The Christmas Saints Of Wall Street
There is something about twinkling lights, garlands and gifts that causes a change in people - not the same change as a good eggnog with double the rum does, but it's not far off. At Christmas time, people are merrier and more generous than usual. The Red Cross and UNICEF see more donations in December than they do in all the other 11 months combined. People that usually sprint toward the office with their collars up and their eyes straight may be more likely to drop change into an outstretched hand or donation pot. Strangers exchange greetings instead of suspicious glares - this is the Christmas spirit.
This Christmas season, we will look at some people whose Christmas spirit doesn't leave when the pine needles drop. They may not be in the same league as ol' Saint Nick, but they aren't far off. (To read more Christmas-related articles, see 'Twas the Night Before Christmas, The Frosty, Festive World Of Investing and Holiday Gifts For Financial Geeks.)
The Old Guard
Philanthropy on Wall Street is not a recent event. It has, however, been in need of a pick-up since the recession pinched, squeezed and finally stemmed the flow of big money into charity. The original saints of Wall Street can still be felt by tracing your finger down a list of libraries, hospitals, foundations, research centers, women's shelters and other projects aimed at helping the less fortunate. If you do this, you'll find that some names occur more often than others.
Steel, Oil and Cars
The old guard, consisting of Andrew Carnegie, John D. Rockefeller, Andrew W. Mellon and Henry Ford, all made their fortunes in oil, steel or a combination of the two - cars, ships, etc. Charity came to these men late in life, and it is sometimes said that much of their philanthropy was giving back the money they made from crushing unions and creating unfair monopolies. While there is truth to these claims, it is also true that most of what we call unsavory business practices in hindsight were commonplace in their time. Carnegie, Rockefeller, Mellon and Ford's devotion to education, medical care and the fight against poverty made them stand out at a time when the world's richest people hoarded their money within their families. These men, and the foundations they left behind, have given billions of dollars to improve life inAmerica
The Next Generation
Whereas the philanthropists of the past were based in heavy industry, the next generation is largely made of tech street barons and stock gurus. Here are few of the members of the new generation of philanthropists:
Gordon and Betty Moore (Intel)
Gordon Moore was one of the co-founders of Intel Corporation. With his wife Betty, he has made donations in the hundreds of millions of dollars to two main causes: environmental conservation (with a focus on marine life) and medicine. The latter grew out of Betty Moore's bad experiences with hospitals. Betty and her husband have funded training programs for nurses in the hope of preventing common medical mistakes. TheMoore
Michael and Susan Dell
Michael Dell, founder of Dell Computers, and his wife Susan have been increasing their involvement in philanthropy every year since Michael stepped down as the CEO in July 2004, leaving behind a profitable company through which he amassed a large personal fortune. Having four young children of their own, the Dells have used their wealth to advance children's causes (heath, education and medicine). The Michael & Susan Dell Foundation was established in 1999 and boasted $1.2 billion in assets in 2006.
George Soros
George Soros has given more than $3 billion dollars of his fortune to various causes, both political and social, over his lifetime. Soros' philanthropy began in the '70s when he helped black students attend university in apartheidSouth Africa. Since then, Hungary
Bill and Melinda Gates
Bill Gates and his wife Melinda have left behind Microsoft in order to focus on dispersing the largest fortune in the world. Through the Bill and Melinda Gates Foundation, they are in the process of transferring their wealth into projects that include medical care and education in developing countries, as well as a number of domestic charities. The foundation, with its $30-billion-plus endowment, is the largest international and domestic charity. Bill Gates' personal gift of $27 billion far surpasses Andrew Carnegie's lifetime total (inflation adjusted) of $7.6 billion. Bill and his wife have gone after the most common and pervasive problems in the world. They believe that while AIDS and cancer kill large portions of the developed world's population, far more deaths result from preventable illnesses like acute diarrhea and tuberculosis, of which children are often the victims. The Gates foundation's grants for vaccine research provide an incentive to fix these common problems.
Warren Buffett
In 2004, Warren Buffett's wife, Susan, died. It was her wish that her shares of Berkshire Hathaway be given to a foundation that she and her husband had started in the 1960s. The $2.5 billion endowment is being used to support reproductive choice in addition to petitioning for a reduction in nuclear arms. Warren Buffett and his former wife differed in their opinions toward charity. In a TV interview before her death, she said that she wanted to give aid now, whereasher husband
Yuletide Message
Charity is a very personal thing. Some people give to a particular cause because of past experiences, as with George Soros and the Moores. Some give to general causes in the hope of improving the world from the bottom up. The people mentioned above have been selected not only because of their wealth, but also because their donations represent significant amounts of their wealth. TheMoores'
Because few people, whether rich or poor, donate such a large proportion of their incomes to charity, the people we've detailed here are truly exceptional philanthropists. But according to a survey by Giving USA, Americans as whole donated to charity in record numbers in 2005 and most of those donations came from individual donors. Also, households with incomes below $100,000, which represents 90% of the U.S. population, provide about 60% of all the money donated to charities in a given year. In other words, while it may seem like you can't top the mega-donations provided by some of the wealthiest Americans, those few dollars you pass on to charity, perhaps around the holidays, really count.
This Christmas season, we will look at some people whose Christmas spirit doesn't leave when the pine needles drop. They may not be in the same league as ol' Saint Nick, but they aren't far off. (To read more Christmas-related articles, see 'Twas the Night Before Christmas, The Frosty, Festive World Of Investing and Holiday Gifts For Financial Geeks.)
The Old Guard
Philanthropy on Wall Street is not a recent event. It has, however, been in need of a pick-up since the recession pinched, squeezed and finally stemmed the flow of big money into charity. The original saints of Wall Street can still be felt by tracing your finger down a list of libraries, hospitals, foundations, research centers, women's shelters and other projects aimed at helping the less fortunate. If you do this, you'll find that some names occur more often than others.
Steel, Oil and Cars
The old guard, consisting of Andrew Carnegie, John D. Rockefeller, Andrew W. Mellon and Henry Ford, all made their fortunes in oil, steel or a combination of the two - cars, ships, etc. Charity came to these men late in life, and it is sometimes said that much of their philanthropy was giving back the money they made from crushing unions and creating unfair monopolies. While there is truth to these claims, it is also true that most of what we call unsavory business practices in hindsight were commonplace in their time. Carnegie, Rockefeller, Mellon and Ford's devotion to education, medical care and the fight against poverty made them stand out at a time when the world's richest people hoarded their money within their families. These men, and the foundations they left behind, have given billions of dollars to improve life in
The Next Generation
Whereas the philanthropists of the past were based in heavy industry, the next generation is largely made of tech street barons and stock gurus. Here are few of the members of the new generation of philanthropists:
Gordon Moore was one of the co-founders of Intel Corporation. With his wife Betty, he has made donations in the hundreds of millions of dollars to two main causes: environmental conservation (with a focus on marine life) and medicine. The latter grew out of Betty Moore's bad experiences with hospitals. Betty and her husband have funded training programs for nurses in the hope of preventing common medical mistakes. The
Michael and Susan Dell
Michael Dell, founder of Dell Computers, and his wife Susan have been increasing their involvement in philanthropy every year since Michael stepped down as the CEO in July 2004, leaving behind a profitable company through which he amassed a large personal fortune. Having four young children of their own, the Dells have used their wealth to advance children's causes (heath, education and medicine). The Michael & Susan Dell Foundation was established in 1999 and boasted $1.2 billion in assets in 2006.
George Soros
George Soros has given more than $3 billion dollars of his fortune to various causes, both political and social, over his lifetime. Soros' philanthropy began in the '70s when he helped black students attend university in apartheid
Bill and Melinda Gates
Bill Gates and his wife Melinda have left behind Microsoft in order to focus on dispersing the largest fortune in the world. Through the Bill and Melinda Gates Foundation, they are in the process of transferring their wealth into projects that include medical care and education in developing countries, as well as a number of domestic charities. The foundation, with its $30-billion-plus endowment, is the largest international and domestic charity. Bill Gates' personal gift of $27 billion far surpasses Andrew Carnegie's lifetime total (inflation adjusted) of $7.6 billion. Bill and his wife have gone after the most common and pervasive problems in the world. They believe that while AIDS and cancer kill large portions of the developed world's population, far more deaths result from preventable illnesses like acute diarrhea and tuberculosis, of which children are often the victims. The Gates foundation's grants for vaccine research provide an incentive to fix these common problems.
Warren Buffett
In 2004, Warren Buffett's wife, Susan, died. It was her wish that her shares of Berkshire Hathaway be given to a foundation that she and her husband had started in the 1960s. The $2.5 billion endowment is being used to support reproductive choice in addition to petitioning for a reduction in nuclear arms. Warren Buffett and his former wife differed in their opinions toward charity. In a TV interview before her death, she said that she wanted to give aid now, whereas
Yuletide Message
Charity is a very personal thing. Some people give to a particular cause because of past experiences, as with George Soros and the Moores. Some give to general causes in the hope of improving the world from the bottom up. The people mentioned above have been selected not only because of their wealth, but also because their donations represent significant amounts of their wealth. The
Because few people, whether rich or poor, donate such a large proportion of their incomes to charity, the people we've detailed here are truly exceptional philanthropists. But according to a survey by Giving USA, Americans as whole donated to charity in record numbers in 2005 and most of those donations came from individual donors. Also, households with incomes below $100,000, which represents 90% of the U.S. population, provide about 60% of all the money donated to charities in a given year. In other words, while it may seem like you can't top the mega-donations provided by some of the wealthiest Americans, those few dollars you pass on to charity, perhaps around the holidays, really count.
by
Andrew Beattie
Andrew Beattie has spent most of his career writing, editing and managing Web content in all its many forms. He is especially interested in the future of search and the application of analytics to the business world. In addition to being a long-time contributor to Investopedia.com, Andrew has been working on ForexDictionary.com.
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