One can claim Gift Aid on a donation to the Patient Philanthropy Fund (PPF), e.g. if donating through Giving What We Can. So a basic rate taxpayer gets a 25% āreturnā on the initial donation (via gift aid). The fund can then be expected to make a financial return equivalent to an index fund (~10% p.a for e.g. S&P 500).
So, if you buy the claim that your expected impact will be 9x larger in 10 years than today, then a Ā£1,000 donation today will have an expected (mean) impact of Ā£11,250, for longtermist causes (Ā£1,000 * 1.25 * 9)[1]
Therefore I think the question of:
ādonate now and claim gift aidā OR āinvest then donate laterā
ādonate now and claim gift aidā OR ādonate to (e.g. PPF) now and claim gift aid, for the PPF to invest and then donate laterā
(I.e. I think gift aid considerations donāt favour one option over the other)
Of course, one may reasonably disagree on giving now vs giving laterāthis is a much more messy question, and one that I wonāt attempt to answer here.
Iām not sure about paying into an organisationās fund.
I think that conditional on giving later, the PPF is a better option than individually taking an āinvesting to giveā approach (roughly for reasons described here)
(disclaimer: I work on the operations side of the PPF)
A Ā£1,000 donation becomes $1,250 for a basic rate taxpayer. Over 10 years, expected impact will increase by 9x (using the Investing to Give report modelās mean estimate)
Using the same logic for global health or animal welfare, your expected (mean) impact from a Ā£1,000 donation in 10 years would be Ā£2,625 (Ā£1,000 * 1.25 * 2.1x) and Ā£5,250 (Ā£1,000 * 1.25 * 4.2x).
Note however that no āPPF equivalentā for global health or animal welfare currently exists, AFAIK
Great question!
One can claim Gift Aid on a donation to the Patient Philanthropy Fund (PPF), e.g. if donating through Giving What We Can. So a basic rate taxpayer gets a 25% āreturnā on the initial donation (via gift aid). The fund can then be expected to make a financial return equivalent to an index fund (~10% p.a for e.g. S&P 500).
So, if you buy the claim that your expected impact will be 9x larger in 10 years than today, then a Ā£1,000 donation today will have an expected (mean) impact of Ā£11,250, for longtermist causes (Ā£1,000 * 1.25 * 9)[1]
Therefore I think the question of:
ādonate now and claim gift aidā OR āinvest then donate laterā
...can be reframed as:
ādonate now and claim gift aidā OR ādonate to (e.g. PPF) now and claim gift aid, for the PPF to invest and then donate laterā
(I.e. I think gift aid considerations donāt favour one option over the other)
Of course, one may reasonably disagree on giving now vs giving laterāthis is a much more messy question, and one that I wonāt attempt to answer here.
I think that conditional on giving later, the PPF is a better option than individually taking an āinvesting to giveā approach (roughly for reasons described here)
(disclaimer: I work on the operations side of the PPF)
A Ā£1,000 donation becomes $1,250 for a basic rate taxpayer. Over 10 years, expected impact will increase by 9x (using the Investing to Give report modelās mean estimate)
Using the same logic for global health or animal welfare, your expected (mean) impact from a Ā£1,000 donation in 10 years would be Ā£2,625 (Ā£1,000 * 1.25 * 2.1x) and Ā£5,250 (Ā£1,000 * 1.25 * 4.2x).
Note however that no āPPF equivalentā for global health or animal welfare currently exists, AFAIK