The letter to Estates Gazette, dated 29 January 2013, was only four lines long, polite but to the point. In it, David Kirch, multi-millionaire, Jersey-based property owner, stated:
“In the 2011 Rich List that you published I appear as being worth £100m. I have given away approximately £1m a year since my 70th birthday in 2006 and last year I decided to give £100m to my charitable trust, which, as my accountant, said “virtually cleans [you] right out”. “The purpose of this letter is to ask that you kindly remove me from any Rich List that you may publish in future. Yours sincerely, DR Kirch.”
It was last July that Kirch quietly made the announcement picked up by Jersey press that he was going to leave his fortune to Jersey’s residents. At the time Kirch, who runs Channel Hotels and Properties, told the BBC: “I love the island, and so I have decided to leave my wealth to benefit the elderly as they are often left out and forgotten. Also, I have discovered that I have cancer and I have been amazed at how this has sharpened my mind and changed my perspectives on life.”
Over the past seven years Kirch, who arrived in Jersey 40 years ago, has given £100 vouchers to residents aged over 70. Kirch’s fortune has been given to the David Kirch Charitable Trust, which provides homes for pensioners and runs the winter voucher scheme.
He answers questions with another letter explaining why more people should do what he is doing, and giving more of his reasons for becoming a philanthropist.
From: Pio Kivlehan, Noella (Estates Gazette)
Sent: 05 February 2013 14:36
Subject: Interview with Estates Gazette
Dear David,
It was really lovely speaking to you on the phone earlier. As discussed, I’m delighted that you have agreed to take part in Estates Gazette’s philanthropy series of articles.
I’ve scheduled your feature to run in our 23 February issue, so it would be great to get the answers to the questions back next Tuesday (12 February).
When did you first decide you wanted to start giving your money away?
What are the main reasons behind the decision – moral/religious/generosity?
What are the main causes that you give to, and your reasons for this?
Is philanthropy something that you would encourage others to do?
Why do you think more people don’t do it?
In giving away your £100m fortune, does that mean selling off Channel Hotels and Properties?
Do you think that you will start up/buy any new businesses in the coming years so that you can continue giving away money?
As a businessman, how has it felt going through this recession compared with previous recessions?
7th February
Dear Noella,
Thank you for your email of 5 February. To answer your various questions.
I first decided to give approximately £1m away to charity on my 70th birthday. I thought three score and 10 was long enough to have been making money, and from then onwards one should give it back to the community. I did not have a lavish 70th birthday, just a few friends around and the idea was born, and I announced I would give every Jersey resident, of a similar age to me or older, £100 at Christmas and so the voucher scheme started in 2006 and has been running every year since.
I have found that with money the two happiest times are first when you are making it and second when you are giving it away. Elderly folks of Jersey thanking me at Christmas was so much better than my spending it on myself. Someone wrote to me and said that they had bought a microwave oven and called it Mr Kirch and every time it pinged they thought of me. This is just one example as I have each year received many thank you letters. Some describing what they were able to spend the money on.
I have focused my charity on those who are 70 and over in Jersey. I think it is so much easier giving small amounts to many causes . At least I can make a little difference to around 9,000 elderly people in Jersey.
Of course, I would encourage every rich person to give some of their money away as it does give you a very warm and happy feeling, particularly when people come up to you and thank you.
Rich people who do not inherit, but make a lot of money, find it very difficult to give money away because they feel they have to use their money to make more money and I was torn when I made that decision on my 70th birthday, but I am very pleased that I chose the charitable route.
Recently, I have given £100m to my charity, which is virtually all my wealth. My accountant said to me, are you sure you want to give that much, will you be left enough for the rest of your life? I said it was a nice round sum and I wanted to do it. The Charitable Trust now owns all my different companies and I just have a few personal possessions in my house in Jersey and my home in Portugal.
You asked me about the recession. I think I was hit hardest in 1973 when I was advised to sell out after April 1974, but to purchase my residence in Jersey during 1973. I left England at that time. I agreed to sell out after April 1974 but unfortunately the crash came shortly after I bought my house in Jersey in July 1973. That was a terrible shock to me as the insurance company who were going to buy everything from me went bankrupt and my bankers also went bankrupt. I really had to start all over again, but luckily I was young enough to build it up again. Now it has not been taken away from me, I have given it away.
There is nothing really wrong with the way you reported me in your Rich List. In fact, you and The Times were remarkably accurate with the estimation of £100m. I hope this is of some use to you.
Yours sincerely,
DR Kirch
David Kirch’s entry in the EG Rich List
Name: David Kirch
Rank: 164
Wealth: £100m
Company: Channel Hotels & Properties
A shrewd Jersey-based property investor, David Kirch has a nose for undervalued assets. In 2004, he took over Property Acquisition & Management, with a £200m portfolio by way of a £69.5m deal.
Kirch made his fortune in London residential property during the 1960s, disposing of his last properties for £30m in 1988. He now runs Channel Hotels & Properties and has around £3.7m of net assets in the 2010 accounts of four small companies.
Channel Hotels & Properties did have £85m of net assets, but we have not seen recent accounts and Kirch was hit hard by the 2008-09 downturn.
Even his generosity to the local pensioners is feeling the pinch – at Christmas, he gives £100 vouchers to all of the 8,000 Jersey residents over the age of 70 – but last year Kirch admitted he had to borrow the money to fund the philanthropic works.
