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Mort Kane welcomed us into his lovely house in the Golden Valley suburb of Minneapolis, Minnesota with an apology. “It’s a little messy. You spend 50 years gathering stuff and you keep telling yourself you’ll do something about it,” he laughs, “and you are catching me in the middle of me doing something about it!”
In truth, Mort, a retired physician, began early in those 50 years not gathering "stuff" as much as investing wisely and making thoughtful financial decisions. In that time, he’s lived comfortably yet modestly, concentrating his efforts on building a legacy of philanthropy. Alight has been a grateful recipient of his generosity for nearly 20 years, so we paid him a visit to learn about the thinking behind his giving.
Mort's approach to wealth is refreshingly straightforward. “I am of the strong opinion that our kids and grandkids should have a reasonable life, but not too much,” he explains. “So the vast majority of what we were fortunate enough to have is going to charity. I feel strongly about that.” His four children, now adults, understand that and enjoy the pleasure of supporting causes they care about, thanks to Mort’s forward-looking arrangements.
“Thirty years ago, I set up a family partnership, primarily for tax reasons, as the children were then in lower tax brackets, and we transferred a sizable portion of our assets to the partnership,” he explains. “My wife Merle and I own 5% of the partnership, but are the general partners who control the partnership, its donations, etc. Our four children each own just under 25% each, but are passive, limited partners.”
What began primarily for tax purposes has grown into something much more meaningful. Toward the end of each year, Mort sits at the head of the dining table, joined by Merle, three daughters who live nearby, and his son, who joins via Zoom from Portland. Together, they carefully plan that year’s donations. Mort determines the total amount the family partnership will give, as well as a small amount for their individual choices, separate from the group’s decisions.
For years, the Kane family has chosen eight categories of organizations to support, such as food, housing, human rights, international relief (including Alight), veterans’ organizations, the Red Cross, and many smaller nonprofits. The family, being Jewish, supports causes in Israel like the New Israel Fund, which promotes social justice, and many other, mainly local, Jewish organizations.
With so many variables to consider, how do they decide how to distribute their donations? “Each of our children are very responsible adults, so together, we decide on the portion of the total for that year to assign to each category,” Mort explains. “They then choose two categories to research, present their cases to the family, and suggest what percent of that category should go to each organization.
While Mort has a deep respect for his children’s choices, Mort and his wife Merle make their own donations separate from the partnership. He gives a hypothetical example. “One year the kids might not want to give much to Doctors Without Borders, but we think their work is worthy, so we’ll add our own donation.”
Mort credits the experience of his ancestors for his way of thinking. He and his wife Merle’s parents were eastern European immigrants who lived through the Great Depression, and the couple learned from their hard work, modest living, starting to save early, and effective investing.
Looking to the future, Mort hopes his eight grandchildren—five of whom have already graduated from college—will continue the family tradition of giving. He also wants to pass down the values he learned by not making life too easy for them. “I could buy them a house, but they need to struggle a bit and understand what work means,” he says. “Later we can help, as may be appropriate.”
Mort likes to share a story about what he calls his "workout, work-in-the-yard watch” that perfectly illustrates his commitment to living comfortably while focusing on important matters. “Years ago, while biking around Lake of the Isles, I found a watch in the street. The watch was dirty, but it was still working. I cleaned it up, but the band was awful, so I went to Target and bought a new one for $19. I certainly could have afforded a more expensive watch, but this one does the job and keeps perfect time.”
Then he adds, “The questions to consider are: “How much is enough for you and how much to support causes that you care about? How much to support those in need? Added to that is the pleasure of giving, and, for many of us who have benefitted, the pleasure of giving back.”
