I might have misunderstood, but wouldn’t the same apply to the same customers applying for funding for tech work?
I think this applies somewhat for newer orgs and for very discerning/active donors. But my guess is not as much for more established orgs and busier/less discerning funders, because a funder can in theory look at the total inputs and outputs of an EA org and consider either average and marginal cost-benefit when deciding whether to fund them, rather than do sophisticated accounting on specific purchase decisions. So at least in a retrospective evaluation, rather than a line item consideration of whether past donations specifically spent on an improved website, better HR software, external recruiters, higher quality toilet paper etc, is worth it, I can just look at an org’s reported outputs and make a broad judgment of whether it’s worth the money (or other capital) that went in, and then further decide whether I trust the org’s leadership to make good decisions with extra $s. This means that customer EA orgs may be specifically mistaken about funding software work, but unless they make up for it in efficiency gains elsewhere, the total relatively low efficiency will become obvious eventually, and thus customer orgs are incentivized to maximize cost-benefits across the org.
Whereas if the EA org made a lot of use of high-quality labor implicitly or explicitly paid for elsewhere in the movement, this is harder to trace/account for as a funder.
I think this applies somewhat for newer orgs and for very discerning/active donors. But my guess is not as much for more established orgs and busier/less discerning funders, because a funder can in theory look at the total inputs and outputs of an EA org and consider either average and marginal cost-benefit when deciding whether to fund them, rather than do sophisticated accounting on specific purchase decisions. So at least in a retrospective evaluation, rather than a line item consideration of whether past donations specifically spent on an improved website, better HR software, external recruiters, higher quality toilet paper etc, is worth it, I can just look at an org’s reported outputs and make a broad judgment of whether it’s worth the money (or other capital) that went in, and then further decide whether I trust the org’s leadership to make good decisions with extra $s. This means that customer EA orgs may be specifically mistaken about funding software work, but unless they make up for it in efficiency gains elsewhere, the total relatively low efficiency will become obvious eventually, and thus customer orgs are incentivized to maximize cost-benefits across the org.
Whereas if the EA org made a lot of use of high-quality labor implicitly or explicitly paid for elsewhere in the movement, this is harder to trace/account for as a funder.