Recently I sat down to plan out my giving for the year. I listed all the organizations I wanted to give money to and then stack ranked them to decide who was going to get the most and who was going to get the least. A lot of different factors go into the stack ranking. For example – how important do I think the organization's activities are? Whose work is more important, the CATO Institute or the ACLU Foundation? How effective do I think the organization is? Who is achieving more, the Electronic Privacy Information Center or the Electronic Frontier Foundation? These questions don't lend themselves well to quantitative analysis so one is left with having to trust one's instincts. But one area in which one can get solid information is – how efficiently does the organization spend your money?

Read More