Could you say more about what you’ve done to validate the 18 month cutoff you are using? Looking at standard practices seems like a reasonable place to start but may not be the end of the conversation. What if most charities have less reserves because of pressure from funders and not because that is the operationally optimal amount?
GiveWell for example funds programs up to three years in the future. Have you spoken with anyone at GiveWell to understand why SoGive and GiveWell have arrived at such different thresholds?
Thinking hypothetically, it feels plausible to me that there are many programs out there that need more than an 18 month runway to fully implement. For example, GiveDirectly fully funded their basic income program from the start, even though the funds would not be fully distributed for 12 years.
I think it would be easy for someone to confuse the two, but (as Matt_Sharp rightly indicated) the SoGive 18 months and the GiveWell 3 years are referring to different things.
The SoGive 18 month threshold refers to funds where there are no plans to use the money.
GiveWell is referring to money which is planned to be spent.
Could you say more about what you’ve done to validate the 18 month cutoff you are using? Looking at standard practices seems like a reasonable place to start but may not be the end of the conversation. What if most charities have less reserves because of pressure from funders and not because that is the operationally optimal amount?
GiveWell for example funds programs up to three years in the future. Have you spoken with anyone at GiveWell to understand why SoGive and GiveWell have arrived at such different thresholds?
Thinking hypothetically, it feels plausible to me that there are many programs out there that need more than an 18 month runway to fully implement. For example, GiveDirectly fully funded their basic income program from the start, even though the funds would not be fully distributed for 12 years.
I think it would be easy for someone to confuse the two, but (as Matt_Sharp rightly indicated) the SoGive 18 months and the GiveWell 3 years are referring to different things.
The SoGive 18 month threshold refers to funds where there are no plans to use the money.
GiveWell is referring to money which is planned to be spent.
If funds are allocated to future programs (or programs that require a long time to implement), they won’t count as being in the reserves.