FAQ: How do you know Give For Good will work?

Give For Good believes in a new movement in philanthropy: effective altruism or effective giving. Organizations in this movement find ways to maximize the good they do with the resources that are available, based on evidence. And evidence we have a lot: we studied more than 150 years of stock market history.

This led us to the following lessons ⬇️:

  1. Investing safely with a reliable interest
    Investing can be done safely with a reliable, positive average interest. But only if you apply two rules:
    • Rule 1: Invest in all businesses in the stock market, instead of selecting a few.
    • Rule 2: Take your time, invest your stocks with a long ‘investment horizon’.
  2. Effect of applying these two rules 
    The effect of applying these rules is: your interest moves to the average interest on the stock market as a whole.
  3. Average interest 
    The average interest on the whole stock market (when you invest in all companies) is 7.0% per year (see here for the evidence).
So we know Give For Good is an idea that is going to work because: 

we diversify

Our investment fund invests in 1000s of businesses that together form a representative sample of the whole market. 

we take time

We have lots of timeyour donation will remain invested forever. It becomes a source of funding that nobody can touch, it can only function as a source of interest for your favorite charity. Therefore, it keeps generating interest forever. 


The effect is that the average interest on your donation will be the average interest on all businesses in the stock market, which we know is 7.0%