A new class of philanthropists, mainly from the software and computing industry, are disrupting traditional philanthropy with their own approach. These young and impatient individuals are keen to make a difference quickly and are often too busy running their businesses to be deeply involved in charity work. Instead of setting up private foundations and hiring teams to manage their money, they are choosing to give their wealth to existing organizations and trusting them to allocate the funds effectively. One example is Andrew White, who gave his money to Founders Pledge, a British charity, and asked them to focus on education and poverty relief in developing countries.
The tech industry dominates both wealth creation and charitable giving. Forbes estimates that 26 of the world’s 100 richest people in 2022 made their money in technology, and seven of the top ten are from the tech sector. Similarly, the Chronicle of Philanthropy states that around three-quarters of the $33.4 billion given away by America’s 50 biggest donors in 2021 came from tech entrepreneurs. Tech magnates also hold a significant portion of India’s super-rich wealth and contribute a large portion of charitable giving. This influx of money from the tech industry is bringing with it a different culture and worldview.
Compared to the traditional philanthropists of the past, these new philanthropists have a different approach. The likes of Andrew Carnegie, Henry Ford, and John D. Rockefeller, known as the grandfathers of modern philanthropy, established their own foundations and were deeply involved in managing their charitable efforts. In contrast, the new tech philanthropists are more hands-off and trust existing organizations to allocate their funds. They are focused on making a quick impact and are influenced by the disruptive culture of the tech industry.
Overall, the rise of tech philanthropists is changing the landscape of charitable giving. Their approach is characterized by trust in existing organizations, a focus on quick impact, and a culture shaped by the tech industry. As their wealth continues to grow, their influence in philanthropy is likely to increase, bringing new perspectives and approaches to the sector.
