If the charity continues to do well after the first year of funding, the VPs want to get other VPs involved in a second round of financing and donate even more money to the charity. Soon, the charity goes public . This allows the charity to accept donations from the public at large, not just the VPs. Everyone wants to get in on the action because they know that their non-monetary return is the short run and the long run will be huge, much better than putting their savings in the bank or Microsoft stock. There is such incredible demand, that the size of the average donation on the first day of donating rises dramatically.
Nobody wants to be left out.
While my wife, Michele, and I don't expect my VP scenario anytime soon, we've found that anyway you look at it, the logic behind giving is compelling . Hopefully we'll be able to convince a lot more people to step up to the plate and establish big funds and actively manage them. Everyone wins in that scenario.