It was Carnegie who broke from the traditional ideas about simply handing out money to the poor. New entrepreneurs also prefer causes focusing on education and youth, says Ann Kaplan, research director of the American Association of Fund-Raising Counsel. Contributions to health, human service and environmental groups also jumped last year. Contributions to private foundations are also on the rise, jumping more than 20 percent last year, says Kaplan. The fund makes grants to nonprofits that run profitable businesses that train and employ the formerly homeless, very low income and disabled individuals.
Philanthropists acknowledge measuring outcomes is the most difficult part of the process.
For its part, SVP asks for 12-month objectives from the groups it works with, but doesn't want to bog them down with a lot of paperwork. While there's been some talk that the new wave of millionaires aren't yet giving in proportion to their wealth, most experts say they're not worried. Shoemaker is also optimistic that the new entrepreneurs will be remembered for their generosity. I'll make a bet with anyone that this generation will give an awful lot away. The Gates Foundation was founded just four years ago.