Michael and Susan Dell are giving $6.25 billion to fund investment accounts for 25 million American children in targeted areas across the nation.
Through the Michael & Susan Dell Foundation, the Dells have reported giving $2.9 billion since 1999, with a large focus on education.
Their latest gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion, much less multiple billions. Announced on GivingTuesday, the Dells said they believe it’s the largest single private commitment made to U.S. children.
“We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them,” Susan Dell said. “And we’re all rooting for them to have a wonderful future, a bright future, and that that’s available to them.”
How it works
The Dells will put the money into the accounts of children who live in ZIP codes with a median family income of $150,000 or less. That includes 80% of all ZIP codes in Texas. Most of those that don’t qualify are in the Austin, San Antonio, Dallas and Houston areas, a Hearst Newspaper analysis shows. It also found that of ZIP codes at least partially within the San Antonio metro area, 89% had median incomes at or below $150,000. In the Austin metro, 74% were below $150,000.
Though their program is mainly aimed at children 10 and younger, the Dells said older ones may benefit if funds remain available after initial sign-ups.
The new Invest America accounts are expected to open July 4 but details on how they will work are unknown.
Under the new tax and spending law signed into law in July, the accounts are available to any American child under 18 with a Social Security number. For those born between Jan. 1, 2025, and Dec. 31, 2028, the Treasury will invest $1,000 into an index fund that tracks the performance of the broader stock market. When the children turn 18, they can withdraw the funds for education, to buy a home or start a business.
Because federal law allows outside donors to target gifts by geography, the Dells said using ZIP codes was “was the clearest way to ensure the contribution reaches the greatest number of children who would benefit most.”
Their gift will also omit those who receive $1,000 from the Treasury through 2028.
The Dells said they hope their plan will encourage other families to claim the accounts and deposit more money into it, even small amounts, so it will grow over time along with the stock market.
Brad Gerstner, a venture capitalist who advocated for passage of the Invest America initiative, said the accounts have the potential to attract many more gifts.
“It’s hard to give effective dollars away at scale, particularly to the country’s neediest kids in a way that you have confidence that those dollars are going to compound with the upside of the U.S. economy,” he told the Associated Press. “This is a unique platform that’s being created by the government that I think can unlock major giving.”
Childhood poverty
Gerstner is founder of Invest America Charitable Foundation, which is supporting the Treasury in launching the accounts. He said the goal is to give young people funds to jump start their lives and help them benefit from the growth of the U.S. economy through investing in stocks.
