Inyathelo in the Headlines

R283m a year into Motsepe Foundation? - 03 Feb 2013 - Sunday Times

While the foundation's website has limited information on the projects and funds distributed to date, it states that ARM handed over a church in Nkandla to President Jacob Zuma's wife MaKhumalo last year. The foundation's partners include the Department of Women, Children and People with Disabilities, Government Communication and Information Systems, the Business Women's Association, Graca Machel Trust and Sanlam. ARM's empowerment trust has distributed R95-million to date.

The Motsepes said they will become the first billionaire family outside the US to sign Bill Gates's Giving Pledge.

Signatories of the Giving Pledge, where billionaires promise to give the majority of their wealth to philanthropic causes and charities of their choice, include Bill and Melinda Gates, Warren Buffett, Microsoft co-founder Paul Allen, New York City mayor Michael Bloomberg, Facebook founder Mark Zuckerberg and Pretoriaborn Eton Musk, founder of PayPal and electric car company Tesla Motors.

Philanthropy advisers opening doors

THEKISO ANTHONY LEFIFI

PATRICE Motsepe's much publicised grand gesture to the country's poor coincides with a growing number of international philanthropy advisers coming to South Africa.

"They are following the money. Where there is money there are business opportunities," said Inyathelo's programme director Gabrielle Ritchie.

Local financial companies are launching dedicated philanthropy units. Nedbank has one and Citadel has Citadel Philanthropy Advisors, headed by Philip Faure. He and his team recently completed a research report that is yet to be published on the philanthropy sector.

Faure lauded Motsepe and his family, saying: "We need more of those role models like him."

Ritchie said Motsepe's decision to go public instead of flying below the radar ensured that this kind of social commitment and investment was being seen for what it was — a deliberate and considered effort to contribute to South Africa's long-term social and economic development.

According to a 2010 global giving research report by Barclays Wealth, almost a quarter of high-net-worth individuals globally said charity was a top spending priority. It also revealed that South Africa, US, Ireland and India are tops in donating both money and time.

A similar report in the same year by BoE Private Clients (now Nedbank Private Wealth) showed that 60% of high-net-worth individuals do not have a giving strategy or budget. Nedbank Private Wealth's head of philanthropy Anna Vayanos said she normally advises her clients to set up trusts that can achieve their goals if they are supported by the right trustees.

There are two schools of thought on philanthropy —giving while living with the aim of monitoring developments, or making a provision for giving after death through wills.