Bill Gates seen as role model in philanthropy

By JESSICA GUYNN
San Francisco Chronicle
June 25, 2006

The 19th-century steel magnate Andrew Carnegie, who late in life reshaped his legacy from predatory businessman to renowned philanthropist, famously said: "He who dies rich dies thus disgraced."

Like Carnegie, Microsoft mogul Bill Gates wants to be remembered not just for how ruthlessly he made his fortune, but for how he gave it away.

The world's richest man recently announced that in 2008 he will step back from day-to-day oversight of the company he founded with Paul Allen to focus his attention on the Bill and Melinda Gates Foundation, which has pledged to spend billions of dollars on health, education and overcoming poverty.

Gates' decision has led to speculation that he could influence other self-made philanthropists to step up their efforts in Silicon Valley.

"He's setting the standard for what wealthy entrepreneurs in this generation ought to be doing," said Kathleen Gwynn, chief executive officer of the Steven and Michele Kirsch Foundation in San Jose, Calif. "He has the financial capacity, the intellect and the drive to make a real difference. He could be the Carnegie of our generation."

In Silicon Valley, David Packard and William Hewlett pioneered a philanthropic tradition emulated by everyone from Intel founder Gordon Moore to entrepreneur Steven Kirsch to Oracle CEO Larry Ellison. But the region was dubbed "Stingy Valley" after a 1998 study showed that a quarter of households with incomes in excess of $100,000 gave $500 or less a year to charity.

In recent years, tech-boom beneficiaries have become tech-boom benefactors in greater numbers, helping Silicon Valley shed its tightwad image.

"This is one of the areas where there are new ventures in philanthropy and new directions in philanthropy," said Paul Schervish, director of the Center for Wealth and Philanthropy at Boston College.

Schervish predicts Gates will become a prototype for the wealthy who, when faced with limitless quantity of choices, may begin to consider the quality of their choices.

"It's a fulfillment of a deeper purpose and something he will find bigger happiness in," Schervish said.