# Effective Altruism

Evidence-based approach to maximizing positive impact per dollar spent — using rigorous analysis to identify the most cost-effective interventions for improving the world.

2 min read

**Effective Altruism (EA)** is a coordination philosophy and movement that applies evidence-based reasoning to determine the most effective ways to improve the world. As a capital allocation framework, EA treats charitable giving as an optimization problem — directing resources toward interventions with the highest expected impact per dollar.

## How It Works

1. **Cause prioritization** — systematic evaluation of which problems are most important (scale, neglectedness, tractability)
2. **Intervention analysis** — rigorous comparison of specific interventions within priority causes using randomized controlled trials, cost-effectiveness analyses, and expected value calculations
3. **Resource allocation** — directing funding toward top-ranked interventions and organizations
4. **Impact measurement** — ongoing evaluation of whether interventions achieve predicted outcomes
5. **Iterative improvement** — updating beliefs and reallocating based on new evidence

## Advantages

- Maximizes impact per unit of resources deployed
- Provides rigorous frameworks for comparing interventions across different cause areas
- Encourages counterfactual thinking — funding what wouldn't happen otherwise
- Creates accountability through transparent methodology and impact measurement

## Limitations

- Bias toward quantifiable outcomes over hard-to-measure but important values
- Can underweight systemic change in favor of direct, measurable interventions
- Centralized evaluation by expert organizations concentrates allocation power
- Struggles with long-term, speculative, or paradigm-shifting investments
- Movement has faced criticism for concentration of power and high-profile institutional failures

## Best Used When

- Resources are scarce and impact maximization is the primary goal
- Interventions can be measured and compared on cost-effectiveness
- Evidence-based evaluation infrastructure exists
- The goal is direct, measurable impact rather than systemic change

## Examples and Use Cases

**GiveWell** evaluates global health and development charities, recommending organizations like the Against Malaria Foundation where donations produce measurable, cost-effective impact.

**Open Philanthropy** applies EA principles at scale, directing billions toward AI safety, biosecurity, animal welfare, and global health.

**Intersections with web3** include impact certificates (Hypercerts), retroactive funding, and other mechanisms that share EA's focus on measuring and rewarding demonstrated impact — but with more decentralized evaluation.

### Tags

philanthropy public goods impact measurement