Jim Simons (1938-2024)

 Jim Simons, the great investor and philanthropist of math and computer science, died yesterday.

Here's the announcement from the Simons Foundation.

Simons Foundation Co-Founder, Mathematician and Investor Jim Simons Dies at 86

And here's the NYT:

Jim Simons, Math Genius Who Conquered Wall Street, Dies at 86. Using advanced computers, he went from M.I.T. professor to multibillionaire. His Medallion fund had 66 percent average annual returns for decades.

Is it repugnant to give money to poor people?

Chris Blattman's weekly report includes a guest post by Jeff Mosenkis of Innovations for Poverty Action containing this interesting section on whether cash transfers to the poor are starting to be regarded as repugnant...

"Seema Jayachandran did a very popular Reddit Ask Me Anything about her Science paper on cash transfers for not cutting down trees (the AMA landed her on the front page of Reddit for the second time). In answering questions from the public, she was struck by how many people people had a moral objection to paying people not to do something (as opposed to traditional conditional cash transfers which reward people for doing something, like enrolling their children in school).

• Similarly, NPR reports that despite an evaluation showing massive benefits to giving poor people cash in Zambia, moral objections from the public to giving “lazy” people free money limited the program eventually to just the “deserving” poor, such as the elderly, and people who can’t work.
• Rich countries aren’t immune to this kind of thinking. A Vox The Weeds podcast (and parallel article) on the legacy of welfare reform from last year talks about how U.S. social safety net policy changed based on the public’s image of a single mother. At first, the U.S. image of a single mother was a widow trying to raise her children by herself. At that time it was seen as virtuous to help her stay home and raise her kids. When the public image of a single mother changed to a poor minority woman, programs began to see her as someone who should be out working and the design of the benefits changed.
• Those of us who work in the world of evaluating the economics of anti-poverty programs are used to thinking about effectiveness and cost as the primary determinants policymakers need to know, but these are good reminders that the moral view of the design of the program may be just as important in determining whether a program gets implemented or gathers dust on a shelf."

HT: Benjamin Roth

The American Kidney Fund, in the NY Times, and riposte from the AKF

In a nuanced back and forth, the NY Times has suggested that the American Kidney Fund is abusing its status as a charity for patients who can't otherwise afford dialysis by only encouraging applications from patients at clinics which contribute to the AKF. They reply that this isn't the case.

Here's the NY Times story: Kidney Fund Seen Insisting on Donations, Contrary to Government Deal

"The American Kidney Fund is one of the largest charities in the country, with an annual budget of over $250 million. Its marquee program helps pay insurance premiums for thousands of people who need dialysis, a lifesaving and expensive treatment for kidney failure.

"The organization has earned accolades for its efficient use of the money.

"Under an agreement with the federal government, the Kidney Fund must distribute the aid based on a patient’s financial need. But the charity has resisted giving aid to patients at clinics that do not donate money to the fund, an investigation by The New York Times has found. The actions have limited crucial help for needy patients at these clinics. The agreement governing the relationship between the group and the companies forbids choosing patients based on their clinic."

*****************
Here's the AKF's response: Our response to Sunday’s New York Times article

"An article in the business section of Sunday’s New York Times presented a factually incorrect and unfair picture of the American Kidney Fund (AKF) and the lifesaving work that we do through our Health Insurance Premium Program (HIPP). We have reached out to the Times to request corrections on the most serious factual errors and misleading statements. In the wake of this article there are several key points that we feel are essential to emphasize:

• Since we are a charitable organization, we do ask all providers to contribute to our program—but we never require it.
• We have never turned away a patient who is financially qualified to receive a grant, and we never will turn away such a patient.
• We never condition our issuing of grants on whether a provider has contributed to AKF, and fully 40 percent of dialysis providers with patients receiving help from AKF don’t contribute anything to AKF.  
• There is no “earmarking” of donations.
• HIPP has firewalls in place to protect the integrity of the program."

******************
The agreement linked to in the NY Times article (to put it in context) is  Advisory Opinion No. 97-1  of the Office of Inspector General of the U.S. Department of Health & Human Services.

Public schools and private philanthropy

Public school budgets are always stretched to their limits, and one of the ways those limits are sometimes surmounted is with an infusion of private funds, from big foundations with an interest in education, and also, apparently, from wealthy individuals. The NY Times has a story on how this part of school financing for New York City schools flourished more under the former mayor than it appears to be under the current one.
Public Schools Fund, Under de Blasio, Is Struggling to Lure Wealthy Donors

"The Fund for Public Schools, the nonprofit organization that former Mayor Michael R. Bloomberg and his schools chancellors built into a fund-raising juggernaut, has struggled to attract donations under Mayor Bill de Blasio.

The fund, which raised an average of $29 million a year over the last decade, has raised just $18 million this fiscal year, which ends June 30, fund officials said. About half of that comes from two large multiyear grants that began under the Bloomberg administration."

Peter Singer on charitable giving

In the Washington Post: Heartwarming causes are nice, but let’s give to charity with our heads

"You’d have to be a real spoilsport not to feel good about Batkid. If the sight of 20,000 people joining in last month to help the Make-A-Wish Foundation and the city of San Francisco fulfill the superhero fantasies of a 5-year-old — and not just any 5-year-old, but one who has been battling a life-threatening disease — doesn’t warm your heart, you must be numb to basic human emotions.

Yet we can still ask if these emotions are the best guide to what we ought to do. According to Make-A-Wish, the average cost of realizing the wish of a child with a life-threatening illness is $7,500. That sum, if donated to the Against Malaria Foundation and used to provide bed nets to families in malaria-prone regions, could save the lives of at least two or three children (and that’s a conservative estimate). If donated to the Fistula Foundation, it could pay for surgeries for approximately 17 young mothers who, without that assistance, will be unable to prevent their bodily wastes from leaking through their vaginas and hence are likely to be outcasts for the rest of their lives. If donated to the Seva Foundation to treat trachoma and other common causes of blindness in developing countries, it could protect 100 children from losing their sight as they grow older."

Designing the philanthropic ask...

A conference this weekend at Chicago, on Philanthropy, as some market design aspects:

THE SCIENCE OF PHILANTHROPY INITIATIVE (SPI) 
AND 
THE BECKER FRIEDMAN INSTITUTE FOR RESEARCH IN ECONOMICS PRESENT:

The SPI Annual Conference 2013

University of Chicago Booth School of Business

October 18 & 19, 2013

"Putting Research to Work: Together We Can Transform the Way We Ask"

Compensating kidney donors with charitable contributions--Choi, Gulati and Posner

Organ shortages remain despite the increase in live donation that has accompanied kidney exchange. But it is illegal to pay donors, so there's an ongoing discussion of other ways to induce a greater supply.  Here's a proposal by Choi, Gulati and Posner...

Altruism Exchanges and the Kidney Shortage

Stephen J. Choi 

New York University School of Law

G. Mitu Gulati 

Duke University - School of Law

Eric A. Posner 

University of Chicago - Law School
January 16, 2013

University of Chicago Institute for Law & Economics Olin Research Paper No. 630
NYU Law and Economics Research Paper No. 13-03 
Abstract:      
Not enough kidneys are donated each year to satisfy the demand from patients who need them. Strong moral and legal norms interfere with market-based solutions. To improve the supply of kidneys without violating these norms, we propose legal reforms that would strengthen the incentive to donate based on altruistic motives. We propose that donors be permitted to donate kidneys in exchange for commitments by recipients or their benefactors to engage in charitable activity or to donate funds to charities chosen by donors. And we propose that charities be permitted to create Altruism Exchanges, which would permit large numbers of altruists to make charitable exchanges with each other, including but not limited to kidney donations. Altruism Exchanges would solve two significant problems with the current system of voluntary kidney donations: the risk of default and the lack of liquidity.



 HT: Alexander Berger

The price of lunch for a good cause...we could do it by skype...on eBay today

Here's the eBay auction that will determine who I have lunch with at some future date.
I'll be checking on it this evening, to find out my price. (Right now I look like a bargain.)
It's  a fund raiser for Jewish Family Services of Silicon Valley.
It's a good cause, so if you are in the area, think of a lunch in person. And if you are somewhere else, I'd be happy to arrange a lunch for an hour or so over skype at some mutually convenient time (you could be eating dinner while I eat breakfast...)

Here's part of the eBay description (which may be why I'm going at a bargain price:)
"When asked to be one of the celebrities for the JFS “Lunch With…” auction, Roth wrote “you should put up a warning to bidders that I’m not the kind of economist who can predict the future course of the economy, or even explain the financial crisis or the euro situation…” 

Lunch (with me) for a good cause, to be auctioned on eBay

The auction will start this weekend...

The fundraiser auction for Jewish Family Services of Silicon Valley, for a lunch date with me (or with one of these real celebrities), is about to begin. The auction goes live on eBay this (Friday) evening, January 18, at 7:45 pm, and ends Monday evening, January 28, 2013. 

The webpage  http://www.jfssv.org/celebrities-Jan2013.html shows links to the auctions, which will work after the auction begins. If you try the links prior to then, eBay returns a message saying the auction has ended or is unavailable.

My auction link is  http://www.ebay.com/itm/261153805382 This link should only work beginning 7:45 pm on Friday January 18, and ending 7:45 pm Monday January 28, 2013.

Terasaki Medical Innovation award

Itai Ashlagi and I received the NKR Terasaki Medical Innovation award Monday evening at the American Transplant Congress meeting in Boston, for our work on kidney exchange algorithms for patient pools with highly sensitized patients.

"The Terasaki Medical Innovation Award will be presented annually to a medical professional who, through their pioneering work, has had a significant impact in advancing paired exchange transplantation and saving the lives of those facing kidney failure. "

Awards are nice for the recipients, but one can't help but be mpressed by the career of the scientist after whom the award is named, UCLA's Dr. Paul Ichiro Terasaki. Dr. Terasaki pioneered the tests used today to determine immunocompatibility, and built a business to make tools to implement those tests widely available.

Born in California in 1929, he and his family were interned with other Japanese-Americans during WWII. Later in life he donated $50 Million to UCLA, which named their Life Sciences building after him.

In short, he has had a storied scientific and American career.

Also receiving an award Monday evening was the non-directed altruistic donor Alexander Berger, about whom I blogged earlier: A kidney donor argues that selling kidneys should be legal, after he published a NY Times op-ed to that effect. (He's a 2011 Stanford philosophy grad, and he apparently worked with Debra Satz, although they disagree about whether kidney sales should be allowed.) Appropriately enough, he's currently working for an organization called Give Well, which works to identify charities that are "cost-effective, underfunded, and outstanding." He gave well himself, and started a nonsimultaneous extended altruistic donor (NEAD) chain of the kind NKR is famous for.

(I discussed the first NEAD chain here, and have posted about them frequently.)

The food was pretty good too.

Internet resources for the homeless

Being homeless does not necessarily mean being cut off from the internet. The Boston Globe reports Online sites offer a fertile venue for some in need

"On Homelessforums.org, thousands of people post questions and comments about everything from how to stay safe on the streets to where to camp for free. There are pleas for money on CyberBeg.com, which compares itself to a lottery, and Begslist.blogspot.com, which describes itself as a “source for free . . . e-panhandling, online donations, debt help, finding financial resources, and a great place to ask for financial help from the kindness of others.’’

Giving anonymously, through an intermediary

I recently blogged about a service set up to enable people to give (relatively) small gifts anonymously, Giving anonymously, for a fee .

Larger gifts, e.g. to university endowments, are also often given anonymously. But "anonymous" is a relative term, and often someone at the gift-receiving institution knows who the donor is. (Here at Harvard, my HBS office is in a building called Baker Library, whose southern side now sports a new wing called Bloomberg. It was anonymous for a while; all we knew was that the donor wished his identity to remain unknown until he had completed his election for a second term as mayor of New York.)

Now a number of gifts to universities have been made behind a deeper than usual veil of anonymity: Mystery donors give over $45M to 9 universities.

"A mystery is unfolding in the world of college fundraising: During the past few weeks, at least nine universities have received gifts totaling more than $45 million, and the schools had to promise not to try to find out the giver's identity.
One school went so far as to check with the IRS and the Department of Homeland Security just to make sure a $1.5 million gift didn't come from illegal sources.
"In my last 28 years in fundraising ... this is the first time I've dealt with a gift that the institution didn't know who the donor is," said Phillip D. Adams, vice president for university advancement at Norfolk State University, which received $3.5 million.
The gifts ranged from $8 million at Purdue to $1.5 million donated to the University of North Carolina at Asheville. The University of Iowa received $7 million; the University of Southern Mississippi, the University of North Carolina at Greensboro and the University of Maryland University College got $6 million each; the University of Colorado at Colorado Springs was given $5.5 million; and Penn State-Harrisburg received $3 million.
It's not clear whether the gifts came from an individual, an organization or a group of people with similar interests. In every case, the donor or donors dealt with the universities through lawyers or other middlemen. Some of the money came in cashier's checks, while other schools received checks from a law firm or another representative.
All the schools had to agree not to investigate the identity of the giver. Some were required to make such a promise in writing."

Giving anonymously, for a fee

How to give money to a friend anonymously (and be sure that it is received)? Try Giving Anonymously, established "to facilitate giving in such a way that "money" does not hinder friendship." They will send along your gift via their own check, and send you a copy of the cancelled check.

Anonymity when giving charity has a long history. It plays a big role in Jewish thought, for example, as codified by the 12th century scholar Rabbi Moshe ben Maimon (aka Maimonides, or the Rambam).

When looking at repugnant transactions, often the addition of money is what arouses repugnance (e.g. kidney donations don't arouse the repugnance of kidney sales). Something like that seems to be at work here; you might like to give someone a gift, they might need and want one, but the complications of giving and receiving money from a friend might prevent an otherwise mutually desired transaction from going through.

What is the price of anonymity? Doing it through this particular anonymizing service costs $2.50 + 2.5% of your gift.

Update (and sign of the hard times): Today's Boston Globe has a story on a related theme: Colleagues pitch in to ease the pain.
"As the economic downturn persists, specialists who follow workplace trends say more employees are trying to save colleagues' jobs through voluntary pay cuts or freezes, furloughs, and donations. "