How much should I donate?

Of course, there is no one-size-fits-all answer to the question of how much you should donate, but that doesn’t mean it’s not exciting to think about.

As an inspiration, I would like to share a few examples of how different people, institutions and religions have approached the topic, and at the end I will also reveal how I personally feel about it.

First up is the German government, which promised in 1972 to spend 0.7% of its economic output for development aid . This promise has only been kept once since then, but why not use it as a benchmark for your own generosity? In Germany, it should be relatively easy for most people to give less than 1% of their income. And if everyone did that, the annual amount donated in Germany would be three times what it is now. With this 24 billion euros, we could free all the world’s children from parasitic worms, virtually eradicate malaria, and still have enough money to lift nearly 20 million of the world’s neediest households out of extreme poverty.

Another approach, which some of you have probably heard before, is to use the church tax as a starting point of orientation. This corresponds, depending on the federal state, to 8% - 9% of the income tax liability and therefore cannot be broken down to a universally valid figure. For the 30-year-old, single, childless teacher in Berlin, for example, the figure is just under 1.7% of gross income (for very high earners it is over 4%). This would still be well below the traditional church tithe, but well above the German average which can of course also be used as a guide. Of course, there is also a tradition in other religions of supporting those in need. For example, one of the five pillars of Islam, the Zakāt, states that believers should donate 2.5% of their own wealth each year.

Many supporters of Effective altruismbut also celebrities such as the bestselling author Rutger Bregman or the Youtuber Ali Abdaalwhich is part of the 🔸10%-Pledge have publicly promised to donate at least 10% of their income to effective aid organizations. To categorize such a high donation, we recommend our “How rich am I?” calculator to use. This not only shows in concrete terms what could be achieved with such a large donation, but also that most people from rich countries such as Germany, Austria or Switzerland would still be among the world’s richest 5% of the world’s population if they donated 10% of their income.

One of the pioneers of Effective Altruism, William MacAskill, goes one step further and has repeatedly declared his support for it, to donate all of his annual net income in excess of 26,000 pounds. As a professor at Oxford and successful book author, he probably raises a considerable sum each year, well in excess of the aforementioned 10%.

If that is not enough for you, you will find more information in the essay “Famine, Affluence and Morality” by Australian philosopher Peter Singer takes the culture of giving to its logical conclusion. He writes: “If it is within our power to prevent something very bad without sacrificing something of comparable moral significance, then, morally speaking, we should do so.” What he means by this is that we should give until we would be putting ourselves at greater risk by making a further donation than we could help a starving person in Bangladesh, for example.

This would inevitably mean a life below the German poverty line for the donor. Singer is not prepared to accept this and donates “only” a third of his income.

As for me personally, my wife and I have decided to buy 10% of our income. For us personally, this feels like a good compromise. On the one hand, it represents a significant portion of our income and gives us the feeling that we are really serious about tackling the world’s problems. On the other hand, it still allows us to enjoy the seemingly mundane things in life. The following thought experiment helped me put this seemingly huge sacrifice into perspective:

When was the last time we had to make do with 10% less than we do today? Due to the changing family constellation (there are now four of us) and the recent high inflation, it’s not easy to say, but in our case you probably have to look back to 2018 at the latest due to some new jobs or higher salaries. This means that today (2024), even after donating 10%, we still have more to live on in real terms than we did six years ago. And to be honest… our lives weren’t really any worse back then. Sure, we still had to unlock our cell phones with our thumbs instead of facial recognition and we couldn’t pay by smartwatch, but it wasn’t like we were living on bread and water and sleeping under a bridge back then.

There’s no question that not everyone has had a financial upturn in recent years, but if you’re one of the lucky ones who have, think about whether you were really so much unhappier when you had less money at your disposal and whether it might even have a positive effect on your life to let people who aren’t doing so well share in your success even more. Because on the other hand, it sounds almost unreal to imagine what the world would be like if many more people were able to live from 🔸10%-Pledge would be inspired. At the beginning of this text, I already showed what would be possible if only all people in Germany donated an average of just 0.7% of their income. If you imagine what would happen if all the inhabitants of wealthy countries were to increase their annual donations to 10%, you quickly have to resort to superlatives.

No one would go hungry, no children would die of diseases long since cured, factory farming would be a thing of the past, climate change could be stopped, and there would still be more than enough money to finance a second Renaissance of art and culture.

But I also understand that it is not an easy decision to make such a commitment. For us, too, it was a process that took several years. So let me close with a suggestion that has at least helped my wife and I become more generous people. Instead of giving away 10% or more of your income right away, you can start with a smaller amount, but plan to give away a significant portion of your future raises, bonuses, or even an eventual inheritance. Science and intuition agree: it is easier to do without future money than to do without money that is already in your account. Nevertheless, despite a generous donation, any increase in income would still be associated with an increase in freely available funds. the world’s most effective charities in the areas of fighting poverty, improving animal welfare, Climate Action, existential risks or Defense of democracy . This way you can ensure that your donation helps as many people as possible in the best possible way. If you want to get started right away, you can create a monthly donation here..

About the author

Sebastian Schwiecker

Founder & Managing Director

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I am the founder and managing director of Effektiv Spenden. If you have any questions or feedback about this article, you can send me an email or reach me at 0176/23570281. You’re also welcome to book a free donation consultation with me.