Charity/Economics Question

[Tully365]

This is a question (or puzzle) that a friend proposed to me a long time ago. It concerns how someone would distribute money to maximize the good effects of charity.

Imagine someone came to you with a million dollars and entrusted you to give it away... what course of action would you take? Obviously, giving one dollar to a million different people would not be very helpful-- it would essentially make the million dollars disappear. But how would you give away this money to do the greatest good?

[2centsworth]

This is a question (or puzzle) that a friend proposed to me a long time ago. It concerns how someone would distribute money to maximize the good effects of charity.

Imagine someone came to you with a million dollars and entrusted you to give it away... what course of action would you take? Obviously, giving one dollar to a million different people would not be very helpful-- it would essentially make the million dollars disappear. But how would you give away this money to do the greatest good?

I'm not going to pretend I have all the answers, but this is how I would do it.

$250,000 and give out 10 $1000 scholarships per year adjusted for inflation perpetually to local community college students.

$250,000 to build clean water wells in poor countries.

$250,000 in gifts of livestock to christian childrens fund.

$250,000 minority small business fund/incubator.

[Tully365]

I'm not going to pretend I have all the answers, but this is how I would do it.

$250,000 and give out 10 $1000 scholarships per year adjusted for inflation perpetually to local community college students.

$250,000 to build clean water wells in poor countries.

$250,000 in gifts of livestock to christian childrens fund.

$250,000 minority small business fund/incubator.

I like your answer. This is one of the issues that will come up-- it's possible to do more good in poor countries, where the dollar will go further... so you have to decide if spending the money in, say, Peru or Ecuador is preferable to spending the money here in the U.S. I've always liked this question because it seems so straightforward at first, but then when the different opinions start rolling in (which unfortunately they haven't as this thread has been a dud so far!), it is hard to decide because the options are practically infinite.