We’ve reduced the annual rate of our funding for GiveWell’s recommendations because our “bar” for funding in our Global Health and Wellbeing (GHW) portfolio has risen substantially. In July 2022, it was roughly in the range of 1100x-1200x; we recently raised it to slightly over 2000x.
Could you describe more mechanistically how you updated the bar (e.g. why slightly over 2000x instead of sligly over 1800x or 2200x)? I sense you have done more than considering a bunch of qualitative considerations, and then deciding on a new bar. If there is a background analysis, are there any reasons for not sharing it?
In addition, could you say more about how your bar affects your grantmaking decisions? Do you estimate the cost-effectiveness of the last dolar of each GHW grant, and then compare it with your bar (at least for big grants)?
Thanks for sharing, Alex and Emily!
Could you describe more mechanistically how you updated the bar (e.g. why slightly over 2000x instead of sligly over 1800x or 2200x)? I sense you have done more than considering a bunch of qualitative considerations, and then deciding on a new bar. If there is a background analysis, are there any reasons for not sharing it?
In addition, could you say more about how your bar affects your grantmaking decisions? Do you estimate the cost-effectiveness of the last dolar of each GHW grant, and then compare it with your bar (at least for big grants)?