Doctors without Borders was founded in 1971 as an international non-profit to provide emergency medical assistance to people affected by natural disasters such as hurricanes and earthquakes, epidemics and armed conflict. They offer health care in more than 70 countries.
Small donations make a huge difference:
Assume that 25 people in 1971 committed $25 per month for 25 years to create a long-term endowment fund. After 25 years, by 1996, at 8% compounded, they would have $548,295.
In 1996 they take one third, or $182,765, and begin using the annual interest to provide meals, medical supplies and vaccinations. That's $9,000 per year in perpetuity.
They continue investing the remaining principal for an additional 25 years. By 2021, at 8% compounded, the endowment will grow to $2,596,037. Take half, or $1,298,018 and begin using that annual interest to help people. That's $65,000 per year in perpetuity.
Invest the remaining principal for an additional 50 years - until 2071. The endowment will grow to $65,388,750. Take all of it and begin using the interest to help people. That's $3.3 million per year in perpetuity.
Investment: 25 people commit $25 per month for 25 years from 1971 to 1996.
| Years | Accumulated Principal |
Transfer To Emergency Fund |
Annual Interest at 5% For Help In Perpetuity |
| By 1996 (25 Years) | $548,295 | 1/3 = $182,765 | $9,000 |
| By 2021 (50 Years) | $2,596,037 | 1/2 = $1,298,018 | $65,000 |
| By 2071 (100 Years) | $65,388,750 | All = $65,388,750 | $3.3 Million |
