Gross’s Choice

GiveDirectly, which transfers about 91 cents of each donated dollar it has received directly to beneficiaries, is a popular choice. Pacific Investment Management Co. co-founder Bill Gross said he and his wife contribute money directly to needy Africans through the organization.

Peter Singer, professor of bioethics at Princeton University and among the philosophers behind effective altruism, has his own annual list of 17 best charities. He bases his recommendations on the belief that one is better off divorcing from emotions when making ethical choices.

Here is one case he presents: Donating $7,500 to the Seva Foundation to treat common causes of blindness in developing countries can protect 100 children from losing their sight as they grow older. Make-a-Wish Foundation of America on average spends the same amount of money to execute one feel-good mission fulfilling an ailing child’s wish.

One Standard?

The key to finding the best opportunities for cost-conscious donors is by standardizing the measurement of outcomes, according to Michael Thatcher, chief executive officer of Charity Navigator. His organization was founded 15 years ago to rate the financial health of aid groups based on their tax filings.

“We’re investing in social change and as an investor you expect performance, just as an investor in the stock market would want to see returns,” said Thatcher, who was a public sector chief technology officer at Microsoft Corp. before joining Charity Navigator six months ago. “It’s a very valid thing for people to be asking for returns from charities, versus feeling good about themselves for having given some money.”

First « 1 2 » Next