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.)