Jeff Bezos, the founder of Amazon, has announced the creation of a new philanthropic fund. The Day One Fund, which got its name from Jeff Bezos treating every day like it is 'Day One' of running Amazon, will focus on two separate areas. One portion of the fund will go to helping homeless families, and the other to preschool education for underprivileged children.
The funds are in response to criticism from people who feel that the richest man on Earth should put some of his billions toward helping others. Although Jeff Bezos has donated money to charity before, his philanthropic efforts had fallen short of others such as Bill Gates or Warren Buffet. Jeff Bezos listened to these critics, and asked for suggestions on what direction to go with his money from followers on Twitter. In June, he announced that he'd made a decision, and would reveal that choice by the end of summer. He fulfilled that promise, by revealing the Day One fund on September 13th.
The fund will be launched with 2 billion dollars, divided between two areas. The first part of the fund, called the Day 1 Family Fund, will focus on providing money to charities that assist the homeless. This includes annual leadership awards for charities that go above and beyond to make a change in the world, such as the shelter, “Mary's Place” in Seattle, who made it their goal to ensure no child sleeps outside. Bezos mentions that Mary's Place was the inspiration for this fund in his Twitter announcement.
The other half of the fund, known as the Day 1 Academy fund, will be directed toward creating Montessori style preschools in underprivileged areas, with full ride scholarships available. Montessori education allows learning through guided play, and uses the child's own interest to help develop their mind. It is one of the biggest gifts to ever be given to preschools.
It isn't yet known how far along the Day One Fund is towards completion, or when the fund will be officially launched.
This announcement comes with mixed reactions from the public. While some people praise him for his philanthropic effort, others criticize him because he has given so little compared to his huge fortune. According to David Callahan, the founder of a website called Inside Philanthropy, focusing on philanthropic efforts later in life is fairly normal.
"With big fortunes like that, the only thing you can really do is give it away -- unless you want the government to take half of it through estate tax,” Callahan stated recently.
This statement has been proven true with the very same people Bezos is being compared against. Bill and Melinda Gates did not focus on their charity until after they had stepped away from the business, and many others did not begin donating until much later in life. At 54, Bezos is just on time to join the mega givers, and is a welcome first step in his philanthropic efforts.