donations are to GW or GWWC recommended charities, or (perhaps) upwards to take into account the idea that we will have better evidence about the best giving opportunities in a few years’ time, and thereby be able to donate to charities better than AMF, SCI or DtW. But any number we gave based on these adjustments would be more misleading and arbitrary than the literal amount pledged. It would also be more confusing for the large majority of our website viewers who haven’t thought about things like counterfactual giving or whether the discount rate should be positive or negative over the next few years; they’re used to the social norm which is to advertise pledges as stated. Until you, no-one who does understand issues such as counterfactual giving and discount rates has understood the amount pledged figure as an impact-assessment.
In comments there was some uncertainty about how we come up with the total pledged figure. What we do is as follows. Each member, when they return their pledge form, states a) what percentage they commit to (or, if taking the Further Pledge, the baseline income above which they give everything); b) their birthdate; c) their expected average earnings per annum. Assuming a (conservative) standard retirement age, that allows us to calculate their expected donations.
In some cases, members understandably don’t want to reveal their expected earnings. What we used to do, in such cases, is to use the mean earnings of all the other members who have given their incomes. However, when, recently, one member joined with very large expected earnings (pursuing earning to give), we raised the question whether this method suffers from sample bias, because people who expect to earn a lot will be more likely to report. I’m not sure that’s true: I could imagine that people who earn more often don’t want to flaunt that fact. However, wanting to be conservative, we decided instead to use the mean earnings of the country in which the member works.
Bottom Line for Readers
If you’re interested in the question of whether 80,000 Hours and Giving What We Can have acted optimally or will act optimally in the future, the answer is simple: certainly not. We inevitably do some things worse than we could have done, and we value your input on concrete suggestions about how our organisations can improve.
If you’re interested in the question of whether $1 invested in 80,000 Hours or Giving What We Can produces more than $1’s worth of value for the best causes, read here, here, here and here and, most of all, contact me for the calculations and, if you’d like, our latest business plan, at will dot crouch at 80000hours.org. So far, I haven’t seen any convincing arguments to the conclusion that we fail to have a ROI greater than 1; however, it’s something I’d love additional input on, as the outside view makes me wary about believing that I work for the best charity I know of.
(part 3; final part)
Second: The GWWC Pledge. You say:
“The GWWC site, for example, claims that from 291 members there will be £72.68M pledged. This equates to £250K / person over the course of their life. Claiming that this level of pledging will occur requires either unreasonable rates of donation or multi-decade payment schedules. If, in line with GWWC’s projections, around 50% of people will maintain their donations, then assuming a linear drop off the expected pledge from a full time member is around £375K. Over a lifetime, this is essentially £10K / year. It seems implausible that expected mean annual earnings for GWWC members is of order £100K.”
Again, there are quite a few mistakes:
First, in comments you twice say that “£112.8M” has been pledged rather than “$112.8M”. I know that’s just a typo but it’s an important one.
Second, you say that the GWWC site claims that, “there will be £72.68M pledged” (future tense). It doesn’t, it says, “$112.8mn pledged” (past tense). It’s a pretty important difference – the pledging is something that has happened, not something that will happen. This might partly explain the confusion discussed in point 4, below. Third, and more substantively, you don’t consider the idea, raised in other comments, that some donors might be donating considerably more than 10%, or that some donors might be donating considerably more than the mean. Both are true of GWWC pledgers.
Fourth, you seem to wilfully misunderstand the verb ‘to pledge’. I regularly make the following statement: “I have pledged to give everything I earn above £20 000 p.a. [PPP and inflation-adjusted to Oxford 2009]”. Am I lying when I say that? Using synonyms, I could have said “I promise to give…”, “I commit to give…” or “I sincerely intend to give…”. None of these entail “I am certain that I will donate everything above £20 000 p.a.”. Using my belief that I will earn on average over £42 000 p.a. [PPP and inflation-adjusted to Oxford 2009] over the course of my life, and that I will work until I’m 68, I can infer that I’ve pledged to give over £1 000 000 over the course of my life, which is also something I say. Am I lying when I say that? (Also note that if only 73 people made the same pledge as me, then we would have jointly pledged the current GWWC amount).
Fifth, I don’t know why you took us to use the $100mn pledged figure as an estimate of our impact. In fact you had evidence to the contrary. In a blog post that you cite I said: “As of last March, we’d invested $170 000’s worth of volunteer time into Giving What We Can, and had moved $1.7 million to GiveWell or GWWC top-recommended development charities, and raised a further $68 million in pledged donations. Taking into account the facts that some proportion of this would have been given anyway, there will be some member attrition, and not all donations will go to the very best charities (and using data for all these factors when possible), we estimate that we had raised $8 in realised donations and $130 in future donations for every $1’s worth of volunteer time invested in Giving What We Can.” (emphasis added).
Finally, I think that the GWWC pledge is misleading only if it’s taken to be a measure of our impact. But we don’t advertise it as that. We could try to make it some other number. We could adjust the number downwards, in order to take into account: how much would have been given anyway; member attrition; a discount rate. Or we could adjust the number upwards, in order to take into account: overgiving; real growth of salaries, and inflation. It could also be adjusted downward to take into account that not all donations are to GW or GWWC recommended charities, or (perhaps) upwards to take into account the idea that we will have better evidence about the best giving opportunities in a few years’ time, and thereby be able to donate to charities better than AMF, SCI or DtW. But any number we gave based on these adjustments would be more misleading and arbitrary than the literal amount pledged. It would also be more confusing for the large majority of our website viewers who haven’t thought about things like counterfactual giving or whether the discount rate should be positive or negative over the next few years; they’re used to the social norm which is to advertise pledges as stated. Until you, no-one who does understand issues such as counterfactual giving and discount rates has understood the amount pledged figure as an impact-assessment.
In comments there was some uncertainty about how we come up with the total pledged figure. What we do is as follows. Each member, when they return their pledge form, states a) what percentage they commit to (or, if taking the Further Pledge, the baseline income above which they give everything); b) their birthdate; c) their expected average earnings per annum. Assuming a (conservative) standard retirement age, that allows us to calculate their expected donations. In some cases, members understandably don’t want to reveal their expected earnings. What we used to do, in such cases, is to use the mean earnings of all the other members who have given their incomes. However, when, recently, one member joined with very large expected earnings (pursuing earning to give), we raised the question whether this method suffers from sample bias, because people who expect to earn a lot will be more likely to report. I’m not sure that’s true: I could imagine that people who earn more often don’t want to flaunt that fact. However, wanting to be conservative, we decided instead to use the mean earnings of the country in which the member works.
Bottom Line for Readers If you’re interested in the question of whether 80,000 Hours and Giving What We Can have acted optimally or will act optimally in the future, the answer is simple: certainly not. We inevitably do some things worse than we could have done, and we value your input on concrete suggestions about how our organisations can improve.
If you’re interested in the question of whether $1 invested in 80,000 Hours or Giving What We Can produces more than $1’s worth of value for the best causes, read here, here, here and here and, most of all, contact me for the calculations and, if you’d like, our latest business plan, at will dot crouch at 80000hours.org. So far, I haven’t seen any convincing arguments to the conclusion that we fail to have a ROI greater than 1; however, it’s something I’d love additional input on, as the outside view makes me wary about believing that I work for the best charity I know of.
Thanks for writing this. I found it illuminating.
In the future, I’d suggest posting multipart comments like this as replies to one another, so it’s easier to read them in order.