The Trouble with Charity
I’ve seen some similar articles to this one — about how the super-rich are electing to donate their fortunes rather than give the money to their heirs.
I’m torn on this issue: not that I care if the children of the super-rich are only somewhat-rich, but rather the outflow of all the money.
In the short term, charitable donations sent to third-world nations are actually more bang-for-your-philanthropic-buck. It costs less to affect dramatic change for more people. In the long term, though, developing nations creates international competition. In that sense, donating abroad will make it tougher for a rich person’s child to amass the same wealth as his/her parents.
The alternative would be to donate domestically. Given that our standard of living is currently higher than much of the world, charity can often be ‘inefficient’. It is patriotic, though, there certainly are noble causes, and it is less likely to harm our economy.
So, to all my super-rich readers: please give your charitable donations some serious consideration. Thanks.