Back of the Envelope Guide to Philanthropy

Quantitative charity evaluation. This website aims to serve as a resource for assessing the impact of different charitable organizations and endeavors. The phrase Back of the Envelope comes from the sciences where it refers to rough calculations that while not precise tend to support a line of reasoning.

The leverage factor measures how effective each charitable organization is. A leverage factor of 10 means that for each $1 invested in the organization it delivers $10 worth of public value. Not all charitable endeavors lend themselves to quantitative assessment (what is the value of religious salvation?), but for those that do we attempt to assess them here.

Don't get too hung up by the precise leverage factors reported. They are bound to be wrong by at least a factor of 2. The key take away though is that Charitable effectiveness spans a 100,000 fold range. Give wisely.

Charitable organization or endeavor leverage factor
2006 2007 2008 2009 2010
HIV prevention (sex workers in the absence of treatment) - - 150,000 - 250,000 - -
RESULTS Educational Fund - 15,000 - 90,000 90,000 - 150,000 11,000 - 20,000 -
STD treatment - - 20,000 - 90,000 - -
OneWorld Health 20,000 - 250,000 - 0 (had 30-80% chance of 25,000 - 250,000) - -
Knowledge Ecology International - 10,000 - 100,000 - - -
Health GAP - 4,000 - 70,000 - - -
Nothing But Nets - 2,500 - 20,000 - - -
Tuberculosis treatment - - 2,000 - 20,000 - -
Hypothetical malaria research - 4,000 - 9,000 - - -
GAVI Alliance 2,500 - 12,000 - - - -
HIV prevention (general population in the absence of treatment) - - 1,500 - 12,000 - -
Hypothetical tuberculosis research - 3,000 - 6,000 - - -
Generic microcredit - 3,000 - - -
Gates Decade of Vaccines - - - - 2,000
Heart attack treatment - - 2,000 - -
Iron fortification - - 2,000 - -
WaterAid - 1,500 - 2,000? - - -
pneumoADIP - 1,000 - 2,000 - - -
Hypothetical cancer research - 800 - 1,500 - - -
MSF 250 - 2,000 - - - -
HIV prevention (sex workers in the presence of treatment) - - 500 - 800 - -
Iodine fortification - - 600 - -
HIV treatment - - 300 - -
Hospice and palliative care (developing world) - - 300 - -
Vitamin A supplementation - - 50 - 1,500 - -
Indoor air pollution - - 150 - -
Nuclear non-proliferation - - 20 - 300 - -
Environmental Defense Fund - - 40 - 90 - -
Water and sanitation - - 50? - -
Generic international development NGO - 30 - 40 - - -
Generic carbon credit purchase - - 13 - 25 - -
HIV prevention (general population in the presence of treatment) - - 5 - 30 - -
Generic college scholarship - 1.5 - 2 - - -

In making our rough calculations we consistently use a common Valuation of outcomes. Key to our valuations is that we perform all calculations in rich country terms, and that we consider a life equally valuable whether it be that of a person from a poor country or a rich country. This makes our estimates of leverage factors substantially larger than those of the prevailing economic literature which values a life solely based on its economic output. You don't have to agree with our valuation of outcomes. We maintain a Google spreadsheet (last update 2007) that anyone can play with to see how changes in valuations and effectiveness assessments affects the rankings. For permission to update this spreadsheet please contact us.

Anyone is free to contribute to this project. We welcome both improvements to existing evaluations and the evaluation of additional organizations and endeavors. Contact us.