How Much Should You Give?
In an affluent society, it’s often hard to draw the line between what we want and what we need. Popular culture celebrates materialism and excessive consumption as essential signs of success and power. Whole industries exist to persuade us that things we want are actually things we need — or, at least, things we deserve — to make our lives more convenient, or more efficient, or more fulfilling. The message all around seems clear: wants are needs, and the more the better.
In The Life You Can Save, I ask my readers to challenge these widespread cultural assumptions and grapple with the uncomfortable ethical implications of excessive materialism in a world where so many live in extreme poverty. I also acknowledge how difficult it can be to say no to the idea that we measure our success by the luxury brands we can afford, and instead embrace the idea of effective altruism. As I write in The Life You Can Save:
Faced with an ethical argument that requires us to give away much of our income, we might ask whether there is any point to a standard that cuts so strongly against the grain of human nature that virtually no one follows it. Over many years of talking and writing about this subject, I have found that for some people, striving for a high moral standard pushes them in the right direction, even if they do not reach that standard.
A Realistic Standard
While I would love to see everyone choose to live on the essentials alone and donate the rest of their income to effective nonprofits, I understand this lifestyle isn’t feasible for most people, and I can’t even claim to have achieved that standard myself. That’s why I propose a more achievable target: roughly 5% of annual income for those who are financially comfortable, with less for those below that level, and significantly more for the very wealthy.
Here is the breakdown that I provide in the 2019 edition of The Life You Can Save (which is available free, as a ebook or audiobook, from www.thelifeyoucansave.org):
Income Bracket | Donation
$40,000 - $81,000: 1%
$81,001 - $140,000: 1% of the first $81,000 and 5% of the remainder
$140,001 - $320,000: 1% of the first $81,000, 5% of the next $59,000, and 10% of the remainder
$320,001 - $480,000: 1% of the first $81,000, 5% of the next $59,000, 10% of the next $180,000, and 15% of the remainder
$480,001 - $2,000,000: 1% of the first $81,000, 5% of the next $59,000, 10% of the next $180,000, 15% of the next $160,000, and 20% of the remainder
$2,000,001 - $11,000,000: 1% of the first $81,000, 5% of the next $59,000, 10% of the next $180,000, 15% of the next $160,000, 20% of the next $1,520,000, and 25% of the remainder
$11,000,001 - $53,000,000: 1% of the first $81,000, 5% of the next $59,000, 10% of the next $180,000, 15% of the next $160,000, 20% of the next $1,520,000, 25% of the next $9,000,000, and 33.3% of the remainder
Over $53,000,000: 1% of the first $81,000, 5% of the next $59,000, 10% of the next $180,000, 15% of the next $160,000, 20% of the next $1,520,000, 25% of the next $9,000,000, 33.3% of the next $42,000,000, and 50% of the remainder
As I explain in the book:
My hope is that people will be convinced that they can and should give at these levels. I believe that doing so would be a first step toward restoring the ethical importance of giving as an essential component of a well-lived life. And if it is widely adopted, we’ll have more than enough money to end extreme poverty.
Whatever level of giving you decide start with, let’s all strive to raise the level of our “personal best” at giving. and combine our resources to help lift others out of poverty. If you’re unsure where to give, take a look at the nonprofit organizations recommended here: https://www.thelifeyoucansave.org/donate/.
(This post draws on material used in a recent newsletter of The Life You Can Save.)
I donate 10%, and my income barely enters your lowest tier. :-p
Being single and carless in countries with low-ish cost of living let me save enough to do that easily.
Thank you for writing this, Peter.
Despite not being compelled by anyone to attempt this, I'm someone who has engaged in some level of "sacrificial giving" relative to my income (and in the full absence of any religious requirement) -- I've been steadily unemployed for years and have had to rely on loved ones to support me as I try to assemble enough of a respectable portfolio of finalized texts to be able to feed myself through more than randomly emerging odd jobs.
While in the literal sense I qualify as someone with a disability, I tend to resent using that word for someone with my normally demonstrated capacities. (I would rather not get into my shortcomings here).
Despite the fact that I only reliably get about $100/month to spend on anything I want while living rather ascetically, I've now (conservatively) helped around 2,200 highly poor people through "ripple effects" and I plan to help at least 2,500 poor folks by my 33rd birthday. I am 31 today. (In terms of direct help recipients, I've assisted about 1,500, if I recall the numbers correctly).
If you're willing to engage in a written exchange about the merits of sacrificial giving and some of the responsibilities involved in doing it consistently even when it feels costly, feel free to send me a message at any time.
I've often called myself a low-grade Effective Altruist, but in light of the fact that I ended up donating much more than many EAs on an income-aware basis, maybe I should just call myself an Effective Altruist without couching that identity in a precautionary label.
As I've written elsewhere:
"Here are some things I've done to maximize the donations I could give to efficient charities within the past few years:
- for 7 months a year, when desiring hot drinks, drink cheap instant coffee or cheap chamomile tea instead of Keurig k-cups or anything fancier than that
- habitually get video games that cost $0.00 to $4 instead of $20 or more
- stay single (in the romantic sense) to avoid squandering money on a partner
- buy and frequently use a $70 Chromebook laptop instead of a moderately luxurious computer that could cost $300 to $600
- intermittently rent non-new movies via Vudu / Fandango at Home instead of going to movie theaters
- invest enough time (& a little money) in learning about health-boosting lifestyle practices to avoid unexpectedly accumulating or imposing medical debt
- if in search of new fashion items, buy unbranded clothes in bulk, or buy a cheap shirt from a foreign website that offers excellent introductory deals;
- when craving a new identity-disclosing necklace, (not that I want more than a couple of them), spend less than $10 or $12 total on it
- clarify to family that they don't have to spend money on me on my birthday or holidays; if they *really* want to buy me anything they can spend $25 or less per major important day
- if craving unfamiliar books, buy cheap ($3 to $6) used books from eBay instead of buying any newly released books, which can often cost at least 4 or 5 times more despite having not stood the test of time
- (I am still working on this, but):
when in search of experiential novelty, simply look up new free-to-read articles or YouTube videos instead of buying another video game or book
- (I'm also still working on this one):
when feeling an impulse to spend money, write a private essay or private handful of poems instead of buying anything.
The sense of accomplishment that follows a creative act gradually defeats the pleasure derived from buying non-essential items to secure a temporary sense of fulfillment.
The end result of these combined commitments is, once again, more money efficiently granted to some of the most needy people.
And the lasting internal outcome I derive from having voluntarily helped lots of poor people is a stable and continuous internal quietness that demolished my previously troubling, constant psychological insecurity.
I haven't been a total saint: during the last year I definitely wasted money on non-essential stuff, and I wasted money on video games that could've been replaced with the watching of free YouTube video-essays about deservedly esteemed games.
But I did more than most people might expect of someone in my personal economic condition, or someone with my long-term health-status.
So I now enjoy a previously untapped level of peace."
Have a wonderful day.