A typical donor with a $5,000 charity budget, on the margin, has increasing returns to scale


by Benjamin Hoffman Dec 30 2016


Benjamin Hoffman

I've updated down to slightly weaker agreement because of the example given by Aceso Under Glass in this comment.

Benjamin Hoffman

I think this is probably true in most cases, for the reasons mentioned here. In particular, most donors in a position to give $5k at a time are substantially time-constrained, so better-leveraged time to evaluate giving opportunities is a good deal. Even if they're going to ultimately rely on someone else's recommendation, evaluating the recommender is worthwhile.