‘Business Week’: Ranking Donors

Instead of leaving the bulk of their millions to the next generation, today’s philanthropists are dispersing their fortunes during their lifetimes, according to a BusinessWeek cover story (December 1).

As part of a 14-page special report, called “The Top Givers,” BusinessWeek ranks the 50 most-generous Americans, as well as the 15 corporations that donate the most to charities. The report also highlights five major donors who prefer to give anonymously.

Control over where the money goes is the top reason more philanthropists are donating to causes while they are still alive, instead of leaving it all to a foundation when they die.

“Philanthropists can make sure their gifts fund the causes they’ve chosen in the most efficient way possible, rather than trusting future foundation heads, who may be tempted to stray from the founder’s mission,” BusinessWeek says. One notable exception is the investor Warren E. Buffett, who plans to leave most of his wealth to a foundation when he dies.

In addition, philanthropists don’t want their children to become “dilettante loafers” after inheriting a staggering fortune. As a result, donors are leaving less to their children but involving them more in philanthropy. For example, Ann Lurie, who runs the Ann and Robert H. Lurie Family Foundation, set up a foundation for each of her six children, so they could decide which causes to support. (A Chronicle profile of Ms. Lurie appeared in the February 20 issue.)

Bill and Melinda Gates head the magazine’s list of the Americans who have given the most in their lifetimes. The co-founder of Microsoft and his wife have given or pledged nearly $25-billion, or 54 percent of their net worth, primarily to their foundation.

Fifteen donors were new to the list this year. A sample of these donors and what they have given or pledged include:

• Michael Bloomberg, Bloomberg founder and New York City mayor — $401-million for education, health care, and arts groups.
• Helen and Charles Schwab, founder of Charles Schwab — $225-million to arts, education, and advocacy groups.
• Frances and Gary Comer, Lands’ End founder — $128-million for environmental causes and education groups.

In addition, the report lists five of the country’s most “secretive” givers, people who avoid recognition and publicity for their largess.

Topping the list is Charles F. Feeney, who made his fortune from duty-free shops and transferred the bulk of it to a foundation, Atlantic Philanthropies. Also on the list: George Kaiser, president of Kaiser-Francis Oil Company, and Jerrold Perenchio, chief executive officer of Univision, and his wife, Margie.

While giving without recognition is seen as “refreshingly, almost biblically, altruistic,” anonymous giving has its drawbacks, the magazine says. “Anonymous givers can’t become leaders who inspire other people with their charitable behavior, and they deprive foundations of the chance to use the gift as leverage to attract other donors,” says BusinessWeek.

In its list of the most-generous corporate donors in 2002, the magazine named Freeport-McMoRan Copper & Gold, in New Orleans, first among cash donors; the pharmaceutical company Eli Lilly and Company, in Indianapolis, donated the most medicine and other products.

The article and lists are available at http://www.businessweek.com.