When assessing the news of Warren Buffett’s groundbreaking gift — in May he invested $4 billion in an Israeli machine tool maker — my father will have only one question, “Is it good for the Jews?” Don’t get excited, Buffett is not a member of a lost tribe that fled Jerusalem during the onslaught of the armies of Nebuchadnezzar to seek shelter and a fresh start in Nebraska. Having said that, there is some room to be hopeful that his gift will inspire a generation of others.
The first and most obvious category of inspiration is the size of his gift. Considering the fact that he is the second wealthiest man in the United States, it is unlikely that anyone will match his level
of generosity in gross dollars. Still, we are living in a wealthy society where we can imagine a whole range of individuals who decide to cheat death and the IRS by giving away the bulk of their estate during their lifetime.
For a start, if those Jews who find themselves among the wealthiest 1 percent of the American population (taxpayers who made at least $327,000 last year) contributed just 50 percent of their net worth to charity we would see billions of dollars flowing into not-for-profits. We need to create a new ethic in the Jewish community where one’s legacy is determined in direct inverse proportion to the size of one’s estate. After all, the average American estate contributes more to taxes than to charity (22.7 percent vs. 12.2 percent in 2003). Let’s create an annual dinner to honor the memory of that woman or man who died penniless that year but made the world a better place through their lifetime of philanthropy and service.
The second category is even more important: Buffett chose to co-invest with a friend and colleague. With $31 billion to give away (not counting the billions that he invested in the foundations of his children and his late wife), Buffett could have built just about anything. It would have borne his name and its board of directors could have met in a phone booth. Who needs leverage when you have $31 billion to spend?
He did. He knew that even though his resources were fantastic in size and scope he could accomplish more by investing his philanthropic dollars with a friend — in this case Bill Gates — and benefiting from that friend’s capital, wisdom, passion and energy. There are over 8,300 Jewish family foundations in the United States allocating billions of dollars annually. Many of them do wonderful and creative work. Perhaps there should not be 8,000 but 800? Or 80?
Imagine the economy of scale we could bring to our work if we joined forces. Imagine the financing we could offer to the not-for-profit community here, in Israel and around the world.
If you were looking for the best return on your money, you would seek out a brilliant money manager, someone with a track record that you could quantify and a reputation for integrity. Someone you could trust and someone who could deliver. Why not seek out a similar kind of return in terms of social good for your philanthropic dollar? So, when that rich aunt dies (she should live until 120), or when that hedge fund pays off, or when that bonus comes through, consider investing that money with someone you trust to maximize your philanthropic return.
Who is your philanthropic hero? Is it Barbara Dobkin for her pioneering work with Jewish women and girls? Michael Steinhardt or Charles Bronfman for their work in Jewish identity? Terry Rubinstein, Alan Slifka, Lynn Schusterman or Bernie Marcus for their work in Israel? The Avi Chai foundation for their efforts in Jewish education? The Cummings family for their work in social justice? Richard Goldman for his work on behalf of the environment? Laura Lauder for teacher training? Les Wexner for leadership? The Weinbergs for their work with the poor elderly? Elisa and Rob Bildner for Jewish camping?
I am just scratching the surface, but the Jewish community has a philanthropic dream team of social entrepreneurs who could wisely invest more capital than they have available to them. We have our Gates’. Where are our Buffetts? n
Mark Charendoff is the president of the Jewish Funders Network, a New York-based agency that assists Jewish grant makers with their philanthropic giving. He also serves on the executive committee of The New York Jewish Week.
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