In the U.S. alone, more than $500 billion is donated to charity each year—equivalent to 2% of the GDP. This generosity is incredible, but these donations often fall short of achieving their full potential impact.
In recent years, researchers have begun studying the effectiveness of different charities, much like investors evaluate the performance of companies. They ask questions like: *How much does it cost for this charity to save a life?* The results are striking. Experts estimate that the most effective charities can be up to 100 times more impactful than typical ones.
Original Position uses the evidence-based recommendations from leading research organization Givewell, who employ independent experts who rigorously identify the most effective charities.
When you give to charity, the goal is to make a real difference—not just feel good. Effectiveness matters because your choice of charity often makes a bigger difference than the amount you donate. A $100 donation to a highly effective charity can do more good than a $10,000 donation to a typical one.
This might sound surprising, but it's similar to how the best athletes, artists, or businesses far outperform others in their field. Charities, unlike businesses, aren't often put to the same rigorous tests, making it harder to identify the "superstars." But they do exist, delivering exceptional impact for each dollar donated, and their success is well documented.
Effectiveness isn't about minimizing overhead costs. Successful businesses know that making money often requires spending it wisely—on skilled staff, infrastructure, and innovation. The same is true for well-run charities. Instead of asking, How can we spend as little as possible? the right question is, How can we maximize the good done with the money spent?
Measuring impact is challenging, but it's achievable. Healthcare, for instance, relies on cost-effectiveness analyses to determine which treatments save the most lives or improve quality of life the most. Charities can be evaluated similarly, using rigorous methods to identify those that provide the most benefit per dollar.
To give effectively, it's important to focus on the right problems. The most impactful charities address issues that are big (affecting many people), solvable (where progress is possible), and neglected (where more work is needed). Based on this framework, it is clear the most effective donations go towards improving global health and development. The charities we donate to through the Original Position Fund focus exclusively on this critical area.