Regarding your question, we want to emphasize that we have reflected extensively on our prioritization of resources, including by considering your own analysis. This is an area of constant strategic consideration for us.
Is there any public write-up of your thinking on prioritisation you could point me to?
It is important to clarify that our meal replacement (diet-change) program is funded through restricted donationsāmeaning the funds allocated to this initiative come from donors who would not otherwise contribute to our cage-free or pig welfare campaigns.
Have you considered making the case to such donors that your cage-free work is way more cost-effective? Do you spend any unrestricted funds on the meal replacement program? If yes, the difference in their cost-effectiveness suggests it would be good for your to spend less. If not, I do not understand why Animal Charity Evaluators (ACE) assessed its cost-effectiveness, as donations would not fund it by default.
For instance, in 2023, we secured approximately USD 162K in restricted funding specifically for our meal replacement work, and at least USD 100K in donations were influenced by the programās objectives and results. These amounts combined exceeded the programās total expenditures for the year.
Where did the additional donations go to? If the meal replacement program caused additional donations equal to 61.7 % (= 100*10^3/ā(162*10^3)) of the spending on it, and they all went to the meal replacement program, it would only become 1.62 (= 1 + 0.617) times as cost-effective, or 0.173 % (= 1.62*1.07*10^-3) as cost-effective as your cage-free campaigns. On the other hand, if they all went to your cage-free campaigns, it would become 578 (= 1 + 0.617/ā(1.07*10^-3)) times as cost-effective, or 61.8 % (= 578*1.07*10^-3) as cost-effective as your cage-free campaigns. In this latter case, 99.8 % (= 1 ā 1ā578) of the impact of your meal replacement program would come from increasing the funds supporting your cage-free campaigns.
In short, when it comes to impact, we believe that cost effectiveness estimates per dollar do not tell the full story.
I think you mean that increases in welfare do not tell the full story. Even if you have other goals, such as ending factory-farming (even if it turns out this is not ideal in terms of decreasing suffering, and increasing happiness), you could estimate the cost-effectiveness in terms of decreases in the number of animals, adjusted for their capacity for welfare, per $.
It is always a pleasure to share more about our work.
Regarding prioritization: You can find details on how we allocate funding across programmatic areas in our financial statements. Our funding distribution varies from year to year, and different sources of funding also influences how resources are allocatedānot just cost-effectiveness.
ACE has evaluated the cost-effectiveness of our three largest programs in terms of expenditures, and they explain their methodology in their review.
The animal protection movement includes many funders with diverse theories of change, and not all are guided solely by cost-effectiveness. We respect and appreciate these differing perspectives, as we believe this diversity encourages reflection and strengthens our movement. Ending factory farming is a highly complex challenge, and we recognize the importance of testing various interventions to drive progress.
As I mentioned earlier, the only portion of our unrestricted funding that supports our diet change work comes from donors who, while choosing to give unrestrictedly, have expressed that this program is their primary motivation for supporting us.
Regarding prioritization: You can find details on how we allocate funding across programmatic areas in our financial statements.
I have checked your financial statements for 2023. It would be great if you added how much restricted and unrestricted funds you spend on each program.
Hi @Vasco Grilošø We spent approximately USD 80,000 in unrestricted funds on this program. However, we received over USD 100,000 in unrestricted donations this year because of this programāthese donors likely would not have contributed if we had focused solely on cage-free initiatives. We believe it is fair and aligns well with our mission and theory of change.
Thanks, Carolina! Just one note, you do not have to tag me, as I receive email notifications even if you do not.
If I understand correctly, of your spending of 248 k$ on Nourishing Tomorrow in 2023, 80 k$ was unrestricted, and 168 k$ (= (248 ā 80)*10^3) was restricted to that program. I think you are saying the program as a whole caused 100 k$ of additional unrestricted donations that year. If so, the program caused 0.403 $ (= 100*10^3/ā(248*10^3)) of additional unrestricted donations per $ spent (in reality, it is lower due to overhead[1]). That is less than 1 $, and I think the multiplier for the unrestricted funds is even lower due to diminishing returns[2], so it looks like you should not be spending unrestricted funds on the program. Am I missing something?
Thank you for letting me know about the tags. The methodology we use to allocate resources differs to yours. As I mentioned earlier, our mission and theory of change also play a significant role in the decision-making process.
Regarding prioritization: You can find details on how we allocate funding across programmatic areas in our financial statements. Our funding distribution varies from year to year, and different sources of funding also influences how resources are allocatedānot just cost-effectiveness.
I was looking for your thinking on prioritisation, not just the allocation of funds (this results from your thinking, but is not the prioritisation process itself).
As I mentioned earlier, the only portion of our unrestricted funding that supports our diet change work comes from donors who, while choosing to give unrestrictedly, have expressed that this program is their primary motivation for supporting us.
I am not sure I got it. If those donors give unrestrictedly, you could use their donations to support your cage-free work which you also think is more cost-effective than your meal replacement work?
Thanks for the follow-up, Carolina!
Is there any public write-up of your thinking on prioritisation you could point me to?
Have you considered making the case to such donors that your cage-free work is way more cost-effective? Do you spend any unrestricted funds on the meal replacement program? If yes, the difference in their cost-effectiveness suggests it would be good for your to spend less. If not, I do not understand why Animal Charity Evaluators (ACE) assessed its cost-effectiveness, as donations would not fund it by default.
Where did the additional donations go to? If the meal replacement program caused additional donations equal to 61.7 % (= 100*10^3/ā(162*10^3)) of the spending on it, and they all went to the meal replacement program, it would only become 1.62 (= 1 + 0.617) times as cost-effective, or 0.173 % (= 1.62*1.07*10^-3) as cost-effective as your cage-free campaigns. On the other hand, if they all went to your cage-free campaigns, it would become 578 (= 1 + 0.617/ā(1.07*10^-3)) times as cost-effective, or 61.8 % (= 578*1.07*10^-3) as cost-effective as your cage-free campaigns. In this latter case, 99.8 % (= 1 ā 1ā578) of the impact of your meal replacement program would come from increasing the funds supporting your cage-free campaigns.
I think you mean that increases in welfare do not tell the full story. Even if you have other goals, such as ending factory-farming (even if it turns out this is not ideal in terms of decreasing suffering, and increasing happiness), you could estimate the cost-effectiveness in terms of decreases in the number of animals, adjusted for their capacity for welfare, per $.
Hi @Vasco Grilošø
It is always a pleasure to share more about our work.
Regarding prioritization: You can find details on how we allocate funding across programmatic areas in our financial statements. Our funding distribution varies from year to year, and different sources of funding also influences how resources are allocatedānot just cost-effectiveness.
ACE has evaluated the cost-effectiveness of our three largest programs in terms of expenditures, and they explain their methodology in their review.
The animal protection movement includes many funders with diverse theories of change, and not all are guided solely by cost-effectiveness. We respect and appreciate these differing perspectives, as we believe this diversity encourages reflection and strengthens our movement. Ending factory farming is a highly complex challenge, and we recognize the importance of testing various interventions to drive progress.
As I mentioned earlier, the only portion of our unrestricted funding that supports our diet change work comes from donors who, while choosing to give unrestrictedly, have expressed that this program is their primary motivation for supporting us.
I have checked your financial statements for 2023. It would be great if you added how much restricted and unrestricted funds you spend on each program.
Hi @Vasco Grilošø We spent approximately USD 80,000 in unrestricted funds on this program. However, we received over USD 100,000 in unrestricted donations this year because of this programāthese donors likely would not have contributed if we had focused solely on cage-free initiatives. We believe it is fair and aligns well with our mission and theory of change.
Thanks, Carolina! Just one note, you do not have to tag me, as I receive email notifications even if you do not.
If I understand correctly, of your spending of 248 k$ on Nourishing Tomorrow in 2023, 80 k$ was unrestricted, and 168 k$ (= (248 ā 80)*10^3) was restricted to that program. I think you are saying the program as a whole caused 100 k$ of additional unrestricted donations that year. If so, the program caused 0.403 $ (= 100*10^3/ā(248*10^3)) of additional unrestricted donations per $ spent (in reality, it is lower due to overhead[1]). That is less than 1 $, and I think the multiplier for the unrestricted funds is even lower due to diminishing returns[2], so it looks like you should not be spending unrestricted funds on the program. Am I missing something?
I suppose some of the spending on people, operations, finance and management is related to the program.
I guess decreasing the spending on the program by 1 % would decrease the additional donations by less than 1 %.
Hi Vasco,
Thank you for letting me know about the tags. The methodology we use to allocate resources differs to yours. As I mentioned earlier, our mission and theory of change also play a significant role in the decision-making process.
I was looking for your thinking on prioritisation, not just the allocation of funds (this results from your thinking, but is not the prioritisation process itself).
I am not sure I got it. If those donors give unrestrictedly, you could use their donations to support your cage-free work which you also think is more cost-effective than your meal replacement work?