Bill Gates and Warren Buffett are trying to convince wealthy Chinese of the value of philanthropy. It has been a tough sell, because the Chinese think that job creation will help the poor out of poverty more quickly and effectively.
They have a point; many Americans agree, as exemplified by a story that illustrates some things that work in philanthropy today and some things that don't. Here's the story, which is true:
I had a long chat with a 20-something man at a wedding reception. I knew his parents well but had never gotten to know him. He was a likable fellow who was searching for a career. He told me that he was working as a laborer for a landscaping company but wanted to start his own business.
I described MicroGrants, the program that I had just started to give $1,000 grants to "poor people of potential" to start their own businesses or get them tools or work attire for their first jobs. I didn't even hint that I was considering a grant for him, as I didn't want to get his hopes up. I wanted to check out the idea with his parents first.
The next day I called his father and told him of my idea. He said he'd call me back after he talked it over with his wife.
Later that day, my friend called me and said something like this: "Joe, we think it would be a mistake to give him a grant. We've always taught him to work for his money, and he doesn't seem to get it yet. He's never been good with money, and we think a grant would send the wrong message. We also think there are others out there who would benefit from a grant, so we decided to give your program, MicroGrants, $1,000, but to be used by someone who would use it well and not be spoiled by it."
Imagine the prudence and objectivity! Most parents invest tons of money in their own children no matter the evidence, but wouldn't ever think of investing in a stranger's child. Every year for the past three years, this couple has donated $1,000 for someone else's child and has never asked me to consider their son as a possible recipient.
Their son had a strong outward case to get a grant, but not a real one for those observing him more closely. These wise parents understood the pitfall.