WealthForTheWorld donates 2 percent of its assets every year.
The expected return on the fund is around
7% per annum , so the fund's assets grow despite regular distributions. The resulting compounding effect means that, in the
long term, more money can be paid out of the fund than has been paid into it.
You can find our model for calculating the optimal donation rate here.
It was developed in collaboration with
Stefan Pauly, an economist at the
International Labour Organization (ILO), and is based on research on philanthropic capital by Philip Trammell of
the
Global Priorities Institute (University of Oxford).
Based on the calculated optimal donation rate of 2 % and an expected real market return of
7 % , the donation payouts and the asset development (= the impact) of donations to WealthForTheWorld can be
calculated:
Impact of a
€
donation
0
200
Giving Methodology until 2024
Between 2016 and 2024, 70% of the fund's return were donated each year. This method is not
optimal for various reasons. Detailed information can be found from 19 December 2023 in our Annual Report 2023.