Do matched giving schemes work?

This article was first published by Philanthropy Impact magazine.

Many fundraisers tell us that donors give more if a match is available, that is, somebody else will also give if, and only if, they give.  Fundraisers’ confidence is based largely on anecdote and imprecise comparisons. Happily there is now a growing – if still small – body of solid evidence about whether matches really work, and whether they are really a fundraiser’s best friend.

Size doesn’t  matter

An early experiment found that matching does increase giving – at least in the US. In 2005 Dean Karlan and John List, economists at Yale and Chicago respectively, ran an experiment in which over 50,000 donors to a USA civil liberties NGO were randomly assigned to receive one of several versions of fundraising letter. One group received a letter without mention of a match. The other groups’ letters all (truthfully) offered different matches: some donors were offered a straightforward match of $1 for each $1 given; other donors were offered a larger match ($2 for every $1 given); and, other donors were offered an even larger match ($3 for every £1 given).

The match offers worked. Karlan and List found that offering a match increased the probability that each recipient would give by 19%, and that the average gift increased by 22%. Pretty impressive gains, but then the surprises start. Continue reading

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MPs should donate their payrise if they really don’t want it

UK MPs are to have a payrise of £8000 which many say they don’t want. They may be unable to avoid it because their salaries are set by an independent body. So they should give it away. Giving Evidence’s Caroline Fiennes has this letter in the Financial Times today:

Dear Sir,
If MPs truly don’t want to receive their proposed payrise as some are claiming, they could donate it to charity or other social-purpose organisations. Such donations can be made well or badly, and such organisations vary between fantastically effective and useless. Giving Evidence, which supports donors to give well, is happy to advise any MP on expertly offloading their windfall.
Yours, Caroline Fiennes

If you are an MP – or anyone else – wanting to donate money or other resources, do get in touch, at enquiries [at] giving-evidence [dot] com 

Some quick pointers:

– ‘they could donate to charity or other social purpose organisations’: Much charitable work and ‘good work’ is done by entities which aren’t registered charities. For instance, social enterprises, co-operatives and mutuals, some arts organisations, and some universities aren’t charities, for good reasons.  The ‘charitable work’ in which you’re interested may be best done by local authorities, individuals (e.g., artists, carers), or even for-profit companies, e.g., developing pharmaceutical drugs.  There’s a whole chapter on this in It Ain’t What You Give. Continue reading

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Most Charities Shouldn’t Evaluate Their Work: Part Two: Who should measure what?

This two-part series first appeared in Stanford Social Innovation Review.

So what should happen if no one has properly evaluated an idea yet? If it’s important, an independent and suitably skilled researcher should evaluate it in enough detail and in enough contexts for other charities and donors to rely on the findings. The leading medical journal The Lancet cites a tenet of good clinical research: “Ask an important question, and answer it reliably.”

A countercultural implication follows from this. It’s often said that the evaluation of a grant should be proportionate to the size of the grant. It’s also often said that evaluations should be proportionate to the size of the charities. We can see now that both views are wrong. The aim of an evaluation is to provide a reliable answer to an important question. From there, the amount worth spending on an evaluation is proportionate to the size of the knowledge gap and the scale of the programs that might use the answer.

To illustrate, suppose a small company has developed a new drug for breast cancer. The “first-in-(wo)man studies,” as they’re called, involve only a few people, for obvious safety reasons. Relative to the cost of dispensing the drug to those few women, how much should the company spend on evaluating the effect on them? The answer is “a lot,” because the answer is important for many people. So the cost of the “pilot” is irrelevant. So too is the size of the company running the “pilot.” Often, the cost of robustly evaluating a program will exceed the cost of delivering that program—which is fine, if the results are useful to a wide audience. Continue reading

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Most Charities Shouldn’t Evaluate Their Work: Part One Why not?

This two-part series first appeared in Stanford Social Innovation Review.

Most “evaluations” of charities’ work are done by the charities themselves and are a waste of time. Perhaps this is a surprising view for an advocate who thinks that charitable work should be based on evidence—but it’s true because charitable activity should be based on good quality,robust evidence, which isn’t what many charities can reasonably be expected to produce.

What is evaluation?

Before we get into why this is true, let’s get clear about what evaluation is, and what it isn’t.

The effect of a charity’s work depends on the quality of the idea (intervention) it uses, and how well it implements that idea. Both idea and implementation need to be good for the impact to be high; and if either idea or implementation is low, the impact will be low. Think of it as:

impact = idea x implementation

To illustrate the difference, consider a breakfast club in a school for disadvantaged children. The idea is that a decent breakfast aids learning by avoiding the distractions of hunger. The implementation involves having foods that the children will eat, buying them at a good price, getting children to show up, and so on. Continue reading

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Getting Better: Improving Education By Learning from Evidence-Based Medicine

‘It’s chilling that when we think we are doing good, we may actually be doing harm’        Dr Ben Goldacre

Giving Evidence has underway a major project to improve the effectiveness of education in less developed countries, by seeing what and how it can learn from evidence-based medicine (EBM). The first findings are here.

Performance has improved dramatically in medicine with the rise of evidenced-based practice: for example, deaths from infectious diseases in the US fell by over 95% during the 20th century. By contrast, educational learning levels are often abysmal: for example, in India, a third of 8-9 year olds can’t recognise simple words.

The move to evidence-based practice in medicine took decades. What can education emulate which will enable similar performance improvements? This project aims to find out. And inviting you to get involved.

Continue reading

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Good charities spend more on administration than less good charities spend

Ground-breaking analysis by Giving Evidence disproves the popular idea that charities should spend less on administration.

This is the first analysis which shows (doesn’t just argue) that high-Admin coverperforming charities spend more on administration costs than weaker ones do. {Report here. The issue is discussed in more depth in Chapter Two of Caroline’s book It Ain’t What You Give (which apparently is excellent..!)}

So it’s unhelpful of Parliament’s Public Accounts Committee to be considering limiting charities’ admin costs. It’s unhelpful of donors such as Gina Miller to suggest that admin costs be capped. The data indicate that such caps would nudge donors towards choosing weaker charities, at untold cost to their beneficiaries.  It’s time for this to change.

The analysis

Judging a charity’s quality  is hard. Some of the most rigorous analysis is by GiveWell, a US non-profit run by former Wall Street analysts, whose analysis is often dozen of pages. GiveWell looks for various sensible indicators of quality, including: a strong documented track record of impact; highly cost-effective activities; and a clear need for more funds.

Charities which GiveWell reviewed in 2011 and recommended, spend 11.5% of their costs on administration, on average. Charities which GiveWell reviewed and didn’t recommend spent less on administration, only 10.8% on average. Continue reading

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What the First Social Impact Bond Won’t Tell Us

This article first published in the Stanford Social Innovation Review.

Social impact bonds (SIBs) are a high-profile innovation in funding public services. The pilot SIB in Peterborough, UK, which aims to reduce recidivism, has been widely watched and—despite not yet producing results—already widely emulated.

Given the international interest in SIBs and similar payment by results (pay-for-success) schemes, it’s important to determine whether the Peterborough SIB works. The Ministry of Justice describes the program’s evaluation method as “the Rolls Royce of evaluation.” However, Professor Sheila Bird of Cambridge University and the UK Medical Research Council says: “[It] might well be a brilliant success; it might achieve little. But we aren’t going to know either way.”

This article examines three aspects of determining whether the SIB works. Continue reading

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Happy birthday, book!

It’s a year since the publication of It Ain’t What You Give, It’s the Way That You Give It. This, Caroline Fiennes’ book about how any donor can do a great job, has met a great response:

Birthday Price! Just £12.99 (+ P&P. This is for the UK: for RoW, see below.)

“A terrific read” – The Guardian

Ben Goldacre: “You’ve been waiting for this:  Evidence-based charitable giving”

Indispensable … dispels the fog … no-nonsense …exactly the guide that donors need … refreshingly rigorous … long overdue” – Spears Wealth Management

“Refreshing … relentlessly logical … fresh and forceful … an important contribution” – Center for Effective Philanthropy

“Very helpful” a letter in The Guardian Continue reading

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Free for you: Insight on what works

The government’s new What Works Centres should be awesome. And they should be a fantastic and free resource for charities and donors and others, which we can use to dramatically improve effectiveness. 

What are you on about?

Wouldn’t it be a good idea if government pr

ogrammes, rather than being based on hearsay and prejudice, were based on some assessment of whether they’ll actually work, for example by looking at what mankind has already discovered about similar programmes?

Well, yes, obviously. So the surprise isn’t that these What Works Centres are being set up now, but that they’ve not been set up before.

Everybody knows that some interventions work and some don’t. Schools vs. trepanning come to mind, respectively. We also know that some interventions work better than others, and that some only work in particular circumstances. But it’s hard to figure out which are which: the evidence is disbursed, complex and varies in reliability. Hence horribly few decisions about government spending are based on decent evidence, and probably horribly few in charities and foundations too. Continue reading

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Bad Book: Why Philanthropy Matters

If Princeton University Press hadn’t provided a free chapter of Why Philanthropy Matters: How the Wealthy Give, and What It Means for Our Economic Well-Being by Zoltan J. Acs, I might have bought it. But I could barely stomach that first chapter, so my thoughts are based entirely on that. 

It starts well enough, with a surprising ‘fact’ (is this true?) that the Giving Pledge generated seven percent of all traffic on Twitter in 2010.

But then it becomes clear that the author isn’t talking about why philanthropy matters: he’s talking solely about why American philanthropy matters to America. He appears unaware of – or at least unmoved to comment on – any other country anywhere. It’s fine to write books about America, but don’t pretend that they’re universally applicable. Continue reading

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