Giving Pledge after 15 years: Only 9 billionaires gave away half their wealth
15 days ago
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- #charitable giving
- #wealth inequality
- The Giving Pledge, launched in 2010 by Bill and Melinda Gates and Warren Buffett, encourages billionaires to donate at least 50% of their wealth to philanthropy.
- A report by the Institute for Policy Studies (IPS) reveals that most signatories have not fulfilled their pledges, with wealth increasing rather than being donated.
- Only one living 2010 Pledger (Laura and John Arnold) and eight deceased U.S. Pledgers have met the pledge, with Chuck Feeney being the only one to give away his entire fortune.
- The pledge is a moral commitment, not legally binding, allowing donors to choose their causes and charities.
- Key findings include: 256 signatories (194 U.S., 62 international), with U.S. signers holding $1.7 trillion in wealth (13% of U.S. billionaires).
- Original 2010 U.S. signers saw a 283% increase in net worth, with only 11 no longer billionaires due to wealth decline, not donations.
- 80% of $206 billion donated by original Pledgers went to private foundations, with only a small fraction to donor-advised funds.
- Wealth accumulation outpaces giving, making the pledge difficult to fulfill at current rates.
- If original Pledgers fulfilled their pledges today, $367 billion would go to charity, but $272 billion in federal tax revenue would be lost.
- The report warns of a 'Great Wealth Transfer' concentrating power in billionaire family foundations, undermining democratic accountability.
- Policy recommendations include higher payout requirements, transparency, accountability, and taxing large fortunes more fairly.
- The report advocates for 'giving while living' and systemic reforms to ensure donations serve public interest, not just tax benefits.
- The Giving Pledge responded, stating the report excludes significant charitable giving forms and misrepresents signatories' impact and intent.
- Fortune used generative AI for an initial draft, with an editor verifying accuracy before publishing.