To paraphrase a Chinese proverb, it is a good habit to give away that which you find most valuable.
There's no telling if eBay Founder Pierre Omidyar has ever heard that wisdom, but he and his wife, Pamela, have decided they will give away all but 1 percent of their wealth -- which is now about $6.6 billion -- by the year 2020, Forbes magazine reports.
Rather than focus on specific groups, Pierre Omidyar told the magazine he and Pamela want to use their billions to foster a new sense of community in the nation, which they believe would solve other social problems.
"People on the street won't look you in the eye because they are afraid you're an ax murderer," Omidyar said. "The idea of a community, with difference and common responsibility, has been lost in America. We want to bring it back."
What he is proposing is part of the new "venture philanthropy" trend. The Omidyar Foundation has a full-time staff of two and relies mainly on consultants and the organizations it funds to complete the bureaucratic end of philanthropy.
Meanwhile, he plans to donate money to charities with solid records of following business plans that meet Omidyar's expectations, which include creating revenue streams to sustain nonprofit work. He then plans to cast aside the ones not working and expand the successful ones.
The Omidyars donated $10 million to their alma mater, Tufts University, but there was one stipulation: the school couldn't just drop the money into its endowment; it has to apply it to programs. Some of the money will be used by students who want to help out poorer neighborhoods near the university, and for scholarships.
Such venture philanthropy is expected to be the new trend in giving in the coming years, as today's got-rich-quick Internet tycoons approach middle age and look for ways to directly help other people. Many of these high-tech philanthropists say they want their money used for specific projects, rather than letting a charity or large foundation decide how to spend it.
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