Robert Smith is not too different from many other big philanthropists today. A self-made billionaire, the 54-year-old financier built his wealth via investments in the tech industry, landing him on the cover of Forbes. Married to a former Playboy model, he’s chairman of the Carnegie Hall board and looks the part when wearing a tuxedo. In his off time, he likes to fly-fish.
But Mr. Smith is also African-American, which sets him apart from the predominantly white tech and finance moguls of big philanthropy. His emergence as a megadonor last year — he gave away nearly $42.5 million — coincided with what many consider a landmark in black philanthropy: the completion of a $315 million campaign to open the National Museum of African American History and Culture. The roster of big-ticket donors to the museum (some who gave through foundations) included familiar names like Oprah Winfrey ($21 million) and BET founder Robert Johnson ($6 million) but also many African-Americans who are only beginning to be known for their philanthropy — like television producer Shonda Rhimes ($10 million) and Mr. Smith himself, who gave $20 million.
He is stepping up, and people are taking notice.
Altogether, three-quarters of the gifts of $1 million or more raised by the museum came from African-Americans — including many wealthy entrepreneurs often overlooked by charities, according to Adrienne Brooks, the museum’s director of advancement. “There’s often a stereotype among fundraisers that African-Americans don’t give, or give little,” Ms. Brooks says. “But [Mr. Smith] is stepping up, and people are taking notice and saying, ‘There’s a broader community we can tap into.’ "
Increasing Opportunity
Michael Lomax, president of the United Negro College Fund, says the museum’s success reflects growing philanthropic interest in causes important to African-Americans. While his organization has traditionally focused on small-gift efforts, Mr. Lomax says he now spends considerable time courting big donors. Among his successes: grants worth $48 million from Fund II, a foundation led by Mr. Smith and funded with assets from an outside investor in his private-equity firm.
“The new wealth in the African-American community is an area we are focusing on,” Mr. Lomax says. “There is increasing opportunity for larger gifts.”
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Mr. Lomax says a number of colleges and universities with large enrollments of African-Americans are professionalizing their fundraising. Six years ago, when Gregory Murphy started as vice president for institutional advancement at the Community College of Philadelphia, he found the school had data on only about 40,000 of its 650,000 alumni. Today, thanks to surveys and other research, that number has grown to more than 200,000.
Valaida Fullwood, whose multimedia history of black philanthropy is touring the country, says she’s seeing increasing numbers of giving circles and donor-advised funds started by African-Americans. Barack Obama’s presidency inspired many blacks to join organized philanthropy, she says. Also driving the trend are a host of social-justice issues, including questions raised by the recent police shootings of unarmed black men.
“Increasingly, African-Americans are recognizing the need to promote change and push for change and to fund that ourselves,” Ms. Fullwood says.
Major Force
Mr. Smith appears likely to remain a major force in philanthropy. Forbes puts his wealth at $2.5 billion (slightly less than its $2.8 billion estimate for Ms. Winfrey). Last year, his giving included $1.2 million to the Trail Foundation for work in Austin, Tex., where he lives.
He also gave $1 million to Carnegie Hall, citing a love of music that dates to his childhood. Named to lead the Carnegie board in June, he’s the institution’s first African-American chairman and its first from outside New York.
Among Mr. Smith’s passions: helping men and women, particularly African-Americans, find a foothold in the sciences, technology, and the middle class. A graduate of Cornell with a degree in chemical engineering, he announced last year a $50 million gift to his alma mater (including $30 million from Fund II). The money will pay for scholarships for African-American and women engineering students as well as endow the school of chemical and biomedical engineering.
In December, Mr. Smith spoke to the first graduating class of a free information-technology training program in Baltimore run by the nonprofit NPower and paid for in part by Fund II. He personally pledged $1,000 to each of the 24 graduates who bought a home in their community within five years and another $100,000 to split among everyone in the class if they all bought homes.
“You now have a family,” he said, “and that includes me. We’re all in this together.”
