Paul Allen Joins our list of "GREAT GIVERS"
Billionaire Paul Allen to give the majority of his money to charity
Billionaire Paul Allen said today that he plans to give away the majority of his money to charity, following in the footsteps of his Microsoft co-founder and celebrated philanthropist Bill Gates. The pledge marks the 20th anniversary of Allen's foundation, and it follows a recent campaign by Gates and Warren Buffet for the nation's billionaires to give away at least half of the money they've earned. “Today I also want to announce that my philanthropic efforts will continue after my lifetime," Allen said in a statement. "I’ve planned for many years now that the majority of my estate will be left to philanthropy to continue the work of the Foundation and to fund non-profit scientific research, like the ground breaking work being done at the Allen Institute for Brain Science. As our philanthropy continues in the years ahead, we will look for new opportunities to make a difference in the lives of future generations.” Allen, who established the Paul G. Allen Family Foundation in 1990, has awarded more than $400 million to non-profit agencies since the foundation was started. He's also contributed $600 million to non-profits that he's started such as the Allen Institute for Brain Science and the Experience Music Project. Today, the foundation announced that it plans to give $3.9 million to 41 non-profits. You can see that full list here. Allen also is celebrating the 20th anniversary of his foundation by giving away $20,000 to five charities, including the Oregon Food Bank, The Center for Strengthening the Teaching Profession, Adelante Mujeres, Book-It Reperotory Theater and the Seattle Biomedical Research Institute. Allen ranked 37th on the Forbes' list of billionaires earlier this year with a net worth estimated at $13.5 billion. At one point, he ranked in the top 10.
PHILANTHROPY is an interesting concept. As Bobby Vassallo explains, "You make money, not to give it away, but to enjoy the life you've engineered. As you age, you realize things aren't so rosy for the rest of mankind. You attempt to make things better by donating to local charities and trying to improve the lot of that family across the tracks. Soon, an article comes out exposing the fact that a penny or two of each dollar you sent actually gets to the problem. Now you wished you'd never started down this track."
Bobby was not thrilled to learn where his donated dollars were going, so he became "hands on". He went on the boards of organizations and really learned how philanthropy worked from the inside. He learned from the great givers and how they worked at philanthropy. He went to Africa for the famine and again for HIV/Aids. He ventured to mudslides in Guatemala and earthquakes in Mexico (RECENT EARTHQUAKES). Vassallo tried to get to the definition of Philanthropy.
As Bobby sees it, the philanthropy problem for charities remains two-fold: Fund-Raising and Administrative Overhead. If a charity spends too much money to raise money, its ratings go way down and big donors stop giving. Charities, like businesses, must have a budget to grow. When great givers look at the big charitable organizations, they realize which charities spend too much on fund-raising. Conversely, many older, more established charities, spend huge amounts on administrative overhead. Some, in excess of 75%! (See Charity Navigator in "Links").
Great Givers aren't likely to get a solicitous phone call, then write out a fat check. Most big donors take a great amount of time studying their true passion and direction in giving before settling on their personal style of philanthropy or a specific charity. These driven few take the time to identify which causes are most important to them and their families. Great Givers know the sectors of philanthropy they would like to impact, whether aids in Africa (World Aids Datatbase) or the YMCA. Likewise, Bobby hopes you will strive to do the same in your quest to improve this world.
Please
look around the site for ideas on what Bobby Vassallo (of La Jolla, CA) considers "honorable
charities" who could use your help. These are groups with high marks
for getting it right. Bobby includes a number of links for you, as
well. Please give intelligently. That guy across the tracks needs you!
Get to the Links page to see our Favorite Charities.
Give your thoughts and ideas on Philanthropy ideas, techniques and opinions.