Five Factors To Consider Regarding Our Donation Behavior

In The Elephant in the Brain, Kevin simler and Robin Hanson ask just how much of our behavior is influenced by our self-interest. As an explanation for why we do what we do, simply saying that we did something because we gained some material good, gained more social status, or received some type of pleasurable outcome is generally accepted, but ignored. It is clear that we have self-interest in doing things that we benefit from, but in many ways, we like to ignore self-interest and we prefer to explain our behaviors with more complex rationalizations for why we do what we do. This motivated reasoning, however, creates models that account for many factors without acknowledging the main factor that we would all rather ignore, the elephant in the room (brain), our self-interest.

 

Simler and Hanson investigate charitable donations in the framework of self-interest and consider the warm glow feeling that we get when we make charitable donations, help the person on the street, and generally do good things for others. They look beyond simply “we do things because it makes us feel good” and ask questions to get to a deeper level understanding of human behavior:

 

“The much more interesting and important question is why it feels good when we donate to charity. Digging beneath the shallow psychological motive (pursuing happiness), what deeper incentives are we responding to?

 

To figure this out, we’re going to examine five factors that influence our charitable behavior:
  1. Visibility. We give more when we’re being watched.
  2. Peer pressure. Our giving responds strongly to social influences.
  3. Proximity. We prefer to help people locally rather than globally.
  4. Relatability. We give more when the people we help are identifiable (via faces and/or stories) and give less in response to numbers and facts.
  5. Mating Motive. We’re more generous when primed with a mating motive.
This list is far from comprehensive, but taken together, these factors help explain why we donate so inefficiently, and also why we feel that warm glow when we donate.”

 

I have been writing a lot recently about charitable giving. Part of the reason why is because I see great potential in the resources at the disposal of the average American. We have a lot of wealth relative to the rest of the world, a lot of time relative to previous generations, and a lot of information available to us. However, rather than using our wealth, our time, and the information available to us to maximize our lives, make the world a better place, and solve pressing problems, most people waste their resources. I have continually been thinking about what I consider The Stupid Economy where we feel pressured to buy things we don’t really want to keep up with and impress people we don’t really care much about, and use our resources in pointless and meaningless ways.

 

Our world today has incredibly bright people working at meaningless jobs. We use a lot of our human potential, our creative energy and brain power, and our money to get people to drink sugary water. We invest massive amounts of attention in celebrity news and we celebrate technological inventions like iPhones without applying our hunger for technological improvement to other problems that could potentially save more lives or do more to protect the planet from human caused problems – like trash in our oceans.

 

I want to encourage society to move in a direction that is more considerate and careful with our resource use. I want to be part of something that builds toward a society that has a smart economy, where instead of complaining about the diminishing purchasing power of our society while simultaneously buying $100 jeans we celebrate the resources we have and put them toward real use to create sustainable development. If we are going to set out to do good in the world, we have to understand what Simler and Hanson describe in the quote above. We have to understand how our rationality is derailed, and we need to understand why it is important to be truly effective when we try to do good with what we have.

How Helpful Are We?

“People are willing to help, but the amount they’re willing to help doesn’t scale in proportion to how much impact their contributions will make.” Author’s Kevin Simler and Robin Hanson write this in their book The Elephant in the Brain when discussing our behaviors around donations and charity. “This effect,” they continue, “known as scope neglect or scope insensitivity, has been demonstrated for many other problems, including cleaning polluted lakes, protecting wilderness areas, decreasing road injuries, and even preventing deaths.”

 

In the United States, we have a high regard for charitable donations and activities. We encourage people to donate their time and money and our tax system has a way for people to get something back from the government by reducing how much they own in taxes if they gave enough in charitable donations. What Hanson and Simler highlight in their book, however, is that our human brains are not well suited to ensure that all of our charitable donating is having the greatest impact possible.

 

I am a public policy student and practitioner, and a key thing to understand about public policy is that at the core, it is not rational. The deepest level of policy is entirely based on values and sometimes pure emotions. You cannot rationally come to a reasonable conclusion for whether the nation (city, county, state) should invest its final $1 million dollars in policy to reduce tobacco use, or increase educational support for children with autism, or clean and remodel a popular park. The final decision is going to come down to the values of the voters and of the government’s leadership.

 

The same is true for our individual donations. Is it really best for us to make donations to the Against Malaria Foundation to save lives in countries far away from us? Should we use our donations to help improve the lives of children living right here in our own community? Are we obligated to use our donations to help other people like us who have also gone through medical crisis, trauma, or natural disaster challenges that we have experienced and survived? The heart of these decisions will always be an emotional values decision.

 

We can, however, try to develop institutions that help people ensure that once they have made these value judgement they use their charity in the most meaningful way possible. We can develop social systems and attitudes that encourage people to pool their charitable resources toward one meaningful purpose that aligns with their values, rather than donating a few bucks here and there to a charity that pulls at their emotions (a single large donation to an effective charity can do much more good in the world than multiple smaller donations to charities that range in terms of effectiveness). We can develop organizations that do more to analyze the effectiveness of given charities and develop new systems for looking at how we can make sure our donation does the most good based on where we want to do our good (whether it is saving lives, helping local development, improving education, or something different). We can use our tax system to encourage smart charity rather than stupid charity where celebrities just buy overly priced pictures of themselves from random foundations that claim to have philanthropic purposes but really just pay off porn stars to protect the political prospects of their benefactors (cough-Trump-cough).

 

Ultimately, our brains our wired to be charitable to show people that we are nice caring people. As a result, we don’t really care about the effectiveness of our donation, we just want people to see that we made a donation and that we are the kind of person who is caring and generous enough to help others. This leads us to make stupid donations rather than smart an effective donations, but by changing the institutions surrounding our charitable activity, we can start to actually do good in a rational manner with our charity.

Return on Donation

An argument that Kevin Simler and Robin Hanson present in their book The Elephant in the Brain is that when we donate to charity, we are signaling to others how caring and generous we are as humans. The actual good that our donation will do is secondary to being the kind of person who is caring enough and generous enough to help out with what ever cause we donate toward. It is not, the authors argue, the suffering of other people or creatures that we are concerned about, it is whether or not we think of ourselves and are seen by others as the kind of person who cares about it.

 

Simler and Hanson write, “Occasionally, we’re even happy to donate without knowing the most basic facts about a charity, like what its purpose is or how donations will be spent. “Within two weeks of Princess Diana’s death in 1997,” writes Geoffrey Miller, “British people had donated over 1 billion pounds to the Princess of Wales charity, long before the newly established charity had any idea what the donations would be used for, or what its administrative overheads would be.” When we analyze donation as an economic activity, it soon becomes clear how little we seem to care about the impact of our donations. Whatever we’re doing, we aren’t trying to maximize ROD [return on donation].”

 

If we were very concerned about making sure that we made a difference in the world with any money we donate, then we would take steps to ensure that our donation was going to make a difference. We would want to see a spreadsheet showing how the foundation used our money. We would want to know how many people were helped and in what way. We would want to know how much money went to the salaries of the employees of the charity, what money was spent on office furniture, and how much money was simply used as fixed office costs that didn’t benefit the cause we wanted to support.

 

Instead, the charities we donate to very rarely present any information along these lines. Our donations and charity are something we feel in our hearts, not something we think about in a rational way. Effective Altruists have argued that if you want to actually make a difference you can feel good about, if you actually want to show that you are a caring person, you should make an effort to understand how much good your donation is doing. We act as if that is why we donate, but then we don’t do any of the things (most of the time) that would support the argument that we care. A much more simple explanation of our donations is that we want to look good and feel good internally about our generous and charitable behavior, even when our generosity and charity is effectively wasted on organizations that are ineffective.

An Ethical Dilemma

In The Elephant in the Brain authors Kevin Simler and Robin Hanson consider human ethics in a framework laid out by Peter Singer. Singer suggested that if we saw someone dying right in front of us, we would have a moral obligation (in instances that did not put us in mortal danger ourselves) to try to assist them, even if it came at an high cost to ourselves. A common example is that you are wearing brand new very expensive clothing and see someone dying in a situation where you could save them without risk to yourself, but in a way that would certainly ruin your new clothes. The loss of our expensive clothing is almost certainly not a reason to put off helping the person dying in front of us.

 

The question becomes, are we obligated to help people who are not dying in front of us at the the cost of the brand new clothes that we would sacrifice if the person were dying in front of us? Are we obligated to save a life thousands of miles away in a different country and culture for the price of some goods that we might frivolously buy for ourselves?

 

Simler and Hanson lay out this argument in their book and write, “What Singer has highlighted with this argument is nothing more than simple, everyday human hypocrisy – the gap between our stated ideals (wanting to help those who need it most) and our actual behavior (spending money on ourselves). By doing this, he’s hoping to change his readers’ minds about what’s considered ethical behavior. In other words, he’s trying to moralize.”

 

In their book, the authors use the argument of singer and the fact that many of us do not sacrifice the money we would otherwise spend on meaningless things to save the lives of children across the globe as evidence for the elephant in the brain. We say things and signal things that we don’t follow through with, and we are strategically ignorant of the fact that we ignore these aspects of who we are. The authors don’t attempt to criticize us for this behavior, but instead make an effort to point it out and acknowledge that it is a huge driver of human behavior.

 

“Our goal, in contrast,” Write Simler and Hanson, “is simply to investigate what makes human beings tick. But we still find it useful to document this kind of hypocrisy, if only to call attention to the elephant. In particular, what we’ll see in this chapter is that even when we’re trying to be charitable, we betray some of our uglier, less altruistic motives.” Very often we do not escape our own self-interest completely, even when we are doing charitable things for other people. Our ethics and moral philosophies can be trampled by our self-interest, and with our big brains we are able to justify our selfish behaviors.

Reputation

In his collection of thoughts, Meditations, Roman Emperor Marcus Aurelius wrote about the lessons he learned from those around him when he was growing up and maturing into an emperor who would be known for his wiseness.  In his writing he dedicates a long section to the lessons he learned from his father. One of his lessons deals with reputation and how we see our reputation. Aurelius writes, “He was a man who looked to what ought to be done, not to the reputation which is got by a man’s act.” I highlighted this section because I think that it is an idea and perspective that I want to cultivate, but that I find difficult to live out.

 

The lesson that Aurelius learned from his father and focused on as he wrote this section is to think of others and to think of society before thinking of oneself.  To truly commit to the causes at hand requires a certain selflessness that cannot be fostered if your main focus is on what you will receive by taking part in acts that are beneficial to the whole.  It is not a bad thing to recognize that benevolent actions and social engagement will have positive outcomes for you as an individual, but it is a bad thing to participate in outreach programs if you are only doing so to enhance your own reputation.

 

As a whole, our society in the United States recognizes that it is not always a bad thing to volunteer time, effort, or money toward positive causes with a thought of a reward at the end. We offer tax write-offs, provide t-shirts and donuts, and dedicate space to the names of volunteers on plaques or buildings as a way to encourage and recognize those who do good in our society.  Benefitting from the good you do for others is not a bad thing, and offering small rewards may help others move in a direction where they become more generous with their time and money and are more willing to help others.

 

The real challenge is finding a way to do good acts without expecting some sort of reward or recognition.  The more we can focus on doing good because we feel that it is our social responsibility or because we understand that it gives our lives internal meaning, the more we can engage in social causes and become fully committed to our actions. Participating to be noticed and recognized means that our full energy and effort is not being brought to the table, and as a result we are not doing the most good we can do.

The Emotional Pull of Making Decisions

The Make-A-Wish foundation is a successful charity in the United States which has done a lot of great things for young children diagnosed with life threatening diseases, however, in his book The Most Good You Can Do Peter Singer explains that effective altruists, or a budding group of people who are focused on using their resources to provide the greatest value to people who need it the most, do not find the charity to be a place where they should focus their money when they are trying to change the world or do something truly great for other people.

 

In his book Singer explains the value of Make-A-Wish, the value of the emotional fulfillment people receive when they participate in Make-A-Wish events, and what pulls us toward the charity to make donations. The charity is focused on children who often live in our community and who do not have the opportunity to live a full life with the joys that we have experienced in ours. When Make-A-Wish stories air, we see an individual child and are able to connect with their story possibly even identifying a piece of ourselves in that child and their story. Making a donation satisfies a core part of who we are, and we get to see the children who actually benefit from our donation.

 

However, effective altruists likely would not find the Make-A-Wish foundation to be the most impactful place for their donations. Singer explains it this way, “Effective altruists would, like anyone else, feel emotionally drawn toward making the wishes of sick children come true, but they would also know that $7,500 could, by protecting families from malaria, save the lives of at least three children and many more.” The $7,500 figure is the average cost according to Make-A-Wish of fulfilling a wish. The argument for Singer and effective altruists is that we could use the money that we direct toward providing one child with a very special day, and save the lives of multiple children.  An effective altruist would argue that saving a life is more important and provides more positivity for the world.

 

Continuing on and writing about a Make-A-Wish recipient nick-named Batkid, Singer writes, “Why then do so many people give to Make-A-Wish when they could do more good by donating to the Against Malaria Foundation, which is a highly effective provider of bed-nets to families in malaria-prone regions?  The answer lies in part in the motional pull of knowing that you are helping this child, one whose face you can see on television, rather than the unknown and unknowable children who would have died from malaria if your donation had not provided the nets under which they sleep. It also lies in part in the fact that Make-A-Wish appeals to Americans, and Miles is an American child” Singer shows us that we are more likely to make donations that will remain close to us and benefit those who look like us. We are less likely to feel the same emotional pull when considering a donation to a charity that helps people in a different culture far away from us who do not dress, act, or look very similar to us.

 

By pausing and reflecting on how their money is used, effective altruists are able to reason past these shortcomings of the human mind. Our biases limit our donations and create a prejudice against making donations and helping those far away from where we live. Singer contrasts effective altruists against average donors, “Effective altruists will feel the pull of helping an identifiable child from their own nation, region, or ethnic group but will then ask themselves if that is the best thing to do.” He shows that effective altruists are truly focused on finding the best use for their extra resources and finding the best way to help people. They focus and reason through their donations, avoiding the emotional pull of spontaneous donations. All of their daily actions align one way or another with their philosophy, helping them do the most good possible. In this way, and effective altruist is able to ensure that the donations they make will help shape the world for the better, save lives, and reduce global suffering.

A Warm Glow

In his book The Most Good You Can Do author Peter Singer explores a recent phenomenon that has been coined effective altruism. Those who follow the philosophy explained by Singer take the title of effective altruists and they are defined as individuals who are focused on having the greatest positive impact on the planet that they possibly can. An effective altruist is concerned about human beings on a global scale, and drives towards making donations that have the greatest impact on the lives of others. They see their goal or mission in life as impacting the most lives possible at a sacrifice to their own lifestyle.

 

Singer contrasts effective altruists with those who make small donations when a charity tugs at their emotions. He writes, “Those who give small amounts to many charities are not so interested in whether what they are doing helps others — psychologists call them warm glow givers.” Singer includes this passage in his book to make a distinction between effective altruists and those who occasionally make small donations to charities when it is convenient.  The distinction he raises helps us see that effective altruists have shaped their life around doing great things for those who are less fortunate, something not seen in most people who donate to charity.

 

Throughout his book Singer also makes a distinction between wealthy donors and those who are focused on making meaningful donations to charity and communities.  Few people truly take a moment to research the charities they are making donations to, even when their donations are large and impactful. By not researching where your donation is going you cannot be sure that your money is truly heading toward the cause being promoted by the charity as opposed to being used for additional fundraising or executive salaries. An effective altruist would spend time understanding how a charity uses donations prior to making a donation. Ultimately, the research, the amount of money donated, and the decision of which charity to donate to, for an effective altruist, is not based on generating positive feelings for the donor, but is based on reducing the suffering in the lives of as many people as possible.

Minimal Ethics

In his book, The Most Good You Can Do, Peter Singer discusses living a life driven by moral excellence. The secular philosopher builds on the idea of moral good based on our ability to reason and the faculties of mind which allow us to rationalize society and measure the positivity we add to the universe.  Singer explains that we can be very ethical in our approach to life, mostly ethical, or somewhat ethical in our actions without truly pausing to consider our ethics and our actions or decisions.  Throughout his book he contends that we can begin to understand just how ethical we truly are if we can honestly evaluate our actions through self awareness and through the difficult process of quantifying and measuring the benefits of our actions.

 

Singer writes, “Living a minimally acceptable ethical life involves using a substantial part of our spare resources to make the world a better place. Living a fully ethical life involves doing the most good we can.” In this sense Singer is approaching the world with the view that a minimalist lifestyle should be promoted if we want to do the most good possible with the time and resources we have available to us.  We should look for areas where we have surplus, and find ways to share those surpluses with people who are not as fortunate.  However, he would advocate that we find the most effective use of those resources to make the biggest possible impact with them.

 

Throughout The Most Good You Can Do Singer explains that simply directing spare resources toward charities and the disadvantaged does not reach the most people and provide the most good. Finding an area where your extra resource will go the furthest and provide the most for those who are in need is what Singer argues should be the main goal of an effective altruist (his term for the most ethical individuals). An example from the book of an area where an effective altruist can have the greatest impact is in developing countries in Africa and other tropical regions. The greatest thing that can be done to prevent unnecessary deaths in these countries is the provision of bed nets for a greater portion of the population.  A single bed net can save a life for roughly $100, and it is hard to find another form of charitable giving or donation that can have as great an impact for as little of a cost.  Singer presents multiple examples of powerful uses of extra resources throughout his book.

 

He also addresses areas of confusion and misrepresentation in ethical behaviors and actions.  Singer contends that making donations impulsively, in situations where donations are being asked for in front of grocery stores or after tragic events, does not do as much good as we tell ourselves. According to Singer donations during these moments may be beneficial and help those involved, but we do not donate in these situations to be altruistic. The donations we make in these situations serve more to a help us avoid feelings of guilt, and we should never consider our own guilt when considering charitable donations.

A Constructive Use of Our Resources

In his letter for James Harmon’s book, Take My Advice, William T. Vollmann lists as number seven on his list of 21 pieces of advice the following quote, “Don’t buy anything or use anything you don’t need or want.  Try to do constructive things with cash.”  This little piece of advice seems so simple at face value, but if we really incorporated it into our lives we would see that it can have a deep impact on our lives.  Focusing on what we buy and not buying things that could be labeled as junk will help us eat healthier, de-clutter our homes, and even focus on donating to better charities.  Budgeting is one of the clearest ways to limit spending money on unnecessary things, but increased self awareness is a crucial step for anyone who wants to truly identify their spending habits. I just finished reading The Total Money Makeover by Dave Ramsey, and in his book he recounts many stories of individuals and couples sitting down to budget for the first time, and being shocked at just how much money they were spending towards things they did not need or remember.  The big takeaway from the power of budgeting is the self-awarenss that a good budget creates, and the control that planning and budgeting provides for our lives.  Trying to avoid purchasing things we don’t need or use our money in frivolous and mindless ways will lead to more control and security in our lives.

 

It is easy to go to the grocery store and come home with a variety of things that you did not intend to buy, and this is not always a bad thing.  Getting to the store and realizing that you need  sunscreen and throwing some in the cart as you pass the display can be a good thing, while I would argue, throwing an extra candy bar or soda in the cart is not.  In this example I am comparing the impulse to buy a skin protector, something that helps us be health, with a junk food that is not healthy. This argument is a little flawed, but accurately identifies situations where we can be spending money on things that will not help us, and will just leave us with a little less cash.  One candy bar on its own does not mean anything, but combined with soda, cookies, and other junk foods the candy bar can become a dangerous habit that we spend money on each time we go to the store. Self awareness is required to see what you are buying at the grocery store and limit the junk you buy and the excuses you develop for buying that junk.

 

Vollmann’s ideas about consciously spending our money and making sure that we use our money wisely extends beyond simple shopping.  I recently listened to an episode of the podcast Point of Inquiry where host Josh Zepps interviewed Peter Singer about morality.  What surprised me was to hear that the majority of people who donate to charity do so on an impulse basis with little to no thought of the impact factor behind their donation.  Any time we donate to charity we feel better and justified for our action, but we rarely take the time to identify how impactful the charity is, and how our money will benefit the programs or lives of those the charity aims to assist.  Random and unconscious donations to charity may not be harmful and may be one of the constructive uses of cash that Vollmann encourages, but according to Singer we could still be doing more with our resources.  I think that in the end Vollmann, through his quote about money, is speaking about making the most of the resources we have. Singer shows us that even one of our most coveted resources is often misused even when we try to do something positive.  Searching for the most constructive use of our time, effort, and cash can help us feel more fulfilled, and it will allow us to have a grater impact on the planet. I followed the podcast by reading Singer’s book, The Most Good You Can Do, and was struck by the idea of intentionally donating money by consciously saving and making valuable contributions to charities that have the greatest impact on the lives and suffering of the global poor.  One of the biggest surprises of affective altruism as Singer has named it, is the meaning that impactful donations of time and resources provide to those who are wealthy enough to give back.  Affective altruists who make meaningful donations feel more connected with their community and those around them, and feel like they are making a greater difference in the world.