GiveWell, the highly influential charity rater, has decided to hold on to $110 million it raised this year until 2022, instead of giving it away now. The organization cites a lack of funding opportunities that meet its strict criteria, while others say it should broaden its definition of effective giving.
GiveWell judges the cost-effectiveness of charities by comparing their interventions against a baseline of just giving cash. In the past, it has limited its funding to organizations that are at least eight times as cost-effective as a direct cash transfer — though in 2021 they lowered this bar to five to eight times the efficacy of cash.
This is a preview of Newswire
Sign up to this newsletter for an inside look at the biggest stories in global development, in your inbox daily.
These criteria lend themselves to programs with quantifiable and clearly demonstrable impact; two of GiveWell’s top three charities focus on malaria prevention, for example.
“We search for the charities that save or improve lives the most per dollar. We’re not just looking for great opportunities to share with our donors, we’re looking for the best opportunities that meet our criteria,” wrote Ben Bateman, GiveWell’s head of growth.
As my colleague Stephanie Beasley reports, some have taken issue with that approach, and with the argument implied by the decision not to give away $110 million this year — that the only worthwhile giving is GiveWell-approved giving.
GiveDirectly, a nonprofit that makes unconditional cash transfers to people living in poverty, is one dissenting voice.
“We think the world has an unprecedented opportunity to eliminate most of extreme poverty in our lifetimes, and we worry GiveWell’s decision hinders that effort,” wrote Joe Huston, GiveDirectly’s managing director.
“Their choice to wait for better opportunities focuses on maximizing what they perceive as the direct impact of their money alone at the cost of conveying a tragically discouraging message about the potential impact of everyone else’s,” he added.
As Huston and others point out, GiveWell is more than a funder. It is a philanthropy influencer with the power to sway public opinion about whether or not charitable causes are worth supporting. In the era of Elon Musk vs. World Food Programme, that is no small amount of power.
Read: GiveWell's move to delay $110M reopens debate on giving now vs. later
Collateral damage
A United States law aimed at preventing national security threats from Chinese telecommunications services is creating major headaches — and heavy costs — for U.S.-funded development organizations, David Ainsworth reports.
Section 889 of the National Defense Authorization Act, which came into effect last year, prohibits U.S. government agencies from funding organizations that use technology from Chinese providers such as Huawei, ZTE, or any “affiliate or subsidiary” of these companies.
Many organizations working in places without easily accessible alternatives have struggled to determine if they are even in violation of the regulation or not, says Cynthia Smith, director of government affairs and advocacy at Humentum.
Devex Pro: US Chinese telecoms clause causing chaos for NGOs
+ A Devex Pro subscription offers deeper analysis of the development sector, exclusive digital events, and access to the world’s largest global development job board. Get access to these perks by signing up to our 15-day free trial.
Every little bid helps
The European Commission is pitching its new “Global Gateway” plan as an alternative to China’s Belt and Road Initiative. Part of that includes an effort to level the playing field for European contractors who have complained about being outbid by state-backed Chinese firms, Vince Chadwick reports.
Read: EU targets subsidies in battle against Chinese investments
The hot seat
The U.S. Senate’s Foreign Relations Committee heard testimony from U.S. President Joe Biden’s nominee to lead the U.S. International Development Finance Corporation Wednesday. Scott Nathan is a former member of the Biden-Harris transition team who has worked in both government and private investment.
In keeping with tradition, his testimony avoided making waves. But Nathan did grapple with questions about how DFC should balance its dual mandate to advance development and support U.S. foreign policy.
Read: CEO nominee for US DFC sails through nomination hearing
+ For more content like this, sign up for Devex Invested, the weekly newsletter on how business, social enterprise, and development finance leaders are tackling global challenges.
Uncharted territory
“We’re looking at a state of global affairs that the world has never seen.”
— Reena Ghelani, director of the operations and advocacy division, United Nations Office for the Coordination of Humanitarian AffairsA record 274 million people will need humanitarian aid in 2022, according to the Global Humanitarian Overview, released Thursday. David Ainsworth reports that international donors provided only $17.2 billion in 2021 — less than half of the $37.7 billion that was needed.
Read: Record number of people will need humanitarian aid next year, UN says
In other news
The development agencies of Mexico and the U.S. will launch a joint initiative called “Planting Opportunities,” aimed at addressing the root causes of migration from Central America. [Reuters]
Afghanistan’s Taliban-controlled administration and Myanmar’s junta both failed to secure U.N. seats after a committee Wednesday ruled to defer their requests to replace the ousted governments’ appointees. [AP]
Flights and aid convoys to Tigray have resumed after over six weeks of blockade. [Seattle Times]
The Serum Institute of India has pledged to provide 40 million AstraZeneca doses to COVAX by the end of the year. [Reuters]
Sign up to Newswire for an inside look at the biggest stories in global development.
About the author
Michael Igoe@AlterIgoe
Michael Igoe is a Senior Reporter with Devex, based in Washington, D.C. He covers U.S. foreign aid, global health, climate change, and development finance. Prior to joining Devex, Michael researched water management and climate change adaptation in post-Soviet Central Asia, where he also wrote for EurasiaNet. Michael earned his bachelor's degree from Bowdoin College, where he majored in Russian, and his master’s degree from the University of Montana, where he studied international conservation and development.
