An Investigation on The Success and Failure of Charities from The Effective Altruism Perspective

Abstract

In recent years, charities have encountered major management problems, manifested in the form of a lack of work experience, a one-sided understanding of charity, wealth distribution problems and low public awareness of charities. This study aims to explore why some charities fail while others succeed. With in-depth analysis, the author found that charities, foundations and other causes that rank high on GiveWell tend to have better chances of survival because their philanthropy and foundation behavior is rational and maximizes the effect. This article popularizes the concept of effective altruism, how GiveWell’s final computing concept reflects rationality, and finally focuses on analyzing how Against Malaria Foundation rationally solves management problems and achieves today’s achievements. This paper suggests that it is necessary for philanthropists to use the rational spirit of effective altruism and the rationality of charities. In this way, philanthropy can effectively take into account the issues of efficiency and fairness, promote the common progress of members of society, and have a certain positive significance for social stability, thereby promoting the vigorous development of public welfare undertakings.