Measuring and Maximizing Impact
What we mean by IMPACT
Wealth for the World supports high-impact organizations that contribute to improving lives, reducing suffering, and enabling long-term positive changes in the world based on robust evidence. We understand impact as the demonstrable contribution to saving lives or sustainably improving quality of life—at the lowest possible cost.
Our Approach
Evidence over Intuition
We don't rely on well-intentioned assumptions, but on robust data and scientific research. Only interventions with proven effectiveness are considered for support.
Cost-Effectiveness
We consider not only absolute impact but also the ratio of impact to cost. An intervention that achieves ten times more for the same amount than another is ten times better, regardless of media attention or political prioritization.
Resources are directed where they make the greatest difference
Evidence and cost-effectiveness ensure that funds flow where they have the greatest impact – for example through mosquito nets, medicines, or direct support for people in extreme poverty.
Scientific Foundation
We exclusively support nonprofit organizations whose impact has been independently evaluated and proven—preferably through randomized controlled trials (RCTs) or comparable robust methods.
Our work is based on established findings in development economics. Renowned institutions such as the Abdul Latif Jameel Poverty Action Lab (J-PAL) and Innovations for Poverty Action (IPA) have demonstrated through randomized controlled trials that certain interventions in poverty reduction are particularly effective.
The economists Esther Duflo, Abhijit Banerjee, and Michael Kremer were awarded the Nobel Prize in Economics in 2019 "for their experimental approach to alleviating global poverty". Their work has significantly contributed to establishing the importance of RCTs in development economics and anchoring evidence-based methods in policy design.
GiveWell, whose analyses we rely on when selecting our donation partners, follows this evidence-based approach.
Notable Examples:
Deworming in Children
Leads to demonstrable educational and income gains later in life (Miguel & Kremer, 2004).
Distribution of Long-lasting Insecticide-treated Mosquito Nets (LLINs)
Significantly reduces malaria cases and saves lives (Bhatt et al., 2015).
Direct Cash Transfers
Increase income, food security, and psychological well-being of people in extreme poverty (Haushofer & Shapiro, 2016).
Impact Is Not Guaranteed – But Probabilities Can Be Improved
Despite careful evidence review, fighting poverty remains complex and characterized by uncertainties. Our goal is not to eliminate risks—but to direct resources as rationally as possible and based on the best available evidence so that they are highly likely to make the greatest difference.
