THE LONG VIEW

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fa-mag . com / subscribe / newsletters . html want to make ? You could spread your resources widely or focus on a single goal — a “ moonshot ” with a low likelihood of success , such as curing cancer or Alzheimer ’ s . Though risky , supporting groundbreaking research could have far-reaching consequences .

Sixth , should you collaborate with governments or operate independently ? There is a strong case for working with policymakers to provide public goods like education , healthcare and infrastructure . After all , government budgets dwarf even the wealthiest philanthropist ’ s resources . For example , while Bill Gates ’ s estimated net worth is $ 105 billion , it amounts to less than six months of California ’ s annual state budget .

Pooling capital could enhance your impact , but working independently allows you to avoid disagreements over who and what to fund .

Seventh , how should you approach innovation ? Should you harness technology and data to make your organization operate more efficiently and maximize the impact of your giving ? Alternatively , you could use your philanthropy to drive the development of revolutionary technologies designed to address societal challenges at scale .

Eighth , should you partner with fellow philanthropists or go it alone ? Pooling capital could enhance your impact , but working independently allows you to avoid disagreements over who and what to fund . That said , confronting complex challenges rarely allows for a solitary approach .

Ninth , should your giving be public or private ? Both approaches offer unique advantages . Public actions , such as signing the Giving Pledge , facilitate the sharing of best practices , inspire others to support important causes , and enable you to compare your efforts to your peers ’ through platforms like GuideStar .

On the other hand , private giving is arguably the purest form of altruism . “ Stealth ” philanthropy also provides the freedom for trial and error without the pressure of public scrutiny . Although experimentation is essential for tackling complicated problems , public failures can invite criticism and be dismissed as a waste of money .

Tenth , how should you structure your giving ? Financial support can take many forms beyond traditional cash donations . While grant-making remains the most common approach , there are compelling alternatives . Loans , for example , can be structured with extended maturity periods and below-market interest rates , encouraging discipline and accountability by requiring recipients to repay the funds .

Eleventh , should you establish a board of directors to oversee your philanthropic endeavor , and if so , will you reserve seats for family and friends ? Opting for a more formal structure — for example , by designating permanent seats for prominent public figures , such as religious leaders or university presidents — can help ensure impartial oversight .

Lastly , what is your exit strategy ? Are you planning to wind down your philanthropic efforts by a specific date , or will you establish mechanisms to sustain them indefinitely ? The “ run down the clock ” approach is exemplified by businessman and philanthropist Chuck Feeney , who donated billions of dollars to academic and technical institutions during his lifetime and died in 2023 after successfully giving away his money . By contrast , the Rhodes Trust and Nobel Prize are designed to exist in perpetuity .

Whether you ’ re a wealthy donor , a politician , a CEO , or simply a concerned parent , the call to philanthropy resonates with us all . I hope these questions encourage deeper reflection on how to maximize the effectiveness of generosity .

DAMBISA MOYO , an international economist , is the author of four New York Times bestselling books , including Edge of Chaos : Why Democracy Is Failing to Deliver Economic Growth — and How to Fix It ( Basic Books , 2018 ).

© Project Syndicate

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