My main question
The EA Funds Animal Welfare Fund makes grants to many different animal charities. Suppose I want to support one particular charity that they grant to because I think it’s better, relative to my values, than most of the other ones. For example, maybe I want to specifically give to Legal Impact for Chickens (LIC), so I donate $1000 to them.
Because this donation reduces LIC’s room for more funding, it may decrease the amount that the Animal Welfare Fund itself (or Open Philanthropy, Animal Charity Evaluators, or individual EA donors) will give to LIC in the future. How large should I expect this effect to be in general? Will my $1000 donation tend to “funge” against these other EA donors almost fully, so that LIC can be expected to get about $1000 less from them? Is the funging amount more like $500? Is it roughly $0 of funging? Or maybe donating to LIC helps them grow faster, so that they can hire more people and do more things, thereby increasing their room for funding and how much other EA donors give to them?
The answer to this question probably varies substantially from one case to the next, and maybe the best way to figure it out would be to learn a lot about the funding situation for a particular charity and the funding inclinations of big EA donors toward that charity. But that takes a lot of work, so I wonder if EA funders have some intuition for what tends to happen on average in situations like this, to inform small donors who aren’t going to get that far into the weeds with a particular charity. Does the funging amount tend to be closer to 0% or closer to 100% of what an individual donor gives?
I notice that the Animal Welfare Fund sometimes funds ~10% to ~50% of an organization’s operating budget, which I imagine may be partly intentional to avoid crowding out small donors. (It may also be motivated by wanting charities to diversify their funding sources and due to limited funds to disburse.) Is it true in general that the Animal Welfare Fund doesn’t fully fill room for funding, or are there charities for which the Fund does top up the charity completely? (Note that it would actually be better impact-wise to ensure that the very best charities are roughly fully funded, so I’m not encouraging a strategy of deliberately underfunding them.)
In the rest of this post, I’ll give more details on why I’m asking about this topic, but this further elaboration is optional reading and is more specific to my situation.
My donation preferences
I think a lot of EA donations to animal charities are really exciting. About 1⁄3 of the grants in the Animal Welfare Fund’s Grants Database seem to me roughly as cost-effective as possible for reducing near-term animal suffering. However, for some other grants, I’m pretty ambivalent about the sign of the net impact (i.e., whether it’s net good or bad).
This is mainly for two reasons:
I’m unsure if meat reduction, on the whole, reduces animal suffering, mainly because certain kinds of animal farming, especially cattle grazing on non-irrigated pasture, may reduce an enormous amount of wild-animal suffering (though there are huge error bars on this analysis).
I’m unsure if antispeciesism in general reduces net suffering. In the short run, I worry that it may encourage more habitat preservation, thereby increasing wild-animal suffering. In the long run, moral-circle expansion could encourage people to create lots of additional small-brained sentience, and in (hopefully unlikely) scenarios where human values become inverted, antispeciesist values could multiply total suffering manyfold.
If I could press a button to reduce overall meat consumption or to increase concern for animals, I probably would. In other words, I think the expected value of these things is perhaps slightly above zero. But my expected value for them is sufficiently close to zero that I don’t feel great about my donations being used for them.
Therefore, I would prefer to not spend precious money to support alternative proteins, veg outreach, or expanding the general animal-advocacy movement. Rather, the work I’m most excited about is welfare reforms—especially for the most numerous animals like chickens, fish, and shrimp, and especially those reforms that reduce the very most intense suffering, such as the pain of slaughter.
(By the way, I would definitely press a button to reduce chicken consumption, but I plausibly would not press a button to reduce beef consumption. I wish it were feasible to push on one but not the other of these variables, but that seems tricky to do as a donor, other than maybe by giving to One Step for Animals.)
Donation funging
The specificity of my preferences regarding which animal activism I’m enthusiastic about makes it harder to find good donation targets. Most animal charities do a mix of welfare reforms, meat reduction, and moral-circle expansion. Earmarking your donation for one of these activities in particular could allow the charity to funge your donation by spending less of their unrestricted money on that activity (although in some cases, earmarked donations go toward new projects that wouldn’t have happened at all otherwise).
There’s a similar kind of funging between charities, especially in contexts like EA where donors are sensitive to room for more funding (Shulman 2014). Donating to a single charity is kind of like making an earmarked donation: it frees up other EA donors to use their “unrestricted” money for all the other EA animal charities instead. This funging concern has been discussed by a number of authors, such as Budolfson and Spears (2019). The thrust of my question is: Does this actually occur a lot in practice in the EA animal-welfare world? Or is it mainly a theoretical worry?
The concern is that if I donate to, say, Legal Impact for Chickens, then the Animal Welfare Fund will donate less to that charity and have more money for other things. In the worst case where there’s 100% funging, my donation to LIC is only as good as donating to the Animal Welfare Fund itself, which splits its grants between welfare reforms and other activities that I’m less interested in. Maybe the average Animal Welfare Fund grant is only 1⁄3 to 1⁄2 as good as a grant to a specific charity that I want to support, so in the case of 100% funging, the effectiveness of my donation by my lights would be multiplied by 1⁄3 to 1⁄2.
Donating to less popular targets
One possible answer to the funging problem is to seek charities or other funding opportunities “off the beaten path”, i.e., ones that the big EA animal donors probably wouldn’t fund. AppliedDivinityStudies (2021) also makes this suggestion.
One way to do this is to look for individual activists whom you know personally but who are unlikely to receive institutional EA funding, such as because the grant size would be too small to bother with or because the activism isn’t legible to or suited to the tastes of the bigger EA funders. However, the total amount of gifts you can make this way may not be very high unless you know a lot of activists in this category.
Another approach is to give to charities that aren’t popular with other EAs. I donate a bit to Animal Ethics (AE) because it doesn’t receive much funding from the big EA donors. AE’s last grant from the Animal Welfare Fund was in 2018, and Animal Charity Evaluators stopped highlighting AE as a Standout Charity in 2017. AE’s focus on wild-animal suffering makes it less likely that AE’s particular brand of moral-circle expansion will increase support for wilderness preservation. That said, I’m more enthusiastic about specific welfare reforms that will reduce suffering in the near future, which AE doesn’t really work on. My reason for donating to animal causes at all is because they’re more concrete than nebulous far-future suffering-reduction work, so the more tangible the impact is, the better.
The Humane Slaughter Association (HSA) is another option that not many EAs seem interested in. HSA received two large grants from Open Philanthropy, in 2017 and 2019, but those were earmarked for specific projects, so general HSA funding may not be funged by them. HSA meets most of the criteria I’m looking for: it only does welfare reforms, it doesn’t mention environmentalism, and it focuses on the most extreme suffering (slaughter), including of chickens and fish. The main downside of HSA for me is that a lot of its work targets larger animals (cattle, pigs, etc), which are numerically less important. If only, say, 1⁄3 to 1⁄2 of HSA’s work is about chickens and fish, then the impact of a donation to it is sort of multiplied by 1⁄3 to 1⁄2, similar to what I mentioned regarding donating to the Animal Welfare Fund. I suppose one could ask HSA to earmark a donation toward a fish-specific project, as Open Philanthropy did, but this would be a lot of work for a small donor like me. And that fish-specific project would be more likely to funge against future Open Philanthropy grants.
HSA has for many years had a large fund of assets that it invests rather than spending, which may lead people to conclude that it lacks room for more funding. I’m not sure if that’s accurate, since investing money to spend later is a reasonable strategy to take, both for individuals and organizations. HSA has existed since 1911, so it’s not in growth mode the way a startup charity would be. Donating more than what a charity can spend now doesn’t seem to me like a problem per se; the problem is when that surplus of funding discourages other donors from giving to the charity.
Charities that aren’t adored in EA can still have their own forms of funging with non-EA donors. Some non-EA would-be donors might think these charities already have enough funding and give elsewhere. But that seems less likely than in the case of big EA donors who actively scrutinize room for more funding and aren’t as emotionally attached to one particular organization.
If having lots of money makes a charity less interested in fundraising, that could be another way in which donations to more obscure charities can be funged. (Holden Karnofsky makes this point in the comments on Shulman (2014).)
Closing remarks
I’m curious whether readers have suggestions for additional animal-welfare charities meeting my criteria that wouldn’t by default be funded by the big EA donors. Maybe the Animal Welfare Fund could share a list of charities they almost funded but that didn’t make their cutoff and that they’re unlikely to fund in the future either. Or a list of which of the charities they are funding still have significant room for more funding that the Animal Welfare Fund doesn’t expect to fill in the future.
I certainly wouldn’t want to discourage people from donating to the Animal Welfare Fund; I consider donating to it myself. I think some of the work it funds is amazing and some is at worst ~neutral in expectation. By my lights, it would be bad if people donated less to animal charities and more to other EA causes—especially something like biorisk reduction, which I think increases expected future suffering, though like with everything else, the sign is very unclear. This problem of funging between EA cause areas (including cause areas that are net good and net bad according to my values) is an additional layer of vexation.
Hi Brian, I’m the executive director of Farmed Animals Protection Association(Çiftlik Hayvanlarını Koruma Derneği) in Turkey, which works mainly in two program areas: corporate cage-free campaigns and corporate engagement to ensure effective stunning of farmed fish before slaughter. You can read more about our work from our Animal Charity Evaluators review. In our latest application to EA Animal Welfare Fund, we were granted less than the amount we requested. Therefore both of our program areas still have more room for funding. Furthermore, having a diverse donor base rather than relying on a few institutional donors helps us to attract better talent as it allows us to demonstrate long-term sustainability to potential hires. You can reach out to our fundraising director Çağrı, cagri.mutaf@kafessizturkiye.com to donate to us through Animal Charity Evaluators’ fiscal sponsorship. I’m happy to answer any questions you might have.
Thanks! I may have several questions later. :) For now, I was curious about your thoughts on the funging framework in general. Do you think it is the case that if one EA gives more to you, then other EAs like the Animal Welfare Fund will tend to give at least somewhat less? And how much less?
I sort of wonder if that funging model is wrong, especially in the case of rapidly growing charities. For example, suppose the Animal Welfare Fund in year 1 thinks you have enough money, so they don’t grant any more. But another donor wants you to spend $25K (or whatever it costs) to hire an extra person. That other donor gives you a $25K donation in year 1, and you make the additional hire. Suppose that donor stops giving to you in year 2. Now you have an extra hire needing $25K/year—a funding gap that no one is filling. So in a sense, you now have that much more additional room for funding. And as long as that hire remains employed with you, you have that additional funding gap every year. The one-time donation of $25K resulted in an ongoing additional $25K of room for funding in subsequent years. This would be the opposite of the funging model assumed in my post: an individual donor’s gift led to more funding from the Animal Welfare Fund over the long run, not less.
Maybe if the Animal Welfare Fund thought you had enough money in year 1, then they would continue to stick by that assessment in year 2 and not want to fund the additional hire. But I doubt people’s opinions about exactly how much money can be spent well are that precise.
The funging model seems most applicable to a static organization that has a constant number of staff members and a constant cost of programs. If it gets more money than it needs in one year, it will consume less in the following year.
I don’t really have a good response to your main question as I can’t speak on behalf of the grantmakers. But I might at least contribute in the following way:
In our first and second years, EA Animal Welfare Fund and other funders were willing to fund us more than we requested. So if some individual donor gave money to us in our first and second years, we would basically ask for less money from EA Animal Welfare Fund and other sources.
This is no longer the case as EA Animal Welfare Fund doesn’t make grants larger than $100k very often. For that reason, additional individual donations have a counterfactual positive impact on our growth. But I don’t know if additional individual contributions lead the grantmakers to grant less money to us. That is something grantmakers can speak about.
Dear Brian,
Thank you so much for using Legal Impact for Chickens as your example!!!! It’s an honor. Reading our name here made me so surprised and happy!!!
Thank you, also, for appreciating our desire to focus specifically on reducing suffering.
To address your question:
In my limited experience, starting a new nonprofit over the past two years, I haven’t personally noticed much funging.
To me, it generally seems like the opposite happens—the more we fundraise, the easier it is for us to fundraise.
It seems like many grantors want to see that a nonprofit has a diverse donor base and is putting effort into fundraising. So, my hunch is that receiving each donation generally helps LIC receive more donations in the long run. When we apply for funding, we sometimes brag about how many donors we already have and how much we’ve already raised. And there are certain large grantors that I have been told prefer to fund nonprofits that already have raised at least a certain amount from other sources. Maybe that helps create certainty that the nonprofit is self sufficient?
So, I would guess that this model from your comment above is generally correct: “the opposite of the funging model assumed in my post: an individual donor’s gift led to more funding from [a large grantor] over the long run, not less.”
But there has been one exception: We applied for one small grant from a non-EA grantor and were rejected partly on grounds that we already had raised too much money to qualify.
But I believe that one rejection is outweighed by other, larger, gifts that LIC received partly because we already had already received earlier gifts.
That said, of course, I’m not a grantor. Maybe I’m not really understanding how things work from the perspective of our amazing grantors. (Thank you so much to all of them who may be reading this!)
Thank you again for mentioning our name!!
Sincerely, Alene & LIC
I’m honored that you’re honored. :) Thanks for the work you do and for your answer here!
Are those EA grantors? Or maybe you prefer not to say.
That makes sense about how more donors helps with fundraising. I wonder if that’s more true for a startup charity that has to demonstrate its legitimacy, while for a larger and more established charity, maybe it could go the other way?
One of them is and one of them isn’t!
Yeah it could totally be a startup thing. :-)
Hi,
You might be interested that Healthier Hens recently said “Healthier Hens (HH) has scaled down due to not being able to secure enough funding to provide a sufficient runway to pilot dietary interventions effectively.” https://forum.effectivealtruism.org/posts/6eaY7MEDWnK39sCEi/healthier-hens-y1-5-update-and-scaledown-assessment
HH seems like an organisation that is counterfactually funding constrained and meets your criteria (underfunded, focused on measurable chicken welfare, no veganism promotion, potentially highly impactful).
This kind of case and my own donating experience leads me to expect there are some often good “less popular targets” to donate to, especially outside of HICs. I expect the “less popular targets” strategy might be a good way to go.
(COI note: I work for CE and HH was a CE charity)
Thanks! That’s good to know. When I looked through the Animal Welfare Fund grantees recently, Healthier Hens was one that I picked out as a possible candidate for donating to. I’m more concerned about extreme than chronic pain, but I guess HH says that bone fractures cause some intense pain as well as chronic (and of course I care about chronic pain somewhat too).
Is there info about why grantors didn’t give more funding to HH? I wonder if there’s something they know that I don’t. (In general, that’s a main downside of trying to donate off the beaten path.)
I don’t have this info. I think it is possible that funders are not interested in Africa (HH was working in Kenya) or that funders don’t value this kind of work as they see it as incremental welfare improvements that they don’t lead to long run change, but I’m mostly honestly speculating …
Thanks. :) No worries.
Hi Brian,
Thanks so much for mentioning One Step for Animals. Having spent decades promoting dietary change, I know my efforts at my previous nonprofits have ended up leading to more chickens suffering. (This for those not familiar, and this is what got me fired from “Animal Asylum”.) One of the reasons I wrote Losing My Religions—hoping readers won’t make the same mistake.
As far as funding for One Step, we reach more people with our short video the more people contribute. There seems to be no correlation between current contributions and future contributions. We just put money into outreach; we don’t have a development team, we don’t send out fundraising letters, we just buy more eyeballs. Since our founding in 2014, One Step has raised anywhere between ~$300k and $112k. We’re currently looking at ~$150k for the current fiscal year.
One note: One Step’s matching donor only contributes to double what we raise elsewhere. They don’t donate at all otherwise. Working for other orgs, I took part in “matching” campaigns where the org knew they were going to get the “matching” money regardless.
Again—thanks for the shout-out. I have a lot of work to do to make up for my past mistakes.
-Matt
Super glad that One Step exists. It’s really scary to think about people switching from beef to chicken. ❤️🐥
Thanks! Good to know. If you’re just buying eyeballs, then there’s roughly unlimited room for more funding (unless you were to get a lot bigger), so presumably there’d be less reason for funging dynamics. (And I assume you don’t receive much or any money from big EA animal donors anyway.)
Hi Brian,
EA Animal Welfare fund does ask on their application form about counterfactual funding, IE “If we don’t fund you will anyone else fund you?/what would happen if we don’t fund you” of course as an org it can be hard to know if you’ll get funding or not so in some sense you’re being speculative when answering this question
I suppose the realistic effect is you may donate let’s say an additional 1 month of runway to the org, therefore the org applies for 1 months less funding from EA Animal Welfare next time round, and that money then flows through to the next best opportunity EA Animal Welfare would fund, so the effect may be thought of as additional money going to the worst/borderline EA Animal welfare grantee, at least that would be my speculation in this situation
Thanks!
Yeah, that’s the funging scenario that I had in mind. :) It’s fine if everyone agrees about the ranking of the different charities. It’s not great if the donor to the funged charity thinks the funged charity is significantly better than the average Animal Welfare Fund grant.
Interesting! That does support the idea there is some funging that happens intentionally. Of course, I don’t think that’s a bad thing in general. The Animal Welfare Fund has a duty to spend its donors’ money as effectively as possible, and that includes not funding something that another (perhaps less EA-minded) donor would have funded anyway. The problem is that I take the same attitude: I don’t want to spend my limited money on something that other donors (including the Animal Welfare Fund) would have funded otherwise. The result is a “giver’s dilemma”, which Karnofsky illustrated with this example:
This is relevant to the idea I suggested in the penultimate paragraph of my post. If the Animal Welfare Fund published a list of funding gaps that it wasn’t going to fill, this could encourage individual donors to only give to places that the Animal Welfare Fund wouldn’t. But then the Animal Welfare Fund would take on the burden of funding all of the best charities (by its lights), which wouldn’t be fair to people who donated to the Animal Welfare Fund. The Fund would prefer for the charities it thinks are best to get as much funding from others as possible. That could imply not disclosing ahead of time where the Fund would be donating, although I doubt the Fund managers are thinking too strategically about this particular issue, and their future grants are often somewhat predictable from past grants anyway.
The section “B. A value certificate equilibrium” in this post[1] might be of interest, because it kind of provides one solution to that coordination problem. In theory you could try to get the Animal Welfare fund to agree on that coordination solution, and then estimate parameters for your case, and then send a bill/donation to the Animal Welfare fund to reach that solution. That said, for relatively small amounts, my guess is that this would be too much work.
Sadly amateurishly/immaturely written, though I think that the core point gets across.