A Rare Way of Upping the Ante for Conservation

Challenge grants — in which a donor challenges others to contribute by offering to match their donations — aren’t rare, but a recent one received by an NGO called Rare has put an unusual spin on the practice. Wall Street hedge fund manager and major environmental philanthropist Robert Wilson has announced that he will match dollar-for-dollar the year’s biggest gift to this conservation organization. WIlson, who Portfolio Magazine calls a "short-selling legend," plans to give away 70 percent of his wealth by the end of his life.

Challenge grants usually come with a ceiling; the typical formula is along the lines of “I’ll match all other donations up to a total of $1 million!” Development staff can then tell their donors that each gift will double itself, but there is still a cap on how much the challenge can net. Wilson’s challenge has no upper limit.

The hope is that this will keep donors raising the stakes. So far it looks like he’ll be matching a $6.1 million pledge made by Wendy J. Paulson, the chairwoman of the Rare board. Not too shabby for a day’s work; Rare just gained $12.2 million for its important conservation work, which is to encourage people to take action to protect the natural world that enhances their communities and lives.

But with a challenge like this, that’s hardly the best they can do. Wilson, giving though his Robert W. Wilson Charitable Trust, has made several other challenge grants to environmental NGOs over the past few years, each for up to $100 million.

A full half-year is left for other donors to best Ms. Paulson’s offering. While the super-wealthy push each other to new heights of generosity, the rest of us can sit back and watch the show. Anyone care to venture a guess on the final payout?