We can learn a lot by observing people who excel in their field.
If we pay close attention, we can become better musicians by listening to Yo Yo Ma.
We can become better communicators by observing Oprah Winfrey, and we can become better givers by studying Warren Buffett.
A few days ago, investment guru Buffett announced the largest charitable contribution in history. Buffett plans to give what amounts to about $37 billion to the Bill and Melinda Gates Foundation to focus primarily on global health issues. They hope to cure 20 deadly diseases in the coming years.
This extraordinary gift is almost beyond comprehension.
It represents more than $1,200 for every person in the United States. Thirty-seven billion $1 bills laid end to end would go around the world at the equator more than 140 times. They would extend from Denver to the moon and back more than seven times.
Since most of the rest of us will never have even a tiny fraction of the money that Bill Gates and Warren Buffett have, how can we possibly emulate them? Just as we will never play the cello like Yo Yo Ma or run a talk show like Oprah, we will never give away money like Warren Buffett. We can, however, learn from the experts. Warren Buffett can teach us what to consider when giving away money.
How much should I give to my family and how much should I give to charity?
For those of us who have more than we need to put food on the table, this is a key threshold question. Buffett has decided that his money will do more good going to charity than going to his family. Here’s more of the food for thought he’s provided:
How much should I give away during my lifetime and how much should I give away through my will or estate plan?
Originally, Buffett planned to give away most of his money after his death. He recently changed his mind. There is no right or wrong answer to this question, but most people find great pleasure in giving away at least some of their money during their lifetimes.
How much control should I retain in my charitable giving?
Many philanthropists want to retain a lot of control. They want to ensure that the money they are donating is used precisely as intended.
Buffett has once again broken with convention by relinquishing control to the Bill and Melinda Gates Foundation. He decided that working with experts who have found successful, cost-effective solutions to difficult problems is more fulfilling than creating his own organization.
Should I fund risky experiments or institutions with a long track record?
Buffett’s gift is a middle ground between these extremes. The Bill and Melinda Gates Foundation is not a century-old venerable institution, but it has already achieved impressive results in its few short years of existence.
Above all, Warren Buffett can teach us the importance of passion in philanthropy. The true currency of philanthropy is not money, but passion.
Buffett is a role model not because he gives away billions of dollars, but because of his commitment to making the world a better place.
David Miller is president of The Denver Foundation, which has been active in local charity since 1925.
