Beginning in 1790 with a legacy of £1,000 to each of Boston and Philadelphia, Benjamin Franklin’s 200-year trust experiment sought to empower young artisans by small loans, demonstrating his faith in hard work and independence. In 1990, the trusts had grown significantly despite obstacles like mismanagement and out-of-date lending criteria. They were now funding job-training programs and educational initiatives like the Benjamin Franklin Institute of Technology, carrying out Franklin’s vision of fostering civic virtue and assisting future generations.
First Bequest And Objective
Franklin changed his will in 1790, shortly before he passed away, to create two £1,000 charitable trusts (about $100,000–$124,000 in modern currency). The goal of these trusts, which were intended to endure precisely 200 years, was to give small loans to young artisans and company owners who were just starting out. The loans, which were initially only available to married men under 25 who had finished apprenticeships, were to be returned over ten years at a five percent interest rate. Franklin’s objectives reflected his faith in the strength of industry and independence: to sustain the “leather apron class” of skilled workers and to foster civic virtue3.
Outcomes Following 200 Years
In 1990, Benjamin Franklin’s 200-year trust experiment came to an end, demonstrating its astonishing expansion and enduring influence. The eventual outcomes of this inspiring charitable project show the value of long-term generous planning and compound interest:
By 1990, the Boston trust had grown to almost $4.5 million.
By the end of the program, Philadelphia’s trust had grown to almost $2 million.
After a court battle, the Benjamin Franklin Institute of Technology was given Boston’s money.
Philadelphia supported job-training programs for recent high school graduates with their contribution.
The trusts gave thousands of student and young business loans during a two-century period.
Other long-term charitable endeavors, such Jonathan Holden’s 1000-year trust proposal in 1936, were sparked by the experiment.
Franklin’s objective of encouraging civic virtue and assisting future generations was realized through the trusts’ impact on education, public works, and individual lives over a two-century period, even though the final amounts fell short of his hopeful estimates.
Effects On Public Works And Education
The trusts’ influence went well beyond the initial goal of microlending. Most of the money was eventually given to the Benjamin Franklin Institute of Technology in Boston, a two-year technical college that still accepts low-income students. Philadelphia funded job-training initiatives for recent high school graduates with its portion. Furthermore, the trusts gave loans totaling $3,476,000 to 1,749 youths between 1962 and 1976, many of whom were living at “bare subsistence level”. Franklin envisioned enhancing civic life and presenting chances for future generations, and these educational programs and public works projects brought his vision to fruition.
Difficulties And Debates
Over the course of its 200-year trial, Benjamin Franklin’s trust experiment encountered a number of difficulties and disputes. These problems demonstrate how difficult it can be to oversee sustained charitable endeavors:
Boston’s and Philadelphia’s incompetence and poor management caused growth to be slower than Franklin had anticipated.
The performance of the trusts was impacted by graft, incompetence, insufficient records, and defaults.
Over time, Franklin’s strict requirements for loan recipients—being a man, being under 25, being married, and having finished an apprenticeship—became antiquated.
There was a great deal of dispute in Boston from 1890 to 1904 on the allocation of the funds that had collected.
Grateful, Franklin’s blood heirs made a move to seize the trusts’ riches after the first 100 years.
Critics began to surface in the 1880s, casting doubt on the necessity of Franklin’s first demands.
In the 1990s, the Benjamin Franklin Institute of Technology fought for ownership of the whole $4.5 million Boston trust.
Notwithstanding these obstacles, the trusts eventually succeeded in giving both cities substantial advantages, proving the tenacity of Franklin’s idea.