From the Fed Bank of St Louis Study,

Although some people may be altruistic when giving, economics tells us that the dominant motivation is the internal satisfaction that individuals derive from the act of giving itself. Individuals derive utility from giving much in the same way they obtain satisfaction from buying a new car or eating at a restaurant; especially when the number of donors is large, the social context of other people’s giving is overshadowed by the satisfaction of one’s own giving when considering how much to give.

From Sean’s Blog on Philantrophy,

The Merriam-Webster dictionary defines altruism as, “unselfish regard for or devotion to the welfare of others” If a person sacrifices themselves for another, it is not simple “unselfish”, it is because they would be completely miserable if they chose to look the other way. Any parent knows that the happiness and health of their children is more important than their own needs. This isn’t “unselfish”, it is just a fact of life.

The narrative of philanthropy is dominated by the concept that people who give do so to get something for themselves. I cannot tell you how many references I’ve seen to people saying that Warren Buffett’s gift to the Gates Foundation was a way for him to exploit a loophole to avoid taxes. But I think that narrative is false. Humans are interconnected with each other whether they like it of not. The fact that helping others also helps us does not diminish the act of giving, it is the brilliant fact of life that makes community work.

To read more check out:

Tactical Philantrophy – Why Do People Give to Charity

The Federal Bank of St Louis - The Economics of Charitable Giving: What Gives?

Bill Gates

I love the work at the foundation. Although there are many differences [from Microsoft], it also has the three magical elements.

First there are opportunities for big breakthroughs—from discovering new vaccines that can save millions of lives to developing new seeds that will let a farming family have better productivity, improve their children’s nutrition, and sell some of the extra output.

Second, I feel like my experience in building teams of smart people with different skill sets focused on tough long-term problems can be a real contribution. The common sense of the business world, with its urgency and focus, has strong application in the philanthropic world. I am sure I will make mistakes in over-applying some elements from my previous experience and will need to adjust. For instance, the countries where Microsoft does business are far more stable and have a lot more infrastructure than most of the places where the foundation does its work, so I’ll need to better appreciate how difficult it will be to execute our strategies. However, I am equally confident that our maniacal focus on drawing in the best talent and measuring results will make a difference.

Finally, I find the intelligence and dedication of the people involved in these issues to be just as impressive as what I have seen before. Whether they are scientists at a university or people who have worked in the field in Africa most of their lives, they have critical knowledge and want to help make the breakthroughs. The opportunity to gather smart, creative people into teams and give them resources and guidance as they tackle the challenges is very fulfilling.

For a full read of his Annual Letter for 2009 read the PDF or the website. Happy givings.