Get your free personalized podcast brief

We scan new podcasts and send you the top 5 insights daily.

Aries' Chairman Tony Ressler was initially against tying promote to charity, fearing it was just marketing. By launching it within a new fund with no existing P&L, Joel Hulsinger de-risked the decision. Its success later led the Chairman to admit he was '100% wrong' and expand the model.

Related Insights

MasterCard's purpose-driven marketing is designed to be self-funding. During its 'Stand Up to Cancer' campaign, the company's donation incentivizes card usage. This drives a permanent market share gain that generates enough incremental revenue to cover the charitable donation, proving purpose and profit are not mutually exclusive.

Joel Hulsinger secured a 5% corporate match for his promote-based donation by making it a condition of his employment at Aries. This shows that senior talent joining a firm possess unique leverage to embed philanthropic initiatives that might otherwise face internal resistance or be dismissed.

An unintended benefit of Promote Giving is that signatories have begun actively co-investing with each other, leading to billions in deals. The pledge acts as a powerful filter for like-minded, trustworthy partners, demonstrating that shared values can be a significant catalyst for business development.

Aries found it more powerful to tell a 25-year-old that their specific deal will generate $300k for charity than to talk about the fund's $50 million total accrual. This micro-level connection makes the philanthropic impact personal and tangible, creating a direct sense of legacy and purpose from daily work.

The Ares Pathfinder funds embed philanthropy into their structure by pledging 5-10% of the firm's carried interest (promote) to charities. This model aligns financial success with social impact, has generated over $40 million, and inspired a wider "Promote Giving" movement.

Government funders like the NIH are inherently risk-averse. The ideal model is for philanthropists to provide initial capital for high-risk, transformative studies. Once a concept is proven and "de-risked," government bodies can then fund the larger-scale, long-term research.

Promote Giving grew quickly because it's a simple pledge, not a centralized fund. Participants commit 5% of promote to a charity *of their own choice*. This autonomy removes administrative friction, eliminates debates over causes, and allows leaders to direct their own impact, making it easier to join.

Salesforce embedded its 1-1-1 model (1% equity, product, time) at its founding when the company had no valuable equity, product, or many employees. This strategy of starting small built philanthropy into the company's DNA from day one, allowing it to scale into a massive program without disruptive cultural or financial shocks later on.

Instead of immediately chasing large grants or major donors, MedShadow focuses on building a base of small-dollar donors. This strategy acts as a "proof of concept," demonstrating grassroots support for their mission and building a sustainable foundation for future growth.

Frame philanthropic efforts not just by direct impact but as a "real-world MBA." Prioritize projects where, even if they fail, you acquire valuable skills and relationships. This heuristic, borrowed from for-profit investing, ensures a personal return on investment and sustained engagement regardless of the outcome.