Some time ago, I watched the most amazing interview with Warren Buffett and Bill Gates on the CBS news magazine program “60 Minutes.” Many of you may have seen it as well. While watching the program, I immediately thought of Jewish philanthropists who contribute and support nonprofit organizations in their local communities and in Israel. In the TV interview, Buffett and Gates delivered two major messages to philanthropists and donors.
The first message is that knowing how to earn and invest money does not necessarily involve knowing how to use your philanthropic contributions in the most effective and efficient way. Philanthropy requires an entirely different set of skills.
Buffett and Gates knew they wanted to use their philanthropic wealth to make meaningful changes in the lives of people confronting challenges that prevented them from achieving more for their families and themselves. They also knew the limits of their expertise in philanthropy and were willing to turn to experts who could both advise them and then help them implement their wishes.
In the Jewish community, experts in community foundations and federations are available to aid donors in setting up family foundations or philanthropic funds, such as donor-advised funds or living wills and trusts. By availing themselves of these kinds of services, donors can explore a variety of options that may meet their philanthropic needs, options that they may not have known existed.
In addition, there are accountants, lawyers and philanthropic advisers who can provide similar knowledge and expertise. Of course, devising a fund or foundation that responds to the philanthropist’s concerns and interests is only one part of the story.
Once a fund or foundation has been established, then the focus is on soliciting proposals from nonprofit organizations that are providing services in the areas congruent with the philanthropist’s interests. Once the proposals are received, then a philanthropic adviser, either one with a community foundation or a private consultant, can assist the philanthropist in reviewing the documents and evaluating which program(s) to fund.
Before funding a project or program, it’s critical to have a reporting system in place that includes a self-evaluation process. Utilizing the services of a community foundation, which can guide you through this process, can be a learning experience for philanthropists and simultaneously enable them to be more effective in their use of their funds.
The second message I derived from the interview with Gates and Buffett was the importance of a mega-donor fund for the Jewish people. These two men are challenging very wealthy people to follow their example and to donate 50 percent of their wealth to philanthropic causes. They have formed an informal group of fellow philanthropists who have made this pledge, and they meet to share their experiences and challenges and to consult with each other. The Jewish community can take a page from their book.
The key questions that wealthy donors in Jewish communities around world must ask themselves are: How much money do I really need and how much money does my family need? At what point do I say I have enough money and I want to give the rest to benefit the Jewish people in my community, around the world and in Israel?
How can we encourage those fortunate few who have hundreds or millions or billions of dollars to donate everything over a certain amount of their wealth to benefit the future of the Jewish people?
On ejewishphilanthropy.com, I have written about the need for a Foundation for the Jewish People. Let me suggest that those who have been able to amass mega-wealth should be approached to ensure the future of the Jewish people through such a fund. Each donor would be able to decide whether he or she wanted to support projects initiated by this foundation or to fund other initiatives. This foundation would be in a position to assist them in using their funds effectively and efficiently in whichever way they decided to use their resources.
On “60 Minutes,” Buffett said, in a tongue-and-cheek manner, that he is going to write a book on “how to get along on $500 million. “ We should follow his example and develop a similar approach with mega-wealthy Jews. We are living in a time when the collective wealth of the Jewish people is greater than it has ever been, and we have an opportunity to not only benefit ourselves but also to secure the future for another 5,000 years of Jewish peoplehood.
Why not think about doing for our people what Buffett and Gates are doing in the general philanthropic world? It would be shame to miss such an historic opportunity.
Stephen G. Donshik is a lecturer at Hebrew University’s International Nonprofit Management and Leadership Program and former director of the Israel office of the Council of Jewish Federations and the Israel office of UJA Federation of New York.