Many people choose to save up their money and entrust it to a foundation or trust that will disperse the funds to good causes after they pass away. However, many of America’s greatest philanthropists are following a different model. First, they devote a considerable portion of their time, energy, and talents accumulating massive amounts of wealth. Then, they spend the end of their lives giving a significant portion of that wealth to others. They believe that a part of their service to others is not only donating the money, but also determining where it can best be put to use. In this sense, they use the intellectual capital they cultivated while earning financial capital in order to ‘invest’ the money where it may make the biggest difference to the community. This is an approach many of us should consider when reflecting on how to give money in the most effective manner.
“Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.” –Andrew Carnegie
