Buffett, the famously frugal billionaire, has
donated his 2001 Lincoln Town Car for an eBay auction
starting Sept. 12 to raise money for Girls Inc., a youth
organization his family has long championed. He is even
throwing in his vanity license plate: THRIFTY.
"I don't want to sound like a used-car salesman, but this
car is a real cream puff," Buffett said in a telephone
interview from his office in Omaha. "You just have to get
behind the wheel of this vehicle."
Charities have long sold items owned by celebrities, but
eBay and the Internet have pumped new life into this
fund-raising technique, increasing returns exponentially.
Last year, a Harley-Davidson motorcycle autographed by
guests on "The Tonight Show with Jay Leno" raised $760,095
for the American Red Cross to help it serve victims of the
Asian tsunami, setting a record on eBay. In 2002, Tiger
Woods auctioned off a round of golf with himself for four
people and raised $425,000 for his foundation, which
supports programs that serve underprivileged children.
The United Way of America used its own Web site to auction
off the gift bag George Clooney received this year for his
services as a presenter at the Academy Awards. The gift bag
raised $45,100, which was $27,100 more than the value of the
items in it.
"The Internet increases your reach, drawing people from
around the country and even internationally," said Sheila
Consaul, a United Way spokeswoman.
(Nonetheless, Consaul said the United Way would think twice
before accepting another gift bag because only 27 of the 68
items in it could be transferred to someone other than
Clooney, who sits on the United Way's board. "It was a
little more challenging to pull off than it sounded," she
said.)
Since 2000, more than $81 million has been raised for
charity on eBay from regular vendors committing a part of
their sales to nonprofit groups and by charities selling
items directly. On any given day, more than 8,000 such sales
are going on.
Conventional sellers are charged standard fees that, under a
policy effective Oct. 1, will be returned to them in direct
proportion to the percentage of the final sales value they
have pledged to donate. For example, if conventional sellers
send 30 percent of their revenues to charity, eBay will
return 30 percent of their fee. Nonprofits selling items on
eBay via the Giving Works program pay no basic fees.
"Interest from nonprofits has been amazing," said Kristin
Cunningham, senior manager of Giving Works. "Among people
who are always having to ask for a check, anything that puts
a new spin on fund raising can be exciting."
Buffett has experience with that phenomenon. In 2000, he
began donating a lunch with himself to the Glide Foundation,
a charity providing help to the poor that is affiliated with
the Glide Memorial United Methodist Church in San Francisco
and was supported by Buffett's late wife, Susan Thompson
Buffett.
For the first three years, the lunch was auctioned off at
Glide's annual benefit, raising an average of about $27,000
each time, Buffett recalled. "Then they put it on eBay four
years ago," he said, "and the first year there, it went for
$250,100, and I like those kinds of returns."
This year, the lunch raised $620,100 for Glide, which has a
budget of about $12 million. "That's substantial for us,"
said the Rev. Cecil Williams, the chief executive of Glide's
national and international ministries.
Buffett, who recently donated the bulk of his fortune to the
Bill and Melinda Gates Foundation and other charities, said
it had been his daughter's idea to offer the Lincoln to
Girls Inc. He said he had bought a Cadillac as a show of
support for Rick Wagoner, the chief executive of General
Motors, "and she asked me what I wanted to do with this
car."
"I told her she could do what she wanted with it," he added,
"and this is what she came up with."
The Buffett family has a long history with Girls Inc. of
Omaha, the local affiliate, said Roberta Wilhelm, the
organization's executive director. In 1975, Buffett helped
it find its first home, in a church basement in Omaha, and
the Buffetts' daughter, Susie, sits on the boards of the
local and national organizations.
"It's terrific," Buffett said of the charity. "The girls,
they come there after school and get help with homework, hot
meals, access to computers, getting support and experiences
they would not have otherwise. It evens the playing field a
bit."
Girls Inc. of Omaha was one of four youth organizations in
the city to benefit from an annual golf tournament Buffett
sponsored. And in 1999, he planted a stock tip inside his
wallet and gave it to the charity to sell at auction.
The wallet sold for $210,000, but it raised much more for
the charity. "The buyer said he would share the tip in it
with others who gave money to us," Wilhelm said, "and that
generated a lot of other gifts." She added that the tip paid
off for the buyer, John Morgan. Morgan, an Omaha native who
lives in Minnesota, became a big supporter of Girls Inc. and
once served on its national board.
"We got a lot of mileage out of that wallet," Wilhelm said.
Buffett said he had never used the wallet much. "Kind of
like my car," he said. "I only put about 14,000 miles on it
in four years, going to the office, which is about a mile
from my house, and to the airport, which is about three
miles away.".
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