Giving More
Seeing how much good they can do, some of our members decide
to give more than 10% of their income to their chosen aid
organizations. There are several ways that they can do this.
Firstly, as the Pledge to Give sets
only a lower limit on giving, they can simply choose to give
more some years, so long as they never give less than 10%.
Alternatively, some choose to formalize this arrangement,
pledging to give a higher fraction of their income each year,
such as 20% or 50%. In this way, they don't just give more,
but make a commitment (to themselves and others) that they
will continue to give at this higher rate.
Finally, some of our members choose to give more in quite
a different way. They feel that the best way to work out how
much to give is by thinking about how much to keep.
They work out the smallest amount of money that they can realistically
live on, and pledge to give away everything above that level.
Thus, in addition to the Pledge to Give, they also make what
we call the Further Pledge.
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The Further Pledge
I recognise that I can use part of my income to do a significant
amount of good in the developing world. Since I can live well
enough on a smaller income, I pledge that from today until the
day I retire, I shall give everything I earn above a fixed baseline
to whichever organizations can most effectively use it to fight
poverty in developing countries. I make this pledge freely, openly,
and without regret.
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For example, someone might decide that she can get by on only
$20,000 each year. The basic idea is that she would then budget
$20,000 for herself each year and give away everything else
to the cause she thought most worthy. There are actually a
couple of complications needed in order to make this work
smoothly and they are outlined below.
Where the Pledge to Give is something like the historic tradition
of tithing, the Further Pledge is something like a vow of
poverty — living with little, for the sake of others.
This level of commitment is not in any way required of our
members, but we warmly welcome those willing to make such
a pledge and it provides a coherent option for those members
who want to do even more.
Boring Complications
In order for the Further Pledge to be true to its spirit, a few
technicalities need to be added:
- Income Tax: For someone to end up with exactly $20,000 for
herself she would actually have to give away everything above $22,176
(assuming she lives in the US). She would then pay exactly $2,176 in
tax, leaving her with the correct amount of money. This is tricky to
work out by hand, but we provide a simple web form to calculate it for
anyone who is interested.
- Inflation: If we didn't adjust for inflation,
then the baseline would get smaller each year in real
terms. The number of dollars thus needs to be increased
in line with inflation, so as to keep the value of the
baseline constant.
- Dependents: Some people have children or elderly
relatives to support. If so you should determine a budget
for such support each year (for instance, based on the
median cost of support in your country), but such costs
don't count towards your own living allowance.
- Certain other expenses: There are expenses
which it is best not to count towards your personal limit.
These include essential work expenses (like a compulsory
training course or uniform), educational expenses, and
payments on pre-existing debts. It would either be unfair
or counterproductive to count these. Of course you can't
put everything on this list and it has to be thought out
carefully. We have more details for those who are interested.
If you ask to join Giving What We Can, we will send
you a guide that elaborates on the above points, making it
easy to see exactly what the Further Pledge involves and to
work out whether or not it is for you.
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