Pasadena businessman Jerry Kohl and his wife, Terri, used to participate in what he called "friends and family philanthropy."
A sprinkling of cancer organizations, a liberal helping of symphonies and maybe a museum or two to complete the menu. A charitable smorgasbord, usually the result of whatever his friends and relatives were involved in.
But last year, Kohl -- president of Leegin Creative Leather Products Inc., an upscale City of Industry accessories firm -- realized that he didn't know whether his money really was improving lives. So with the help of Connecticut-based Foundation Source, he launched his own family foundation with $10 million and started looking for ways to match his money with his passions.
"As you start to think about writing bigger checks, you want to do your homework," said Kohl, whose family's $300-million business includes the popular Brighton jewelry line.
Kohl loves music, so when he went searching for a charity to support, he ended up at Little Kids Rock, a Montclair, N.J.-based nonprofit that provides public school students free guitars and lessons in rock and roll.
"For as little as $50, you can do something really interesting," said Kohl, 55, who donated several thousand dollars to the charity. He likes to check YouTube or littlekidsrock.tv and see his money at work.
Motivated by idealism, guilt and generous tax deductions, Americans last year gave a whopping $260 billion to philanthropic causes, and donations are expected to rise dramatically in the coming years as baby boomers retire.
While many people donate through their religious organizations or traditional charities and humanitarian groups such as United Way of America or World Vision International Inc., a growing number of America's wealthiest citizens are starting their own organizations.
That is particularly true in California, which has the second-largest concentration of foundations after New York. After taking a dip during the tech implosion that began in 2000 and worsened in 2001 and 2002, philanthropy in the state has rebounded, driven by the new wealth being created in sectors such as hedge funds and real estate, said James Ferris, director of USC's Center on Philanthropy and Public Policy.
California was home to 6,242 foundations in 2004, a 48% increase from 1999, according to the center. Nationwide, the number of foundations in this country has more than doubled to 75,000 over the last decade.
