# Voluntary Salary Reduction

Until recently [I thought](https://forum.effectivealtruism.org/posts/mEQTxDGp4MxMSZA74/still-donating-half?commentId=aLQcmpCJTYupYxjrS) Julia and I were digging a bit into savings to donate more. With the tighter funding climate for effective altruism we [thought it was worth](https://forum.effectivealtruism.org/posts/mEQTxDGp4MxMSZA74/still-donating-half) spending down a bit, especially considering that our expenses should decrease significantly in 1.5y when our youngest starts kindergarten.

I was surprised, then, when I [ran the numbers](https://www.jefftk.com/p/historical-net-worth) and realized that despite donating 50% of a reduced income, we were $9k (0.5%) \[1\] richer than when I [left Google](https://www.jefftk.com/p/leaving-google-joining-the-nucleic-acid-observatory) two years earlier.

This is a good problem to have! After thinking it over for the last month, however, I've decided to start [earning less](https://forum.effectivealtruism.org/posts/GxRcKACcJuLBEJPmE/consider-earning-less): I've asked for a voluntary salary reduction of $15k/y (10%). \[2\] This is something I've been thinking about off and on since I started working at a non-profit: it's [much more efficient](https://www.jefftk.com/p/passing-up-pay) to reduce your salary than it is to make a donation. Additionally, since I'm [asking others to fund our work](https://forum.effectivealtruism.org/posts/XmtyNTS8eaT2PMzx4/consider-funding-the-nucleic-acid-observatory-to-detect) I like the idea of putting my money (or what would be my money if I weren't passing it up) where my mouth is.

Despite doing this myself, voluntary salary reduction isn't something that I'd like to see become a norm:

*   I think it's really valuable for people to have a choice about where to apply their money to making the world better.
    
*   The organization where you have a comparative advantage in applying your skills will often not be the one that can do the most with additional funds, even after considering the tax advantages.
    
*   I especially don't think this is a good fit for junior employees and people without a lot of savings, where I'm concerned social pressure to take a reduction could keep people from making prudent financial decisions.
    
*   [More issues...](https://www.jefftk.com/p/passing-up-pay#:~:text=some%20reasons%20why%20this%20might%20not%20be%20a%20good%20idea)
    

Still, I think this is a good choice for me, and I feel good about efficiently putting my money towards a better world.

\[2025-08-16: I've now increased my reduction from $15k to $135k going forward, on an annualized basis, as a result of (a) my salary increasing and (b) Julia's employer deciding to no longer support voluntary salary reductions.\]

  
\[1\] In current dollars. If you don't adjust for inflation it's $132k more, but that's not meaningful.

\[2\] I'm not counting this towards my [50% goal](https://www.jefftk.com/p/giving-half), just like I'm not counting the pay cut I took when I stopped earning to give.

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