Winklevoss patents technology and business process to let donors manage gifts. How generous of Winklevoss! Why does giving attract these people? Don't they understand the commons? The spirit of thing? "Let's corner the market on giving." Great attitude. May Dante have the last word. (He's the guy collects Debts for the Holy Spirit.)
On the other hand, I may just be grouchy because I didn't think of it myself. I can see this Donor Managed Investment Account being very popular with both donors and the advisors who "control the case." Charities may have nothing to lose and something to gain from providing these donor friendly vehicles. Somebody is going to make a lot of money off this - so, hey, its a "win/win" situation, right? I just wish that the spirit of giving could figure a little higher in the overall scheme of things. Should we rejoice that we may soon have a billionaire who made his money off others folks gifts? Why not. This is America. But I do hope that some of that giving goes to develop a little more heart and little more soul in this wasteland of commercialism, I mean, Utopia.
I have my doubts about the wisdom of proactive donor management. Creating wealth and disbursing it productively are two separate skills. Donor genius, like investor genius, lies in finding people who will maximize the funds they're given.
What might help donors more is a comprehensive survey of advisors. There are any number of ways to rate them, from low overhead to persistence in ameliorating challenging conditions.
Posted by: Harry | November 27, 2004 at 08:35 PM
Donor may have decided that money will go to Wheaton in 5 years. By using Winklevoss, donor gets current deduction while continuing to manage the funds. Likewise, an investment advsisor might like Winklevoss, since it would allow the client to give money away while keeping it under the advisors management. Shopping for advisors and grant advice is another whole topic. A lot of this giving is actually driven or facilitated by the client's advisory team. What Winklevoss does is lighten the advisors reasons for undercutting the potential gift. A lot of what is happening today in the financial services world is "capturing" and managing gift monies, through foundations, donor advised funds and now Winklevoss. You would be surprised: If you sell advisors on a concept and compensate them, clients will be found.
Posted by: Phil | November 27, 2004 at 11:12 PM