By bringing business principles to philanthropy, Michael and Susan Dell are improving the odds for children in need.
When Michael and Susan Dell became parents, they did a lot more than make room in their house for their own children. They made room in their hearts for underprivileged children they might never meet. “Being a parent of four children and seeing many who are not so fortunate, we knew this was a great area to focus on,” says Michael Dell, the 45-year-old founder of computer giant Dell Inc. “When you become a parent, you are suddenly aware of how important good health and quality education are for the well-being and success of children.”
The Dells’ philanthropy is a lesson in hope economics. Through an endowment of about $1 billion, the Michael & Susan Dell Foundation helps underprivileged urban children become educated, healthy and successful. “Susan and I wanted to extend the charitable giving we had done in the past, so the foundation was a way to do that in a much more focused way and at larger scale,” Dell says.
Established in 1999, the foundation’s overarching goal, as Michael Dell sees it, is having “the greatest possible impact on children’s lives. That means focusing on the opportunities that have the greatest potential to directly and measurably transform the lives of children living in urban poverty.”
“Michael and I had already been philanthropic around Austin,” says Susan Dell of their Texas hometown. “We had to figure out how to make a bigger impact. We didn’t want it to be scattered…. We think education and health are the most important things. Kids must be healthy to learn, and kids who can’t learn won’t be successful.”
As goal-directed achievers, the Dells bring valuable skills and personality traits to assisting children in the United States, India and South Africa. They provide microfinance and scholarships, combat child abuse, and support medical research, health insurance, physical fitness, child care and education initiatives.
“Focus is very important,” says Michael Dell, who draws on his experiences leading Dell Inc. in his foundation work. “Patience is also important because measuring progress takes time—sometimes years—to show the full results and impact. We are trying to drive systemic change in areas where there are big problems with big challenges.”
Applying Entrepreneurial Savvy
It was Michael Dell’s impatience, rather than patience, that contributed to his entrepreneurial drive from an early age, as well as a keen interest in finding ways to work smarter. During his early teens, he organized a sale of collectible stamps that earned him $2,000. To increase his success rate in selling newspaper subscriptions, Dell researched lists of marriage licenses and home mortgages, then targeted newlyweds and new home owners.
At 18, personal computers distracted Dell from his University of Texas coursework, and his dad challenged him to get his priorities straight. “What do you want to do with your life?” his dad asked. “I want to compete with IBM,” the freshman replied.
Although Dad wasn’t amused, the statement proved prescient: Michael Dell dropped out and started a direct-to-consumer sales model that leapfrogged competitors as it rose to the top tier of personal computer companies. He led the company as founder and CEO until stepping down as CEO in 2004, while continuing to serve as chairman of the board; he resumed the role of CEO in January 2007.
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