Why I’m giving 10% of my income to charity (forever)

Summary

In this video, the speaker introduces the 10% pledge, a commitment to donate 10% of income to effective charities, which they've adopted for both personal and business profits. They discuss the concept of effective giving, emphasizing the significant impact that can be achieved by donating to highly effective charities versus less impactful ones. The speaker shares their personal journey, the ethical considerations behind their decision, and the practical implications of giving, including the potential to save lives. They also encourage viewers to consider the pledge and provide resources for further information.

Takeaways

• 🤝 The speaker has committed to the 10% Pledge, donating 10% of their income to effective charities, and has extended this commitment to their business as well.
• 💼 The 10% Pledge is associated with the nonprofit 'Giving What We Can', which encourages donating to charities that are proven to be effective in their efforts.
• 🔍 Effective charities are defined as those that can produce the greatest benefit with each dollar donated, with a potential 100-fold difference in impact compared to less effective charities.
• 🌐 The importance of giving effectively is underscored by the many pressing global issues and the vast number of charities available, which makes it crucial to choose where to donate wisely.
• 💡 The concept of effective giving is illustrated through an example comparing the cost-effectiveness of curing blindness through cataract surgery versus providing sightseeing dogs.
• 🤔 The speaker reflects on personal ethical considerations, questioning the value of material possessions versus the opportunity to save lives with charitable donations.
• 🌟 The impact of donating can be profound, with the potential to save more lives through charity than through certain professions, such as being a doctor in a developed country.
• 💰 The speaker emphasizes that donating 10% of income can be a significant yet manageable commitment that aligns with both personal financial stability and global ethical responsibility.
• 🏆 The business is projected to donate a substantial amount to charity, which, based on the cost of saving a life through certain charities, could result in saving dozens of lives.
• 🔑 The decision to involve the business in the pledge brings a new sense of purpose to the company's operations and provides motivation beyond just financial success.
• 🌍 The script concludes with an invitation for others to consider the 10% Pledge, highlighting the potential for collective impact and the importance of spreading awareness about effective giving.

Q & A

What is the 10% pledge?

The 10% pledge is a commitment to donate 10% of one's income to effective charities for the rest of one's life. It is run by a nonprofit called Giving What We Can.

Why is the speaker taking the 10% pledge for their business?

The speaker is taking the 10% pledge for their business to ensure that a portion of their business profits are consistently donated to effective charities, aligning their business success with making a positive impact.

What is an effective charity?

An effective charity is one that achieves significant positive impact with the resources it receives. There can be a substantial difference in effectiveness between charities, with some being able to do much more good per dollar donated.

Why is it important to give effectively?

Giving effectively is important because it maximizes the positive impact of one's charitable donations. By choosing charities that are highly effective, one can do more good with the same amount of money, potentially saving or improving more lives.

How does the speaker use the example of corrective surgery for blindness to illustrate the difference in charity effectiveness?

The speaker uses the example to show that donating to a charity that provides corrective surgery for blindness (Charity A) is more cost-effective than donating to one that provides sightseeing dogs (Charity B), as it costs significantly less to restore sight than to provide a sightseeing dog.

What is the thought experiment presented in the script about?

The thought experiment is about the moral obligation to save a child's life, regardless of the cost to oneself or the location of the child. It is used to highlight the ethical imperative to take action when one can save a life, even if it's not immediately visible or convenient.

How does the speaker's personal income compare to the global median?

When the speaker was working as a junior doctor, their post-tax income was 13.5 times the global median, placing them in the richest 2.3% of the global population.

What is the significance of donating 10% of one's income according to the speaker's experience?

Donating 10% of one's income is significant because it allows the speaker to maintain a comfortable lifestyle while still making a substantial positive impact. The speaker believes that the 10% is a balance between personal quality of life and global ethical responsibility.

What is the projected donation amount from the speaker's business and what impact could it have?

The projected donation amount from the speaker's business is $260,000, which, based on the cost of saving a life through the Against Malaria Foundation, could potentially save 47 lives.

What is the role of GiveWell in the speaker's charity selection process?

GiveWell is a charity evaluator that provides research and recommendations on the most effective charities. The speaker plans to use GiveWell's recommendations to decide which charities to donate to, ensuring that the donations have the maximum impact.

Outlines

00:00

🤝 Embracing the 10% Pledge for Philanthropy

The speaker introduces the 10% pledge, a commitment to donate 10% of income to effective charities, which they adopted personally in 2019 and are now extending to their business. They explain the concept, emphasizing the importance of donating to charities that maximize impact, and share the game-changing realization that not all charities are equally effective. The speaker illustrates the power of effective giving with examples comparing the cost-effectiveness of different charitable interventions, highlighting the potential to do more good by choosing where to donate wisely.

05:01

🌍 The Moral Imperative of Effective Global Giving

The speaker delves into the philosophy behind giving, discussing the ethical obligation to donate to causes that save lives, particularly in developing countries. They reflect on personal struggles with the extent of giving, from the initial agreement with the concept to the realization that donating a significant portion of their income could still maintain a comfortable lifestyle. The speaker uses thought experiments and statistics to argue that donating to effective charities can have a greater impact on global health than certain professions, like being a doctor in a developed country.

10:01

💼 Integrating the 10% Pledge into Business Practices

The speaker shares their decision to apply the 10% pledge to their business's profits, calculating the potential life-saving impact this could have based on projected earnings. They discuss the personal satisfaction of knowing that their business success translates into tangible benefits for others and the motivational boost this gives to their entrepreneurial endeavors. The speaker also mentions the role of charity evaluators like GiveWell in identifying the most effective charities to support.

15:02

🔗 The Ripple Effect of Shared Commitments

In the final paragraph, the speaker contemplates the broader impact of their pledge, considering the potential for their actions to inspire others to donate and thus magnify the effect of their philanthropy. They invite viewers to share their pledge stories and consider the long-term implications of consistent, effective giving. The speaker concludes by encouraging viewers to learn more about the 10% pledge and effective giving, offering resources and personal contact for further engagement.

Keywords

💡10% pledge

The '10% pledge' is a commitment made by individuals or businesses to donate 10% of their income or profits to effective charities. It is central to the video's theme, illustrating a personal and business decision to contribute to impactful causes. The speaker discusses taking this pledge for both personal income and business profits, highlighting a dedication to philanthropy that aligns with the video's message of effective giving.

💡effective charities

Effective charities are organizations that are proven to make a significant positive impact with the resources they receive. The concept is integral to the video's narrative, emphasizing the importance of donating to causes that can efficiently use funds to create change. The script mentions that not all charities are equally effective, and choosing the right ones can maximize the impact of charitable giving.

💡giving what we can

'Giving What We Can' is a nonprofit organization that promotes the 10% pledge and advocates for effective giving. It is mentioned in the script as the entity that runs the 10% pledge, indicating a source of information and support for those interested in committing to significant philanthropic actions.

💡effective giving

Effective giving refers to the strategic allocation of resources to charities that can provide the most benefit per dollar donated. The video underscores the concept by discussing how some charities can have a much higher impact than others, urging viewers to research and select charities that deliver substantial outcomes.

💡global inequality

Global inequality is the disparity in wealth and living standards between different parts of the world. The script uses this concept to highlight the vast difference in income levels and the potential impact of donating a portion of one's income to those in need. It provides a context for understanding why donating to effective charities can be so impactful.

💡against malaria foundation

The Against Malaria Foundation is an example of an effective charity mentioned in the script. It is used to illustrate the cost-effectiveness of certain charities, where a relatively small donation can save a life by providing interventions such as malaria prevention and treatment.

💡thought experiment

A thought experiment in the script is a hypothetical scenario used to provoke thought and decision-making about moral and ethical choices. It is employed to challenge the viewer's perspective on the value of a life regardless of location and to encourage considering the impact of donating to save lives.

💡quality of life

Quality of life refers to the level of well-being, comfort, and happiness in one's life. The video discusses balancing the desire to maintain a certain quality of life while also committing to significant charitable donations, suggesting that even a 10% pledge can be life-changing for others without drastically affecting one's own well-being.

💡life-saving impact

The term 'life-saving impact' is used in the script to describe the tangible results of donating to effective charities, where funds can directly contribute to saving lives. It is a key point in the video's argument for the 10% pledge, showing the potential of donations to have a profound effect on global health.

💡philanthropy

Philanthropy is the act of promoting the welfare of others, primarily through the donation of money to good causes. The script discusses personal and business philanthropy as a means of contributing to society and making a positive difference in the world, which is a central theme of the video.

💡givewell

Givewell is a charity evaluator mentioned in the script that researches and recommends effective charities. It represents the importance of due diligence in philanthropy, ensuring that donations are allocated to organizations that can make the greatest impact, which aligns with the video's emphasis on effective giving.

Highlights

Introduction to the 10% pledge, a commitment to donate 10% of income to effective charities for life.

The 10% pledge is managed by the nonprofit 'Giving What We Can', emphasizing effective charity donations.

Differentiating between effective and less effective charities, with a potential 100-fold difference in impact.

The concept of effective giving, focusing on where donations can do the most good.

The importance of researching charities to maximize the positive impact of donations.

A real-life example comparing the cost-effectiveness of curing blindness versus providing sightseeing dogs.

A thought experiment illustrating moral obligation to save a drowning child, regardless of location or visibility.

The ethical dilemma of valuing all lives equally and the impact of donating to save lives in developing countries.

Personal reflections on the struggle with the extent of personal financial commitment to charity.

The decision to take the 10% pledge for both personal income and business profits.

The surprising statistic that earning $60,000 a year places one in the top 1% globally.

The potential of donating 10% of income to save more lives than a career as a doctor in a developed country.

The business projection to donate $260,000 to charity, potentially saving 47 lives.

The shift in perspective from personal to business charity commitment and the renewed sense of purpose it brings.

The role of charity evaluators like GiveWell in identifying the most effective charities to maximize donation impact.

The potential collective impact of the pledge, encouraging viewers to consider their own financial commitments to charity.

Invitation to subscribe to the 'Life Notes' newsletter for further insights and updates.

Encouragement to visit 'Giving What We Can' and consider the 10% pledge for personal and global impact.

Transcripts

hey friends welcome back to the channel

so I have recently decided to take

something called the 10% pledge which is

where you donate 10% of your income to

effective Charities for the rest of your

life now I actually took this pledge

back in 2019 for my personal income but

this year I've decided to take the

pledge for my business as well so we as

a business from now on forever more are

going to be donating 10% of our business

profits to effective Charities every

year and so in this video I wanted to

share a little bit more about what is

the 10% pledge why I am taking it and

why you might want to consider it as

well what is the 10% pledge okay so the

10% pledge is run by a nonprofit called

giving what we can they are not

partnering with us or sponsoring this

video in any way just for the record um

and there's two aspects to the 10%

pledge there is the 10% bit and then

there is the fact that you are donating

it to effective Charities now the first

thing to say is let's talk about this

effective bit of effective Charities

what is an effective charity now the key

thing here is that just like there are

some businesses that are better or more

effective than others there are also

some Charities that are more effective

than others this was a real gamechanging

insight for me when I first heard about

it like 5 years ago which is that not

all Charities are created equal like

people who specialize in researching the

effectiveness of Charities have found

that sometimes there is a 100 times

difference in Effectiveness between a

less effective charity and a more

effective charity like what these guys

say on the website is many people lump

Charities into one doing good bucket

others are skeptical that donating works

at all the reality is that not all

Charities are created equal most do good

work but the difference between good and

great can be substantial some Charities

are significantly more impactful than

others and they've got a really good

post on their website about effective

giving 101 so what does it mean to give

effectively well give means using our

resources to benefit other people when

we see suffering in the world it's

natural to feel an emotional pull to do

something about it giving to charity is

one way to turn this emotional response

into direct positive action but then you

have the effectively bit which is where

you're achieving the best results with

the resources that we choose to give in

essence giving effectively involves

taking action on the basis of where our

charitable giving can do the most good

rather than doing some or a little bit

of good there's reason to believe that

choosing where to give can be more

important than choosing how much to give

since Charities often differ

considerably and how effective they are

it's worthwhile to take the time to

research which ones can produce the

greatest benefit with each dollar okay

so why is it important to give

effectively there are many pressing

problems facing the world from extreme

poverty to the mistreatment of animals

to existential risks that threaten

Humanity's very survival moreover there

are millions of Charities to choose from

1.5 million charities in the us alone

and it isn't always clear which ones we

should support and by giving effectively

you can significantly increase your

positive impact in the world let's see

how this is true with an example suppose

a donor is considering making a $1,000

donation to one of two Charities charity

a which offers corrective surgery for

blindness inducing cataracts and Charity

B which provides sightseeing dogs to

individuals with limited Vision on the

conservative end it costs about $11,000

to reverse a severe case of visual

impairment I.E about $1,000 to literally

cure someone's blindness if they're

affected by this disease conversely it

typically costs $30,000 to

$50,000 to provide one sightseeing dog

so I think this example is pretty

interesting um there is another thought

experiment imagine you're walking in a

park and you see that there's a pond and

you see that there is a child drowning

in the pond would you jump into the pond

to save the dying child of course you

would any like yeah it's it's not even a

question anyone anyone would do that

what if you're wearing a really

expensive pair of shoes or your

expensive suit would you jump into the

pond ruining your suit to save the child

of course you would you'd have to be a

real psychopath and a sociopath to not

do that who cares about the few thousand

that your suit costs if you can

literally jump in and save the child and

you're like okay cool well what if you

were walking on the border of France and

Germany and you see the pond and you see

the drowning child but they're over the

Border would you still walk over the

Border assuming you're not going to get

shot by the border force and go and and

save the child yeah of course you would

right like just because they're

technically in a different country

doesn't mean their life is worth any

less and of course you would still give

up your fancy expensive suit in order to

save the

child then the thought experiment

continues what if there was a wall a

wall separating you you know you French

and German borders there's a wall you

can't see the child on the other side of

the wall but you know the child is there

because you can hear the child you can

hear the child drowning and you have to

you know get up and scale the wall jump

on the other side and then save the

child would you save the child again of

course you would you would have to be

dumb not to save the child just because

you cannot see the person who's drowning

does not mean the person is not drowning

and and you know that if you were to

take action you could save that child

and then the question becomes what if

you knew with certainty that there is a

child dying right now let's say in a

random country in Africa or something

like that and you knew that there's a

child drowning and you can't see the

child you can't hear the child but you

know that that child is drowning that

child is dying and what if you knew that

if if you were to donate $5,000 to an

effective charity like the against

malaria foundation for example you could

literally save this child's life would

you do

it is the life of a child in a

developing country worth any less than

the life of someone in America or

someone in the US or someone in Germany

or Canada or the person that you can see

the whole idea behind you know Peter

singer's philosophy here um which I

broadly agree with is

that all lives are created equal and so

if there is stuff that we can do to save

those lives then you know living an

ethical and moral life means choosing to

do that stuff now when I first heard

this I was like yep I agree I agree I

agree I agree and then I felt really

Shifty when the question came to would I

donate $5,000 to save the life of a

child cuz I'm like well yeah in theory

but like you know I don't have that much

money this was back when I was working

as a doctor and it's like it's kind of

expensive and like oh it feels weird

because I really really want to buy the

Apple Vision Pro and

like it starts to feel like a weird sort

of like I'm I'm being told I'm a bad

person for not donating 100% of all of

my money to save the lives of people

because then I can't live and stuff and

so like for for years I was like uh yes

I agree in theory but like there's

nothing I can do about this because I

don't want to give up my entire I don't

I don't want to like I don't know give

up my life in the UK and go and work for

a charity that sounds boring maybe I'm a

bad person for not wanting to to work

for a charity I don't want to give up my

quality of life just so I can save the

life of kids in developing countries

like you know that kind of thing you can

imagine the you know the confronting

nature of that of that situation but

then I came across the 10% pledge and I

and there's this thing that very like

many thousands of people tens of

thousand of people around the world do

where they just give 10% of their income

to Charities effective Charities every

year and that 10% feels like a good

number for me it's like 10% for most

people in most parts of the world is not

really going to change your quality of

life in fact what giving away can tells

us based on the research is that if you

earn $60,000 a year post tax you are in

the top 1% globally you might not think

that if you earn $60,000 a year and

you're living in like New York or

California or some place that you're in

the top 1% but you are you are the top

1% globally in fact if you earn more

than $199,000 a year you are in the top

10% globally the scale of global

inequality is so insane that by Leading

a normal life in a developed country

like the US the UK Canada Germany

Australia that kind of thing you're

probably in the top 1% globally and so

when I realized that I was like okay you

know at the time I was earning like 40K

a year as a doctor it's like if I were

to donate

$4,000 £4,000 it's not really going to

change my life in any meaningful way but

that £4,000 or $5,000 can literally save

the life of a child holy that's

pretty cool there's also this guy called

Greg Lewis who did an analysis of how

many lives a doctor saves in their

career on average and this was actually

updated in 2023 I'll link all three

parts of his analysis down below but

essentially being a doctor in the UK If

you were to model statistically how many

lives does that save you land on over

the course of your entire career working

as a doctor you on average save

somewhere around seven or fewer

lives people get all up in arms about

this like if you want to read all the

stats and all the analysis there'll be a

link down below yes of course doctors

are good for things other than just

saving lives and of course it's

important that that doctor that you saw

when you were struggling held your hand

and was nice to you and stuff like that

but if you take a kind of math

mathematical approach to how much like

trying to quantify the impact of a

doctor for example working in a country

like the UK for example you land on the

number of a few lives saved in the

course of a career so if I were to work

40 years as a doctor I can save maybe

Seven Lives on average if I were to

donate 10% of my income as a doctor

every year to CH to effective Charities

I could save more lives than that in the

developing world crucially yeah those

lives would be in the developing World

they wouldn't be in the UK because it's

actually fairly cheap to save the life

of someone in the developing World about

$5,000 in the against malaria Foundation

it is very expensive to save the life of

someone in a developed country because

all of the lwh hanging fruit like

vaccines and sanitation and food and

poverty like broadly that stuff has been

taken care of but basically a country

like the UK is willing to spend an

enormous amount of money to extend

someone's life by even just one year

whereas that amount of money could save

10 lives in a subsaharan African country

for example and that was pretty

mind-blowing to me when I when I when I

realized this I was like oh hang on if I

agree that all lives are created

equal and I agree that the life of

someone who happens to live in London is

not is worth no more than the life of

someone who happens to live in Nigeria

or Ghana or something thing then huh

interesting by giving away by donating

money to certain Charities I can

actually save more lives than literally

working full-time as a doctor working 60

hours a week in the UK's National Health

Service mindblowing and So eventually

that's why in 2019 I decided to take the

10% pledge for my personal income yes of

course in an Ideal World I would be a

full-on philanthropist and donate

millions and millions and millions to

charity but there's something

around not letting perfect be the enemy

of good I I think for a few years I also

felt like well 10% is not enough then I

should be donating 90% of my income to

charity because I can just live on the

poverty line in the UK and stuff and 90%

of my income should should should go to

charity and because that because I

thought I should do that I ended up not

taking any action at all and then I

spoke to some people about it and they I

realized I was being dumb about it

like yeah honestly I don't want to give

all my money to charity at least not yet

while I'm young uh I like having a nice

quality of life I like growing my

business I like being rich but I'm very

happy to give 10% of my money to charity

and I've been doing for the last 5 years

and now that's going to be the case for

our business profits as well so this

year our business is projected to do

about2 million in profit if these

projections work out we will be donating

$260,000 to charity and if for example

you look at the stats on the against

marara Foundation it costs $55,500 to

Save a Life that means this year we as a

business will be saving 47 lives if we

were to do if we were to donate that

money to against Mana Foundation that's

pretty cool that means that like me

sitting here and filming these freaking

YouTube videos which may or may not be

sponsored by random sponsors and selling

courses and

stuff I can be a multi-millionaire I can

live the life that I want and on top of

that I can donate

$260,000 to charity this year and do

that 10% thing for the rest of my life

and just this year Alone by doing that

donation we as a business will have

saved 47 lives

that is freaking mindblowing you know

how hard it is to save 47 lives like

imagine there's a burning building and

there are 47 lives in that building and

you're able to go in and like save each

of those lives like saving one life is a

heroic thing right being able to save

more than one of those by simply writing

a check by simply donating money that

doesn't make a difference to my life

anyway that's just freaking mind blowing

um and that's why that's why I took the

pledge in 2019 um but for the last few

years I I i' i' I have felt a bit weird

about this pledge because I took the

pledge in terms of personal income like

the business is making millions in

revenue and profit but my personal

income is actually like I don't know

100K or something like that because if

for for tax reasons it's useful to just

not take income out and of the business

and it's all in the business and it's

invested in the business and so for a

while now I've been thinking that as a

founder of a business that's doing very

well it's a bit if it feels wrong to be

taking the 10% pledge and only doing it

like for my personal income and so I've

decided that from now on um my business

my holding company like whatever

businesses I do in the future will will

be donating 10% of our profits to

effective Charities every

year and since making that decision you

know we signed I signed the Pledge on

our team off site in Portugal a couple

weeks

ago and it's really brought a new sense

of purpose to what I'm doing with this

business I have at various points felt

like oh I've got enough money why do I

want to make another course what's the

point yeah we could make some apps but

like just to make money who cares oh

another sponsored video who

cares but weirdly now that I know that

every time the we like the business

makes money a I get richer which is kind

of fun cuz it's like points in a video

game that I can then cash in for for

stuff in real life but also for every

$5,000 for every $50,000 in profit the

business makes we're literally saving a

life that's really cool and that gives

me a reason to get out of bed in the

morning a reason to like more of a

reason to try and grow the business and

do fun stuff with the business because

there's this we're not just trying to

make YouTube videos for the sake of it

and yeah it's nice getting comments and

emails from people saying that oh your

videos have help help help help me get

through med school and stuff but knowing

that me talking to a camera and doing

that

consistently can make enough money to

save lives it's just like really really

really cool there is a charity evaluator

called givewell they're also nonprofit

they do loads of research into what are

the most effective Charities they like

really make sure that the maths works

for the charity they like try quantify

the impact they make sure that you know

a lot of Charities have admin budgets

and so they make recommendations every

year of this year we have decided that

these are the top Charities to donate to

if you want to maximize the impact of

your donation um I suspect those

Charities that we were we would we would

donate to as a business would probably

be either in the health sector or in the

education sector um but you know that's

a TBD and I think it would be cool if my

team and I get together once a year and

we like celebrate how much money we're

going to be giving to charity and then

we decide collectively based on what

givewell has recommended which charity

we want to donate the money to and we'll

be sharing details of that in my email

newsletter if you feel like subscribing

it's called Life notes and each week I

send like summaries of what I'm thinking

about what I'm reading what I'm

listening to conversations I'm having

there just sort of notes from my life

that I share with you completely for

free you can subscribe down below

there'll be a link and you can

unsubscribe whenever you feel like it

and also if you've got to this point in

the video then and you might Vibe with

some of this stuff then I would really

recommend you check out giving what we

can.org I think if you go to giving what

we can.org Ali that is a tracked link

cuz they're big on statistical tracking

and stuff and if you use that link in

particular and if you do decide to to

take the pledge and it's they say how

did you hear about us and you mentioned

my name if that's kind of interesting

because um you know there's the 47 lives

or whatever that we're saving through

donating money to charity but then

there's also the additional impact that

we as a company can have by me making

these videos that if for example 10

people even just 10 people watching this

video were to also then take the pledge

and also then start donating that money

that actually magnifies my impact which

is kind of nice and kind of cool and you

can kind of see the stats of this and so

I'll put a link down below if you want

to check it out but on the giving what

we can website you can see for example

how rich am I when I was working as a

doctor it would have been maybe post tax

income maybe like 35,000 something like

that yeah so back when I was working as

a junior doctor I was in the richest

2.3% of the global population and my

income was 13.5 times the global median

and then they take how cost of living

into account and they tell you like if

you were to donate 10% you would still

be in the richest 2.9% of the global

population your income would still be

12.2 time the global median and each

year your donation could treat 610

children who are suffering with from

malaria you could give 2,134 vitamin A

supplements and you could save almost

one life for a longer and healthier

future oh and if you do decide to take

the 10% pledge and this video has

influenced you in any way I would love

it if you would please drop me an email

Ali al.com and do mention that you've

taken the pledge um we love to hear some

more details about you and stuff

whatever you feel comfortable sharing uh

if there's enough people I I I've been

toying with the idea of making like a

little telegram group doing like an

annual Meetup of other people have taken

the pledge you know that something like

that but it just depends on what the

numbers are so please do email me if you

decide to take the pledge based on this

video or based on anything else that

I've shared anyway that's it uh if

you're interested in watching the video

that I did 5 years ago when I took the

pledge as an individual that'll be

linked over there thank you so much for

watching and I'll see you hopefully in

the next video bye-bye