5 Donations that changed the world

"The simplest acts of kindness are by far more powerful than a thousand heads bowing in prayer." Mahatma Gandhi

"Giving is not just about making a donation. It is about making a difference."- Kathy Calvin

"I intend to leave after my death a large fund for the promotion of the peace idea, but I am skeptical as to its results." Alfred Nobel

We all would like to think we've made some sort of positive difference in the world, and charity is one of the most impactful tools there is to do so. For most of us, our donations are but a drop in the bucket but still can keep a cause afloat. Even for the wealthy, their big contributions often go to slapping their name on some building, supporting a church or arts project that most people won't benefit from. How then, can a prospective donor make the most difference in the world?

One way to make a difference is to think before you donate and check out each charity on a site like Charity Watch or Charity Navigator. Many pay their executives too much and devote too little to actual services. The best ones get the money directly to those who will put it to the best uses.

I've been thinking about what makes a donation the most impactful, and came upon some stories that I'd like to share to inspire people, (especially you rich people reading this), on how to make the most difference for those coming behind you. Here are five stories that inspired me.

1- Alfred Nobel. Nobel was a Swedish chemist and inventor in the 19th century who was best known as the inventor of dynamite and other explosives. Before he came along most explosives were too volatile to be practical, but dynamite could be inert until activated, making it very useful for construction and, unfortunately, warfare.

There's an unconfirmed story that Nobel saw an obituary for him that was erroneously published, and it chided him as a merchant of death. His main claim to fame had been a destructive substance responsible for many deaths, something he regretted much like Oppenheimer did after creating the atomic bomb. According to the story, that obituary struck him so hard that he decided to make his legacy something more meaningful by donating his entire fortune at death to a new prize that would be handed out annually.

Even if this story is an exaggeration, something prodded Nobel to want to make more of a difference, and he came up with the idea of the Nobel Prize. The first prizes were handed out in 1901, and they have continued to garner worldwide interest ever since. The prizes inspired the leaders in key disciplines- Chemistry, Medicine, Physics, Literature, and Peace to scour the globe for the best ideas that were worthy of the prestigious prize. A prize in Economics was added later.

Every October the entire world now waits in anticipation to see who won the Nobel prize for that year, and it has become a lightning rod for innovation and discovery. The Peace Prize holds a special place in history as it recognizes leaders who have "done the most or the best work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses". The Peace Prize is known as the most prestigious honor in the entire world.

Robert Oppenheimer spent the last years of his life deeply regretting the pain and suffering that his work on the atomic bomb had caused. Alfred Nobel also had regrets, but he did something positive about it- leaving a legacy that inspires a world over a century after his passing.

2- Jonas Salk. For most of human history, Polio has been a scourge that resulted in paralysis and death for many. While polio is easily spread and infectious, for most humans there are no symptoms. But for an unfortunate 1%, the disease enters the nervous system and can cause devastating affects. President Franklin D. Roosevelt famously was confined to a wheelchair because of polio.

But in 1955, Jonas Salk, an American virologist and medical researcher came up with the very first polio vaccine. The vaccine was easily ingested in a sugar cube and probably has saved millions of children from a life of paralysis worldwide.

Curiously, Salk never applied for a patent for the vaccine, a move that may have cost him and his estate billions of dollars. When asked who owned the patent for the vaccine, Salk famously answered, “The people, I would say. There is no patent. Could you patent the sun?" This lapse of a patent allowed the vaccine to enter mass production almost immediately and saved many lives. His act of generosity was not one of money, but of not taking money. I doubt you would see Big Pharma doing the same today.

Later on, Salk established the Salk Institute for Biological Studies near San Diego, a hub for research that has produced breakthroughs on cancer treatments, brain health, and hormonal research. Salk said the institute may eventually eclipse the polio vaccine in importance, saying "In the end, what may have more significance is my creation of the institute and what will come out of it, because of its example as a place for excellence, a creative environment for creative minds."

3- Frances Jacobs. Known as the "Mother of Charities," this little-known 19th century woman was a driving force for charity work in Denver in the 1870's and 1880's. She founded the Hebrew Ladies Benevolent Society and the Denver Ladies' Relief Society to help new immigrants who were struggling with diseases and homelessness.

Denver was a popular spot for people with tuberculosis, looking for cleaner air with which to heal. She made TB one of her projects and she was able to establish a new hospital, the National Jewish Hospital for Consumptives. This hospital was the first of the nation that took in tuberculosis patients for no charge and has been a center for research on the debilitating disease.

But perhaps the most impactful of Jacobs' many charitable endeavors was the Denver Charity Organization Society, which she formed in 1874 along with four other religious leaders of other faiths. It was the first group ever to consolidate charitable contributions and distribute them to the neediest organizations, eventually supporting 23 charities.

This small group eventually evolved into Community Chests in many cities across America in the early 20th century. The Community Chests became the United Fund after World War II, and eventually became what we know as the United Way. The United Way, mostly supported by employer contributions, is one of the most impactful civic organizations for any community. Today it distributes moneys to local nonprofits that otherwise wouldn't have the ability to fundraise much for themselves.

Most people aren't aware of the needs around them, so if they donate, they give to the causes that are nearby, that advertise, or that barrage them with mail and pleas for donations. Frances Jacobs made it possible to democratize donations, and give communities a chance to see the big picture of what needs to be done. The United Way now carries on her valuable work and does its best to get donations to where they are most needed in communities they serve. Jacobs is now in the Women's Hall of Fame.

4- Bill Gates and Warren Buffett. Bill Gates, one of the founders of Microsoft, is currently worth about $100 Billion. Warren Buffett, president of Berkshire Hathaway, has a net worth of about $150 Billion. Together these two have been a role model for how the uber-wealthy should handle donating their estates to charity.

Gates founded the Bill and Melinda Gates Foundation in 2000 and it has become one of the most impactful vehicles for charity ever since. He and his wife have behaved differently from most of their fellow billionaires by being concerned about inequality and suffering. As they write on their website:

"One day, we read a newspaper article about millions of children in poor countries who die from diseases, such as diarrhea and pneumonia, that were easily treated in wealthier countries. That blew our minds. As new parents it hit us especially hard. If there’s anything worse than the death of a child, we said to each other, then surely, it’s the preventable death of a child. We sent the article to Bill Sr. with a note: Dad, maybe we can do something about this."

The Gates Foundation has invested heavily in global health and development, especially in poorer countries. They saved millions of lives by increasing access to vaccines, treatments, and prevention for AIDS, tuberculosis, malaria, and polio. Donations have helped improve maternal health and reduce child mortality, while also improving sanitation and access to clean water. They have also championed educational tools, climate change action, and encouraged other billionaires to donate via the Giving Pledge.

One billionaire who joined in the Giving Pledge was Warren Buffett, who has donated much of his money to the Bill and Melinda Gates Foundation. Buffett, who is known for his keen investing acumen, still lives a much simpler life than most super-wealthy investors. Buffett lives in the same house he bought in 1958, even though he could afford a mansion, and drives a simpler car than most billionaires. He is known to be frugal and still spends most of his time in Omaha, Nebraska.

Both Gates and Buffett have pledged to leave the vast amount of their estates to charity- specifically the Gates Foundation. While both men have children, they have resisted establishing family dynasties. They would prefer to see their money do some good for the less fortunate.

5- Mackenzie Scott. The rise of Silicon Valley and the tech industry has created a record number of billionaires in the 21st century. Most of them, like Elon Musk, Jeff Bezos, Peter Thiel, Mark Zuckerberg, Larry Ellison and others, have not been nearly as generous as Buffett and Gates. Many have turned to the world of politics, giving millions of dollars to shape elections and elect people friendly to their businesses.

While many have signed Gates' Giving Pledge, most have supported political movements that seem antithetical to their desires to help the less fortunate. There is one glaring exception to this group of tech titans, and that is Mackenzie Scott.

Scott was married to Amazon founder Jeff Bezos from 1993-2019, and she famously got a huge divorce settlement of Amazon stock with the separation. But rather than buy a $500 million super-yacht, as he ex-husband did, she has determined to donate most of her money to charities. She set up her own foundation and so far donated almost $20 Billion dollars to around 2500 different non-profit organizations.

Thanks to Amazon's continued success, Scott is still worth about $36 Billion, making her one of the richest women in the world. What sets her apart from most wealthy donors is that her donations come with no strings attached. She wants no building named after her or fancy dinner events. She has transformed herself into a one-woman United Way, hiring a team of experts who find the most deserving non-profits worldwide, with a specific focus on under-represented groups. You could imagine how many groups contact her foundation every day for money, but she has taken this responsibility seriously, and made more of a difference than most of the tech billionaires put together.

So many large donations today come with strings attached and are called restricted contributions. These donations are appreciated, but tie the hands of non-profits who want to use them. Mackenzie Scott's contributions have all been unrestricted- for use wherever the need is most. Because billionaires have large egos, they often want to exert some control over donations, because they know best what people need. They also like seeing their names on buildings and plaques for posterity. But no one knows more about the needs of a non-profit than the people running them, and that's why unrestricted funds are still the most helpful.

I may never live to see my small donations make much of a difference. That's one reason why I prefer to donate my time or expertise. One way or another, we can all make an impact on the future, and it's up to all of us to figure out how best to do it. These five stories inspired me, and I hope they inspire you as well.