It's a good question. My thought would be this: If you give them a bunch of money, they are likely to enjoy it, but ultimately fritter it away. If you invest in

It's a good question. My thought would be this: If you give them a bunch of money, they are likely to enjoy it, but ultimately fritter it away. If you invest in / loan them a bunch of money, you've created an expectation in them that they need to do right by you. They will strive to make that money back and honor your largesse, which allowed them to get started in the first place. In so doing, they create wealth for themselves, their employees, and indeed, the philanthropist. Basically, I doubt he cares a whit about the money, or losing it, but he thinks the motivations from an investment are more powerful and good than those from a gift.