I came across this interesting article on Forbes.com (read the full-length article here) which describes a casual lunch between Steve Forbes, Warren Buffet, and Jay-Z. I can’t say I’ve followed much of Warren Buffet’s life, but I’m an avid fan of Jay-Z as an artist, and have always admired his ability to have a hand in his business and his music at the same time. The article became more of interest when it began to look at how the two very different people viewed philanthropy as a separate but important part of their long-term interests. Following are a few excerpts from this article, with some of my notes for each:
SF: Jay, you’re just beginning to look at charities. You have the Shawn Carter Scholarship Fund. Where do you see it going?
JZ: The reason I’ve focused on that is because such a small thing changed my life, right? A sixth-grade teacher said, “You know what, you’re kind of smart.” And I believed her. I said, “I’m smart, right?”
So she gave me that sort of opportunity. She sparked that idea in my mind. So that’s why my first thing is a scholarship fund, because there are a ton of very intelligent kids coming out of these urban areas who can make it all the way if given the opportunity. It’s a challenge that I gave to my mom. And my mom is so involved with it. She gets on the bus, and she takes these kids to their interview with colleges. And now we’re starting to see kids graduate from college, and I’m getting that sort of feeling when it’s real, you know. I’m not just sitting home, writing a check to make myself feel good. It’s something I really want to do, and I’m into it and excited about it.
SM: Jay notes the importance of focusing on something not only material, but something that means a lot to you. While all organizations need money to survive, the true cause isn’t helped until people get involved.
SF: Philanthropy and business are almost opposite sides of the same coin, meeting the needs and wants of others, a little different way of doing it.
WB: It’s tougher than business, Steve. You’re looking for easy things to do in business. If people have liked drinking Coca-Cola for 100 years, they’ll probably like it for another 100. It doesn’t require great brainpower to figure that out. In philanthropy you’re tackling the tougher problems of society, things where people have applied money and intelligence before and haven’t really solved the problem. Education is a great example. Gates is working on eradicating polio. They have gotten 99% of the way there. But that last 1% is very tough, and nobody knows for sure if it will get done.
SM: Steve, in the question, and Warren Buffet in the answer both relay the notion that business and philanthropy are completely different worlds. Mr. Buffet continues to describe the larger issues with gaining people’s involvement in philanthropy. It’s hard to solve a problem in its entirety, meaning the last percent is the most difficult to help. And, because the problems of so many others have already been solved, a lot of people think this should be easier, or that this last percent is not as important. But it is that last percent that is the most difficult to help, and likely needs help the most.
SF: How do you each plan to get your message out about philanthropy? Warren, you and Bill Gates did a bold thing with your Giving Pledge drive.
WB: The way I got the message out was to get a copy of FORBES, look down that 400 list and start making phone calls! Bill and Melinda did the same thing. We only called 80 or so people so far, some I know, and some I don’t know. We’ve gotten a way better reception than I thought. In many cases we picked people that we knew already had pretty strong philanthropic interest and, in a very low-key way, asked them to sign a pledge, not legal but moral, that they would give away half their net worth in their lifetimes or at death. About half of the people we asked said they’d be delighted, and we asked them to tell their stories on our website [givingpledge.org]. They are fascinating to read. I don’t think you’d see anything like this in parts of the world outside of the United States. We’ll see how far it goes, but even if it only goes as far as it’s gone it will have a big impact. I’ve already learned something from the three or four dinners we’ve had with people. We will have smarter philanthropy in this country 10, 20 years from now, and in a small way this will contribute to it. So keep publishing the list so I can milk it.
SM: After many class discussions about how poverty could be greatly eradicated if the wealthiest people gave a small portion of their means to charity, I am happy to see that one of the most wealthy people in the world is doing his part to get others to donate their money. The site itself shows the reasons behind each Billionaire’s decision to donate the majority of their estate, and its interesting to understand their thoughts behind their hard earned or family money.
This article as a whole made me feel even less optimistic about being able to combine both my chosen field in business and my ability to help others. According to most other businesspeople, you are able to succeed in your company and give by means of your profits or volunteer work, but they are not one in the same.