In a communist-run country where the first private foundation is less than 15 years old, a handful of billionaires are rolling out their own agendas. These new philanthropists include Charles Chen Yidan who, in his 40s, left his job at Tencent Holdings Ltd. to focus on supporting education.
All of the capital accumulating rapidly at the top is on target to make the heirs of baby boomers the beneficiaries of the largest intergenerational wealth transfer in history.
An investment banker once showed me a letter he wrote to his children as they came of age, explaining the multiple purposes of money.
The first is to provide for an appropriate lifestyle. “What does this mean? It means to live like a successful person of your age buying material objects and spending money on daily purchases appropriately. Some people like Porsches but live in small apartments; others smoke fancy cigars and wear old clothes. It is the pattern that matters.”
The letter also emphasized the freedom that wealth provides—his own children have pursued careers in education, not investment banking. “Money allows you to set goals without the first goal being monetary success.”
His closing point: “Money is to better society.”
The ultrawealthy have been taken to task lately for not doing enough on that score. It’s the topic of books including Winners Take All by Anand Giridharadas, who argues for challenging the systems that create inequities. A recent report from Bridgespan Group, a consulting and research firm that works with billionaires on philanthropy, contained the startling estimate that the charitable spending of ultrawealthy Americans in 2017 was just $45 billion, or 1.2 percent of their holdings. Globally, the number of people in need of life-saving assistance is almost 136 million, according to the United Nations; 69 million have been displaced by conflict and natural disaster.
Cities in particular have benefited from wealthy people committing time and money to building and guiding hospitals, museums, universities, and nonprofits. Some have their names on buildings. Some have served on boards and investment committees for decades.
More recently, trailblazers have emerged who are spending billions of dollars in their lifetime on philanthropy. Gates has his passion for toilets, for preventing malaria, and for finding ways to feed those most affected by climate change. Facebook Inc. founder Mark Zuckerberg and his wife are funding research into cures for disease. Bridgewater Associates founder Ray Dalio is pouring his money into exploration of the ocean. (Bloomberg LP’s founder and owner, Michael Bloomberg, has a foundation dedicated to causes including gun control, tobacco reduction, educational opportunity, and combating climate change.)
Some billionaires are focusing on the future. This is an exciting place to be, because it isn’t about solving problems that have hung around for centuries. It’s about what’s next for humans at all strata of society.