5 things you have wrong about
The FI-lanthropy Pledge
Your main concerns addressed.
Misconception #1:
“I won’t be able to afford the pledge if I scale back from working.”
The FI-lanthropy Pledge is a lifetime commitment—but it’s not a rigid contract. Life evolves, and so does your income. If you plan to retire early or scale back at CoastFI, the pledge adjusts with you. That’s why it’s based on a percentage, not a fixed amount. Here’s how The 🔸10% Pledge might look for someone on the Financial Independence journey.​
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First Job
You're working a full-time job and haven't yet accumulated much wealth.
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Active Income: $100,000
Passive Income: $0
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10% Pledge = $10,000
Scale Back
You've built a healthy portfolio and are taking a step back to work part-time.​
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Active Income: $40,000
Passive Income: $10,000
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10% Pledge = $5,000
Hit FI
You've decided to try early retirement and are living entirely off passive income.​
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Active Income: $0
Passive Income: $15,000
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10% Pledge = $1,500
Let's assume this person spends ten years at each of these life phases, they'll have donated​​ $165,000 over 30 years! One can do an extraordinary amount of good with this money!
According to The Life You Can Save's impact calculator, this is what we can achieve with a $165,000 donation:​
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​Set up a water point to provide clean water to 19,879 people (Oxfam)
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Deworm 330,000 children (Evidence Action)
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Test 220,000 women for syphilis, which reduces the risk of stillbirths by 82% (Evidence Action)
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Cover the cost of fistula surgery & rehabilitation for 150 women in Kenya (Fistula Foundation)
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​Provide 55 years of universal basic income to 10 recipients (GiveDirectly)
​How incredible! Whether you earn active or passive income (or maybe both!), it's quite clear from the above that The Pledge is still well worth taking. And remember, you can always update the status of your employment, or any other elements of the pledge, on your personal pledge dashboard.​​​​
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Misconception #2:
“I’m not a billionaire -- my donations won't make a difference."
Bill Gates has promised that he'll give away 99% of his wealth by 2045. This is the largest donation commitment in modern times. His foundation has already spent over $100 billion, planning another $200 billion in the next 20 years to save lives, fight diseases, and reduce poverty. This is incredible.
But there is a problem. Big donations like this overwhelm us and make us assume we cannot match this level of impact. Let's reframe this. There are nearly 260 million adults in the U.S. If each of these people donated just $40 a year (probably less than a coffee ☕ a month!), we'd collectively match Gate's annual donation of $10 billion. See what a difference we can make together?
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​If those numbers still feel too hard to understand, take a look at what pledge-taker Ben has achieved in just four years. He's contributed really meaningful amounts to causes he cares about like animal welfare and climate change. ​​
Look at what Ben has achieved!
Misconception #3:
“I’m already donating, so I have no reason to sign the pledge”
A lifelong pledge can feel daunting, and making it public might even feel uncomfortable. Or perhaps you believe that donating is more virtuous when done anonymously. But we think taking a giving pledge generally leads to greater impact—even if you already donate. Here’s why:
Commitment: Taking a pledge acts as a form of pre-commitment. There is increasing evidence that pre-committing can help people stick to their goals. And when it comes to personal finances, building the habit of giving early is almost necessary. If you go your whole life accumulating wealth without giving, it can feel much harder—and even scary—to start later, when the amounts seem too big and the habit isn’t there.
Community: Joining a network of pledgers provides support and accountability, encouraging sustained and effective giving. Being part of this movement will reinforce your commitment and inspire others. Another advantage of being part of our community is access to a range of people with different experiences and expertise, all of whom share the desire to make the world a better place. Read more about our vision here.
Culture: Public pledges contribute to shifting norms, making charitable giving a standard practice. By taking the pledge you are actively taking part in creating a culture in the FI community where donating a portion of one's income is not only typical, it's expected. We believe that generosity is the next phase of the FI revolution. Will you be a part of it?
Why take a public giving pledge?
From our partner Giving What We Can
Misconception #4:
“I’ll be forced to donate to specific charities.”
First and foremost, we value your commitment to making a positive difference. The choice of where you donate belongs to you.
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If you are just starting your giving journey or want to spend more time evaluating causes, we recommend looking into charities that are both highly effective and well researched. It's for this reason we suggest exploring charity recommendations from our partner organization Giving What We Can. Other charity evaluators that are dedicated to promoting evidenced-based giving include GiveWell, The Life You Can Save (with whom we also partner), Animal Charity Evaluators (ACE), and Giving Green. It's important to note that these evaluators can't assess every charity in existence, so their recommendations reflect the best estimates they have today. There may very well be other high-impact charities doing valuable work.
We welcome you to take The Pledge, whether you choose to support these charities or other causes you care deeply about. Your generosity is what matters most as we build this movement.
Misconception #5:
“I have to donate every single year, no matter what.”
A giving pledge commits you to donating a certain amount over the period of your pledge (in the case of The Pledge, it's 10% or more over your lifetime). Members typically donate on an ongoing basis, rather than letting “donation debt” build up over many years. We suggest donating monthly to maintain a consistent schedule for donations and to keep up the regular habit. This can also be helpful for charities when making projections.
However, you don’t have to donate on this schedule. Sometimes members will:
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Donate less in some years and make up for it in the following years (for example, in case of temporary financial hardship or uncertainty)
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"Batch" donations into certain years (likely bundling for tax advantages)
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Donate to a charitable trust or donor-advised fund (DAF) and disburse the donations later
How do I make the most out of my donations?
Download our FREE Giving Guide, our succinct and unbiased financial planning handbook for donors. Learn about the types of assets you can donate, when your donations become tax-deductible, how to give from different accounts like a brokerage account or a donor-advised fund), and more.
