The New Philanthropists, 30 and 40 yr. old entrepreneurs!

The Monday, November 29 2004 issue of Barrons published a series reports on “The New Philanthropy” taking place in the US. In an article titled “Creative Giving” author Suzanne McGee describes what she calls the new vanguard of donors: 30 – 40 year old entrepreneurs who are attempting to rewrite the rules of philanthropy. She states they have turned their attention from business to good works, cling to phrase like “leverage”, “network” and “exit strategy”.  These new givers see no reason why they can’t apply those concepts-responsible for their business success-to reshaping philanthropy as a more efficient, more effective undertaking. These new givers conduct extensive due diligence on NPO’s the same way that they scrutinize business investments and they demand measurable results!

McGee reports on Jeff Skoll, 39, who once spent his life overseeing e-Bay, but has recently, sold it for hundreds of millions, perhaps even billions of dollars. Now retired from business, he is spending the majority of his time developing the Skoll Foundation and a plethora of philanthropic activities.

Implications for school foundation personnel

1. Not all donors, at least major donors, fit the textbook description of a donor as being older (70+) and possessing “old money”!
2. Many wealthy people today have been out of your high school less than 20 and school memories are still fresh and valued! Some never attended or finished college, which only heightens their memories of school as the last educational institution graduated from.
3. Donors want accountability from the organization they donate to. They do not want their gift spent for agendas other than what were agreed upon when they gave.  
4. Donors are not tolerant of waste in a philanthropic organization. It must be run efficiently and effectively.  Most NPO’s report in an annual report the % of total gifts spent on administrative fees.