The Ozymandias Philanthropy Problem
Harvard University has a 36 Billion Dollar endowment. They just got nearly a half-billion dollars richer because of a donation from John A. Paulson. The school of engineering and applied sciences will now be named after Mr. Paulson.
In other charity news, the Red Cross only built six houses in Haiti despite raising nearly half a billion dollars for aide after Haiti’s Earthquake.
So how do we encourage charities to actually use the money they raise and how do we get people to donate to other places besides already wealthy non-profits? This seems to be a universal problem of prestige.*
Note to Libertarians: I am not specifically proposing any laws about donations to Harvard but that does not mean that it is not problematic that already wealthy Harvard with her already largely wealthy student body can get a lion’s share of huge donations.