The logic requires that your donations are purely altruistically motivated and you only care for good outcomes.
E. g. take donating to one of the organizations A, or B for cancer research. If your donations are purely altruistic and the consequences are the same you should have no preference on which of the organizations finds a new treatment. You have no reason to distinguish the case of you personally donating $ 1000 to both organizations and someone else doing the same from you donating $2000 to A and someone else donating $2000 to B. And once the donations are made you should have no preference between A or B finding the new treatment.
So the equivalent to your personal portfolio when making investments aren’t your personal donations, but the aggregate donations of everyone. And since you aren’t the only one making donations the donations are already diversified, so you are free to pick something underrepresented with high yield (which will almost certainly still be underrepresented afterwards). If you manage 0.1% of a $ 10,000,000 portfolio with 90% in government bonds it makes no sense to invest any of that 0.1% in government bonds in the name of diversification.
The logic requires that your donations are purely altruistically motivated and you only care for good outcomes.
E. g. take donating to one of the organizations A, or B for cancer research. If your donations are purely altruistic and the consequences are the same you should have no preference on which of the organizations finds a new treatment. You have no reason to distinguish the case of you personally donating $ 1000 to both organizations and someone else doing the same from you donating $2000 to A and someone else donating $2000 to B. And once the donations are made you should have no preference between A or B finding the new treatment.
So the equivalent to your personal portfolio when making investments aren’t your personal donations, but the aggregate donations of everyone. And since you aren’t the only one making donations the donations are already diversified, so you are free to pick something underrepresented with high yield (which will almost certainly still be underrepresented afterwards). If you manage 0.1% of a $ 10,000,000 portfolio with 90% in government bonds it makes no sense to invest any of that 0.1% in government bonds in the name of diversification.
Makes sense, but it seems to me that if there are many underrepresented high yield charities, you should still diversify among them.