Pursuits

From Ackman to Musk, Charity Giving Takes on Stock-Picking Feel

  • `Effective altruism' seeks to maximize returns from charity
  • Gates and Gross fans of a data-driven approach to giving

Elon Musk, chairman and chief executive officer of Tesla Motors.

Photographer: Daniel Acker/Bloomberg
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When it comes to charity, some of the biggest names on Wall Street can be as hard-nosed about where they put their money as they are when investing.

Elon Musk, Peter Thiel, Bill Gates, Warren Buffett and billionaire hedge fund manager Bill Ackman are just a few of the converts to “effective altruism,” a movement that calls for using data science to calculate how people can ensure each dollar they give has the greatest impact on those in need. It also extols having a high-paying job because a greater disposable income can help more people than volunteer work in the field.