Benjamin Franklin's 200-Year Trusts Yield Millions for Boston and Philadelphia
In 1790, Benjamin Franklin launched a philanthropic initiative that ultimately benefited Boston and Philadelphia with significant financial resources from trusts that expanded over 200 years. He left £1,000 to each city, intended for loans to young apprentices. After a century, the trusts permitted the cities to allocate 75% of the funds for public projects, while the remaining 25% continued to accrue interest for another 100 years. By 1990, Boston's fund had reached around $4.5 million, and Philadelphia's was nearly $2 million. Boston utilized its trust to create the Franklin Union, whereas Philadelphia invested in The Franklin Institute. Franklin's vision was to foster enduring opportunities through civic projects, showcasing the effectiveness of long-term investments.
Key facts
- Benjamin Franklin left £1,000 each to Boston and Philadelphia in his will.
- The trusts were designed to provide loans and accumulate interest for 200 years.
- After 100 years, each city could use three-quarters of the funds; the rest continued to grow.
- By 1990, Boston's trust was worth approximately $4.5 million, Philadelphia's about $2 million.
- Boston's funds helped establish the Franklin Union, later the Benjamin Franklin Institute of Technology.
- Philadelphia's funds supported The Franklin Institute, founded in 1824.
- Franklin also helped establish Philadelphia's first public library, volunteer fire company, and hospital.
- He helped found the Academy of Philadelphia, which became the University of Pennsylvania.
Entities
Artists
Institutions
- Benjamin Franklin Institute of Technology
- The Franklin Institute
- University of Pennsylvania
Locations
- Boston
- Philadelphia
- United States