Due to a lack of funding, Melissa Tumblin in 2022 was considering closing her nonprofit Ear Community that she started after her daughter Ally was born with an illness in her right ear.
Jennifer Gross learned about the financial troubles at the group that helps children and adults with missing ears or ear canals and secured a $200,000 donation from the William, Jeff and Jennifer Gross Family Foundation. The foundation donated another $200,000 last December.
“As a small grassroots nonprofit, Ear Community wouldn’t exist without the generous support from the William, Jeff and Jennifer Gross Family Foundation,” Tumblin told the Business Journal.
“Not only does their funding allow our organization to have the necessary programs in place that help our community thrive, but it also helps us continue changing the lives of children and adults who have missing ears (microtia) and hearing loss (aural atresia) every day.”
The Gross foundation, which began in 2018 with $380 million, has since grown to $550 million. That means Bill Gross’ goal of giving away the minimum 5% annually has increased to $25 million, half of which he wants to donate to Orange County nonprofits.
“The emphasis of the Gross Family Foundation is family,” Bill Gross told the Business Journal. “The experience of working with Jeff and Jennifer (Gross) to support the foundation’s mission has been one of the highlights of my life.”
The Bond King
Gross co-founded Newport Beach-based PIMCO in 1971 as a unit of Pacific Life Insurance. It was eventually spun out and then bought by Allianz, a German insurance company.
Gross, who is considered the pioneer of the total return fund strategy, thrice won Morningstar’s prestigious bond manager of the year award. He guided PIMCO through the 2008 financial crisis when his total return fund gained 4.8% compared to a 38% loss for the S&P 500 index. PIMCO’s assets soared to as much as $2 trillion. Morningstar named him Bond Manager of the Decade.
When Gross was at Pimco, he urged executives to donate a percentage of their gains to nonprofits. He also helped start the PIMCO Foundation, which nowadays ranks No. 8 on the Business Journal’s list of the biggest corporate foundations in Orange County, giving away $667,500 in Orange County last year. The nonprofit, which has $140 million in assets, donated $9.1 million altogether last year.
Giving at the Gross foundation to Orange County nonprofits is more than twice as large as the most generous corporation, Pacific Life, which gave $4.9 million in 2023 (see special report).
Gross, who earned the moniker “The Bond King,” this year published a book on his famous essays published during his career: “The King and I: 46 years of investment outlooks, musings and commonsensical thoughts from Bond King.”
Nowadays, Gross, who handles the foundation’s investments, doesn’t limit himself to bonds and often invests in commodities and stocks.
Four Categories
The Gross Family Foundation concentrates its efforts on four main categories: education, global development and humanitarian relief, environmental causes, and community support.
A significant portion of the foundation’s donations are directed toward local causes in Laguna Beach, where Gross resides. These causes range from supporting local schools to contributing to community programs that directly impact residents’ lives.
In 2023, the foundation donated $18 million to 67 nonprofits, including the Orange County Teachers of the Year Foundation, Laguna College of Art and Design and Orangewood Foundation.
Gross’ former wife, Sue J. Gross, is also a noted philanthropist who has given millions to a variety of causes including UCI. Her foundation has about $98 million in assets, according to GuideStar.
Humanitarian Efforts
While the Gross Family Foundation is deeply rooted in local causes, its commitment to international humanitarian efforts is equally strong. Doctors Without Borders has consistently been one of the largest recipients of the foundation’s generosity (see separate article this page). This ongoing support highlights the foundation’s dedication to global health initiatives and its trust in the effective deployment of its funds.
“Jeff and Jennifer have played an important role in helping me manage the foundation’s giving, especially in the selection of charity recipients,” Bill Gross said. “Each brings a unique perspective that is critical in making sure that our donations reach the people who stand to benefit the most from the extra help.”
Gross, whose career in investment management was built on maximizing returns, applies a similar principle to his philanthropic efforts. The foundation seeks to support organizations where most funds go directly to beneficiaries rather than administrative overhead. This focus on efficiency is important to Gross, who prefers to see his donations directly impacting individuals in need. The foundation’s contributions are carefully monitored to ensure they are making a tangible difference.
One area he doesn’t seek a return is his penchant for anonymous giving. He was inspired by the 1950s television show The Millionaire, where a character would anonymously deliver life-changing gifts.
During the COVID-19 pandemic, Gross read a New York Times story about an immigrant family in Los Angeles struggling to make ends meet. Moved by their plight, he sent a $15,000 check anonymously. Similarly, when the space shuttle program ended and many workers were laid off, Gross reached out to some of those affected, offering financial assistance without revealing his identity.
In another instance during the lockdown, Gross donated to the entire groundskeeping crew at the Indian Wells Golf Course, near his winter home. Each worker received a few thousand dollars to help them through the difficult period. These acts of kindness, done without expectation of acknowledgment, reflect Gross’ belief in helping others simply because it is the right thing to do, he said.
Though a few medical buildings bear the Gross name, and the Smithsonian’s William H. Gross Stamp Gallery showcases part of his stamp collection, the legacy of the Gross Family Foundation lies in its quiet giving. The collaborative efforts of the Gross family are at the heart of the foundation’s success, ensuring that their philanthropic mission is carried out with care and intention.
Jennifer Gross, co-founder of her own Blue Chip Foundation, is deeply involved in the Gross Family Foundation’s work.
“Each year I strive to uphold the strong ethics and morals that my dad has imbued in Jeff and me when considering grants to support communities in need,” she said. “I am continually touched by his generosity, selflessness and compassion.”
Her brother Jeff Gross, an award-winning professional photographer who also has a leadership role in the Gross Family Foundation, echoes these sentiments.
“My father vowed as far back as 2011 that he would devote the bulk of his energy in retirement to running the Gross Family Foundation, and he’s been true to his word,” he said. “His commitment to philanthropy has set an example for Jenn and me, one which we hope to live up to going forward.”
Doctors Without Borders’ Biggest Donor is Bill Gross
One of Bill Gross’ biggest benefactors is Doctors Without Borders, which is known by the French name Médecins Sans Frontieres (MSF).
“MSF should also be considered the world’s eyes and ears on the ground,” Gross told the Business Journal. “MSF not only tells us about the human consequences of conflict, but they also try to address the problems.
“MSF’s ability to deliver urgent humanitarian aid to otherwise forgotten or ignored communities is unique and unparalleled.”
Since it was founded in 1971, the organization has grown from a group of 13 doctors and journalists to a movement of 68,000. The nonprofit, which daily delivers emergency medical aid to people in more than 70 countries, said it has helped tens of millions of people.
“In many crises around the world, we find ourselves increasingly alone in providing humanitarian aid,” said Deborah Garcia, chief development officer at MSF USA.
Bill Gross and his foundation have donated more than $50 million to MSF, making him its biggest donor in the organization’s history, Garcia said.
“For almost 20 years, Bill Gross has shown commitment to MSF’s work and his compassion for those we serve,” Garcia told the Business Journal.
“The Gross Family Foundation’s continuity and scale of giving offer MSF a sense of stability in the midst of external turmoil. Further, their giving is wholly unrestricted, enabling our teams on the ground to be both strategic and nimble about meeting emerging needs.
“The Gross family continues to set an example of knowledgeable and generous philanthropic investment; donors who trust in our methods and share our belief in equitable access to medical care for all people.”
