In the Spotlight: How Public Figures Manage Wealth While Giving Back

Celebrity wealth often makes headlines for all the obvious reasons. A new mansion, another business acquisition, a million-dollar brand deal. But what happens to that wealth beyond their careers is just as interesting. Look at Bill Gates, Oprah Winfrey or LeBron James. Their investments and charitable work go far beyond their day jobs. There are investments, foundations, charitable commitments and, in some cases, entire organisations managing money for specific causes. It gets complicated pretty quickly. And interestingly, not everyone handles it in the same way.

The Foundation Isn’t Always the First Step

Private foundations let wealthy donors decide where their money goes, but running one comes with paperwork, compliance and ongoing costs. Some have chosen other arrangements. Mark Zuckerberg and Priscilla Chan, for example, launched the Chan Zuckerberg Initiative in 2015. It wasn’t set up as a traditional charitable foundation alone. The organisation uses an LLC alongside a private foundation and other entities. That makes a difference when the work involves both charitable projects and commercial investments.

Say there’s a medical research project that needs funding. A grant might be the right option. But if a startup is developing technology to detect diseases earlier, an equity investment might make more sense. Same broad area, completely different financial requirements. The LLC structure gives the initiative room to make commercial investments, while the foundation operates under charitable regulations. It’s a useful example of why wealthy individuals don’t always put every charitable activity through one foundation.

The DAF Approach Is Quite Different

Donor-advised funds (DAFs) give wealthy donors a way to keep their charitable giving in one place. They can put in cash or assets and decide which charities should receive the money over time. Grants can then be recommended over time.

There’s a tax angle, too. Imagine an investor holding shares worth considerably more than their original purchase price. Selling those shares before donating the proceeds could trigger capital gains tax. Contributing eligible appreciated shares directly to a DAF may offer tax advantages, depending on the investor’s circumstances and applicable regulations. The money can then be distributed to charities gradually. Once the money goes into a DAF, the sponsoring organisation manages it, while the donor decides which charities should receive grants.

When Giving Takes the Form of an Investment

Not every public figure is interested in running a foundation. Some would rather put their money into businesses. Serena Williams has taken this route through Serena Ventures, which invests in early-stage companies. The firm has focused on founders and businesses that have historically received less attention from traditional venture capital investors. It’s a commercial model. The companies still need to grow and deliver returns. But the choice of investments reflects a particular interest in who gets access to funding.

There are other ways this plays out in a portfolio. Some investors look at ESG factors when choosing listed companies. Others back healthcare startups, education technology or renewable energy businesses. Property investors might consider affordable housing or infrastructure projects. None of these automatically qualifies as a good investment, though. A startup can have an impressive social mission and still run out of cash. An ESG rating doesn’t tell the whole story about a company’s actual practices. The usual investment checks still apply. Revenue, management, risk, valuation and the exit strategy all matter.

It Doesn’t Have to Be About Millions

All this talk about foundations, investment funds and trusts can make philanthropy sound like something reserved for billionaires. It really isn’t. For most individuals, giving is much more straightforward. Some set aside a fixed amount every month. Others contribute annually or support a particular cause when they can. For Muslim donors, there is also Zakat to consider. Unlike general charitable donations, it has specific rules around calculation, eligibility and distribution. Those requirements matter when deciding where the money should go. People looking to give zakat can contribute towards eligible patients through charitable healthcare initiatives.

But always check how the organisation handles Zakat funds. Look at its distribution policy, how beneficiaries are assessed and whether its financial reporting is available. It’s easy to focus on the amount being donated. Knowing where it actually goes is just as important.

A Different Way of Looking at Personal Wealth

Foundations, donor-advised funds, commercial investments and charitable trusts all serve different purposes. There isn’t one structure that works for everyone, and most people won’t need anything particularly complicated. But the underlying question is worth considering, regardless of the size of someone’s portfolio. How much of personal wealth is being put towards something beyond personal financial security? For some, that’s funding medical research. For others, it’s education, community projects or helping people access essential treatment. The amounts and methods vary, but charitable giving doesn’t have to be an afterthought in financial planning.

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