Another interesting consideration about charitable giving addressed in The Elephant in the Brain has to do with which charities we chose to donate large sums of money to. If part of our charitable donations is intended to impress other people and show them how generous and caring we are, then we want to make sure everyone understands how good our donation is.
As an example, I have an automatic recurring donation set up with the Against Malaria Foundation. If I wanted to tell someone about the charitable donations that I do and convince them that what I was doing was meaningful, I would have to convey to them what exactly malaria is, what the foundation does, and why it is effective. Just saying that I donate to the Against Malaria Foundation may not resonate with people the way that me telling them that I was donating to the Children’s Leukemia Support Network would. Malaria is not common in the United States and most people probably don’t understand how debilitating yet preventable it can be. Many people in the United States have heard, however, about Leukemia and probably know it is a type of cancer. Many people also probably have experience in their families of cancer (of one form or another), and know how devastating it can be. Attaching our donations to a terrible disease that people have experience with and trying to support a population such as children is a much easier sell in some regards than convincing people to donate to a charity aimed at malaria which impacts people living far away.
Simler and Hanson write, “Original research generates private information about which charities are worthy, but in order to signal how prosocial we are, we need to donate to charities that are publicly known to be worthy.” This leads us to donate to the Children’s Leukemia Support Network, even though the charity’s entire existence is a scam, rather than the Against Malaria Foundation which GiveWell identifies as one of the most effective charities.
The important thing is that we don’t really do much background with our donations and set out primarily to make big donations to well known charities that tackle things that we think we, or people close to us, might face directly. We want to feel a warm glow about our donations, and we want people to see our donations and immediately recognize what a positive difference we are making. Smaller but more effective charities that address less well known causes are left behind in favor of the bigger more well known charities, even if we could have a bigger impact on the world by making a donation to the smaller charity that people don’t immediately recognize.