Billionaire Philanthropist: 1 Year Older

Bill Gates, one of the worlds top philanthropists social reformers, was born today October 28 (1955).

He is the worlds third richest person (Feb. 2008), and the second richest American (Oct. 2008).

Mr. Gates had his last full day at his company (Microsoft) June 27, 2008 and has announced that he plans to transition to full time work at his transparently operated (open meetings, financial disclosure statements, etc.), "Bill & Melinda Gates Foundation."

The Bill & Melinda Gates Foundation was created when public opinion decided that he could do more with his money. The charitable organization began as the William H. Gates Foundation (in 1994) and was inspired by the work of Andrew Carnegie and John D. Rockefeller. In 2000, Gates and his wife combined three family foundations to create the current, Bill & Melinda Gates Foundation.

For more info on the Bill & Melinda Gates Foundation click below



The Bill & Melinda Gates Foundation focuses on problems that are ignored by governments and other organizations. As of 2007 Bill and Melinda Gates have given over $28 billion to charity, making them second most generous philanthropists in America.

The primary aims of the foundation are to enhance health care and reduce extreme poverty on a global level. In the United States they plan to expand educational opportunities and access to information technology.

The Foundation is controlled by three trustees:

1. Bill Gates

2. Melinda Gates

3. Warren Buffett

They are leaders in "Venture Philanthropy."

Venture Philanthropy, also known as "philanthrocapitalism", takes concepts and techniques from venture capital finance and high technology business management and applies them to achieving philanthropic goals.

Venture Philanthropy is characterized by

- Having the readiness to experiment and take chances on new ideas.

- Staying focused on results that can be measured. Donors and grantees check progress based on benchmarks that are determined collectively.

- Being prepared to shift funds between organizations and goals based on tracking those results.

- Giving, financial, intellectual, and human capital

- Funding on a multi-year basis - typically a minimum of 3 years, on average 5-7 years.

- Focus on capacity building, instead of programs or general operating expenses.

- High involvement by donors with their grantees.

The foundation was initially funded with $126 Million in 2000. The fund grew to $2 Billion in two years. On June 25, 2006, Warren Buffet pledged to give 10 million Berkshire Hathaway Class B shares ($30 Billion) spread over multiple years through annual contributions. "Buffett's gift came with three conditions for the Gates foundation: Bill or Melinda Gates must be alive and active in its administration; it must continue to qualify as a charity; and each year it must give away an amount equal to the previous year's Berkshire gift, plus another 5 percent of net assets. Buffett gave the foundation two years to abide by the third requirement." The Gates Foundation received 5% (500,000) of the shares in July 2006 and will receive 5% of the remaining earmarked shares in the July of each following year.

To maintain its status as a charitable foundation, it must donate at least 5% of its assets each year.

In October 2006 the Bill & Melinda Gates Foundation was split into two entities: the Bill & Melinda Gates Foundation Trust, which manages the endowment assets and the Bill & Melinda Gates Foundation (conducts all operations and grantmaking work, and is the entity from which all grants are made). It was also announced that there was a decision to spend all of the Trust's resources within 50 years after Bill's and Melinda's deaths. Reason being, that they wanted to ensure that the Foundation Trust not fall into a situation where the vast majority of its expenditures are on administrative costs, including salaries, with only token amounts contributed to charitable causes.

It is refreshing to see uncorrupted influence, a thing to which we can all aspire. Happy Birthday Bill Gates.