First of all, this is a great comment and indeed many others have been thinking along the same lines — I was hired by GWWC in June and a substantial element of my role will be to help effective giving initiatives get started in new legal jurisdictions, which will enable tax-deductions in more places. There are already many national ‘regranting organisations’ which fulfil the purpose you are suggesting here and we’re hoping to see many more get started. For an overview of the effective giving ecosystem and what already exists you can take a look here. And to see tax deductibility of donations by country take a look here. Very tentatively, I’m quite excited about new projects getting started in Italy, India, Singapore, Poland, South Africa, Mexico, South Korea, Japan and Portugal, but need to think a lot more about this.
In my view, the primary purpose of these new initiatives is not to increase impact through extra donations that would have otherwise been paid as tax, but rather to facilitate localised outreach and promotion of effective giving. The majority of resources available online are in English, which means we are missing out on reaching a large segment of the global population who may become effective givers.
I largely agree with HakonHarnes that tax deduction is not “a large part of what makes a donation effective, as our main claim to effectiveness lies in the interventions themselves, which can be many orders of magnitude better than typical charities”. Rather regranting organisations are particularity useful because they reach new audiences which counterfactually would not have started donating to effective charities. It is true that enabling tax-deductible donations will have some counterfactual impact insofar as old donors who previously could not give tax-deducible donations would be able to increase the amount they give. However, the largest impact that tax-deduction has, in my view, is psychological, allowing new donors to give more $ makes them to feel like they are contributing more and getting the most value for their donations. This is especially true when taking people on a journey from making tax-deductible donations to charities in their home country to making donations to highly effective charities. It may make people feel uncomfortable that they are able to give less overall, and they may initially struggle to buy into the idea that the best charities are 100x more effective than the median charities. For this reason I agree that tax-deductibility is an important element of the strategy to make effective giving more widespread.
One thing I’d love to follow up on from you’re comment is whether you’re saying that Belgians can always donate to Dutch charities in a tax-deducible way? Because if so that would mean that such information could potentially provided on the website of Doneer Effectief and could be promoted to Belgians.
On the promoting effective giving to businesses side of things, One For The World have been having some success and I’m excited to see much more done on that front!
First of all, this is a great comment and indeed many others have been thinking along the same lines — I was hired by GWWC in June and a substantial element of my role will be to help effective giving initiatives get started in new legal jurisdictions, which will enable tax-deductions in more places. There are already many national ‘regranting organisations’ which fulfil the purpose you are suggesting here and we’re hoping to see many more get started. For an overview of the effective giving ecosystem and what already exists you can take a look here. And to see tax deductibility of donations by country take a look here. Very tentatively, I’m quite excited about new projects getting started in Italy, India, Singapore, Poland, South Africa, Mexico, South Korea, Japan and Portugal, but need to think a lot more about this.
In my view, the primary purpose of these new initiatives is not to increase impact through extra donations that would have otherwise been paid as tax, but rather to facilitate localised outreach and promotion of effective giving. The majority of resources available online are in English, which means we are missing out on reaching a large segment of the global population who may become effective givers.
I largely agree with HakonHarnes that tax deduction is not “a large part of what makes a donation effective, as our main claim to effectiveness lies in the interventions themselves, which can be many orders of magnitude better than typical charities”. Rather regranting organisations are particularity useful because they reach new audiences which counterfactually would not have started donating to effective charities. It is true that enabling tax-deductible donations will have some counterfactual impact insofar as old donors who previously could not give tax-deducible donations would be able to increase the amount they give. However, the largest impact that tax-deduction has, in my view, is psychological, allowing new donors to give more $ makes them to feel like they are contributing more and getting the most value for their donations. This is especially true when taking people on a journey from making tax-deductible donations to charities in their home country to making donations to highly effective charities. It may make people feel uncomfortable that they are able to give less overall, and they may initially struggle to buy into the idea that the best charities are 100x more effective than the median charities. For this reason I agree that tax-deductibility is an important element of the strategy to make effective giving more widespread.
One thing I’d love to follow up on from you’re comment is whether you’re saying that Belgians can always donate to Dutch charities in a tax-deducible way? Because if so that would mean that such information could potentially provided on the website of Doneer Effectief and could be promoted to Belgians.
On the promoting effective giving to businesses side of things, One For The World have been having some success and I’m excited to see much more done on that front!