FAQ: how much does the charity get over time?
How high is the interest on stocks?
Interest rates vary per year, but long-term results are remarkably reliable for stock investments (7.0% interest on average per year).
Calculation example for 1 year
Suppose: you invest $ 100 for your favorite charity and in the first year there is 10% interest ($10). Then:
- $ 4.75 is transferred to the charity for which you invested the donation
- $ 4.75 is added to the original $ 100. As a result, next year’s interest is made not on $ 100, but on $ 104.75! This way, the charity gets a little bit more support every year
- $ 0.50 is transferred to us at Give for Good to cover our operational costs
How much does the charity get in the long term?
In the graph below you can see an estimate of how much money will reach the charity over the next 50 years, if you make a one-time donation of $ 10 today, based on the average interest on stocks: 7.0% per year. More than 3 times your initial donation amount is estimated to end up with the charity in the next 50 years! Over the next 100 years, this is projected to grow to more than 20 times your initial donation. This is so much because the amount grows exponentially through an interest-on-interest effect. In the table below the graph, you can see how the support for the charity is expected to grow further, if the interest rate on the stock market remains 7.0% per year. And good to note: all these amounts have already been corrected for inflation, so this is all ‘real value’ for the charities.
Figure. 50-year projection of money transferred to charity over time, after a one-time donation of $10 via Give for Good. To make this projection, the average interest on stocks in the past 150 years was used (7.0% per year).
Table. Long-term projection of money transferred to charity over time, after a one-time donation of $10 via Give for Good. To make this projection, the average interest on stocks in the past 150 years was used (7.0% per year).
|Years||Projection of cumulative amount transferred to a charity after X years||wdt_ID|
|500||$ 130 million||9|