During the Covid pandemic in 2021, Silicon Valley venture capitalist John O’Farrell organised a call with several tech CEOs to urge them to back Unicef’s efforts to distribute vaccines globally as he and his wife, Gloria Principe, were doing.
Stewart Butterfield , co-founder and—at the time—the CEO of Slack, and his wife, Jen Rubio , co-founder and CEO of Away, “gave US$25 million on the spot,” and challenged other tech CEOs to give, too, says Kristen Jones, Unicef’s fundraising manager, global philanthropy.
O’Farrell is on the national board of the organisation and a member of the Unicef International Council, a network of 150 wealthy individuals from 22 countries.
“We were trying to mobilise resources really quickly,” Jones says. In this instance, an International Council member showed how the “influence and trust” of individuals and their network can be extended to Unicef and its mission.
Unicef, officially the United Nations Children’s Fund, is a U.N. agency focused on humanitarian and developmental aid to children. It relies on funding from governments and intergovernmental agencies. But it also depends on the private sector, from US$1 gifts provided by individuals across the world to giving by corporations, foundations, and wealthy donors.
Total giving to Unicef from the private sector totalled US$2.07 billion last year, representing 23% of total revenue, according to its annual report. Of that total, US$829 million was unrestricted—money that is particularly valuable because it’s flexible.
“That funding is critical for us to be able to cover underfunded operations, emergencies or situations of armed conflict that are not in the headlines anymore,” says Carla Haddad Mardini, director of Unicef’s division of private fundraising and partnerships.
The International Council was formed in 2017 not only to boost private-sector donations, but to create a powerful group of individuals who could bring their knowledge, expertise, vision, and networks to the organisation, Haddad Mardini says.
“We don’t see them as donors, we see them as partners,” she says.
That’s because the council’s engagement with Unicef goes behind giving. “They support by opening their networks to us, thinking with us about the global problems that make children more vulnerable,” Haddad Mardini says. “It’s invaluable in terms of the advocacy that they do and the influence that they exert.”
The council, of course, also provides needed funding. Since it was formed, members—who give US$1 million when they join—have donated more than US$552 million.
This past year, the council brought on 15 new members, half from countries in the Southern Hemisphere, including India, Vietnam, Indonesia, and Mexico. The incoming chair is Muhammed Aziz Khan, founder and chairman of the Summit Group, a Bangladesh industrial conglomerate, whose foundation is focused on the education of vulnerable children in the country.
“We want this group to be as diverse as possible,” Haddad Mardini says. “They’re not there for their own visibility, they are there to really meaningfully and purposefully make a difference.”
Bernard Taylor, an arbitrator and mediator at Judicial Arbitration and Mediation ADR Services and a retired partner with Alston & Bird, an Atlanta-based international law firm, has been an active supporter of Unicef for years, joining its Southeast Regional Board in the U.S. in 2007. In 2018, he joined the council and this past summer, became chair of the organisation’s National Board.
One of Taylor’s earliest experiences with Unicef was a trip to Madagascar not long after the island in the southwest Indian Ocean off the coast of Africa had been hit by successive cyclones.
“It was really eye-opening from the standpoint of seeing the despair that so many people were living through and that the children were living through,” Taylor says. After returning home and taking his children on a trip to the local mall to buy supplies for a school project, he was overwhelmed by the abundance that surrounded them.
“Just a short plane ride away, people were living in despair and death—we had to do something about that, and what I saw was that Unicef was doing something about it,” he says. “That’s how I got involved and committed.”
Often, the council responds to emergencies such as the urgent need for global vaccine distribution during the pandemic. In 2022, the council raised US$3.2 million to support Unicef’s work in Afghanistan, and another US$5.5 million in response to the war in Ukraine.
But as Haddad Mardini says, the council also goes beyond check-writing.
“We are all focused on pulling together our resources, our expertise,
our networks,” Taylor says. “As a private philanthropy, we’re able to be nimble, to be fast and flexible in ways that can address the issues that Unicef is struggling with. As a council member, I’m able to utilise my influence with peers and business leaders and even governmental entities.”
Recently, he spoke with one of Georgia’s U.S. senators to inform him about Unicef’s activities and to get his support. “Maybe you would call us extenders of influence—we increase, substantially, the influence and the ability of Unicef to do its work.”
The experience of Taylor, O’Farrell and others as private sector executives can also be influential to the thinking of Unicef’s executives, Jones says.
“They’re bringing their private sector experience and what they’re seeing in their partnerships,” she says. “It’s a space where they feel comfortable being very open and candid. It’s a nice dialogue with leadership.”
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
The bequests benefit charities, distant relatives and even pets
Charities, distant relatives and even pets are benefiting from surprise inheritances. They can thank people without children.
Not having children is becoming more common, both among millennials and older people. A July Pew Research Center analysis found that 20% of U.S. adults age 50 and older hadn’t had children.
And many of these people don’t have wills. An AARP survey found half of childless people age 50-plus who live alone have a will, compared with 57% of others that age. Those without wills have less control over what happens to their money, which often ends up in the hands of people who don’t expect it.
This phenomenon of a surprise inheritance is common enough that it has a name: the laughing heir .
“All they do is get the money and go, ‘Ah ha ha, look at that,’ ” said Michael Ettinger , an estate lawyer in New York.
Kelley Gilpin McKeig, a 64-year-old healthcare-industry consultant in Ridgefield, Wash., received a phone call several years ago saying her cousin Nick Caldwell left behind money in a savings account. They hadn’t been in touch for 20 years.
“I thought it was a scam,” she said. “Nobody else in our family had heard that he had passed.”
She hunted down his death certificate and a news article and learned he had died about a year and a half before in a workplace accident.
Caldwell, who was in his 50s, had died without a will. His estate was split among cousins and an uncle. It took about two years for the money to be distributed because of the paperwork and court approval involved. Gilpin McKeig’s share was $2,300.
Afterward, she updated her will to make sure what she has doesn’t go to “just anybody down the line, or cousins I don’t care about.”
Who inherits
There are trillions of dollars at stake as baby boomers age.
Most people leave their money to spouses and children when they die. A 2021 analysis of Federal Reserve survey data found that 82% of heirs’ inheritances came from parents.
People with no children say they want to leave a greater share of their estates to charity, friends and extended family , according to research by two Yale law professors that surveyed 9,000 U.S. adults.
Rebecca Fornwalt, a 33-year-old writer, created a trust after landing a book deal. While her heirs are her parents, her backup heirs include her sister and about a half-dozen close friends. She set aside $15,000 for the care of each of her two dogs.
Susan Lassiter-Lyons , a financial coach in Florence, Ariz., said one childless client is leaving equal interests in her home to her two nephews. Another is leaving her home to a man she has been friends with for a long time.
“She broke his heart years ago and she feels guilted into leaving him property,” Lassiter-Lyons said.
A client who is a former escort estranged from her family is leaving her estate to two friends and to charity.
Lassiter-Lyons, who doesn’t have children, set up a trust for her two dogs should she and her wife die. The pet guardian, her wife’s sister, would live in their house while taking care of the dogs. When the dogs die, she inherits the house.
In the Yale study, people without descendants—children or grandchildren—intended to give 10% of their estates to charity, on average, more than triple the intended amount of those with descendants.
The Jewish Community Foundation of Los Angeles, which manages $1.3 billion of assets, a few years ago added an “heirless donors” section to its website that profiles donors and talks about building a legacy.
“Fifteen years ago, we never talked about child-free donors at all,” said Lew Groner , the foundation’s vice president for marketing.
In the absence of a will, heirs are determined by state law . Assets can wind up in the state’s hands. In New York, for example, $240 million in unclaimed funds over the past 10 years has arrived from estates of the deceased, not including real estate, according to the state comptroller’s office. In California, it is $54.3 million.
Hard questions
Financial advisers say a far bigger concern than who gets what is making sure there is enough money and support for a comfortable old age, because clients without children can’t call on them for help.
“I hope there is something left to leave,” said Stephanie Maxfield, a 43-year-old therapist in southern Colorado. “But if there isn’t, I think that’s OK, too.”
She said she would like to leave something to her partner’s nieces and nephews, as well as animal shelters and domestic-violence shelters. Her best friend is a beneficiary.
Choosing an estate executor and who would handle money and health decisions on your behalf can be difficult when you don’t have children, financial advisers say. Using a promised inheritance as a reward for taking care of you when you are older isn’t a good solution, said Jay Zigmont , an investment adviser focused on childless people.
“Unfortunately, it is relatively common to see family members who are in the will decide to opt for cheaper medical care (or similar decisions) in order to protect what they will be inheriting,” he said in an email.
Kirsten Tompkins, who is from Birmingham, U.K., and works in consulting, along with her husband divided their estate among their dozen nieces and nephews.
Choosing heirs was the easy part. What is hard is figuring out whom to ask for help as she and her husband get older, she said.
“A lot of us are at an age where we are playing that role for our parents,” the 50-year-old said, referring to tasks such as providing tech support and taking parents to medical appointments. “Who is going to do that for us?”
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.