Donation for Fun Gaining Momentum
By Kwon Mee-yoo
Staff Reporter
A group of investors are seeking to follow in the steps of investment guru Warren Buffett, who is a proponent of value investment and has a penchant for philanthropy.
The group set up an investment fund from which half of the gains are donated to charity. The investors, operating the Internet cafe "Wise Investors' Group," recently donated 1.2 million won ($1,000) to the Beautiful Foundation.
The group, established by seven office workers, met at an online club in 2007 and established a fund for charity ― "Graham Donation" ― in May 2008. Benjamin Graham was the first proponent of value investment and a mentor to Buffett.
The fund recorded 2.4 million won in investment gains and recently donated half to the Beautiful Foundation. They recorded an 11.4 percent return, which is relatively solid in view of the global financial meltdown last year.
"It's not a large amount, but we want to set a precedent for people to donate from stock investment profits," a member of the fund said. The members declined to disclose their names. They donated their first year's gains and will continue the donations with new members.
Donation Getting Diverse
Donation is becoming a fun trend among youngsters with creative ideas.
The Beautiful Foundation said more than 80 percent of its donations are collected through its Web site (www.beautifulfund.org). On the site, donors can decide which project their contributions will be used on. The foundation distributes money to various sections of society - the poor, the disabled, children, the environment, civic organizations and others.
"When people donate, they can write their own reasons for the contribution," said Kim Jin-ah.
For example, one non-regular worker donates 8,800 won monthly in recognition of the "880,000-won generation," which refers to young people who make this amount in monthly income even with college diplomas.
"Another person donates a certain amount of his taxi fare he pays when going to appointments for which he arrives on time," Kim said.
The "One Percent Donation" is a type of donation offered by the foundation in which contributors regularly donate 1 percent of their monthly salary, cost of living or cigarette money. "More than half of the 'One Percent Donation' comes from people in their 20s and 30s," said Kim.
"Young people tend to make donations which are meaningful to them. It is different from the previous trend of donating out of sympathy," Kim said. "Most donors start with one-time subscriptions and then move to periodical donations. Some contribute when they have achieved something or have extra money."