The Giving Challenge
What would you do with $4.5 billion? Most people would start with a list of how they’d invest it and what they’d purchase. But John and Laura Arnold have decided to give it away. John began his career as a successful natural gas trader at Enron. He left before it went bankrupt, and founded a hedge fund. He’s known as an introvert, very smart and low key, but diligent in his research of every detail around his oil investments. His ability to correctly anticipate gas and commodities prices paid off handsomely so that in October 2012, a few years shy of age 40, he closed his fund and retired.
He and Laura, a Yale grad and former corporate attorney, then focused their energy on the John and Laura Arnold Foundation, with the vision of giving money where it can produce the most good. For example, they’re funding projects that could make a difference in criminal justice sentencing guidelines, or how our bodies process food which could impact how obesity is treated.
The Arnold’s know that some of their projects will fail, but they’re betting on the upside risk that some will be a big success and will positively impact society. 
Their style of “high impact philanthropy” is increasing among the super wealthy. Rather than simply writing a check to the many existing worthy causes, they’re looking for opportunities to fund social initiatives, eradicate societal ills and solve vexing problems. They want their money to have a long term effect.
They also don’t believe in “dynastic wealth”, or giving the money to their three children, because they feel it’s important for them to learn to create wealth for themselves. They’ve seen too many examples of children who’ve made poor decisions with such an inheritance, and don’t want theirs to feel entitled. John and Laura also think it’s a mistake to believe that having more money makes children happier or more productive. They share the perspective of other billionaires like Warren Buffett that there’s no value in gifting large sums of money to their kids.
While most of us can’t directly relate to building this level of wealth, much less giving it away, their story raises some questions that we can relate to.
- Are you making money for what you can do with it, or for how you can help others? Even while the Arnolds were massing their fortune, they were talking to others about causes that they could fund. So as you’re making money are you thinking and talking about who you can help, or just what can you buy? Are you looking for opportunities to help others? Are you looking for meaningful causes that can benefit from your support?
- Do you believe your giving can make a difference in the lives of others? Maybe you don’t have “high impact” funds, but low impact is better than no impact. If you’re able to help only one person and make a difference in their life, then it’s a worthwhile effort. You can pay it forward.
- Are you giving a gift that keeps on giving? Yes, there are times when many people need a “fish”, but at the same time they need someone to “teach them to fish”. So will your gift help better a life or a situation long term?
- Are you taking a risk with your giving? Philanthropists know that the organizations they give to won’t always be successful in their mission. There are risks involved, and the greater and more game changing the potential impact, the greater the potential risk. But sometimes those are the causes that need benefactors the most.
- Do you investigate the credibility and effectiveness of the organizations that receive your money? In spite of the risks associated with various social initiatives, you should still scrutinize the organizations that receive your hard earned funds with the same degree of detail that you would scrutinize a potential investment decision. You do have a responsibility to ensure that you properly evaluate their track record of accomplishing their goals, and reaching the target market.
- Is your giving reactive or proactive? Requests for donations come from many sources. There are appeals for support from robocalls during the dinner hour, panhandlers on the street, co-workers’ fundraising initiatives, church building drives, political campaigns, financially strapped friends, and educational institutions. Many of these entreaties are for worthy causes, but every worthy cause isn’t the right cause for you. You are chief steward of your resources, and it’s important to proactively determine your giving priorities, and the circumstances under which you’ll respond to such requests instead of letting someone else determine them for you. This will provide the framework for you to appropriately respond when the time comes.
So if you don’t have $4.5 billion, let’s start a little smaller. What would you do with $450, or $4,500 or $45,000? What are your giving priorities? What organizations would you allocate it to? How would you use it to make an impact in the world around you? Spend some time pondering this, and as you do so, you’ll begin to find more meaning in your giving. You can make a difference at whatever level you are…..just give.
Source articles from WSJ.com and ChristianPost.com
Have you ever started cutting up vegetables and finally realized that it was taking longer than expected? Maybe you’ve gone outside to trim your hedges only to find the job harder than you anticipated. Or in a burst of energy, you picked up your ax to chop wood, and were quickly out of breath as you realized how much effort was required.