Interview with Business Tycoon and Magnate Mouli Cohen
SAN FRANCISCO, Nov. 9, 2007 — There has been a perception for years that only the super-rich can act as philanthropists, donate to worthy causes and make a difference. The fact is this was largely true until recent technology developments have made it possible for the every day person to have access to the same types of planning tools previously only available to the super-rich. You no longer need a staff of employees and a lot of capital to establish a private foundation and give away money.
Over the past 10 years a proliferation of online financial services tools have been developed. Individuals can now easily do the same research online that previously was only available to stockbrokers. You can buy and trade online with the click of the mouse. The same thing is now true of philanthropy.
Being charitable is no longer just for the ultra-rich. If you give more than $500 a year you may consider using philanthropic tools such as transferring stock or using a donor advised fund. If you give money in the realm of $25000 or more per year then you should consider charitable trusts and private foundations – the same tools used by the likes of Bill Gates and Warren Buffett.
The way that you did philanthropy in the past was by first setting up a private foundation. You would then invest between $3m and $5m in order to cover the operating expenses and have sufficient funds to make ongoing donations. This is why majority of the $550bn in private foundations still resides in the mega foundations with household names. Currently more than 60 percent of foundations have less than $1m in capital. You only need about $4000 to start a foundation that really begins to put philanthropy into the hands of the everyday citizen.
DAFs or donor advised funds are aggressively driving the growth in individual philanthropy. Large firms such as Charles Schwab and Fidelity market "charitable checking accounts" with the minimum amount often being $5,000. All of this has come together to create what people are calling "tactical philanthropists." While these individuals may not possess millions of dollars they do have the same hopes and dreams of big spending donors.
These new tactical philanthropists are not only using the latest financial and philanthropic tools to give away their money but they are also exploring innovative new ways to provide value and to fulfill their philanthropic endeavors. Here are a few of them:
1) Venture Philanthropy – instead of giving away money (though money may be involved, too), venture philanthropists offer their time and intellectual and social capital.
2) Social Enterprises – these are for-profit companies that are in the business of doing social good. For example, Green Dimes is a for-profit company that is in the business of helping people reduce the enormous quantity of junk mail they received. They jokingly refer to the fact that if they are successful they will have driven themselves out of business.
3) Microcredit – these philanthropists loan money to entrepreneurs, usually in third world countries, that will help them start businesses that will raise them out of poverty.
The bottom line is that whatever your status in life you can find ways to provide philanthropic services. It can be money, intellectual capital or almost anything that brings hope and value to the receiving party. I encourage everyone to find a comfortable means to provide some philanthropic value. It is our privilege and responsibility as human beings to help others in this world where we can.
About Mouli Cohen
In his career as an entrepreneur, Mouli has been one of the few to have success in biotechnology and high technology. His start-ups have generated well over $3B in shareholder value. In recognition of his ability to generate mega-investment in the U.S. economy and the creation of thousands of U.S. jobs, Mouli was awarded the first-ever "Millionaire Residency" with full citizenship status by President George H. Bush. For press inquiries and more information please visit http://www.moulicohen.com or contact the Press Agent at 415-902-2802.