How at i deoft echmoneyi s t r ansf or mi ngchar i t y Thenewphi l ant hr opi s t sar ey oung,i mpat i entandi nahur r y
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HE NANDRE W WHI T Efir s ts ol dac hunkofhi sbus i ne s si n2021, hek ne whe wa nt e dt og i v es omeoft hepr oc e e dsa wa y . I nde e d, i fa l l g oe sa c c or di ngt opl a n, hehope se v e nt ua l l yt og i v eov e r$20mt oc ha r i t y . ButMrWhi t ewa ssl l bus yr unni ng F undApps , ac ompl i a nc e moni t or i ngs e r v i c ef ori nv e s t or s . T ha tl el il e met or e a dup onde v e l opme nte c onomi c sors c ourc ha r i t yr a nk i ng s . T hemode l t ha tbi g na mephi l a nt hr opi s t sha v ef ol l owe df org e ne r aons —s e ngupa pr i v a t ef oundaona ndhi r i ngat e a mt or uni t —wa soutoft heque son. “ Cr e ang a not he ror g a ni s aont oma na g ey ourmone yi sj us twa sngi t , ”s a y sMrWhi t e . Ae ra l l , hes a y s , “ t he s epe opl ea r ev e r yg ooda twha tt he ydo, s owhydon’ ty out r us tt he mt o doi t ? ”I nt hee nd, MrWhi t eg a v et hemone yt oF ounde r sPl e dg e , aBr is hc ha r i t ywi t h mor et ha n1, 700me mbe r si n39c ount r i e s . Het ol dF ounde r sPl e dg ehewoul dl i k et he c a s ht og ot oe duc aona ndpov e r t yr e l i e fi npoorc ount r i e s , t he nl ei t sr e s e a r c he r st o s or toutt hede t a i l s .
MrWhi t ei spa r tofane wc l a s sofphi l a nt hr opi s t sv e r ydi ffe r e ntf r omt hos et ha twe ntbe f or e . T he ya r eo e ny oung , i mpae ntwi t hpr oc e s sa ndde t a i l , a ndk e e nt oma k eadi ffe r e nc ei na hur r y . Mos tma det he i rmone yi nt hes o wa r ea ndc ompu ngi ndus t r yt ha tha s , s i nc et het ur n oft hec e nt ur y , be e nt hewor l d’ sg r e a te ng i neofwe a l t hc r e aon. Al ongwi t ht he i rmone y c ome st he i ri ndus t r y ’ swor l dv i e w. “ I wa sr e a di ngWi r e d, nott heChr oni c l eofPhi l a nt hr opy , ” s a y sS c o Ha r r i s on, t hef ounde rofc ha r i t y : wa t e r , whi c ha i mst og i v ec l e a nwa t e rt oe v e r y one ont hepl a ne t . Nooneha smor emone yt og i v ea wa yt ha nt het e c ht y c oons . F or be s , ama g a z i newhi c ht r a c k s s uc ht hi ng s , r e c k onst ha t26oft he100r i c he s tpe opl ei nt hewor l di n2022ma det he i rmone y l e a di ngt e c hnol og yfir msofv a r i ouss or t s , i nc l udi ngs e v e noft het opt e n. ( T her e c e ntdr opi n t e c hv a l uaonsha sde nt e dt hes e c t or ’ sdomi na nc e , butnote nde di t . ) T he ya r ee v e nmor edomi na ntwhe ni tc ome st o g i v i ngt ha tmone ya wa y . T heChr oni c l eof Phi l a nt hr opy( whi c hMrHa r r i s ons a i dhedi dnot r e a d)e sma t e st ha t , oft he$33. 4bng i v e na wa yby Ame r i c a ’ s50bi g g e s tdonor si n2021, a r ound t hr e e qua r t e r sc a mef r ompe opl ewhoma det he i r mone yi nt e c h( s e ec ha r t ) . Ba i n&Compa ny , a c ons ul t a nc y , r e c k onst e c hma g na t e shol da bout8%of t het ot a l we a l t hofI ndi a ’ ss upe r r i c h, buta c c ountf or a bout35%oft hec ha r i t a bl eg i v i ng . T ha t deofmone yc a r r i e swi t hi tt hec ul t ur ea nd wor l dv i e woft hei ndus t r yt ha tc r e a t e di t . T e c hha s s pe ntt hepa s tt wode c a de sdi s r up nge v e r y t hi ng f r oms hoppi ngt ot e l e v i s i on. Cha r i t a bl eg i v i ng , i t s e e ms , i sne x t . T os e ej us thowdi ffe r e ntt hene wc ome r sa r e , c ompa r et he mwi t ht he i rbe s t k nownf or e be a r s . T heg r a ndf a t he r sofmode r nphi l a nt hr opya r eAme r i c a ni ndus t r i a l i s t sl i k eAndr e wCa r ne g i e , He nr yF or da ndJ ohnD. Roc k e f e l l e r . S uc hme ng a v et hebul koft he i rmone yl a t ei nt he i rl i v e s . T he yc r e a t e df oundaonst ha twoul dout l i v et he m, e mpl oy e dhi g hl yqua l i fie da dv i s e r s , a nd we r epr e pa r e dt odi s houtf undsf orde c a de st oa c hi e v et he i rg oa l s . Mov ef a s ta ndfixt hi ng s T ha tmode l wa st we a k e da tt het ur noft hemi l l e nni um. Bus i ne s s me na ndv e nt ur ec a pi t a l i s t s be g a nt hi nk i nga boutc ha r i t a bl edonaonsl i k eha r dnos e di nv e s t me nt s . Re c i pi e nt swe r e r a nk e dbywhi c hoffe r e dt hemos tc ha r i t a bl eba ngf ore a c hbuc k . T hei mpa c tofe v e r ydol l a r wa sme a s ur e d, a nd, i fapr oj e c tf a i l e dt ode l i v e ri t se x pe c t e d“ s oc i a l r e t ur n” , f undi ngwa sc ut . T hes t a nda r dbe a r e rf ort ha ta ppr oa c hwa st heBi l l a ndMe l i ndaGa t e sF oundaon, s t a r t e dby t hef ounde rofMi c r os oa ndhi st he nwi f ei n2000. I tha ss pe nti t smone y , a mongot he rt hi ng s , onma l a r i apr e v e n on, i mpr ov i nga c c e s st oc l e a nwa t e r , a ndpus hi ngt oc ompl e t et he wor l dwi dee r a di c aonofpol i o.
T ot hene we rg e ne r aonofphi l a nt hr opi s t s , r a i s e di nabus i ne s sc ul t ur et ha tpr i z e sg e ngt o ma r k e ta nds c a l i ngqui c k l yov e rc a u ouspl a nni ng , a l l t hi sa ppe a r sunbe a r a bl ys t odg y . Ni c k hi l J a k a t da ri sas e r i a l e nt r e pr e ne urf r omI ndi awhonowl i v e si nCa l i f or ni a , a ndwhog i v e sa wa y be t we e n$300, 000a nd$500, 000e a c hy e a r . I n2021hea ppr oa c he dt heGa t e sF oundaon s e e k i ngf undi ngf oranot f or pr ofitme di c a l fir m. T hef oundaon’ sg e ne r os i t ywa si mpr e s s i v e , MrJ a k a t da rs a y s . Buthef oundt hepa pe r pus hi ngs ooffpu ngt ha thedi dnota ppl y . “ T he Ga t e sF oundaont a ug htmewha tI don’ twa ntt obe , ”hes a y s . Ma c k e nz i eS c o, t hee x wi f eofJ e ffBe z os , t hef ounde rofAma z on, be c a mear ol emode l f or t hene wa ppr oa c hwhe ns hedi s he doutov e r$14bni nal il eov e rt hr e ey e a r s , s t a rngi n2019. MsS c o di dnotdi s pe ns ewi t ha na l yc se nr e l y . I ns t e a d, s hef r ont l oa de dt he m. S he a ppoi nt e dc ons ulngfir mst oc r unc ht henumbe r sa ndpi c kwor t hyr e c i pi e nt s , whi c hi nc l ude d Ha bi t a tf orHuma ni t yI nt e r naona l , whos ev ol unt e e r sha v ebui l thome si nHa ia nd Ba ng l a de s h, a ndt heDe s mondT ut uHe a l t hF oundaon, whi c hi sba s e di nCa peT own. T heg is we r emos t l yg i v e nwi t houtc ondions , wi t ht hec ha r ie st r us t e dt oma k et hebe s tus eoft he mone y . MsS c o ha sc a l l e dhe ra ppr oa c h“ s e e di ngbyc e di ng” . J a c kDor s e y , ac of ounde rofT wie r , r unshi sc ha r i t a bl ee ffor t sons i mi l a rl i ne s . I n2020Mr Dor s e ypl e dg e dt og i v ea wa y$1bnofs ha r e st ohi sphi l a nt hr opi cv e nt ur e# S t a r t S ma l l . Het a k e s g r a nta ppl i c aonsf r oma ny onev i aas hor tonl i nef or m. E v e r ydonaoni sma depubl i c . ( # S t a r t S ma l l ’ sl i s tofdonaonsi nc l ude sc l i ma t e r e s i l i e nc epr oj e c t si nt heCa r i bbe a na nd huma ni t a r i a na i di nUk r a i ne . )“ I ’ ms e e i ngmuc hmor eoft hea t udeof : j us tg i v epe opl et he mone ya l r e a dy , ”s a y sS t e pha ni eE l l i s S mi t h, t hebos sofPhi l aE ng a g e dGi v i ng , a na dv i s or yfir m. “ Wha ta r ewepl a y i nga r oundwi t h, c k i ngt hi sboxa ndt ha tbox ? ” T hi ss e ns eofur g e nc yi sbol s t e r e dbype e rpr e s s ur ea ndc ompe on. S i l i c onVa l l e yi sbr i mmi ng wi t h“ g i v i ngc i r c l e s ”a nde duc aona l pr og r a mme st ha tg e twoul dbedonor st og e t he r . Publ i c de c l a r aonsa r epopul a r , a nde v a ng e l i s t sa r enots hya boutr e c r ui t me nt . Da v i dGol dbe r g , t he c hi e fe x e c uv eofF ounde r sPl e dg e , s a y shephy s i c a l l ywa l k se nt r e pr e ne ur si nt ot hec or ne rof t her ooma tpa re s , r e g i s t r aonpa pe r si nha nd. T hev e hi c l e st hr oug hwhi c hy oungt e c ht a nsdi s pos eoft he i rwe a l t ha r ec ha ng i ng , t oo. Ame r i c a ’ sc ha r i t a bl ef oundaonsha v eov e r$1t r ni na s s e t s . Butt he r ei sag r owi ngf a s hi onf or donor a dv i s e df unds( da f s ) , as or tofs a v i ng sa c c ountf orc ha r i t a bl eg i v i ngt ha toffe r saqui c k a nds i mpl ewa yofg e ngwe a l t houtoft hedoor . T heNaona l Phi l a nt hr opi cT r us tr e c k onst he v a l ueofa s s e t si nda f sr os ebyne a r l y170%i nt hefiv ey e a r st o2021, t o$234bn. Oneoft he bi g g e s tpr ov i de r si st heS i l i c onVa l l e yCommuni t yF oundaon, whi c hha sa bout$14bna ti t s di s pos a l . Donor si nc l udeBr i a nAc t on, af ounde rofWha t s App, a ndS e r g e yBr i n, who c of ounde dGoog l e . T e c hni c a l l y , donor st oada fg i v eupc ont r ol ov e rt he i rmone y( t houg ht he i rwi s he sa r eus ua l l y r e s pe c t e d) . Butt he yc a ng e ta dv i c eong i v i nga ndhe l pwi t hpa pe r wor kf r omt heg r oupt ha t r unsi t . Unl i k ebi gf oundaons , t he r ei snone e df orda fdonor st ohi r eal a r g es t a ffors ubmi t de t a i l e dr e por t st ot het a x ma n. Ame r i c a nf oundaonsmus tdi s pos eofa tl e a s t5%oft he i r a s s e t se v e r yy e a r . Nos uc hr ul e sa ppl yt oda f s . Donor sc a ng e tde duconsont he i rt a xbi l l s , t oo.
Unt r a de ds ha r e sg i v e nt oaf oundaona r ev a l ue dba s e donwha tt he yc os t —whi c h, f ora f ounde r , i so e nv e r yl il e . Whe ng i v e nt oada f , t he ya r ev a l ue da tt he meoft hedonaon. Anot he rop oni st hel i mi t e dl i a bi l i t yc or por aon( l l c ) . Cor por aonsdonotpr ov i det het a x be ne fit soff oundaonsorda f s . Butt he yg i v edonor sf r e e dom. S pe ndi ngonc ha r i t a bl epr oj e c t s c a nbec ombi ne dwi t hf or pr ofitone s , a nde v e npol ic a l a dv oc a c y . Pi e r r eOmi dy a r , e Ba y ’ s f ounde r , a ndL a ur e neP owe l l J obs , t hewi dowofS t e v eJ obs , af or me rAppl ebos s , bot hus el l c s f ort he i rdog oode r y . T her a ng eofpr oj e c t st ha tc a nbef unde di sonf ul l di s pl a ya tMsJ obs ’ s g r oup, t heE me r s onCol l e cv e . T hephi l a nt hr opi ca r mf undspr oj e c t ss uc ha sa r ti ns t a l l aons a l ongAme r i c a ’ sbor de rwi t hMe x i c o. Me a nwhi l e , t hev e nt ur e c a pi t a l a r mha sma de i nv e s t me nt si nt heAt l a nc , ama g a z i ne , a ndS t r i pe , apa y me nt s pr oc e s s or . Be nj a mi nS os k i sa tt heUr ba nI nst ut e , a nAme r i c a nt hi nk t a nk , s a y st ha tt hepopul a r i t yofl l c s r e fle c t sa not he rwi de s pr e a dS i l i c onVa l l e ybe l i e f , t ha ti ti snotonl yc ha r i t yt ha tc a ndog oodi n t hewor l d. I ndus t r i a l i s t sl i k eCa r ne g i ea ndRoc k e f e l l e rwor r i e dt ha tt hepubl i cv i e we dt hefir ms t ha tbui l tt he i rf or t une sne g av e l y . Bute nt r e pr e ne ur st oda yf r a met hema k i ngofmone ya s be i ngj us ta swor t hya sg i v i ngi ta wa y . S oc i a l me di apl a or msa r es a i dt oc onne c tpe opl e , f or e x a mpl e , whi l eonl i nema r k e t pl a c e sde moc r as es hoppi ng . S omec or por a t edog oode r yc a ns e e ms t r i k i ng l yg r a ndi os e . E l onMus k , T e s l a ’ sbos s , s e e spa r t oft hefir m’ sj oba sf or c i ngt her e s toft hec a ri ndus t r yt os wi t c ht oe l e c t r i cv e hi c l e ss oone rt ha n i tot he r wi s ewoul dha v e( ami s s i oni tha s , bynow, mos t l ya c c ompl i s he d) . Al t houg hMrBe z os r e ma i nsonAma z on’ sboa r d, hea l s oownsBl ueOr i g i n, ar oc k e t r yfir mt ha thope soneda yt o he l phuma nsl i v ei ns pa c et or e l i e v ee nv i r onme nt a l pr e s s ur eonE a r t h. MrBr i nha si nv e s t e di n Ca l i c o, a na na g e i ngfir mt ha thope st oe x t e ndl i f e s pa ns . “ T he r ei sabl ur r i ngbe t we e n e nt r e pr e ne ur s hi pa ndphi l a nt hr opy , ”s a y sMrS os k i s . T hi nkdi ffer ent Ast hepr e f e r e nc e sofdonor sc ha ng e , s omus tt hef undr a i s i ngt a cc sofr e c i pi e nt s . I the l psi f c ha r ie sha v eg r a nda mbionst oo. Br e ntHobe r ma nr unsF ounde r s ’ F or umGr oupi nL ondon, whi c hoffe r sl e g a l a dv i c e , ne t wor k i nga ndmor ef ore nt r e pr e ne ur s . Her e c a l l sa dv i s i ngt heT e s s a J owe l l F oundaon, aBr is hc ha r i t yf oc us e donbr a i nc a nc e r , onhowbe s tt oma r k e ti t s e l f . T o dr a wdonaonsf r omt e c hmog ul s , hes a i d, i twoul dbebe e rf ort hef oundaont oma r k e t i t s e l fa sa“ moons hot ”pr oj e c tt ha ta i me dt oc ur ec a nc e rofa l l k i nds . Andt he r ei snoha r mi n a s k i ngf orbi gdonaons , e i t he r . “ S ome me si ti se a s i e rt og e tt he s eg uy st og i v ea wa y$100m t ha n$1m. ” I the l pst obea uf a i twi t ht e c hc ul t ur e , t oo. Wi t h$700mi ndonaonsc ha r i t y : wa t e r , Mr Ha r r i s on’ sv e nt ur e , i saS i l i c onVa l l e yda r l i ng . MrHa r r i s ont hi nk si twa st hefir s tnonpr ofit g r oupt or e a c h1mf ol l owe r sonT wie r . Addi ngwhi z z y , hi g ht e c he l e me nt swor k sa swe l l . Mr Ha r r i s onoffe r sdonor ss a t e l l i t ei ma g e soft hewe l l st he yha v epa i df or . Andonc eonet e c h donaona r r i v e s , ot he r so e nf ol l ow. Mi c ha e l Bi r c h, t hef ounde rofBe bo, as oc i a l ne t wor k , wa s a ne a r l ydonor . Hei nt r oduc e dMrHa r r i s ont oDa ni e l E k , t hebos sofS po f y , a ndRe i dHoffma n, af ounde rofL i nk e dI n.
Mor emode s tc ha r i t a bl ev e nt ur e s , a ndt hos ewi t houtc onne cons , c a nfindi tha r de rt oa r a c t donaons . E l i s eCu ni r unsPi v ot a l , a nor g a ni s aont ha ts uppor t sc hi l dr e ni nf os t e rc a r ei n Ca l i f or ni a . Pi v ot a l he l psa bout500y oungpe opl ee v e r yy e a r , but , a sMsCu ni put si t , t ha ti s nots e e na s“ s e x y ”byt heS i l i c onVa l l e yc r owd. Onewa yt og e tont her a da r , s hes a y s , i st o a ppoi ntt e c ht y pe st ot heboa r d, whi c hhe l pss pr e a dt hewor d. “ Onc ey oug e ti nt ot ha tc i r c l ea bi t , pe opl et a l k , ”s hea dds . “ T he yt a l ka tt he i rc oc k t a i l pa re s . ” T hi sa r t i c l ea ppea r edi nt heI nt er na t i ona l s ec t i onoft hepr i ntedi t i onundert hehea dl i ne" Gi v i ng3. 0"