This is the dilemma faced by Michael, a 31-year-old who will soon inherit a large sum of money.
For reasons that the truly wealthy will immediately understand, Michael has been advised to set up a foundation. “I have to donate about $70 million over the next decade,” he laughs. “Or maybe it’s $50 million. I can never remember.”
I occasionally advise young philanthropists, and so Michael asked me for suggestions. But, as an avid reader of this blog, he wanted me to ask the Thugz and you (the general readers). You may recall that I watched season 5 of The Wire with the Thugz a few months ago. Michael enjoyed my discussion with the ex gang members and he wondered what they would do with the money.
He also liked the irreverent, witty humor displayed by the readers of the blog.
I met Michael at Harvard, in the late 1990′s. He was part of a small group of twenty-somethings who came from very privileged social backgrounds.
They were “blue bloods” who fit the classic mold of the upper-class Northeast W.A.S.P.: educated in private schools, raised in Manhattan, summer homes in the Hamptons and French ski resorts, fitted with all the dressings of American aristocracy.
I spent a few years observing their maturation. It was a fascinating experience that I am hoping to write about in my next book.
Photo by Alix Smith.For those who are interested, this American tribe has been captured beautifully by Alix Smith, a photographer raised in this insular world. Her website reveals her peers in sharp, stylized portraits.
If he followed the traditional path, Michael would set up a charity, and then donate about 3 to 10 percent of his endowment each year. But, he says he wants to exercise his charity in a slightly different way:
1) I want to give it all away in ten years.
2) I want to give it away only in the U.S. — I can’t stand these people who give money overseas when we need it at home.
3) I won’t give a penny to schools. I think its unconscionable that Gates is paying for schools; that’s the government’s job.
4) I don’t want to give anything less than $1 million at a time. Meaning, no small grants.
I’m going to ask the Thugz for their comments, but what say you?
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If I had that money I would create/build some new libraries and a few of them abroad – in India,
Pakistan, Bangla Desh, Sri Lanka, Thailand, Burma,
Czech Republic, Slovakia, Hungary, Poland …
well I’m just dreaming…
Unfortunately the money is to be spent in USA only…
Start a large investment fund to pay for retraining those who are laid off as a result of free trade’s creative destruction. We need to do a better job of redistributing the gains from free trade at home to avoid adverse consequences from social stratification and to keep everyone’s standard of living higher with trade. Start here.
Rather than traditional scholarships or schools, I think this would be a useful and under-utilized avenue to solve problems at home.
Are we to assume that he doesn’t want any of the money to go charities that would overlap pre-existing government entities (e.g. education)? If so, that might remove a lot of charities given how monstrously large the government is. Perhaps he should offer a rather substantial “x prize” for developing energy sources to reduce dependence on petroleum? Maybe he could offer grants into cancer research involving non-patentable compounds? Seems like the possibilities are endless….
Put the money towards solving the seemingly intractable problem of getting the homeless off our streets and getting them help.
Does he not have any causes he is passionate about? Has he given to charity previously or been personally involved in any causes? Were I to come into a large sum of money to disburse to charity, I would start with those that I have been investing in for years; I know those charities and have relationships with them. But then, I guess that is once of the differences between charity and philanthropy.
How about Public Television (PBS and the like), Public Radio (NPR) or Public Libraries ?
How about providing financial help to the uninsured or underinsured who have had devastating illnesses or accidents in their families.
I don’t get the aversion to small grants. Throwing large sums of money around to fund good intentions is a good way to see it evapourate without any real effect.
I think one of the best charitable investments are otherwise well run/motivated non-profits that have an immediate capital expense need. All too often established charities are forced to close up shop because their rent it raised or they need a vehicle or have to upgrade their facilities.
I volunteer for a free book place that narrowly avoided such a fate 3 years ago, but is still struggling to buy its new location. I benefactor plunking down 100-200k would safeguard its future and allow it to become a real institution.
Investing in community infrastructure can provide a lasting resource as opposed to a handout which is gone tomorrow.