Philanthropic world giddy at possibilities of Gates' new role

Carnegie built libraries. Rockefeller created universities and funded research that wiped out diseases.

In the tradition of iconic American philanthropists, Bill Gates' decision to be more deeply immersed in charitable work is certain to cement the legacy many philanthropy watchers say he already has earned.

Gates' announcement last week generated palpable excitement in the philanthropic world — and not just because he's still got billions to give away.

His new role is rich in possibility.

At age 50, Gates is choosing to walk away from most of the responsibilities of running one of the world's most recognized companies.

He and his wife, Melinda, will spend their time and money instead on some of society's most enduring issues, with a distinctive, roll-up-your-sleeves approach and a laser focus on results.

"He's going to apply an extraordinary, out-of-the-box, entrepreneurial imagination that thinks of things people haven't thought of before ... to try to solve the greatest crises of our time," said Adam Meyerson, president of the Philanthropy Roundtable, a national association of charitable donors and foundations.

"Bill Gates is not going to be satisfied with incremental improvements," Meyerson said. As a successful business leader, he is "part of a tradition of empire builders, people who know how to create something out of nothing."

Gates' giving already has far exceeded donations made by Andrew Carnegie and John D. Rockefeller during their lifetimes. The Gates Foundation, the world's wealthiest, has an endowment of $29.1 billion, with grant commitments to date of more than $10 billion. Carnegie gave away $4.1 billion and Rockefeller donated $7.6 billion (both adjusted to 2006 dollars).

Philanthropy desperately needs the leadership and vision of the Gateses, said Steve Gunderson, president and CEO of the Council on Foundations, a membership organization of grantmakers.

"The rest of the [nonprofit] sector is looking to them to lead; they're just hungry for it" at a time when philanthropy's role in society is growing, he said. A recent World Bank study showed foundations will be giving away 10 times what they do today by 2050.

Though the foundation is less than 10 years old, the Gateses already have led the way by creating a model for effective giving that places a premium on data analysis, clear goals, measured results and a nimble organization to oversee it all, attracting world-class talent to manage their philanthropy portfolio.

The Gates Foundation has shown other givers "the power of what is possible," Gunderson said. "We can cure issues we didn't think we could cure.

"When someone thinks of global health today, the first things that come to mind are not the United Nations or U.S. foreign aid ... it's the Gates Foundation."

By simply changing his schedule to go full time at his charitable work, Gates is making a powerful statement, said Diana Aviv, president and CEO of Independent Sector, a national leadership forum for charities and donors.

That could galvanize other would-be philanthropists who have shied away from charity work because of pressure to achieve returns in their businesses, she said.

"Now his bottom line is building a better society," Aviv said. "If Bill Gates says there are other things in life ... that are more important to him now," that may lead others to join him.

By bringing his CEO mind-set to philanthropy full time, Gates will amplify the foundation's influence, some say.

"He's 50 years old. I suppose that there's been the expectation that he would continue on the business side of the house and move to the philanthropic side in another decade or so," said Ralph Smith, senior vice president at the Annie E. Casey Foundation.

Now, "there's sort of growing excitement as to what his participation, involvement and leadership could mean for the decades to come."

Meyerson said he spoke with a top-level Gates Foundation executive once just before the man was to meet with Gates about a grant program. Meyerson jokingly asked if the man, who seemed self-assured and competent, was nervous.

The man replied he had never been so nervous in his life, knowing he would have to be prepared for any question, that Gates would be probing for weakness in his arguments.

"That's the kind of energy he'll bring to this," Meyerson said. "He has a steel-trap mind, he understands data ... he knows how to build organizations, he knows excellence and he won't accept less."

Aviv credits the Gateses for thinking big and taking on global challenges commensurate with their resources.

The foundation already is investing in delivery methods for vaccines still just under development, she said.

On HIV/AIDS, the foundation has combined its money with "the best experts, the best science and the best strategies" to achieve results, Gunderson said.

In education, the foundation has not been afraid to take on public schools, written off by many other private donors as hopeless.

"Most foundations are not willing to stick their chins out quite so far," said Rick Cohen of the National Committee for Responsive Philanthropy.

Despite the foundation's gargantuan endowment (the foundation has been called the "Godzilla of giving"), several philanthropy observers used the word "humble" to describe the foundation's approach.

They praise the foundation for being careful not to throw its weight around, changing direction when needed, building alliances and sharing its expertise.

"They're all over the world, wanting to understand the issues," said Lauren Moore, Starbucks director of giving and board president of Philanthropy Northwest, an organization promoting effective grantmaking.

"They've brought a new generation into this world — people who didn't want to just write a check and walk away."

Pictures on the Gates Foundation's Web site emphasize the people whose lives are affected by the foundation's work and show the Gateses' giving philosophy in action: Melinda sitting on the floor with commercial sex workers in India; Bill peering over the shoulders of high-school students in New York.

Aviv said young, wealthy entrepreneurs just beginning to think about their own giving are watching the Gateses' every move — "and the foundation's impact is likely to be profound as those new funders come in."

Staff writer Linda Shaw contributed to this report.

Jolayne Houtz: jhoutz@seattletimes.com; 206-464-3122