This is part of a series of blog posts examining seven arguments I laid out for limiting Good Ventures funding to the GiveWell top charities. My prior post considered the first argument, that the Open Philanthropy Project, and thus Good Ventures, has superior judgment to that of GiveWell donors. In this post, I consider the second argument:
Even if Good Ventures isn't special, it should expect that some of its favorite giving opportunities will be ones that others can't recognize as good ideas, due to different judgment, expertise, and values. If the Open Philanthropy Project does not expect to be able to persuade other future donors, but would be able to persuade Good Ventures, then these opportunities will only be funded in the future if Good Ventures holds onto its money for long enough. Thus, while Good Ventures may currently have a lower opportunity cost than individual GiveWell donors, this will quickly change if it commits to fully funding the GiveWell top charities.
This post is my most direct response to GiveWell's blog post explaining the reasoning behind its "splitting" recommendation.
Argument 2: Bargaining power
In its blog post on giving now vs later, GiveWell discusses potential policies it might have recommended to Good Ventures on funding the GiveWell top charities' funding gap. Good Ventures and individual GiveWell donors may have very different opinions on what else their money should be spent on, but still agree that the optimal allocation of resources should prioritize the GiveWell top charities.
Without holding the view that Good Ventures currently has a higher opportunity cost than individual GiveWell donors, GiveWell might still believe that committing to fully funding the GiveWell top charities' funding gaps would be a mistake on the part of Good Ventures. GiveWell might believe that this commitment would be bad because it cedes all of Good Ventures's bargaining power to other GiveWell donors.
GiveWell begins with a principled argument, asking whether Good Ventures should respond to each additional dollar given by other GiveWell donors by giving less ("funging"), more ("matching"), or the same amount ("splitting"). GiveWell recommends splitting, and in the first major section, I explore the principled case for this, assuming the conditions of symmetry laid out above. I argue that the principled case for splitting is only coherent under very pessimistic assumptions about effective altruists' ability to cooperate with one another. These assumptions may be justified, but as far as I can tell, haven't been seriously tested.
GiveWell goes on to make a specific recommendation that Good Ventures's "fair share" of the GiveWell top charities is 50% of the top charities' total room for more funding. In the second major section of this post, I see whether this recommendation seems intuitively fair, trying a couple of different simple back-of-the-envelope quantitative comparisons. I argue that the most intuitive relative allocation assigns substantially more of the funding burden to Good Ventures at present. Continue reading