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Giving 10%

We chose 10% because it strikes a good balance. On the one hand it is a significant proportion of one's income: it recognizes the importance of the problem and that we must be prepared to make some real sacrifice to prevent it. Yet it is also within reach of almost everyone in the developed world. Indeed, the idea of giving 10% to the poor has been with us since ancient times (when the givers were much poorer than we are today) and still exists in many religious circles in the form of tithing. It may seem impossible to give 10% of your income, but it rarely is. After all, there are a great many people who are living on substantially less than 90% of what we currently earn. See for yourself below:

 
 

How Rich Am I?

Annual household income (after tax):

Size of your household:

 

You are in the richest % of the world's population.1

Your income is more than times that of the typical person.2

If you donate 10% of your income…

You will still be in the richest % of the world's population.

Your income will be more than times that of the typical person.

  
     
 
 

Reference:

1.

This is the most up to date set of data for the world income distribution by Branko Milanovic, based on the year 2002, adjusted for inflation up to 2009 and using the new PPP ratings. It is not yet published, but it builds upon his data from 'True world income distribution, 1988 and 1993: First calculation based on household surverys alone', Economic Journal issue 112, 2002, p 75. A draft which can be downloaded here.

 
     
 
 

Reference:

2.

This is the most up to date set of data for the world income distribution by Branko Milanovic, based on the year 2002, adjusted for inflation up to 2009 and using the new PPP ratings. It is not yet published, but it builds upon his data from 'True world income distribution, 1988 and 1993: First calculation based on household surverys alone', Economic Journal issue 112, 2002, p 75. A draft which can be downloaded here.


Here and elsewhere we use 'typical' to refer to the 'median', so the typical person is the one who earns more than half the world's population and less than the other half.

 
     

The numbers really are astounding, and they are even more compelling when you realize that they are based on purchasing power parity. That is, they already take into account how much further a dollar goes in developing countries, and thus give an accurate picture of how rich you are on the world stage.

Now see how much you could do with this comparative wealth:

 
 

The Pledge Calculator

Your current age:

Age at which you expect to retire:

Average annual income for the rest of your career:

Percentage to donate:

 

Total you would earn:

Total you would donate:

Lives you could save:3

Years of healthy life you could save:4

Years of school attendance you could produce:5

 
     
 
 

Reference:

3.

Tuberculosis can be cured for $20, and deaths from TB prevented for $150–$750 (see the GiveWell page on the Stop-TB Partnership). We have used the midpoint of this range to calculate this figure.

 
     
 
 

Reference:

4.

Experts on global health measure the burden of a disease in terms of Disability Adjusted Life Years (or DALYs) which is the number of years of healthy life lost due to premature death or disability (see more information on DALYs). The most effective health interventions cost only $3 for each DALY prevented (see our page on neglected tropical diseases).

 
     
 
 

Reference:

5.

Treating children for neglected tropical diseases produces an extra year  of school attendance for each $3 (see the J-PAL study , but note that this doesn't include the possible need for extra teachers if more class members turn up). Amazingly, this is the same intervention as the one above, so $3 can produce a year of school attendance and prevent a disability adjusted life-year worth of ill-health.

 
     

As you can see, you really can have a dramatic impact on hundreds or thousands of lives. In all probability, this is the largest positive impact that you can have in your life. It is strange that such a major impact can come from so simple an act when we spend our lives striving to acheive much smaller goals, yet it is a simple consequence of our relative wealth. It should be no more surprising than that a millionaire could easily transform a pauper's life. We are all millionaires compared to those living on a dollar a day and we can prevent untold suffering if only we choose to. Let's do so.

If you wish, you can: