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The Anti-Billionaires  


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More billionaires want to donate their entire assets to philanthropic causes, but motivations are nuanced.  

Patagonia founder Yvon Chouinard (c) Campbell Brewer

Billionaires are giving it all back. Well, some of them. Yvon Chouniard, 83-year-old billionaire founder of Patagonia, donated his family’s entire stock to focus on fighting climate change. In one swoop, assets estimated at US$3 billion and annual profits of US$100 million were passed into the not-for-profit realm.

This latest act of philanthropy chimes with MacKenzie Scott’s 2019 announcement to give away her entire fortune to charitable causes; in the last three years she has donated some US$12 billion. Chuck Feeney, former billionaire co-founder of retail giant Duty Free Shoppers announced in 2020 he had finally given all his money away to charity, achieving his goal of donating US$8 billion of assets in his lifetime.

Bill Gates, the world’s fourth-richest man with assets of US$122 billion, recently reconfirmed his ambition to drop off the list of the world’s wealthiest by giving away all of his money, continuing with a further US$20 billion donation to his foundation.  

There are now 234 signatories to the Giving Pledge; the movement sparked by Bill Gates and Warren Buffett, a public commitment by each that the majority of their fortunes would go to philanthropy in their lifetimes or upon their death. Prior to this initiative, in the 1990s Ted Turner gave US$1 billion to the United Nations, while George Soros has parted with what represents around 64 percent of his original fortune, having donated more than US$32 billion to the Open Society Foundations, of which US$15 billion has already been distributed.

At the turn of the century, Andrew Carnegie was perhaps the first to state publicly that the rich have a moral obligation to give away their fortunes. By the time he died, despite his best attempts, he had not given away his entire fortune. He had distributed US$350 million, but had US$30 million remaining.

Bill Gates has said he wants to drop off the world's rich list

At the same time, numerous US (and some UK-based) billionaires and millionaires are actively campaigning for higher taxes. This is something that one-time world’s richest man Warren Buffett has been calling for over a decade, alongside Michael Bloomberg, Salesforce’s Marc Benioff, Starbucks’ Howard Schultz and others.

So is this a new age for philanthropy where the positive impact of billionaires is recognised and lionised? A coming together of those with assets who no longer wish to be seen at the pinnacle of capitalist society and those campaigning for a fairer society?

A reality check is needed. Pledges get airtime, but action takes time. Counts vary, but the latest estimates point to at least 3,330 billionaires in the world. This large group of super-rich has been growing despite a period of Covid, the cost-of-living crisis and other challenges.

Bill Gates, to use the most high-profile example, committed himself to philanthropy and giving away his wealth in 2010, which stood at US$53 billion. Something he has delivered on since, donating a staggering US$57 billion to his foundation. And, yet, at the same time, his wealth has doubled and, despite his generosity, today his wealth still stands at some US$100 billion.

More recently, during MacKenzie Scott's donation of US$12 billion in four stages over two years, her wealth driven by Amazon stock increases grew by a third, up to US$43 billion in 2022 from US$36 billion in 2020.

Andrew Carnegie was perhaps the first to state publicly that the rich have a moral obligation to give away their fortunes

And while the big donations get headlines, the majority of giving remains paltry. The 2022 Forbes 400 ranking of the richest US citizens, traditionally seen as the country with the most established market for philanthropy, includes a ranking on their actual giving. Over a third, 36 percent, have given away less than one percent of their wealth. Only nine billionaires, two percent, have given more than 20 percent of their wealth, including Bill Gates, Melinda Gates, Warren Buffett and MacKenzie Scott. This reflects a wider public cynicism of big promises, commitments, and unproven noise.

For those that do follow through and give away, there is growing scepticism as to motives: are they merely swapping extreme unspendable capital for outsized power and influence? Is it just unelected individuals committing their wealth to shape their countries towards the world they would like to see?

Take, for example, the altruistic donation of Yvon Chouniard. This donation includes a structure to ensure the continuation of the ‘purpose’ element of the company and keeps it committed to fighting climate change. Much of the positive press has come from the choice of cause supported. Imagine a donation to support a cause that you did not agree with, such as anti-abortion legislation or restricting LGBT rights.

Philanthropist Ted Turner (c) Shearon Glover

In a ‘free country’, why shouldn’t people be free to donate their resources as they wish?  However, by avoiding government tax (no estate fees, no tax liabilities on profits) and actively campaigning to change the law, it is seen rather as an ability for some to have a larger influence than others outside the democratic process.

This role of influence is coming to the fore. Going back to Bill Gates, publications such as Politico report into the role his foundation plays in global health during Covid. For the Washington Post the focus is the influence they have on the education system and public spending in the US. These reports are questioning the access and influence that billionaire philanthropists are having with no oversight over public policy, spending and action.

As the new profile of philanthropy has grown and, with it, the high-profile philanthropist, so there are the growing challenges that come from the access of philanthropic dollars.

So what can the prospective philanthropist take from this? For those wanting to enter the philanthropic world and put their resources to good, a couple of steps become clear. Be realistic about what you are able to do and within realistic clear timelines. Stop the promising and start the doing; speak about what you have done rather than what you are to do. Be clear about your ambitions and try to be as transparent as possible about both motivations and limitations of your actions. The world desperately needs more philanthropic dollars, but they must be spent wisely.