This is how your donation works.

Recently, I watched tap dancing at work. According to the book, in 2006, 75-year-old Buffett announced that he would start donating his wealth in Berkshire Hathaway, with a total value of more than 40 billion dollars. He said that most of the huge wealth from society should be returned to society. He feels that his ability to allocate capital is unlikely to be useful if he does not live in a rich country with a large population (the United States).

Many people believe that their success should be attributed to their own efforts, but Buffett believes that he can become a super-rich without social dividends. Therefore, if money can be used in the right place, it is good to give back to society.

Both Buffett and Bill Gates believe that it is good to leave children proper money, but too much will hurt them. The wealth left by the rich should be enough for them to do anything, not enough for them to do nothing.

The money was mainly donated to five foundations, namely Bill and Melinda Gates Foundation, Susan Thompson Buffett Foundation (founded by Buffett's first wife) and three foundations founded by Buffett's three children: Susie Buffett Foundation, Howard Buffett Foundation and Nuohe Foundation.

They are committed to health projects around the world, American education, reproductive health, preventing the proliferation of nuclear weapons, providing assistance for early childhood education of low-income families, protecting wildlife habitats in Africa, supporting human rights and promoting understanding and respect between different cultures and races.

Many people don't understand how the foundation works. Let's look at science:

In the United States, most large foundations operate according to the concept of permanent sustainable operation, and few foundations spend more than 5% of the total asset value of the previous year. Because if the funds continue to flow out and no new donation funds come in, the donation will run out sooner or later.

Even if the expenditure is small, it will be spent. Many foundations will do some operations to ensure the preservation and appreciation of donations, mainly through financial means, such as the famous Nobel Fund.

The Nobel Prize is to commemorate the Swedish chemist Nobel, and its prize money was also established by Nobel's legacy. When Nobel died, only 6,543.8+0,000 Swedish kronor was left to be distributed to relatives and friends, and the remaining 3,654.38+0,587.2 million Swedish kronor was used as a Nobel Prize fund to award future Nobel Prizes.

3 1.5872 million Swedish kronor is converted into RMB about1.300 million yuan. Although there is a lot of money, it is not enough to stick to it. Coupled with numerous inflation and currency depreciation, the financial crisis reached 1923, and the Nobel Prize was 1438+0900 Swedish kronor.

Later, the Nobel Foundation began to test the water in the investment community, betting on global stocks and real estate. With the global economic recovery after World War II, the investment income of the Foundation has increased steadily. Therefore 100 years, the Nobel Fund has not gone bankrupt, but has been increasing.

Donations from Harvard Foundation come from individuals, alumni, enterprises and social groups. Harvard University appointed professionals to manage the fund. For 265,438+0 years, it has been famous for its impressive management and operation performance, with an average annual return rate of 65,438+0.3.14%. From the initial 1400 million dollars, it has developed to 3 14 dollars in 202 1 year.

You must have heard that China's pension funds have entered the market. The pension insurance with five insurances and one gold paid by each of us constitutes an important part of the pension fund, which is used to pay special funds for basic pensions and other statutory benefits. In addition to paying the insured's basic pension expenses, it also undertakes the funeral subsidy and survivor's pension for the insured's death due to illness or non-work-related injury, and the payment responsibility of disability allowance when the insured is completely incapacitated due to illness or non-work-related injury before reaching the statutory retirement age.

With the intensification of aging, the number of elderly people over 65 will increase sharply in the future, and the corresponding young people will become less and less. In the past, it may be that four young people pay for the maintenance of two old people, but in the future, it may be that two young people raise four old people. With the aging of the population, there will be fewer and fewer social security funds, and finally even basic security can't be paid. Therefore, it was finally decided to let the pension fund enter the market to ensure the continuous appreciation of the fund. According to the regulations, the basic endowment insurance fund is limited to domestic investment, and the investment scope includes: bank deposits, national debt, local government bonds, pension products, stocks, etc. By the end of 2020, the total equity of the basic old-age insurance fund entrusted by the social security fund exceeded 1.2 trillion yuan, and the investment income in that year exceeded110 billion yuan, with a return on investment of 9. 16%.

I had the privilege of visiting the foundation stone laying ceremony of an institution of higher learning in China. They mainly absorb donations from alumni, including well-known academicians, entrepreneurs and social successful people. Donations are mainly used for scholarships and excellent teacher training. The school has done a very good job in attracting and using donations, but it is quite conservative in maintaining and increasing the value of funds, which is limited to the basic interest of deposit banks.

As we know, under normal circumstances, the inflation rate is 3%. If the interest earned is less than 3%, the funds of the foundation will be reduced year by year when they are not used. Therefore, if the fund wants to operate for a long time, it must carry out appropriate financial operations.

Ok, that's all for today. Please leave a message if you are interested!