Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Business of Giving: Why George Soros Is Right, Again


Philanthropist's bailout of troubled schools serves as an example to all.

How's this for an investment? Imagine that you could turn $35 million into $175 million by simply writing a check.

That's what billionaire and philanthropist George Soros did earlier this month when he donated the $35 million that New York State needed to qualify for $140 million in federal stimulus money. His donation ensured that 850,000 low-income children in New York had the money they needed for school supplies, winter coats, and new backpacks.

Because of New York's $2.1 billion budget gap, there was no way Governor David Paterson would have been able to secure the $35 million necessary to draw down the federal funds. Now that the state has the money, it will be distributed in an equitable manner using the state's food stamp and welfare registries to target low-income families that need the help the most.

This is an excellent example of the benefits of private-public partnership. Private corporations and foundations would do well to follow Soros' lead and invest their philanthropic dollars into programs that benefit populations already identified as at-risk.

And there's no shortage of those. In California, thousands of children are at risk of losing state-sponsored health-care benefits through the State Children's Health Insurance Program (SCHIP) because of the state's financial woes. In Arizona, elder abuse cases go uninvestigated because that state had to lay off social workers to balance its budget. These are just two of the many programs that could use an infusion of private capital.

Some have loudly criticized Soros' donation, saying it amounts to a government handout. I don't see it this way, and neither should others who are in a position to give. If you have children, you know that back-to-school supplies aren't luxury items -- they're necessities.

The average family will spend $549 on back-to-school supplies this year according to the National Retail Federation. For a family with limited resources, where else would this money come from? Without extra funding, thousands of children would not be prepared to start the school year.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos