Ask Giving What We Can anything, all week
Hi, I’m Grace Adams, Giving What We Can’s Head of Marketing, and a 10% pledger. I’ve been working at Giving What We Can for over 3 years and a pledger for even longer.
For Pledge Highlight Week, I’ll check this thread daily to respond to your questions. So please treat this as a week-long AMA.
Ask me anything, but I’d especially like to read your questions, concerns and comments about the 10% pledge.
I’ll also try to involve my GWWC colleagues if there are any questions they might be better suited to answer throughout the week!
I asked this in-person, but I figure it’d be nice for a broader audience to hear: How should I navigate pledging if I have taken a very low salary to do direct work? In my case, I have taken a salary that roughly covers my expenses without leaving much margin for error. Of course, ‘my expenses’ buries the lede a little bit, because I believe I could make more sacrifices to take 10% off the top, but I think doing so might make me much more anxious or hurt my productivity.
In my case, my organisation doesn’t really have much more budget to pay me; that money would be better spent elsewhere. And the market rate for my skills is much higher, even in the non-profit sector, even in India, where we operate (still probably +50% at a minimum).
If I pledged 10%, would I have to take a higher salary or donate it out of my existing salary? Or is there another way to account for this?
Hey @huw! Thanks for the question. My answer below should be read as guidance from a GWWC team member on how to interpret the 10% Pledge, but not as a formal or final position on what it means to stick to it.
We often hear from high-impact non-profit founders or employees (particularly those connected to AIM) that they are excited about effective giving and would love to take the 🔸10% Pledge, but haven’t done this (yet) mainly because they are already taking a lower salary at their organisation, and aren’t currently in a position to donate 10% of their remaining income.
In many cases, the above conclusion is based on misunderstandings about the 10% Pledge which are resulting in opportunities for impact being missed by people like yourself not pledging. For example, pledging would allow you to more effectively and authentically advocate for effective giving and the 10% Pledge among your peers. People founding / working at high-impact non-profits are often in a particularly valuable position to advocate, as their personal stories make them examples for others trying to live up to effective altruism principles and “practising what they preach”.
To help clarify some of these misunderstandings, let’s walk through a few options that could be worth considering for people like yourself founding or working at high-impact organisations:
Salary sacrificing: We think salary sacrificing can be perfectly in line with the spirit of the 10% Pledge if the following two conditions are both met:
You think your sacrificed money is best spent on the non-profit you are working for
I.e. you think you have at least as much impact by salary sacrificing as by taking the salary and then donating to any other non-profit (taking into account tax benefits and any other logistical considerations).
Some considerations here:
This is a different question than asking whether your organisation is the highest-impact place to work for you.
E.g. most people would agree GiveDirectly is a high-impact organisation and for many employees it may be the highest-impact place to work, but they may still think that their marginal dollar is better spent donated to Malaria Consortium.
If your organisation is not currently as funding constrained as some others, your money may have a larger impact elsewhere (it’s worth thinking about funging in this case).
From a communications/advocacy perspective (for instance, “putting your money where your mouth is”) it may sometimes be higher-impact donating (at least some money) to another organisation than your own (or vice versa).
You would have received the sacrificed money for the job you are currently doing, if you hadn’t explicitly decided to sacrifice it, and are able to receive it at any point in the future if you wish.
For example, this condition is met when:
As an employee, you have it listed in your contract or in your organisation’s internal accounts that your salary is X, but then instruct your employer to only pay out 90% of X to you. At any point in the future, you could instruct your employer to start paying you X instead and they would do so.
As a founder, you have the explicit ability to pay yourself X (e.g. your co-founder, board and funders approve of you doing this), but then decide to only pay yourself 90% of X. At any point in the future, you are able to pay yourself X if you wish.
For example, this condition is not met when:
You’ve founded or taken a job at a high-impact non-profit, knowing that you could have instead taken a higher-paying job elsewhere.
You’re confident you could have negotiated a higher salary with your employer, or paid yourself more as a founder, but haven’t formally checked or arranged this in any way.
Donating less now but still taking the 10% Pledge: A common misconception about the 10% Pledge is that it would oblige you to give 10% every year. Instead, it is a lifetime pledge, so it’s fine if you donate a bit less in some years and more in others to make up for that.
We obviously only recommend doing this if you’re confident you can and want to make the 10% lifetime commitment, and where feasible we still generally recommend people to give at least 10% yearly as a useful rule of thumb. This holds you accountable, embeds a pattern of giving in your life and avoids you getting so far behind on your pledge that it becomes daunting or unachievable. But we think there are cases, e.g. for some very early stage non-profit founders and/or when you’re having a particularly challenging year financially, where it may be worth diverging from this rule of thumb.
Taking a 🔹Trial Pledge: If you’re not ready to take a 10% Pledge but are excited to start giving effectively, consider taking a 🔹Trial Pledge (1-10% pledge for 6 months to 5 years), which still allows you to lead by example and additionally can serve as a helpful reminder to reconsider taking the 10% Pledge (or another Trial Pledge) at a later date.
Thank you—that’s very helpful to have all spelled out like that! Once I get my finances in order you may see me pledge ;)
Thanks, Grace. Have you (GWWC) considered highlighting your animal welfare recommendations as more cost-effective than your recommendations in other areas? From GWWC’s recommendations page:
I believe the same applies to GWWC’s recommendations, in the sense I think your animal welfare recommendations are over 100 times as cost-effective as your recommendations in other areas. I estimate:
Broiler welfare and cage-free campaigns are 168 and 462 times as cost-effective as GiveWell’s top charities.
The Shrimp Welfare Project (SWP) is 64.3 k times as cost-effectivene as GiveWell’s top charities.
I also have a sense that people working on cause prioritisation would agree that the best interventions in animal welfare are more cost-effective than the best ones in global health and development. For example, Ambitious Impact’s estimates suggest this, and so does the votes in Animal Welfare vs Global Health Debate Week.
I understand people supporting global health and development may be a little distanced by GWWC highlighting animal welfare as more cost-effective. However, people donating to local organisations helping which are 1 % as cost-effective as GiveWell’s top charities (e.g. supporting people with low income in high income countries) are way more distanced by not even having their preferred options on GWWC’s platform, and I believe the cost-effectiveness gap between such organisations and GiveWell’s top charities may well be smaller than that between the best animal welfare organisations and GiveWell’s top charities.
Hi Vasco,
Thanks for your question—I think it’s a good one!
I was going to write up a response but then I remembered we had this nice explanation on our research and approach page:
So I think the TL;DR of this answer is that we provide recommendations across a number of worldviews but don’t currently want to weigh in on what we think is the “correct” worldview. This means that we’ll be unlikely to create a ranked link of recommendations across our cause areas unless we change our view on how we think about worldview diversity.