July 9, 2008 | Read Time: 2 minutes
Earlier this spring, we reported on a donor named Michael, a 31-year-old Harvard University graduate who plans to give away $70-million to charity over the next 10 years.
Sudhir Venkatesh, a friend of Michael’s and a guest writer for The New York Times’s Freakonomics blog is back with another update on the would-be philanthropist’s progress.
Recently, Michael asked Mr. Venkatesh to put him through a process similar to one he’d used with three previous donors. Mr. Venkatesh, a professor of sociology at Columbia University, had told the donors to focus on their own self interest when making their gifts intended to alleviate urban poverty. Over the course of a year, the donors regularly met with the recipients of their gifts.
Mr. Venkatesh writes that after Michael had spoken to the three donors, he said, “Each person I called told me they had more anxiety giving their money away than running a business. I’ve been losing sleep for a year trying to give this damn money away. They all said that the year (with you) was mostly about figuring out what they wanted out of the deal. I think I need that.”
Mr. Venkatesh says he would consider putting Michael through this process after Michael consults with charitable advisers and money-management firms. Michael will be working with three firms, to the tune of $19,000.
The update has prompted a lot of debate among commentators on the blog. One writes, “There is something inherently and annoyingly indulgent about this $70-million problem.” Another supports Mr. Venkatesh’s advice to Michael. “If you are giving away $70-million and don’t spend $19,000 on consultants, you may end up wasting millions….”
What do you think? Is it important for donors to focus on their own motivations to give? Tell us in the comment section below.
