This lesson explores the reasons why some rich people give a lot of money away to good causes.

Famous Philanthropists Past and present

What is a Philanthropy? Philanthropy is literally, “Love of Humanity.” Positiv Causes Public Good Quality of Life

What is a Philanthropist? A philanthropist, in the true sense, is anyone who devotes time, money and effort towards helping others. However, when people talk about philanthropists they are usually talking about successful business people who have given very large sums of money to particular causes. Despite their good works, some philanthropists receive criticism for the ruthless ways in which they made their money in the first place.

Case Study 1: Andrew Carnegie ( ) Andrew Carnegie emigrated to America when he was a young boy. His family was so poor that they had to borrow the money to pay for the passage. Together with a friend he invented the idea of the ‘sleeper’, a train on which people could sleep on long journeys, instead of getting off and staying in a hotel. With the money he made, he started Carnegie Steel, and made a fortune. He gave away most of his money for the building of libraries, schools and universities in Scotland, America and the rest of the world.

A Carnegie Library Carnegie’s birthplace A Carnegie University

Andrew Carnegie said: ‘Man does not live by bread alone. I have known millionaires starving for lack of the nutriment which alone can sustain all that is human in man, and I know workmen, and many so called poor men, who revel in luxuries beyond the power of these millionaires to reach’

What did he mean by this?

List the things which can ‘sustain all that is human in man’, and the things which make us poorer. enrichimpoverish

Case Study 2 : Henry Ford ( ) As a child Henry Ford was passionate about mechanics. By the age of 15 he had a reputation as a brilliant watch repairer. He became interested in petrol driven engines. When he was 36 he invented the Quadricycle. When his interest turned to motor racing, he founded the Ford Motor Company. The company invested in a system of conveyor belts. Soon black Model T’s were rolling off the ‘assembly line’, and he made a fortune selling inexpensive cars to ordinary people who had not been able to afford them before. He left most of his vast wealth to the cause of ‘human welfare’.

Henry Ford’s birthplace Model T Quadricycle

Henry Ford said: ‘To do more than the world has done for you – that is success!’

List the people/things which have helped you make a success of your life so far, then think about what you give to others. inputs outputs

Case Study 3: Oprah Winfrey (1954 -) Oprah’s grandmother raised her for the first 6 years of her life. She was often beaten. She used to interview her corncob doll, and the crows on the garden fence. Later she ran away from her mother’s home at the age of 14, and she was sent to live with her father, who took an interest in her education. She won a scholarship to Tennessee University, where she did some work for a local radio station. Oprah became a ‘News Anchor’, and later, a talk show host. Her show has the highest ratings in TV history. Oprah’s ‘Angel Network’ has raised over 51 million dollars to make a difference to the lives of the under- privileged. ALL the money raised goes to the charity. Oprah pays all the administration costs.

As a child In South Africa The Oprah Winfrey Show

Oprah Winfrey Says: ‘What material success does is provide you with the ability to concentrate on other things that really matter.’

What are the things in life that really matter to you personally? What is unimportant to you? important unimportant

Case Study 4: Anita Roddick ( ) Anita Roddick’s Italian parents ran a café on the south coast of England. Her mother was very keen on re-cycling. While working for the United Nations she travelled the world, learning a lot from other cultures. While her husband was working abroad Anita founded the ‘Body Shop’ selling 15 cosmetic products to make a little extra money. The Body Shop now has 1,980 stores and 77 million customers worldwide. The Body Shop uses Brazil nuts from Amazonian Indian tribes in its moisturisers. A paper factory in Nepal makes their scented drawer liners. Body Shop soap is made in a factory in a depressed area of Glasgow, using workers who were previously unemployed. Anita didn’t ‘want to die rich’. She set up a Foundation to give away her £51million. Donations are made to organisations committed to global justice, human rights and the environment.

Harvesting Brazil nuts One of the stores In Africa

Anita Roddick said: ‘If you think you are too small to make an impact, try going to bed with a mosquito in the room.’

What does she mean?

Case Study 5: Bill Gates (1955- ) Bill Gates was born to wealthy family, and had the opportunity to work with computers at his exclusive school, which was unusual at the time. While he was still at school Bill and his friend founded a company selling traffic flow data systems to state governments. He dropped out of Harvard University to start his own software company. His software package ‘Windows 3.0’ sold 10 million copies over 2 years. As chairman of ‘Microsoft’ he has been named the richest person in the world 12 years running. Bill and his wife Melinda have established a Foundation worth $29.2 billion. It provides life saving health care products and technology to the poorest parts of the world. It funds research in to Aids, mosquito nets (against the spread of Malaria), and vaccines against polio and diphtheria. He has given away more money than anyone else in history.

Microsoft, Seattle Advertising Windows Promoting healthcare in Africa

Bill Gates says: ‘Is the rich world aware of how the four billion of the six billion live? If we were aware we would want to help out, we’d want to get involved.’

Do you think people want to ‘help out and get involved’? If they do, what’s stopping them?

Glossary Philanthropist – a generous donor, a good hearted person Criticism – suggestions for improvement Luxury – a treat, extravagance Sustain – continue, keep up Enrich – improve, develop Impoverish – weaken, make poor

Why Philanthropy?

At least 80% of humanity lives on less than 10$ a day

The poorest 40% of the world’s population accounts for 5% of global income.

The richest 20% of the population accounts for 75% of the worlds income.

22,000 children die each day due to poverty.

Nearly 1,000,000,000 people entered the 21st century unable to read a book or sign their own names.

In 1997, less than 1% of the worlds spending on weapons would have been needed to put every child into school by the year Did that happen?

1,100,000,000 people in developing countries have inadequate access to water. 2,600,000,000 lack basic sanitation.

More than 660,000,000 people without sanitation live on less than $2 per day. More than 385,000,000 on less than $1.

Access to piped water averages 85% for the wealthiest 20% of the worlds population. For the poorest 20%, only about 25% have piped water.

1,800,000,000 consume 20 liters of water a day or less. The average water use in the US is 600 liters/day

Close to half of all people in developing countries suffering at any given time from a health problem caused by water and sanitation deficits.

1 in 3 children in developing nations lack adequate shelter

1 in 5 children in developing nations lack access to safe water

1 in 7 children in developing nations lack health services

The Gross Domestic Product of the 41 Heavily Indebted Poor Countries is less than the wealth of the worlds 7 richest people combined.

PriorityBillions of Dollars Spent Basic Education for all6 Water/Sanitation for all9 Basic Health and Nutrition13 Cosmetics in the USA8 Pet Foods in USA and Europe17 Cigarettes in Europe50 Alcoholic drinks in Europe105 World Military Spending780

At least 80% of humanity lives on less than 10$ a day