Bill Gates, Warren Buffet & Julius Rosenwald: Introduced Three Trends in Philanthropy

Recently, two news items created a ripple in the philanthropy circles....worldwide. First, Bill gates announced his decision to ease out of his day-to-day role at Microsoft in 2008 to concentrate on the Bill and Melinda Gate foundation's work. And second, Warren Buffets announcement to give 85% of his fortune for social good.

Explaining his unprecedent decision, Warren Buffet said "I am not an enthusiast of dynastic wealth, particularly when the alternative is six billion people having that much poorer hands in life than we have, having a chance to benefit from the money". Interestingly, Allen Sloan in his Newsweek column, terms this largest donation made by one person in the US as 'Giving Well'. According to him Warren Buffett's historic $30 billion donation to the Gates Foundation is as cleverly crafted as it is generous. [Newsweek]

Like Bill Gates and Warren Buffet's giving strategies demonstrated a new style of giving, Julius Rosenwald's giving method in 1928 swung away from the conventional philosophy of contributed money confined by restrictions (especially those that required only the spending of interest and not principal). On April 30, 1928, Julius Rosenwald started the proceedings of the Rosenwald foundation with a bombshell. He told the trustees that he was giving the Fund an additional 200,000 shares of Sears stock, worth approximately $2 million. This brought the total assets of the Fund up to $20 million, making it one of the ten largest foundations in the country. And he stipulated that the Fund must spend all of both principal and interest within 25 years of his death, thereby going out of existence. [Julius Rosenwald's Crusade in Philanthropy]