The government is inefficient but so are charities.

While most charities are inefficient, the charity evaluator Givewell.org is the value-investing equivalent of philanthropy. Like Mr. Buffett searching for his next elephant, Givewell is always searching for high-impact, cost-effective charities backed by evidence and detailed analysis.

My wife and I have found Givewell's analysis and recommendations to be extremely useful for our annual giving for the past 9 years or so.

In recent years, 1) Bednets/medicine to prevent Malaria and 2) Supplements to prevent vitamin A deficiency have been the two major causes areas where my wife and I have been happily giving. Givewell currently estimates that these are among the most cost-effective interventions in all of global health at approximately $4,000-$5,500 per life saved.

givewell.org - Top charities