Introduction

Methods for data collection and analysis are constantly evolving. These methodologies enable us to understand and compare the effectiveness of charities. By collecting new data, accessing open demographic data and using knowledge of interventions that have been proven to be effective, a solid estimate of effectiveness can be made. Take for example metrics such as ‘years of life gained’, ‘bed nets provided’ or ‘vaccinations given’ per euro donated.

The vast majority of charities are not really that effective. In certain cases they can even have a negative impact, or their impact is not measured at all. However, as it turns out there are a small number of charities that turn out to be very effective. They can even be up to 100x more effective than an average charity trying to address the same problem¹.

People often look at the amount of overhead costs that a charity has to determine its quality. This in itself is not a good measure of effectiveness⁴. A good allocation of overhead expenses can actually result in money being used in much more effective ways. In fact, highly effective charities often turn out to have slightly larger overhead expenses.

Dutch charities are not among the most effective charities worldwide. This may be attributed to some of the following:

• They do not work on the biggest and most pressing global problems
• >90% spend their money in the Netherlands (elsewhere in the world you can achieve much more impact with the same amount of money)
• They have not been assessed by independent research institutes
• They are not transparent about their results and mistake
• Other charities are demonstrably more effective.

You can save a child’s life for 5,000 euro by giving small cash incentives to parents to get their children vaccinated against serious but preventable diseases. For double this amount (10,000 euros) you can give a terminally ill child an unforgettable day by making his/her wish come true¹.