<aside> đź’ˇ Tl;dr: Apply startup thinking to charities; optimise for impact; compound donations through impact investing; give 100% to the field; reduce friction (like ETFs); compel behavioural change through integrations with employee pay.

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Stage 1: Improve Donation Effectiveness


1/

Problem: Not all charities are equal. Some charities can be hundreds or even thousands of times more impactful.

Solution: Donations should maximise impact. Having done the research, we make it easy to support charities where each dollar goes the furthest.


2/

Problem: A $100 donation has a $100 impact. It’s a one-off benefit.

Solution: Donations should first be invested in an impact fund. $100 turns into $1,000 in nine years (12% p.a. growth). Along the way, the fund’s investments are impact-focused. Dividends are also distributed to charity. This is the “gift that keeps on giving”. Forever.


3/

Problem: Donating is too high friction. It’s hard to pick the best charities.

Solution: Donating should be frictionless. Stage 2 describes how.


Stage 2: Increase Donation Magnitude


Charity can learn a lot from startups.

Startups know the secret to getting customers: it’s to reduce friction.

Reducing friction drives adoption. For example, Uber makes it easier to travel. 10-minute delivery makes it easier to grocery shop. Slack makes it easier to communicate with teammates.

Charities should do the same.