Small charity practice: How to donate $400 for rural education?

As 2025 rolls in, I’ve found myself craving something beyond research papers and econometrics models. This year, I’ve decided to channel my inner (but small) philanthropist and dedicate $400 (roughly 3,000 RMB) to helping primary school kids in one of the most underdeveloped rural areas in China. But as I sit down to strategize, one thing becomes clear: donating is much harder than it looks.

The Spark

This idea has been simmering for a while. Back in college, I took an elective called “Civil Society and Non-Governmental Organizations”. One story from that class stuck with me: Western families—whether working-class, middle-class, or upper-class—tend to set aside a portion of their income for donations every year. It’s just… a thing they do.

Now that life is (mostly) stable, I figured, why not adopt this habit myself? Through a volunteer teaching program I started in Peking University, I befriended a primary school headmaster in rural Gansu—one of China’s most impoverished regions. Instead of funneling money through big NGOs like UNICEF, I wanted to take a more hands-on approach. After all, who better than me to decide where my money goes, right?

Donation Dilemmas

Here’s the twist: being an economics PhD student has paradoxically made donating harder. We’re trained to overthink, break down big problems into bite-sized questions, and agonize over marginal returns. Here’s what’s been keeping me up at night:

Who Should Get the Money?

As an amateur econometrician, I naturally started thinking about heterogeneous treatment effects. Who would benefit the most? • The brightest student with the highest exam scores? • The one facing the toughest economic hardships? • Or maybe someone the teachers recommend?

Each choice has its pitfalls (an exercise left to readers). Also, could I get better results by incentivizing parents or teachers instead?

What Should I Donate?

This is a classic development economics debate: cash vs. in-kind transfers.

Giving books, pens, or other stationery feels tangible but risky—what if they gather dust while kids lose themselves in mobile games? Cash? That’s even trickier. What if parents take the money? Or worse, the kids splurge on junk food like latiao?

How Should I Donate?

My mom’s go-to method is a scholarship. Simple, effective, and… slightly boring. What if I thought outside the box? • Annuity insurance: A small, regular payout over time. • Health insurance: Protecting kids from negative health shocks. • A trust fund for educational expenses?

Each option opens new possibilities—and new rabbit holes for my overactive brain.

A Work in Progress

So, where does this leave me? Still figuring things out, to be honest. But maybe that’s the beauty of it. This year isn’t just about the $400; it’s about learning how to give thoughtfully, impactfully, and with a dash of creativity.

If you have ideas, I’d love to hear them. And if you’ve ever donated—or thought about it—what worked for you?

(Chat GPT also contributes, a lot, to this writing)