Hard Cash

John Yan has decided to start giving away at least 15% of his annual salary, despite it meaning that he'll have to work longer into his Old Age .

The 27-year-old Software Engineer began donating part of his wages in 2019, pledging 1% that year, before raising it to 3% in 2020, And Then a big jump to 15% in 2021.

" In practical terms this commitment means I'm not going To Retire early, " says Mr Yan, who lives and works in New York City. " And maybe Looking Ahead , I wouldn't be able to send my kids to public [fee-paying] school. "

He is donating The Money via a global scheme called Giving What We Can (GWWC). This encourages people to sign up as a member and pledge to give 10% of their earnings to charity.

Members can either donate directly to a charity of their choosing, or pick from a list that GWWC recommends. The later includes some funds run by the initiative's parent charity - Centre For Effective Altruism - which is registered in both the UK and the US.

Mr Yan, who moved to the US as a child immigrant, says he knows that he is " doing better than a lot of people in The World " and wanted to give something Back - to help others.

" I realised it could only cost a small amount of my happiness to give a greater amount to Other People , " he says.

GWWC was founded in 2009 by two Oxford university students - Will MacAskill and Toby Ord . Both are now philosophy academics who focus on " effective altruism" which explores The Most effective ways to help others.

GWWC claims that 6,439 people around The World have now signed up, with More Than $244m (£183m) donated So Far . Members record their donations on the scheme's website. And while The Pledge is designed to be a lifetime one, people can drop out if their circumstances change.

Far from the pandemic slowing down The Number of people signing up, GWWC says that it saw its fastest-ever growth in 2020.

More Than 1,000 new members signed up Last Year , as Covid and lockdowns made many of us think more about others and a bigger world picture.

A further 1,000 people are said to have made one off donations via GWWC in 2020, or agreed to give less than 10% over a more limited timeframe.

But why encourage people to give away 10% of their income rather a than higher or Lower Level ?

" The amount was chosen because it strikes a good balance of being both significant and sustainable, " says GWWC Executive Director Luke Freeman . " It is a significant proportion of one's income, but it is also Within Reach of Most People in rich countries. "

He also points to the historical connection of the idea of tithing, a tradition in both Judaism and Christianity of giving 10% of your income to charity or The Church .

The 10 % pledge is a minimum, and some members, such as Mr Yan, decide to give a higher amount.

Pippa Gilbert started donating 10% of her income to GWWC a few years ago.

" I had much More Than I needed To Live on, and much of The World doesn't, so it seemed obvious to me, " says the 60-year-old who is from The Hague , Netherlands.

This year Ms Gilbert retired from Her Job as analyst for an international organisation meaning her income has fallen. " But it's still More Than I need personally, " she says.

While those signing up include students, retirees, trades people and investment bankers, Mr Freeman says that there is a skew towards people on middle to higher incomes and those with Higher Education levels - the median Age Of members is about 30.

" While many on lower incomes find great meaning in their giving, we do particularly encourage those who have more to give more, " says Mr Freeman.

Boston-based couple Julia and Jeff Wise are two high earners who are now donating 50% of the combined salary to charities - mainly, Against Malaria Fund and Malaria Consortium .

They do this via a non-profit organisation called Givewell, which researches charities to establish which ones are The Most effective.

" I felt from an early age that we should be sharing in some way to make The World a better and fairer place, " says Ms Wise, 36.

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However, GWWC, and the wider effective altruism movement, are not without their critics.

These say that such charitable donations should never be seen as a substitute to a decent level of taxation and state Social Services .

" It's great that people are giving more money to charity, but this cannot be a substitute for an adequate Social Security safety net funded by higher taxes, " says economist Jeevun Sandher from King's College London.

" US citizens consistently give more to charity than those of any other Nation () yet the - this is not a coincidence. "

" There are three reasons why charitable giving cannot be a substitute for a well-funded welfare state. Firstly, the amounts given in charitable donations simply do not Make Up for a well-funded welfare state.

" Secondly, giving low-income people cash is The Most reliable way to help pull them out of poverty. Charities that provide food, classes and youth centres for those on low-incomes do improve lives, but they cannot replace cold, Hard Cash .

Finally, charitable giving is not a reliable source of income, nor is it available to everyone on low-incomes. "

Jennifer Rubenstein, assistant professor of politics at the University of Virginia, and author of Between Samaritans and States, adds that effective altruism " does not empower Poor People as political actors or entities".

Mr Freeman counters that charities still play a vital role in helping to tackle Extreme Poverty around The World .

" Many of us are wealthier than we think, and many of us can make effective giving a meaningful part of our lives, " he says. " A median income in countries like the UK puts you comfortably within The Top 5% richest people in The World .

" That money can improve The Life of someone in Extreme Poverty by about 100 times More Than it can improve your own life. "

Additional reporting by New Economy series editor Will Smale.

Source of news: bbc.com