Is a more operationalized definition of “financial hardship” envisioned at some point?
(Totally agree with leaving it undefined during the trial phase, and can see arguments for leaving it undefined in an operational phase too. On the other hand, I think transparency is particularly important for charities whose most direct benefit is to EA or EA-adjacent people, and given Basefund’s purpose that transparency probably needs to be at a policy level rather than an individual-application level).
Could you explain the rationale for possibly extending the eligibility period backward to 2012? If the theory of change is to encourage people to donate boldly because they can get a partial refund if they experience future financial trouble, it seems that theory would only work prospectively.
One policy quirk to consider in the future: Should an intervening bankruptcy filing disqualify a significant payout?
There are some potential scenarios in which the effect would—in my view—be inequitable toward the donor’s creditors. It doesn’t seem appropriate to me to give a payout to someone based on pre-petition donations if they saddled their creditors with pre-petition losses.
Because the potential payout would fully be within Basefund’s control, that asset could potentially evade the equitable principles of the Bankruptcy Code. This would be particularly problematic if the donor were insolvent when the donation was made, but the creditors couldn’t recover the donation under fraudulent conveyance law because of 11 USC § 548(a)(2)’s protection for certain charitable contributions by individuals.
The US legal definition of hardship is more stringent than ours, and we can only assist people who experience US-level hardship because we operate under a US charity. No choice there. I think pointing people to legal definitions won’t help.
Extending the eligibility period is less of a utilitarian choice than something deontological/oriented at community building. We believe we have a duty to help EAs who’d be able to support themselves if they hadn’t given away their money. Besides that, we hope current and potential EAs will see that we’re looking out for each other, which will make the EA community a more attractive place to be in. There’s also an argument to be made that getting donors back on their feet might get them to donate again, and it could stop them from leaving EA altogether.
A few random questions:
Is a more operationalized definition of “financial hardship” envisioned at some point?
(Totally agree with leaving it undefined during the trial phase, and can see arguments for leaving it undefined in an operational phase too. On the other hand, I think transparency is particularly important for charities whose most direct benefit is to EA or EA-adjacent people, and given Basefund’s purpose that transparency probably needs to be at a policy level rather than an individual-application level).
Could you explain the rationale for possibly extending the eligibility period backward to 2012? If the theory of change is to encourage people to donate boldly because they can get a partial refund if they experience future financial trouble, it seems that theory would only work prospectively.
One policy quirk to consider in the future: Should an intervening bankruptcy filing disqualify a significant payout?
There are some potential scenarios in which the effect would—in my view—be inequitable toward the donor’s creditors. It doesn’t seem appropriate to me to give a payout to someone based on pre-petition donations if they saddled their creditors with pre-petition losses.
Because the potential payout would fully be within Basefund’s control, that asset could potentially evade the equitable principles of the Bankruptcy Code. This would be particularly problematic if the donor were insolvent when the donation was made, but the creditors couldn’t recover the donation under fraudulent conveyance law because of 11 USC § 548(a)(2)’s protection for certain charitable contributions by individuals.
The US legal definition of hardship is more stringent than ours, and we can only assist people who experience US-level hardship because we operate under a US charity. No choice there. I think pointing people to legal definitions won’t help.
Extending the eligibility period is less of a utilitarian choice than something deontological/oriented at community building. We believe we have a duty to help EAs who’d be able to support themselves if they hadn’t given away their money. Besides that, we hope current and potential EAs will see that we’re looking out for each other, which will make the EA community a more attractive place to be in. There’s also an argument to be made that getting donors back on their feet might get them to donate again, and it could stop them from leaving EA altogether.
Interesting point