Ray Dalio wants you to ditch unwanted Christmas gifts and give charity cards instead. Here's how they work.
Brian Snyder/Reuters
- Billionaire investor Ray Dalio wants people to give charity gift cards instead of material gifts.
- Recipients can decide which charity they want the money to go to.
- An expert in billionaire philanthropy said it could be good for wealthy people who donate to charity anyway.
Wall Street billionaire Ray Dalio is asking you to consider ditching buying gifts and instead give charity cards.
His "#RedefineGifting" campaign encourages his followers to give charity gift cards to their loved ones and request them in return.
Since 2020, Dalio, who founded Bridgewater Associates, has partnered with the nonprofit TisBest to give away 90,000 charity gift cards worth $5 million. The purchaser decides the amount, and the recipient chooses one of the 1.8 million US-registered charities on Tisbest's platform to donate the money.
"The shopping season has begun — a month-long compulsion to buy something, for everyone. We're pressed. We're stressed. And we waste time and money on gifts that might have little meaning," Dalio posted on X.
"Consider giving people donations to their favorite charities. And request that they give a donation to your favorite charity," he added.
A November Gallup poll found that US shoppers plan to spend an average of more than $1,000 on gifts this year for Christmas and other holidays.
Dalio has said in previous posts that he's given charity gift cards to his friends and colleagues for more than 10 years and has enjoyed learning about their favorite charities.
Dalio has pitched the "infectiously joyous and healthy" cards as simpler, easier, and different from material gifts that might be unwanted.
But charity cards may not go down well with those who — struggling financially amid historic inflation and heightened interest rates — would prefer a material gift.
Hans Peter Schmitz, a North Carolina State University professor researching billionaire philanthropy, told Business Insider that gift cards seemed a particularly good idea for wealthy people who might donate to charities anyway.
He advised ensuring everyone was on the same page and giving a more conventional gift alongside a card to avoid disappointing the recipient.
"It may be best to first ask and agree with family and friends that this is what everyone wants," Schmitz said. "It may also be worthwhile adding such a charitable gift along with something more personal."
"Any gift should still signify a personal connection and express more than just an expected transaction," he added.