At EA Global, a common discussion topic was that direct work was becoming increasingly higher priority in comparison to earning to give. I’ve helped to contribute to this conversation, and I’m glad we’re talking about this. This post is just to give some considerations on the other side, to ensure that (i) we approximate allocative efficiency, where the people who have the strongest comparative advantage in earning to give do so, and those who have strongest comparative advantage in direct work do so; and that (ii) we don’t overcorrect. There were a few conversations I had at EA Global where I thought there were some considerations that should be on the table that weren’t widely known about, and weren’t written up publicly, so I’ve chosen to write them up here. I should caveat that these are just my personal off-the-cuff thoughts, rather than necessarily representative of CEA or 80,000 Hours. This also isn’t meant to be a complete picture; it’s just some considerations that I think might not currently be widely known or fully understood.
Background
The primary reason people were less excited by earning to give was simply that we’ve raised a lot of money already, and diminishing marginal returns means that additional money becomes comparatively less important.
It’s true that, as a community, we’ve raised an awful lot of money; it’s very plausible that we’ve had comparatively greater success at moving money to the highest-priority issues than convincing people to work on those issues. What’s more, Open Philanthropy has started making grants in the areas that people in the community often think of as highest-priority: factory farming, global catastrophic risks, artificial intelligence, and building the effective altruism community.
These facts make me believe that fewer people should earn to give than I used to believe several years ago. But I still think some people should earn to give; in my previous post a year ago I asked, “At this point in time, and on the margin, what portion of altruistically motivated graduates from a good university, who are open to pursuing any career path, should aim to earn to give in the long term?” The median and mean answer among myself, Ben Todd, Roman Duda and Rob Wiblin was 15%. This number still seems about right to me: the people with the highest comparative advantage in earning to give should continue to earn to give; other people should do direct work (including research, advocacy, policy, socially-motivated entrepreneurship, etc).
Allocative Efficiency
My primary concern going forward is that we as a community fail on allocative efficiency. Different people vary considerably on both their donation potential and their potential at direct work. Ideally, if 15% of people should earn to give long-term, then it’s the 15% of people who have the strongest comparative advantage at earning to give.
For this reason, I believe that those people who have the strongest comparative advantage at earning to give, such as those working in quantitative trading, or who are already far along in their earning-to-give career, should at least wait and see over the next year or two how the community responds and develops before switching to direct work. To emphasise, this is about comparative advantage: if you have lots of amazing options, then the fact that you have an amazing earning to give option doesn't mean you should earn to give; for example, for someone concerned about AI safety, who has the option to work on AI safety at an AI lab, it’s plausible to me that they ought to do that even over a great earning to give job in quantitative trading.**[later edit] For other people, for example people earning to give in software engineering, who have skills that would be useful in direct work, and who would be happy either earning to give or doing direct work, I’d still encourage them to seriously think about what sorts of direct work they could do.
In general, when considering whether to do direct work or earn to give, you could ask yourself: am I in the top 15% of people in terms of comparative advantage at earning to give?
Overcorrection
As well as ensuring that we get allocative efficiency, it’s also possible that the community will overcorrect to changes in circumstance. So, for people who are currently pursuing earning to give and wondering whether to switch to direct work, here are some countervailing considerations to bear in mind:
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You may differ from Open Phil or other major funders in your assessment of the funding gaps within what you think of as the highest-priority issues. As a hypothetical: If you think that factory farming would still be the highest-priority problem even if a further $100mn/yr were put towards it, whereas Open Phil think that the room for more funding is only $10mn/yr, then earning to give, from your perspective, would still be very valuable over the long-run, even though you’re both funding it as much as you can right now.
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Over time, your views or the views of Open Phil and other major funders may change substantially on what the top priorities are. Even if you’re in perfect agreement right now, that might change in the future; earning to give can be an important hedge against this possibility.
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For some organisations, Open Phil and other major funders might wish to limit their donation to a certain % of their overall budget, in order to ensure that the organisation doesn’t become overly dependent on a single donor. In some circumstances, this can actually increase the argument for earning to give, because every dollar you donate unlocks an additional amount of room for more funding from those %-capped major donors.
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There will be giving opportunities that Open Phil and other major funders won’t look at, for example because the funding gap for the organisation in question is comparatively small.
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We can already see people in the community adapting their plans on the basis of the emphasis away from earning to give; so you need to take this adjustment into account. Even if you thought that too many people are earning to give right now, this might not be true in two years, after the adjustment takes place.
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Similarly, organisations are able to increase their room for more funding in response to a greater availability of funding. For example, many organisations that people in the community donate to pay significantly less than market rates; it’s possible that with a greater abundance of funding they could pay more in order to attract more experienced people; or they could start hiring more expert contractors, which are typically expensive; or they could come up with innovative ways of spending money that don’t require hiring a lot of people.
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Similarly, new organisations within a particular area may come into existence if it’s widely known that there’s funding for such organisations.
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In some cases, it’s possible to ask the organisations where you might work for the amount of donations at which they’d be indifferent between having you work for them and having you donate more. This can be an awkward conversation to have, but does enable you to more directly make a comparison between earning to give and direct work.
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There may be fewer people earning to give than you think. Only 10% of attendees at EAG were earning to give as their long-term plan for impact. This is less than the 15% suggestion I made in my previous blog post on the topic. In an informal survey of organisations in the effective altruism community done by 80,000 Hours at EA Global, respondents on average only claimed to be slightly more people-constrained than funding-constrained.
The area I know in most depth is funding of effective altruism community-building. In this area, all of the considerations above weigh on my mind; I think it would be a very precarious position (both for insurance and impartiality reasons) if the EA community were heavily dependent on a single donor, or a small number of donors. I wouldn’t be that surprised if in a few years we switched to emphasising how funding-constrained rather than people-constrained we are (though I’m aware that other people disagree with me on the likelihood of this).
Career advice is hard to give general recommendations about, because everyone’s circumstances and options are so different. I’m glad that we’re now more heavily emphasising career paths other than earning to give. But I think that if you’re particularly well-suited to earning to give, compared to your other options, or if you’d gain a lot of skills by earning to give, or if you’d be particularly happy in that path, or if you are particularly unsure about which problems are highest priority to tackle, then it’s often still a great option for having a positive impact, and you should be cautious about moving on from that.
Thanks to Nick Beckstead, Holden Karnofsky and Benjamin Todd for comments on an earlier draft.
**[Later Edit] To clarify again, this is about comparative advantage, not absolute advantage: x has a comparative advantage over y at producing G iff x can produce G at a lower opportunity cost than y. (In this post I'm most interested in comparative advantage within the EA community). Example: If Jane can earn to give and donate $100,000 per year, or do research and write 8 papers per year; and Joe can earn to give and donate $50,000 per year or do research and write 3 papers of the same quality that Jane could write per year, then Jane has a comparative advantage in research (giving up 8 research papers for every $100,000 donated) and Joe has a comparative advantage at earning to give (giving up only 6 research papers for every $100,000 donated).
[Second later edit]: Disclosure: I am CEO of the Centre of Effective Altruism, which is funded in significant part by the donations of effective altruists, including donors who earn to give. You can find out more about my background at www.williammacaskill.com.
[Speaking just for myself here, not for my employer, the Open Philanthropy Project, which is housed at GiveWell]
UPDATED 8/27/16. I added the name of my employer to the top of the post because Vipul told me offline that he thinks "my financial and institutional ties . . . could be construed as creating a conflict of interest" in this post.
One of the things that makes this decision so hard for anybody considering ETG to fund relatively small projects that staffed foundations might miss is that projects that receive funding get way more visibility than projects that do not.
This makes it incredibly hard to figure out what the right margin is and how many projects are at that margin (particularly important when you know lots of others are making the same decision at the same time). Unless they do an incredible amount of research, a potential ETGer can mostly see examples of projects they support that that WERE funded and then speculate on whether they were close to not being funded. You can also look at projects that are currently fundraising but, again, it's hard to tell in advance how many of them will actually struggle to get support
If I were CEA/80k and wanted to make... (read more)
I think that this isn't a mistake and I think Vipul's being ridiculous, FWIW.
My impression is that most EA orgs are paying employees significantly below the market rate. Given most EA orgs don't have the cash on hand to give their staff a payrise to market rates, there may be considerable human capital they are missing out on (imagine a effective employee who nonetheless is unwilling to paid below market). So I'm not sure EA at the moment is not money constrained. (On the other side, I confess to looking around some marginal projects I am aware of and not being greatly impressed by their upside of likelihood of success),
My hunch is it will move in that direction in the future, as most E2Gers are fairly early in careers and will expectedly earn more in the long term.
One reason to expect a long term excess of EAs earning to give is that EtG can be much less of a sacrifice than direct work. Earning to give lets you keep your cushy job, normally means you end up living on more than most people doing direct work live on, and is easy to exit if you start feeling more selfish in the future.
So if you're more altruistic than most EAs, you should overcorrect away from earning to give.
ETA: Also, there are lots of EAs who have only recently started EtG. They're going to massively increase their donations over the next few years, so we shouldn't forget to plan for that too. I don't think most of these people will switch away from EtG even if it's the right thing to do.
Edit again, 2015-09-05: This criticism is much more applicable to software engineers than other EtG careers.
I agree with all of this Will. I'll just add that I also think individuals who earn to give can fund some projects that large philanthropic groups like OpenPhil can't because they are: i) very new/small; ii) very risky, iii) look too strange to the public. This is another way in which we can't put all our eggs in one basket: we need a diversity of funders and funding strategies to ensure good things aren't missed. Individuals can play a role filling gaps left by others, though we may not need that many of them.
EAF is sufficiently funding-constrained again that we’ve decided that I’ll mostly ETG for the foreseeable future even though I feel a stronger personal fit for direct work, strong value alignment with EAF, and “only” earn a roughly average German software engineer salary. So I share the impression that at least in my EA circles ETG is still not overdone.
I don't see a practical way to answer this question. You may have a sense of your absolute advantage at a career relative to other people, but to know your comparative advantage you have to know what you're good at and which skills other people are relatively good or bad at.
heuristic: people who seem like they could be doing valuable direct work are wasting their time learning about and executing on fundraising.
I have encountered several such people in the last year.
heuristic: is EA funding 'crazy' projects at the margin? If not, the risk tolerance bar is being set too low.
I have encountered zero projects that seem too crazy in the last year.
heuristic: all projects run by people past a certain competence threshold should be funded.
This one is trickier, I think EA has a lot of room to improve on this metric, and it may be t... (read more)
Will: Has 80k or someone else considered writing up a profile of the typical EA in the scenario you note (early career, willing to choose just about any career option if it maximizes good) to give people a better understanding of what standard we should be comparing ourselves to when assessing our comparative advantage? I can see this being particularly useful for people with many good options who don't know where to go. From what I see, most people I've talked to seem to be relying on informal conversations and intuitions about their peers that might easi... (read more)
To be honest, I don't think the 15% number is useful; it's the average of four employee's guesses, and no supporting evidence for these guesses is presented.
If each employee actually conducted a thoughtful analysis before arriving at an estimate, then maybe the 15% number would be useful, and I think it would be helpful to share those details.
I'd be interested to learn more about this number. I assume some attendees were uncertain about their long-term plan? If so, some of these people may end up earning to give?
Also what do 80K's target percentages vs actual percentages look like for other EA career options?
I liked the idea!
I would like to see clearer disclosure of your institutional ties, insofar as knowledge of these ties might affect people's assessment of the direction in which your advice might be biased. Proactive disclosure would also help you preempt criticism or dismissal of your advice due to your institutional affiliations.
I'm also curious for others' thoughts on whether such disclosure would be helpful.
Here's a suggested disclosure.
"I am affiliated with the Centre for Effective Altruism (CEA) [description] and 80000 Hours [description]. I have written a book ... (read more)
This disclosure seems too long to me (e.g. talking about EAG speeches?), perhaps because it is doubling up as both a barb and a suggestion. Here's my suggestion:
"Disclosure: I am CEO of the Center of Effective Altruism, which is funded by the donations of effective altruists, including donors who earn to give."
Disclosure: I have done paid consulting for CEA, and have interacted with it from its founding (and with Will from before that).
[ETA: as you say, one could also link to a longer conflicts of interest page, but one needs something in the post since most won't follow the link, and that can't be too long.]