Is a charitable foundation the new private jet? In recent times I have noticed among successful entrepreneurs a reordering of their priorities: once they have done well, they seem to emphasise more than ever how much time and money they give to good causes. Such philanthropy is timely: as public spending is cut across all western nations, so rich individuals must give more to the less fortunate.
Earlier this year I came across the autobiographies of perhaps 75 self-made, relatively young multimillionaires. For virtually every entry, the final paragraph talked about their involvement in various non-profit organisations, rather than how they pursued extravagant hobbies. Many of them appear to be spending a significant amount of their working week on a particular passion – the environment, education, the arts and so forth. Some even take a year or two off as a sabbatical, supporting a cause after cashing out of their business. I admire this enlightened life philosophy, rather than a relentless obsession with amassing yet more personal wealth.
What are the motivations of entrepreneurs who give? No doubt for some it is vanity or guilt, but I sense most do feel a moral obligation to give back and make a difference. They recognise that companies tend to come and go but that an intelligent charitable legacy can endure.