It’s not about how much a charity helps people, but about how much your donation to the charity helps people. This is where efficiency comes in. Efficiency measures amount of good done per $1. If you have $1000 to donate to a charity, efficiency measures how much good your donation will do.
Assuming two charities have the same goal, but one is much larger, the larger one probably helps people more. But if the smaller charity is more efficient, it is the one you should donate to because your donation would do more good there.
It’s not about how much a charity helps people, but about how much your donation to the charity helps people. This is where efficiency comes in. Efficiency measures amount of good done per $1. If you have $1000 to donate to a charity, efficiency measures how much good your donation will do.
Assuming two charities have the same goal, but one is much larger, the larger one probably helps people more. But if the smaller charity is more efficient, it is the one you should donate to because your donation would do more good there.