I think something to consider when deciding on the time point of giving is not only the investment in your own financial future, but the investment in the cause your donation is contributing towards. A donation today/this decade may have a smaller overall absolute value compared with a delayed plan for donating, but the effect of that donation today compounds over time as well.
For example, giving $1000 to a high impact charity working in extreme poverty cause areas may mean that in 10 years from now a community that benefited has a marked alteration in trajectory. Less malaria disease burden today in their younger members may have substantial further reductions in suffering in a decade, more than a larger donation at that time point might be able to achieve.
Another example is giving money towards high impact research today which may have positive benefits in a decade from now from helping enable a field. The value of starting research earlier, giving it time to produce value, may be much greater than investing a larger amount at a later point in time.
Definitely, I think that the discount rate each of us applies to future donations is an extremely important factor to consider. In fact, I would be in the camp that this discount rate is likely very high—mostly in agreement with the points you have made.
Now that I have reached a point where I can start giving without affecting my life choices, I’m planning on giving away a majority of the balance as soon as I get my hands on it, rather than investing to increase future donations.
I think something to consider when deciding on the time point of giving is not only the investment in your own financial future, but the investment in the cause your donation is contributing towards. A donation today/this decade may have a smaller overall absolute value compared with a delayed plan for donating, but the effect of that donation today compounds over time as well.
For example, giving $1000 to a high impact charity working in extreme poverty cause areas may mean that in 10 years from now a community that benefited has a marked alteration in trajectory. Less malaria disease burden today in their younger members may have substantial further reductions in suffering in a decade, more than a larger donation at that time point might be able to achieve.
Another example is giving money towards high impact research today which may have positive benefits in a decade from now from helping enable a field. The value of starting research earlier, giving it time to produce value, may be much greater than investing a larger amount at a later point in time.
Definitely, I think that the discount rate each of us applies to future donations is an extremely important factor to consider. In fact, I would be in the camp that this discount rate is likely very high—mostly in agreement with the points you have made.
Now that I have reached a point where I can start giving without affecting my life choices, I’m planning on giving away a majority of the balance as soon as I get my hands on it, rather than investing to increase future donations.