ALAN'S LETTER

Many years ago I went to Pamplona for the Running of the Bulls. I was standing–waiting to run– on the part of the road that got cleared by police just before the race. I was very disappointed, until I realized that not being able to run might have saved my life. I appreciated being on the sidelines. But today, during this crisis, it’s not a time to be on the sidelines, especially if you are a foundation trustee or ultra high net worth individual.

Donor Advised Funds (DAFs) have rightfully come under a lot of criticism lately. The only two rationales for DAFs that have some merit: making grants outside a focus area; and managing grant-authority transitions. But it would be wrong to focus too much attention on DAFs, whose $100 billion of charitable assets is equal to the assets of just the top 0.1% of private foundations and is only one-tenth of the trillion dollars held by all foundations.

The Giving Pledge, created by Bill and Melinda Gates and Warren Buffett, was publicly announced exactly ten years ago today. As Bill Gates jokingly says, he cannot (does not?) give away his money fast enough: his net worth was $53 billion when he launched the Giving Pledge, now it’s more than twice that. The 100 living U.S. Pledgers who were billionaires when the pandemic began have seen their net worth grow by more than $200 billion!

It’s incredible to see hundreds of “moms” linking arms to stand as a buffer between protesters and federal officers. Robert Kennedy said, “Some see things as they are and ask why. I see things that never were and ask why not.” Those moms asked “why not.” Those of us in the charitable donor class should do the same and provide the resources to those nonprofits who foster a just world.

We’ve launched the Crisis Charitable Commitment on Bastille Day. July 14, 1789 was a turning point in history for France, a revolution brought about by economic depression, high unemployment and famine, and perhaps most importantly, a desire of ordinary citizens to have a voice in their government. Hmmm. No sector of our society has escaped the harshness of this pandemic–except for the richest foundations and individuals.