In a speech in India last week aimed at encouraging rich Indians to give more, Bill Gates argued that people who inherit their money are less charitable than newly rich entrepreneurs. The Center for High Impact Philanthropy at the University of Pennsylvania claims that this statement is true. First, self-made rich people feel empowered to donate their money because they feel that their wealth is truly theirs, rather than feeling a sense of responsibility as stewards of someone else’s money. Second, the self-made rich have confidence that they can earn more money while inheritors don’t always have that confidence.
Some people who inherited wealth are also charitable, such as Brooke Astor, the Walton family, and the Rockefellers. These people are more likely to donate if they grew up with charitable rituals in their family.
See Robert Frank, Are the Self-Made Rich More Generous than Heirs?, W.S.J., Mar. 28, 2011.
Special thanks to Jim Hillhouse (WealthCounsel) for binging this to my attention.
