Last week, Warren Buffett, the world's second richest man, donated over 75 percent of his fortune to the Bill and Melinda Gates Foundation, the world's largest endowed philanthropic organization even prior to the gift. Buffett's donation, worth over $30 billion, is notable not only for its massive scope but also for the fact that it was given to an already existing charitable organization. Rather than start an eponymous foundation of his own, Buffett chose to propel his close friend Gates' foundation into the philanthropic stratosphere. Maybe not so coincidentally, the week prior to the announcement of the Buffett donation, Gates announced that he intended to step down from his day-to-day involvement at Microsoft in order to focus more time and energy on his philanthropy.
After these two announcements, I can confidently say, without fear of sounding corny, that in the span of one week, two men positively changed the world.
The Gates Foundation has focused much of its resources on dealing with infectious diseases, especially in underdeveloped nations. The foundation currently provides 17 percent of the world's budget in the fight to eradicate polio; their overall budget is greater than that of the United Nations' World Health Organization; and they provide nearly the same level of funds to fight infectious disease as given by the United States Agency for International Development. Even before the new $30 billion, the Gates Foundation was a charitable juggernaut, doing more than most countries to help the world's less fortunate. With Buffett's contribution doubling its endowment, the Gates Foundation may now supercede even the U.S. government in its ability to help fight diseases.
Interestingly, the Buffett donation transcends the tangible effects it will have through the work of the Gates Foundation. Throughout his entire career, Buffett has been an innovator and a trendsetter. His every move has been closely watched, analyzed and often admired by wealthy investors throughout the world. This decision is no different. This week, many have speculated that Buffett's generosity will ignite a trend of philanthropy by the uber-wealthy. In 2005, the 400 richest Americans were worth over $1.1 trillion dollars. If Buffett's and Gates' actions inspire just a fraction of our country's upper class to donate larger percentages of its wealth, their actions could have a huge impact. And with many billionaires in a constant battle over conspicuous consumption, Buffett and Gates have forged a path of "conspicuous donation." Their intentions may have been noble, but they have also demonstrated a more beneficent outlet through which billionaires can compete in quenching their unquenchable egos.
In America, we are sorely in need of such messages. There is quantitative evidence that charity, on behalf of America's wealthy, has been declining. In discussing the Buffett donation, The Chicago Tribune reported that "the amount of bequests to charities has dropped every year since the top estate tax rate was lowered in 2003." There is no better time for popularizing conspicuous donation.
Buffett's donation sets an example for everyone, not just billionaires. The fact that the world's second richest man was willing to give the majority of his wealth to another organization sends a resounding message: lasting and meaningful charity does not have to equate to a foundation in your name. Buffett reminds us all to search for worthy causes and to find the best way to contribute to them.
Gates and Buffett demonstrate that we do not have to wait for the government in order to fight the problems of the world. These men have created a road map for positive change, one that avoids the bureaucratic gridlock characteristic of our government's actions. Gates and Buffett show that board rooms on Wall Street or living rooms on Main Street can be just as effective as committee rooms on Capitol Hill.
As we here at Dartmouth begin to explore our career options, Buffett and Gates give us a much-needed reminder that the endgame is not to accumulate as much money as you possibly can before you die, but rather to be successful in your field and to find ways to help others through that success.
