If you were asked to choose the greatest philanthropist in American history, whom would you name? You might choose Bill and Melinda Gates due to their $36 billion in bequests to the Gates Foundation, or possibly Warren Buffett, who has reportedly pledged to give away 99% of his massive fortune. While Buffett and the Gates have certainly made great contributions to healthcare and the fight against poverty, the true pioneer of American philanthropy was the 19th-century businessman Andrew Carnegie.
One of Carnegie’s most important contributions was not financial; it was demonstrated that charitable giving is about more than just writing a check. Apart from giving away 90% of a fortune worth over $370 billion in today’s dollars, Carnegie was possibly the first person of great wealth to overtly emphasize the value of engaging in effective philanthropy. He realized that being judicious in the choice of charity was even more important than choosing how much to give. He wanted his charitable efforts to be worthwhile for the donor by maximizing financial efficiency and minimizing taxes but, more importantly, he wanted his philanthropy to be effective for society by making sure the charitable dollars were spent wisely.
Given that your own philanthropic goals are probably more financially modest than Carnegie’s, allocating those dollars wisely is perhaps even more important for you. Fortunately, effective philanthropy has come a long way since Carnegie’s time. Today, you do not need to be a billionaire, or even a millionaire, to capitalize on the financial efficiency and social effectiveness of philanthropic giving. So how can you maximize the impact of your charitable inclinations?
If you were asked to choose the greatest philanthropist in American history, whom would you name? You might choose Bill and Melinda Gates due to their $36 billion in bequests to the Gates Foundation, or possibly Warren Buffett, who has reportedly pledged to give away 99% of his massive fortune. While Buffett and the Gates have certainly made great contributions to healthcare and the fight against poverty, the true pioneer of American philanthropy was the 19th-century businessman Andrew Carnegie.
One of Carnegie’s most important contributions was not financial; it was demonstrated that charitable giving is about more than just writing a check. Apart from giving away 90% of a fortune worth over $370 billion in today’s dollars, Carnegie was possibly the first person of great wealth to overtly emphasize the value of engaging in effective philanthropy. He realized that being judicious in the choice of charity was even more important than choosing how much to give. He wanted his charitable efforts to be worthwhile for the donor by maximizing financial efficiency and minimizing taxes but, more importantly, he wanted his philanthropy to be effective for society by making sure the charitable dollars were spent wisely.
Given that your own philanthropic goals are probably more financially modest than Carnegie’s, allocating those dollars wisely is perhaps even more important for you. Fortunately, effective philanthropy has come a long way since Carnegie’s time. Today, you do not need to be a billionaire, or even a millionaire, to capitalize on the financial efficiency and social effectiveness of philanthropic giving. So how can you maximize the impact of your charitable inclinations?