Eli Broad

Eli Broad – Life, Business, and Philanthropic Legacy

Discover the life of Eli Broad (1933–2021): from building two Fortune 500 companies to becoming a transformative philanthropist in art, education, and science. Explore his career, values, and impact.

Introduction

Eli Broad (born June 6, 1933 – died April 30, 2021) was an American entrepreneur, investor, and major philanthropist.

He is distinctive for having founded two separate Fortune 500 companies in entirely different sectors (homebuilding and financial services), and then devoting much of his later life and wealth to the public good — particularly in education, science, the arts, and civic institutions.

Broad’s life offers lessons in entrepreneurship, vision, strategic philanthropy, and civic leadership.

Early Life and Education

Eli Broad was born in the Bronx, New York City, on June 6, 1933.

When he was six, the family relocated to Detroit, Michigan, where Broad spent much of his childhood.

Broad attended Detroit Central High School, graduating in 1951. Michigan State University, majoring in accounting (with a minor in economics) and graduated cum laude in 1954.

While in college, he held various jobs—selling shoes, working a drill press, and other entrepreneurial or labor roles.

That combination of financial training and tenacity would become a foundation for his business endeavors.

Business Career

KB Home / Kaufman & Broad

After working as an accountant and teaching night classes, Broad got his entry into business via homebuilding.

In 1956, he partnered with Donald Bruce Kaufman (a relative by marriage) to start a home-building venture. The company was named Kaufman & Broad.

They introduced efficiencies to the homebuilding process (e.g. eliminating basements, streamlining designs) so that monthly mortgage payments would be competitive with rent. Their first model homes sold well.

They expanded steadily, and in 1961 the company went public on the American Stock Exchange.

The firm eventually was renamed KB Home and became one of the largest homebuilders in the U.S.

SunAmerica & Financial Services

In 1971, Broad made a major move: he acquired Sun Life Insurance Company of America, which was a family-owned insurance company.

Under his leadership, he transformed Sun Life into SunAmerica, a company focused heavily on retirement, annuity, and financial services.

SunAmerica was taken public in 1989, with Broad retaining a large share (about 42 %).

In 1998, following a series of strategic negotiations, Broad sold SunAmerica to AIG for roughly $17.8 billion in stock.

Business Philosophy & Attributes

Broad was renowned for combining financial discipline, rigorous cost control, and a willingness to enter sectors others might avoid. He was not uninterested in scale, efficiency, or long-term strategic positioning.

He also embraced risk: moving from construction to insurance required domain shifts, and executing a transformative sale (SunAmerica → AIG) was a high-stakes maneuver.

In sum, his two major businesses—KB Home and SunAmerica—provided both capital and credibility for his later civic and philanthropic interventions.

Philanthropy, Civic Work & Legacy

After achieving business success, Broad devoted much of his wealth, energy, and influence to philanthropy and civic development.

The Broad Foundations

With his wife Edythe “Edye” Broad, he established The Eli and Edythe Broad Foundation and The Broad Art Foundation.

These foundations became major vehicles for his philanthropic goals in education, science / medical research, and arts & culture.

• In education, the Broad Foundation supported efforts to improve public K–12 schooling, leadership programs, and urban school reform.

• In science, Broad’s generosity helped establish the Broad Institute (MIT / Harvard), focusing on genomics, biomedicine, and disease research.

• In the arts, Broad played a transformative role in Los Angeles’s cultural landscape: he helped support, fund, and shape institutions such as the Museum of Contemporary Art, the Los Angeles County Museum of Art (LACMA), and the creation of The Broad (a contemporary art museum).

His art collection, largely focused on postwar and contemporary works, was extensive.

Notably, Broad committed to the Giving Pledge: he pledged to donate the majority of his wealth.

Civic Projects & Urban Development

In addition to direct philanthropy, Broad engaged in civic redevelopment efforts. He founded the Grand Avenue Committee in Los Angeles, aiming to revitalize the city’s downtown corridor and invest in arts, parks, and public spaces.

He was instrumental in fundraising, planning, and influence around projects like the Walt Disney Concert Hall and associated cultural infrastructure.

Honors, Recognition & Impact

• Broad’s philanthropic work earned him many honors: he was a Fellow of the American Academy of Arts and Sciences, a Chevalier in France’s Legion of Honor, and recipient of the Carnegie Medal of Philanthropy.

• He was also a regent of the Smithsonian Institution and served on boards of major art and cultural institutions.

• His effect on Los Angeles’s cultural identity, the elevation of contemporary art access, and his influence on education and science in the U.S. make him one of the most impactful philanthropists of recent decades.

Later Years & Death

Eli Broad passed away on April 30, 2021, in Los Angeles at age 87 after a long illness.

Even in his later years, he remained committed to his foundations and public causes. His legacy continues through the institutions bearing his name and the programs he established.

Personality, Vision & Philosophy

Broad was known for his blend of pragmatism, ambition, and strategic generosity. He often spoke about being unreasonable — pushing boundaries, taking risks, and not settling for incremental change. His book, The Art of Being Unreasonable: Lessons in Unconventional Thinking, captures that mindset.

He saw philanthropy as not merely giving, but as investing in systems, leadership, institutions, and transformative change — a kind of venture philanthropy.

He also believed in accessible culture: he wanted art, science, and education not just for elite enclaves but broadly for communities.

He often said that business gives you a chance to make money, but philanthropy gives you a chance to make meaning.

Notable Quotes

Here are a few quotes attributed to Eli Broad, reflecting his philosophy:

• “A man falls long before he hits the ground.”

• “I try never to underestimate people, because they can surprise you. But I don’t try to overestimate them either.”

• From his book The Art of Being Unreasonable: “Be unreasonable and demand more of yourself than anyone else could ever demand of you.”

These speak to discipline, humility, and drive.

Lessons from Eli Broad’s Life

Eli Broad’s life offers many lessons for leaders, philanthropists, and those seeking impact:

1. Diversify boldly
   Building success in one sector does not preclude building in another; Broad pivoted from homebuilding to finance and succeeded.

2. Outsize thinking yields outsized impact
   He often embraced projects that seemed ambitious, believing that scale could amplify change.

3. Philanthropy is an extension of entrepreneurship
   He approached giving with metrics, accountability, and systems—seeking leverage, not just charity.

4. Culture and community matter
   By investing in art, public spaces, and civic infrastructure, he recognized that cities and societies flourish when culture thrives.

5. Legacy is built through institutions, not ego
   Many of his gifts were to institutions that would continue work beyond his lifetime.

6. Don’t wait to give back
   He balanced business accumulation and giving early in his career — the flow of capital and cause were simultaneous.

Conclusion

Eli Broad’s journey from a modest upbringing to business success, and then to purposeful philanthropy, marks him as one of the most consequential figures in modern America. His ability to build, transform, and invest in next-generation institutions—whether in education, science, or art—is a blueprint for impact-minded leadership.