Here you can read more about where effective donation is different.
Differences (effective) donating
Impulsive – Deliberate
Ineffective
You donate impulsively and without really thinking about it. For example, you donate because there has just been a disaster somewhere or because a fundraiser came to the door.
Effective
You think twice before giving money to a cause. You step back and consider where you can make the most impact.
Why this is important
Money you give can only be given once. Most causes don’t have a big impact per euro so it’s important that you consider where your donation accomplishes the most good.
Cure – Prevent
Ineffective
You donate to charities that aid after disasters or are working to cure advanced diseases.
Effective
You donate to causes that focus primarily on preventing disasters, diseases and problems.
Why this is important
Preventing problems is much cheaper than repairing the damage when a disaster has already occurred or someone is already sick. For example, preventing floods in developing countries is 60 times more cost-effective1.
Reactive – Proactive
Ineffective
You don’t look for charities to donate to on your own. You donate because you see a commercial or because a friend or fundraiser asks you to.
Effective
You look for the best causes to donate to. You don’t make yourself dependent on organizations that ask you for money.
Why this is important
You can ensure that you donate to effective causes by being proactive and intentional about donating. Not just to charities that happen to get your attention but are not very effective2.
National – International
Ineffective
You donate money to a local cause because it makes the impact more visible.
Effective
You donate money where it is most needed and has the most impact per euro.
Why this is important
Charities working internationally in developing countries have a greater potential to do effective work because low-cost, effective solutions to problems have not yet been implemented there3. If we prioritize effectively improving people’s lives, our impact is greater when we think and donate beyond our own borders.
Short-term – Long-term
Ineffective
Donate once if something happens to come your way.
Effective
Donating periodically to one or more effective charities.
Why this is important
Periodic donations give charities more stability and allow them to spend less money on fundraising. This allows them to put more money and effort into addressing problems.
Awareness – Effectiveness
Ineffective
Choosing a particular charity because you already know it through friends/acquaintances or from advertisements.
Effective
Basing your donation choice on how effective and transparent a charity is.
Why this is important
A well-known charity is often known primarily because they have good marketing. Think of the Alpe d’Huzes or Serious Request, for example. This says nothing about the impact they ultimately have per euro, which is usually very disappointing.
Good intentions – Result
Ineffective
Donating to a charity just because you agree with their values.
Effective
Donating to a charity because they have demonstrable results that align with your values.
Why this is important
Every charity has good intentions and wants to make the world a better place. However it is also important that they live up to their good intentions. Only then do their good intentions come to fruition.
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