This is a tool, based on my donation timing model (here, see especially section 3), for helping you determine the schedule on which you think philanthropists trying to maximize their impact should disburse their assets, as a function of your beliefs about some input parameters.
For inputs that roughly capture my own current beliefs, click here.
#states: – +
State
Now = 1
Criticality ^{?}
1
Annual discount rate ^{?}
Annual interest rate ^{?}
Diminishing returns rate ^{?}
Annual transition probability to:
State 1
COMPUTEInvalid inputsLoading...
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Criticality
This is a scale parameter (previously dubbed “hingeyness”) capturing how easy it is to do good with a unit of spending in each state, relative to how easy it is to good by spending now.
It must be a positive number.
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Annual discount rate
This is the annual probability by state that invested assets will become valueless to you, as might happen in the event that the assets are expropriated, that a catastrophe destroys them, or that the assets' inheritors abandon your values for values orthogonal to your own. A rate of .01, for instance, implies that the expected lifespan of a value-aligned fund is 100 years. If you have a positive rate of pure time preference, this should be added into the discount rate.
It must be a positive number.
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Annual interest rate
This is the interest rate you expect invested assets to earn in each state. A rate of .07, for instance, implies that invested assets will double in value roughly every ten years.
It can be any number.
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Diminishing returns rate
This is the rate at which spending more quickly at a given time produces less marginal impact per unit spent. A rate of 0.5, for instance, implies that impact scales with the square root of the spending rate; a rate of 1 implies that impact scales with the natural logarithm of the spending rate.