I’m mostly aligned with the Seema’s view, though I think it’s systematic of a wider problem in which funders pay more than their grantees almost universally. I’ve experienced at both IDinsight (where I was Chief Economist) and Rethink Priorities (where I’m on the board) a steady drumbeat of top talent going to funders, including GiveWell and Coefficient. I don’t believe this happens because of any careful thinking on where talent is best allocated in the sector, but instead because (a) foundations just can pay more because they don’t have a binding budget constraint and (b) even if they do have enough money (which they typically don’t) nonprofits need to be careful about salaries because top salaries are public on 990 forms and donors will be scared away by large salaries.
When I’ve spoken with friends at funding orgs and brought up the issue of salary disparity, I’ve usually heard some version of attempting to align salaries with other foundations or the private sector. But that doesn’t address this imbalance between foundations and NGOs/grantees in their space.
After spending some side on both the donee side as well as the donor side (with Giving Green), my opinion is that giving away money is easier and more fun day-to-day than working for an org where you have to fundraise and/or serve demanding clients. Therefore I don’t fundamentally think that donor orgs need to pay more to attract similar level of talent as NGOs. But trying to fix the coordination problem required to shift norms in the sector is likely impossible.
Hi David, I agree that this is a huge opportunity. That’s why we at Giving Green are building a nascent biodiversity charity evaluator, funded by an anonymous donor in the space. We plan to publicly release our initial strategy report along with “Top Charities” in late February. If any potential biodiversity donors would like to see the reports before then, we can share privately. So stay tuned!