Turner Takes Lead in His New Race of Giving

By SALLIE HOFMEISTER

Sept. 20, 1997 12 AM PT

TIMES STAFF WRITER

Media mogul Ted Turner suggested last year that, if charitable giving were more competitive, the rich would eagerly loosen their purse strings. In addition to the Forbes 400 list of the wealthiest Americans, he proposed there be an “Ebenezer Scrooge Prize” for the biggest tightwads and the “Heart of Gold Award” to honor the most generous.

Thursday night, the ever-competitive Turner, winner of the America’s Cup sailing race, owner of the Atlanta Braves and founder of cable networks including CNN, made a bid to be at the top of the list of philanthropists.

His pledge of $1 billion over 10 years to the United Nations--about a third of his net worth today--stunned even his financial advisors, who huddled Friday to assess the tax and business consequences of what he characterized as a spur-of-the-moment decision.

The donation, which will fund programs to aid refugees and children, clear land mines and fight disease, is believed by some philanthropy experts to be the biggest single monetary contribution by an individual. While a select few billionaires give $100 million or more a year to charity, none have made commitments spanning several years for such a large sum to one organization. Walter H. Annenberg, the octogenarian publishing magnate, came closest when he awarded grants totaling $500 million to public school systems between 1995 and 2000.

In a news conference Friday, Turner, who became vice chairman of the world’s largest entertainment company last year when he sold the cable group he built for $7.5 billion to Time Warner Inc., cited as his inspirations financier George Soros, who gives 80% of his income to charity, and Mother Teresa, who died penniless.

The flamboyant entrepreneur even acknowledged software giant Bill Gates for becoming more generous since Turner chided him last year for being stingy in order to stay at the top of the Forbes rich list. In June, the Microsoft Corp. founder pledged $200 million over five years to computerize the nation’s public libraries.

“What I’m trying to do is set a standard of gallantry,” said Turner, who has been called “Captain Outrageous” and “Mouth of the South” for his swashbuckling style, off-the-wall visions and bold outbursts. “The world is awash in money, with peace descending all over the Earth. We can make a difference in the future direction of the planet.”

Entertainment executives noted that the contribution to United Nations programs are compatible with his business interests. Goodwill toward Turner could be useful to Time Warner’s global empire or CNN’s efforts to set up news outposts around the world.

But none suggested that Turner is making the contribution for business reasons or for tax benefits. (Since the donation has not been financially structured yet, the tax consequences remain unclear, and Turner says he never considered the issue.)

One close associate, noting Turner’s driven character, surmised that, after building one of the world’s largest cable empires, he had found a new goal: to win the Nobel Peace Prize. “He knows he’s not going to be the richest, so he wants to be the most generous,” the source said. “Soros was getting all the attention.”

In his news conference, Turner said he was unaware of a cover story early this month in Time magazine, which is published by his company, on the charitable initiatives of Soros. Soros was No. 1 on Time’s first listing in January of the nation’s top philanthropists, with contributions totaling $350 million in 1996.

Turner said he decided to make the surprise contribution while flying to New York on Tuesday for the Thursday night United Nations dinner, where the Atlanta-based entrepreneur received the Global Leadership Award. While his financial advisors had not signed off on the decision, Turner said, “I couldn’t wait because I had the whole U.N. there. I wanted to say something meaningful.”

On the plane, he said, he examined his August financial statement and found his net worth--tied up almost entirely in Time Warner stock--had jumped a tidy billion dollars, to $3.2 billion, since Jan. 1.

“Time Warner has been reformed in a lot of ways,” said Turner, who will turn 59 in November. “I feel a lot better about Time Warner, and now I’m more focused on the planet and humanity.”

Since he joined the company, cable stocks have made a comeback on Wall Street, and Turner has championed a cost-savings effort. After languishing since the early 1990s, Time Warner’s stock has appreciated 51% this year, closing Friday at $55.25 a share--near its record high.

Some analysts worried that Turner’s contribution could put pressure on Time Warner stock. Turner pledged company shares, and analysts fear that yearly sales of $100 million of Turner’s shares could drive down the value of the stock. Turner said, however, he hoped to minimize such an effect by using the shares as collateral to borrow the first few $100 million allotments.

That would also allow him to keep a tight rein on Time Warner as its largest shareholder, with an 11% stake. Turner said his pledge could be worth less than $1 billion if Time Warner’s stock declines.

Turner is no newcomer to causes. He is a major contributor to environmental, American Indian and wildlife funds. As the Cold War faded, he created the Goodwill Games, an international contest for Western and Eastern bloc athletes.

He and his wife, activist and actress Jane Fonda, are the largest private landowners in the western U.S., with more than 2 million acres in New Mexico, Wyoming and Montana, where Turner’s ranch has the largest buffalo herd in North America. Environmentalists have praised the couple for protecting the land from development.

Turner said he would try to raise more money from America’s richest citizens for his new fund, tentatively named the United Nations Foundation. “I’ve been learning how to give and developing things like enlightenment. People love their money like they love their homes and they love their dogs.”

* VOTE OF CONFIDENCE: Diplomats at the U.N. welcome Turner’s gift as endorsement of the battered world body. A9

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Charity’s Heavy Hitters

Ted Turner’s $1-billion gift to the United Nations is one of the largest single charitable donations in U.S. history. The following is Fortune magazine’s list of the top charitable givers in the United States last year.

TOP DONORS FOR 1996

1. George Soros, president, Soros Fund Management

Millions given in 1996: $350

Net worth in billions: $2.5

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2. L.S. Skaggs, retired chairman, American Stores, Co.

Millions given in 1996: $155

Net worth in billions: $0.95

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3. Bill Gates, chairman, Microsoft Corp.

Millions given in 1996: $135

Net worth in billions: $36.4