Effective Donations

Guidelines for successful donation

How to donate effectively?

The purpose of donating is to help others in need.Here at Maximum Impact, our goal is to help ensure your donation is used in the most impactful way possible per shekel donated, with a high degree of certainty about its effective use.

It’s important to be aware that research shows it may cost around $4,500 to save a human life when donating to the most results-driven aid organizations worldwide. This fact is based not on promotional claims but on real outcomes achieved by some of the most effective charities

Conversely, an inaccurate donation may be completely ineffective. Why? Becuase Its extremely challenging to help others, and unfortunately most organizations do not faithfully check whether they succeed in achieving their goals. Many charities continue to operate based on a “touching story”, intuition or on fundraising strategy, without answering the most important question: How much lives did they manage to change, and how much did it cost?

Based on our experience and consultations with partners and experts worldwide, the most impactful approach is a multi-step process:

  1. Identify a promising cause area for your support – The most impactful tend to be those that are:
    1. Large in scope – affecting as many beneficiaries as we can
    2. Neglected – Underfunded areas still needing additional resources
    3. Tracteble – Established and practical solutions proven to drive meaningful change among beneficiaries.
  2. Select an outstanding organization working in that cause area – An outstanding organization demonstrates impact through evidence and research, has a strong cost-effectiveness track record, operates transparently, has room for more funding, and a history of success. Expert-managed donation funds may also be recommended, as they can direct funds to where the need is greatest.
  3. Find your optimal donation methods – Options like group/workplace donations should be explored to multiply impact. Recurring donations provide stability. Always verify an organization’s credentials before donating to help maximize the outcome of every donation.

Why cost-effectiveness?

Cost-effectiveness is the ratio obtained by dividing the size of the positive social impact obtained due to the performance of a certain action, and the amount of resources required to bring about that effect. In our view, cost-effectiveness assessments are an effective tool to ensure that any social activity we want to perform (or support in) will have the highest impact on society, given the existing resources. By comparing the costs of different interventions, and the increase in social welfare obtained from them, we can make informed decisions and allocate resources effectively. 

Thus we can say for example:

A donation of NIS 100

Can provide malaria nets to X children

that X deaths may be prevented

 

This approach allows us to prioritize funding for the most promising solutions and get the most out of every donation we make. In addition, cost-effectiveness evaluations allow us to compare different fields of action, even those that seem to be incomparable.

How we select our recommended charities?

We recommend organizations which we have strong research-based evidence demonstrating their ability to effectively drive positive change. Specifically, we look for those who can create the greatest impact per shekel donated, organizations where additional funding will be used to the most significant change.

In practice, our recommended organizations have undergone thorough cost-effectiveness analysis as part of our yearly research program. The recommended ones received the highest rating from our expert judges evaluating both the outcomes of their specific projects and the rigor of the research methodology.