- $1 billion Empire State Building IPO: why it won't be like Facebook IPO
- In surprise move, GOP leaders admit defeat in payroll tax battle
- More than 30,000 Germans turn out against anti-piracy treaty ACTA
- Does Obama blueprint reduce budget deficit fast enough? (+video)
- Pentagon budget: Does it pit active-duty forces against retirees? (+video)
- Murdoch media crisis deepens with five new arrests
- How Pinterest combines the best parts of Facebook, Tumblr, and Etsy
- US, China face 'trust deficit' as China's heir apparent visits
Rich to the rescue
Among the more than 8 million millionaires in the US, making a global difference is becoming 'the cool place to be.'
(Page 2 of 2)
Ted Turner broke the mold when he announced his $1 billion donation to the UN in 1997.
The Bill & Melinda Gates Foundation, with another boost from Mr. Buffet's planned $31 billion gift, is donating heavily to the Global Fund to Fight AIDS, Tuberculosis, and Malaria. The Gates Foundation spurred a huge jump in the number of vaccine manufacturers by committing $1.5 billion to buy medicines.
Google.org is searching out projects to address global poverty and energy and environment problems.
The Clinton Global Initiative – President Clinton's town-meeting-style gathering of corporate, political, and charity leaders – this fall garnered pledges worth $7.3 billion from 215 people for endeavors in the areas of global health, poverty alleviation, ethnic and religious strife, and energy and climate change.
One innovative thrust involves a $5 million commitment by AOL's Steve Case to get clean water to sub-Saharan Africa. Mr. Case's grant to PlayPumps International will support the building of water pumps linked to children's merry-go-rounds. As kids play, the water is pumped into storage tanks, and billboards on the tanks earn money to pay for maintenance. At the Clinton meeting, first lady Laura Bush announced a $10 million US government contribution to the project.
Along with these positive developments comes a great uncertainty within the US charitable community. The astounding growth in nonprofits means more competition for funds. It's likely that a number of nonprofits will fail.
While rising corporate profits and tax cuts have widened the pool of private wealth, many in that pool are not yet involved in philanthropy. A recent survey by the Luxury Institute found that 31 percent of rich Americans say they donate to nonprofits; 25 percent say they will do so in their wills. Fifteen percent say they intend to give. But 11 percent say they will not, and another 15 percent aren't sure.
According to Charles Maclean of Philanthropy Now, who did the survey, the rich don't donate for two main reasons: the fear of not having enough money for themselves and their family, and distrust of nonprofits. Only 35 percent said they felt charities would use the money wisely, pointing to a need for objective data on nonprofits.
Many are gearing up to provide such objective information on charitable organizations. In financial services now, wealth management often includes some consideration of philanthropy. Contribute magazine, launched last spring, provides case studies and, in each issue, ranks 25 charities based on a range of metrics. Charity consultants Changing Our World is launching a philanthropic advisory service for family foundations.
The unsettled environment places new demands on nonprofits and traditional foundations, demanding greater accountability and spurring fresh conversations throughout the field about how change can be realized.
"Philanthropy has tended to be a quiet, hidebound sector," says Mr. Watson. "The leaders now coming in are shaking things up – and that's a good thing."
Page: 
1 | 2
