He added that the signers “are solidifying a new standard of generosity for billionaires - that they have a moral obligation to commit to giving the majority of their wealth to philanthropy to address society’s most pressing needs.” ‘Giving away money well is very hard’ “The Giving Pledge is a multi-generational effort to help shift the social norms of philanthropy among the world’s wealthiest people and inspire people to give more, establish their giving plans sooner, and give in effective and impactful ways,” said Robert Rosen, director of Philanthropic Partnerships at the Bill & Melinda Gates Foundation, speaking on behalf of the Giving Pledge. Since it was first launched, 210 people from 23 countries have signed the Giving Pledge. I would argue that if billionaires exist, I’m glad they’re giving their money away and I’m glad there’s a mechanism to organize that.” “That said, billionaires are made possible by inequality and we as a society are wrestling with that right now. “The Giving Pledge was an historic moment in the history of philanthropy because it created a new kind of public accountability for generosity, at least in theory,” said Jacob Harold, executive vice president of Candid, an organization that provides information on nonprofits and foundations. Buffett dropped to eighth place on the Bloomberg Billionaires Index after a $2.9 billion stock donation in July.īut others say the Giving Pledge represents an extraordinary achievement. Warren Buffett, who has called for higher taxes for the wealthy, recently said that he received “only minor benefits” from tax deductions related to his philanthropy - his combined federal and state income taxes were reduced by about 43 cents for every $1,000 of value he’s donated in the form of Berkshire Hathaway Class B shares, he said. “Donors should only receive a tax reduction if funds are deployed to serve the public interest in a timely way,” according to its “Gilded Giving” report. The organization has advocated for reforming charity laws to prevent money from being “sequestered” in private foundations and donor-advised funds. “What was intended to be a civic-minded initiative to encourage generosity is, instead, continuing the concentration of taxpayer-subsidized private charitable power.”Ĭharitable giving is partly subsidized by taxpayers, and the Institute for Policy Studies argues that for every dollar a billionaire gives to charity, “the rest of us chip in as much as 74 cents to make up for the lost revenue.” “The Giving Pledge is a textbook case of top-heavy philanthropy in action,” it added. But the other 51 are earning money so fast they’re having a hard time giving it away, the report found. “It’s kind of the best of capitalism,” Bill Gates said in the first TV interview about the Giving Pledge, saying that people who had made a lot of money could then use their wealth to “create good circumstances for other people.’”Ī decade later, 11 of the 62 living signers who were billionaires in 2010 have seen their wealth decline because of “aggressive” charitable giving or market changes, the Institute for Policy Studies found. People who sign the Giving Pledge promise publicly to give away at least half their wealth, either during their lifetimes or in their wills. (Amazon did not respond to a request for comment.)Ĭo-founder Bill Gates and his wife Melinda Gates announced the Giving Pledge in August 2010. Earlier this year, Bezos pledged $10 billion to address climate change. He and his ex-wife launched a $2 billion philanthropic venture called Day One Fund in 2018 to address homeless and preschool education for low-income children. One notable exception to the list of Giving Pledge signers: the world’s richest individual, Jeff Bezos, whose current net worth is roughly $189 billion. If these pledgers want to make good on their promises, they’ll have to “dramatically accelerate their giving just to keep up with their asset growth,” the report added. pledgers who were billionaires in 2010 has increased by 95%, from $376 billion in 2010 to $734 billion as of July 18, 2020, according to “Gilded Giving 2020,” a report from the Institute for Policy Studies, a left-leaning think tank. The combined wealth of the 62 living U.S. Their giving can’t keep up with their escalating fortunes. “‘Instead of supporting charities on the front lines of problem solving, these billions end up sitting in tax-advantaged intermediaries.’ ” - Chuck Collins, co-author of ‘Gilded Giving 2020: How Wealth Inequality Distorts Philanthropy and Imperils Democracy’īut they soon ran into a problem.
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