Culture of philanthropy

Philanthropist extraordinaire

Philanthropy; be it by private individuals or corporate is an area where the United States clearly leads the world and definitely puts Australia to shame. To quote Charitable Choices, “Americans give a lot to charity”.

Though estimates vary, American individuals gave away on average about 2.2% of their income in 2005. Australians, on the other hand, gave a mean of $424 in 2005, or about 1% of earnings, or only half as much.

No more stark is the difference in the culture of philanthropy demonstrated by the corporate über-rich. The United States is known for the enormous contributions of its corporate leaders to charitable organisations. Most recently, Bill Gates of Microsoft fame, the wealthiest individual in the world, announced he was resigning from his role in his corporation so that he could focus on charitable activities through the Bill and Melinda Gates Foundation. This foundation has given billions away for the funding of health and education initiatives, in both the developing world and domestic United States. Today, Warren Buffet, the world’s second richest man announced that he planned to give away 85% of his fortune (worth $54 billion) to charities. He planned to become a trustee of the Gates Foundation.

Compare this to recently deceased media mogul Kerry Packer, wealthiest man in Australia. His contribution to public philanthropy was (relatively) small and ultimately self-serving. Donations to the ambulance service and to hospital, though welcome, were specific to his failing health.

Without high profile leadership, the “average” Australian has simply been outclassed by the generosity of the “average” American. Public American philanthropy and willingness to assist in charities is a fantastic cultural trait that Australians should emulate. We have fantastic charitable organisations in Australia who often sadly, lack the funds and manpower to accomplish their goals.

From: Sydney Morning Herald

Buffett to give $54b to charity (excerpt)
June 26, 2006 - 6:28AM

...Buffett, 75, pledged in an interview with Fortune to give away 85 per cent of his stock - worth more than $54 billion - in his Berkshire Hathaway investment firm, starting in July.

"I know what I want to do," he was quoted as saying, "and it makes sense to get going."

The shares will go to five foundations. More than 80 per cent will go to the Bill and Melinda Gates Foundation which already has a kitty of nearly $41 billion used to pay for medical research and give educational grants.

Buffett and the Gates are close friends. According to Fortune, Buffett plans to eventually become a trustee of the Gates foundation...