Who We Are

Power of Deduction is a social enterprise dedicated to making high impact charitable contributions.

 

What We Do

We continually strive to identify the most efficient, effective, and ethical charities serving each of eight different causes and contribute as much as we can to one per cause every month.  

 

How You Can Help

Like what we're doing?  Donate now to support our efforts!  Doing so will enable us to add 130% of the amount you pay to our next contribution for the cause you select. 

 
Donate Now

Finding the best charity serving your preferred cause is hard.

 

Imagine you've set aside a budget of $100 to donate in support of your favorite cause—homelessness, let's say.  You're the conscientious type (we can tell, since you wanted to give in the first place!), and you know that your money may go to waste if you give to the wrong organization.  So you do a bit of research to find the best one, but quickly become overwhelmed when you realize there are over 13,000 charities in the U.S. serving the homeless in one way or another.  You realize that if you really wanted to feel confident you'd found the right one, you'd have to spend hours investigating the most effective homelessness interventions and the best organizations implementing them, and you just don't have that kind of time. 

Power of Deduction is for you.

Our company's central purpose is to make high impact contributions to charities serving eight of our favorite causes:

 
 

As a result, we've devoted extensive resources to identifying efficient, effective, and ethical organizations serving each one, and put our knowledge into action by contributing to one charity per cause every month.  What does that mean for you?  Well, if you donate your charitable giving budget to us, not a charity, we'll be able to add 130% of the amount you give to our next contribution for the cause you select.  That means instead of paying $100 to a homelessness organization you aren't really sure about, you could send it to us and thereby enable us to add $130 to our next contribution to one that's truly excellent.

 

Sound better than throwing up your hands and donating to the charity with the prettiest website?  We sure think so.

Our contributions for immigrants and refugees typically go to the organizations we believe are best positioned to fight for the legal rights of these displaced people once they're re-settled, as well as those that provide effective aid earlier in the process.

We're interested in the research of "effective altruists," who seem to agree that contributions to organizations that fight the spread of malaria or work to de-worm the world's most vulnerable populations can have an enormous impact.  While we don't sign on to the entire effective altruism platform, this research does inform our global health giving.

We support environmental organizations that are researching or implementing effective climate change interventions, or otherwise helping to preserve the environment for future generations using concrete, proven methods.

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Our favorite animal welfare organizations are those that protect the lives of large numbers of domesticated animals (both pets and livestock), as well as the ones that preserve biodiversity by protecting endangered species from threats like poaching.

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For homelessness, we favor efficient organizations that provide effective mental health services to homeless adults and food, clothing, and shelter to homeless children.

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Food fortification programs can have a tremendous effect with respect to the health and well-being of those in the developing world.  We therefore focus our giving for this cause on charities providing these services.

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We've been impressed by studies showing that engagement with the arts can have significant therapeutic effects on at-risk and incarcerated individuals.  Charities providing services in this area therefore receive the bulk of our contributions for this cause.

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One of the only non-controversial statements about effective charitable giving for education-related charities is that school attendance in and of itself is extremely important.  Based on this, we usually give to education organizations that build schools in places where there aren't any, provided that they do so in an ethical way. 

Why should I donate to Power of Deduction?

Making a gift to Power of Deduction is, quite simply, the best way to maximize the impact of your charitable giving budget. There are thousands of organizations working within the causes we serve, and we know how challenging and time-consuming it can be to identify the best ones. Isn't it better to make a gift to us, with the knowledge that we've done extensive research to identify top organizations serving your preferred cause and intend to use your gift to boost our contribution to one of them? We sure think so, especially when our methods enable us to add an extra 30% on top of our incoming donations to our outgoing contributions.

Is Power of Deduction a charity?

No. Power of Deduction is a social enterprise that serves charities, but is not itself a charity. This means that your donations to Power of Deduction are not tax deductible the way a charitable contribution would be. If you don't itemize your tax deductions, that shouldn't really matter, but if you do, make sure you check out the next question, which applies specifically to you.

Does it make sense for me to donate to Power of Deduction even if I itemize my tax deductions?

Yes. We understand that some people who itemize their deductions may be inclined to give less to Power of Deduction than they would contribute to a charity since their donations to us aren't tax deductible. In light of the work we do to identify the organizations that best use contributed money and our ability to add 130% of our incoming donations to our outgoing contributions, however, we believe that even with these reductions, those people's money can still make a bigger difference in the world if they donate to us than if they contribute to an average charity.

Why do I have to designate a cause? Can't I just designate a specific charity?

It's important that we retain complete control regarding how we use your donations, including the selection of which charities we contribute to, to ensure we remain entitled to the tax deductions that enable us to give as generously as we do. If you're set on a specific charity you want to benefit, therefore, you should use your charitable giving budget to contribute to it, not Power of Deduction.

Which charity will Power of Deduction use my gift to support?

We don't divulge the identities of the identities of the organizations we intend to contribute to for a given month ahead of time. However, we do provide our donors with information regarding the organization to which we contributed for their designated cause in the month after they donate.

Will Power of Deduction tell me which charity it contributes to in connection with my donation? If so, when?

Absolutely. While we don't divulge which charities we intend to contribute to in advance, after we've made our contributions in the month after you donate, we'll send you an email with some information about the organization we chose for your cause. We make our contributions on the 10th of each month, and we try to email our donors that same day. This means that if you donate any time in the month of August, we'll be back in touch on September 10 to let you know which organization we contributed to for your preferred cause.

What happens if I don't like the charity Power of Deduction uses my donation to support?

We welcome feedback on issues like this via our contact us page. We don't offer refunds, but we're always happy to discuss your questions or concerns in this area.

Does Power of Deduction offer any guarantees to donors?

It's important to understand that when you donate to Power of Deduction, you are making an outright, irrevocable gift to us. While we absolutely intend to use your donation to boost our next monthly contribution to a charitable organization serving your preferred cause, we stop short of guaranteeing that we'll do so. This is because such a guarantee would jeopardize our entitlement to the tax deductions that are central to how we set our own giving budget. We ask our users to consider this fact before they give.

How does Power of Deduction decide which charities to contribute to?

We do extensive research to identify organizations that use contributions efficiently, effectively, and ethically. We try to identify organizations that provide proven, needed services, and where the next dollar contributed can have a significant impact. This involves review of literature and financial disclosures created by charities themselves as well as third party services like GiveWell, Charity Navigator, and GuideStar, not to mention a thorough understanding of the nature of the causes we serve.

How long does it take for Power of Deduction to make a charitable contribution after I make my gift?

We usually make our contributions on or around the 10th of each month, and link gifts from each month to the contribution we make in the immediately following one. So if you donate to Power of Deduction any time in the month of June, for example, your donation will enable us to increase the contribution we make on July 10.

Why does Power of Deduction lump my donation together with other people's to make just one monthly contribution for each cause?

We make our contributions online, and charities usually have to pay per-transaction fees of around 2.2% + 30 cents on all online contributions. This means that if we make 100 contributions to the same organization, it has to pay the 30 cent component of the fee 100 times. If we just make one contribution to it containing money we've received from 100 different donors, however, it only has to pay the 30 cent fee once. The difference may seem small, but it adds up quickly. And given our overarching objective to help the best charities receive the greatest possible amount in contributions, we find the once per month schedule to strike the right balance.

How does Power of Deduction make money?

In addition to our baseline contributions, we set out to contribute 30% more to charity than we take in via donations, which is of course a losing proposition on its face. But because our incoming donations constitute tax-free gifts, and because our tax situation allows us to deduct our outgoing charitable contributions from our owners' outside income, we get tax refunds that offset our costs, more or less.

Are my gifts to Power of Deduction or Power of Deduction's charitable contributions tax deductible by me?

Since Power of Deduction is not a charity, and since the money it contributes to charities comes from it and not you, no, neither of those payments is deductible by you.

I have a question that isn't answered on this page. What do I do?

Contact us!