“Funding Diversification for Mid-Large EA Organizations is Nearly Impossible in the Short-Medium Term” by MarcusAbramovitch

<p><strong> Summary</strong></p><p> There's a near consensus that EA needs funding diversification but with Open Phil accounting for ~90% of EA funding, that's just not possible due to some pretty basic math. Organizations and the community would need to make large tradeoffs and this simply isn’t possible/worth it at this time.</p><p><strong> Lots of people want funding diversification</strong></p><p> It has been two years since the FTX collapse and one thing everyone seems to agree on is that we need more funding diversification. These takes range from off-hand wishes “it sure would be great if funding in EA were more diversified”, to organizations trying to get a certain percentage of their budgets from non-OP sources/saying they want to diversify their funding base[1][2][3][4][5][6][7][8] to Open Philanthropy/Good Ventures themselves wanting to see more funding diversification[9]. Everyone seems to agree; other people should be giving more money to the EA projects.</p><p><strong> The Math&nbsp;</strong></p><p> Of course, I [...]</p> <p>---</p><p><strong>Outline:</strong></p><p>(00:34) Lots of people want funding diversification</p><p>(01:11) The Math</p><p>(03:47) Weighted Average</p><p>(05:03) Making a lot of money to donate is difficult</p><p>(09:18) Solutions</p><p>(09:21) 1. Get more funders</p><p>(10:35) 2. Spend Less</p><p>(12:49) 3. Splitting up Open Philanthropy into Several Organizations</p><p>(13:52) 4. More For-Profit EA Work/EA Organizations Charging for Their Work</p><p>(16:23) 5. Acceptance</p><p>(16:59) My Personal Solution</p><p>(17:26) Conclusion</p><p>(17:59) Further Readings</p> <p><i>The original text contained 10 footnotes which were omitted from this narration.</i> </p><p>---</p> <p><b>First published:</b><br/> December 27th, 2024 </p> <p><b>Source:</b><br/> <a href="https://forum.effectivealtruism.org/posts/x8JrwokZTNzgCgYts/funding-diversification-for-mid-large-ea-organizations-is?utm_source=TYPE_III_AUDIO&utm_medium=Podcast&utm_content=Source+URL+in+episode+description&utm_campaign=ai_narration" rel="noopener noreferrer" target="_blank">https://forum.effectivealtruism.org/posts/x8JrwokZTNzgCgYts/funding-diversification-for-mid-large-ea-organizations-is</a> </p> <p>---</p> <p>Narrated by <a href="https://type3.audio/?utm_source=TYPE_III_AUDIO&utm_medium=Podcast&utm_content=Narrated+by+TYPE+III+AUDIO&utm_term=ea_forum&utm_campaign=ai_narration" rel="noopener noreferrer" target="_blank">TYPE III AUDIO</a>.</p>