The biggest donors of the past year were household names — Jeff Bezos and Michael Bloomberg. But many of the most intriguing philanthropists in the nation fly below the national radar, even though they have donated huge sums.
Here’s what makes them tick, as well as a guide to some research on big donors we are featuring in the new year that will help you better understand how to unlock gifts from affluent people:
Neglected Causes
A $75 million gift from the financial titan Bill Miller III to the Johns Hopkins University shocked many college fundraisers. Miller’s gift was the largest ever to a philosophy department, and unlike the donations of so many other financiers, which often go business schools, hospitals, and the arts. But perhaps it shouldn’t have been so surprising since Miller nearly earned a Ph.D. in the field. We’ll be watching Miller in 2019 and beyond because he says he plans to dispense more of his fortune to good causes.
Chinese philanthropists Tianqiao Chen and Chrissy Luo are just getting started on their pledge to give $1 billion to help scientists understand the fundamentals of how the brain works and what causes mental disorders. Their goal is not to develop new drugs but to find other types of treatments that minimize negative thoughts and feelings and enhance “the positive impact of perceptions.” Their giving is motived by Chen’s personal experience with panic attacks, depression, and anxiety.
Craigslist founder Craig Newmark is boosting his commitment to strengthening the news media.
He gets a lot of criticism from people who say the company he founded is a key reason journalism’s business model has unraveled. But that hasn’t lessened his interest in the cause, and, in fact, he’s likely to keep giving to efforts to promote trustworthy news.
Getting Others to Give
Big Southern California philanthropists and real-estate investors Richard and Melanie Lundquist have given about $190 million so far, primarily to education and health-care groups in the Los Angeles area. They have no kids of their own, and yet they’ve developed a passion for helping some of the poorest public schools in the region.
They’ve helped spur other donors and companies to give to education and are so intent on helping health-care institutions they support attract more dollars that they don’t take the standard approach on naming rights. If an institution gets an offer to provide more than the Lundquists did, the couple is willing to take their name off a building and let the other donors take their place.
The Venture-Capitalist Approach
Silicon Valley venture capitalist Theresia Gouw wants a deeper experience with the nonprofits she supports than the typical donor-beneficiary relationship. They should expect her to ask a lot of questions and be willing to take advantage of her experience. “I have to add more value beyond just the dollars, and it has to be with a group that wants that,” she says.
Ted Dintersmith, another venture capitalist, has a passion for reimagining education and a hands-on approach to philanthropy. He’s convinced that the country’s education system is obsolete and discourages children from being bold and inquisitive. But he sees hope in patches of innovation he’s seen around the country so he’s been making small grants to groups that are brave enough to challenge the status quo. Dintersmith’s giving could be much greater over time: He and his wife have pledged to donate nearly all of their liquid assets in their lifetimes.
Emotional Connections
While many donors insist their giving is motivated by hard data and evidence, fundraisers know those decisions are often much more personal and unscientific. Washington philanthropist Adrienne Arsht isn’t afraid to come right out and say that many of her giving decisions are based on gut instinct.
“I hate to say it, but I know it when I see it,” says Arsht. “When I meet somebody and learn about their organization, it either connects or it doesn’t.”
What Researchers Say
A study by Lipman Hearne, a consulting company, identified five key types of donors, offering insights into how they view their philanthropy, as well as how they make decisions about giving. It also suggested that big donors pay relatively little attention to the tax implications of their giving.
Fundraisers must deal with all kinds of donors, including narcissists. Research led by Sara Konrath, a professor at the Indiana University Lilly Family School of Philanthropy, suggests that success may lie in playing to narcissists’ egos rather than making appeals aimed at stirring altruism.
Rich women are particularly generous, according to a new Bank of America/U.S. Trust study of Giving Habits of the Wealthy conducted by Indiana University’s Center on Philanthropy, with 93 percent supporting a charitable cause. What they tend to support: women-run groups that help other women tackle serious problems.