If Gordon Gekko Had a Good Heart...
The vast wealth generated recently by Wall Street firms and "private money" -- hedge funds, venture-capital firms and buyout shops -- is now having a noticeable impact on philanthropy. Retired bankers like Mr. Harris, as well as still-working financial whizzes like Art Samberg, founder and chief executive of hedge fund Pequot Asset Management, and Mark Nunnelly, a managing director at private-equity firm Bain Capital LLC, are becoming more active in their charitable giving. Unlike some previous U.S. philanthropists, who waited until their 60s or 70s to start giving away their fortunes, many of the new donors say they want to be involved in philanthropy during their working lives.
The result: Many of the donors -- accustomed to the fast-paced world of building, selling and restructuring companies -- are now using their Wall Street skills to help promising nonprofit groups raise donations more efficiently and plan for long-term growth.
If Gordon Gekko Had a Good Heart, This Is How He Might Have Done It
May 16, 2006; Page C1
When J.B. Schramm founded a charity called College Summit in 1993 to help low-income kids go to college, the group had trouble staying afloat. Mr. Schramm and his board often scrounged for cash and struggled to balance the interests of well-meaning donors who sometimes attached strings to their money.
Last year, College Summit hit upon a solution: Get funding the Wall Street way. With help from retired Goldman Sachs Group Inc. investment banker Chuck Harris, College Summit fashioned a sophisticated growth plan and a "term sheet" to show potential donors. The lingo was familiar to the target philanthropists, most of whom are big shots at investment banks, hedge funds and private-equity firms.
posted by Whitney Tilson at 3:13 PM
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