> The money will go to existing companies, startups and businesses founded by migrants. And, Soros says, he expects to turn a profit.
George Soros's net worth is approximately $25 billion (according to a quick google search).
I wonder why he doesn't just donate $500 million without the expectation of making a profit. Wouldn't that be a faster way to help refugees than making investments, which require due diligence and business plan analysis and vetting of management and so forth?
I'm guessing Soros doesn't actually expect to make a great deal of money from these. It seems like by making an investment, he will help create a self-sustaining set of business solutions rather than a donation. There is reasonable evidence that "top-down" donations a la Jeffrey Sachs do not work, and that helping people build tools creates an incentive to tackle solvable problems first, then iterate until a reasonable patchwork set of solutions/companies are effective.
This doesn't appear to be part of any strategy to increase his net worth:
"All of the investments we make will be owned by my nonprofit organization."
"They are intended to be successful—because I want to show how private capital can play a constructive role helping migrants—and any profits will go to fund programs at the Open Society Foundations, including programs that benefit migrants and refugees."
Open Society Foundations financially support civil society groups around the world, with a stated aim of advancing justice, education, public health and independent media. https://en.wikipedia.org/wiki/Open_Society_Foundations
It's a good question. My thought would be this: If you give them a bunch of money, they are likely to enjoy it, but ultimately fritter it away. If you invest in / loan them a bunch of money, you've created an expectation in them that they need to do right by you. They will strive to make that money back and honor your largesse, which allowed them to get started in the first place. In so doing, they create wealth for themselves, their employees, and indeed, the philanthropist.
Basically, I doubt he cares a whit about the money, or losing it, but he thinks the motivations from an investment are more powerful and good than those from a gift.
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[ 2.8 ms ] story [ 26.3 ms ] threadGeorge Soros's net worth is approximately $25 billion (according to a quick google search).
I wonder why he doesn't just donate $500 million without the expectation of making a profit. Wouldn't that be a faster way to help refugees than making investments, which require due diligence and business plan analysis and vetting of management and so forth?
I don't get these billionaire philanthropists.
"All of the investments we make will be owned by my nonprofit organization."
"They are intended to be successful—because I want to show how private capital can play a constructive role helping migrants—and any profits will go to fund programs at the Open Society Foundations, including programs that benefit migrants and refugees."
Open Society Foundations financially support civil society groups around the world, with a stated aim of advancing justice, education, public health and independent media. https://en.wikipedia.org/wiki/Open_Society_Foundations
Basically, I doubt he cares a whit about the money, or losing it, but he thinks the motivations from an investment are more powerful and good than those from a gift.