Getting Rich To Give It Away

Ethicist William MacAskill encourages young people who want to make a difference to work on Wall Street instead of a non-profit. He calls the strategy “earning to give“, arguing that it’s “better to earn a lot of money and donate a good chunk of it to the most cost-effective charities”:

In general, the charitable sector is people-rich but money-poor. Adding another person to the labor pool just isn’t as valuable as providing more money so that more workers can be hired. You might feel less directly involved because you haven’t dedicated every hour of your day to charity, but you’ll have made a much bigger difference.

The monetary value of that difference:

Annual salaries in banking or investment start at $80,000 and grow to over $500,000 if you do well. A lifetime salary of over $10 million is typical. Careers in nonprofits start at about $40,000, and don’t typically exceed $100,000, even for executive directors. Over a lifetime, a typical salary is only about $2.5 million. By entering finance and donating 50% of your lifetime earnings, you could pay for two nonprofit workers in your place—while still living on double what you would have if you’d chosen that route.