The Giving Pledge was lauded as a worthy goal when it first was announced a decade ago, but it has been outpaced by the pace of wealth creation. According to a study conducted by a think tank, many of the billionaires who signed The Giving Pledge are richer than they promised to be. This is because their assets are growing too fast.
The pledgers are well-known business owners such as Richard Branson, Elon Musk and Reed Hastings. The combined wealth of the 62 individuals who became billionaires in 2010 has risen by 95% since 2010, according to a report released on Wednesday. The report noted their giving could not keep up with their increasing wealth.
If these individuals are serious about making good on their promises, they should accelerate their giving, the report noted. One notable exception to the list of giving pledge signers is Jeff Bezos, the world’s richest individual. He and his ex-wife, MacKenzie, launched a $2 billion venture in 2018, which they referred to as the “Day One Fund.”
Since 2010, 11 of the 62 billionaires who were identified in the report have seen their wealth decline due to aggressive giving or market changes. The other 51 are struggling to give away their money. The Giving Pledge is a textbook example of top-heavy philanthropy, according to a report released by the Center for American Progress.
Some Say Taxpayers Are The Ones That Lose
Involuntary giving is partly funded by taxpayers, who are asked to pay for the lost revenue. The organization also pushed for changes in charity laws to prevent funds from being drained away for private foundations or donor-advised funds. While donating his wealth to charity, Buffett said he received only minor tax benefits.
Others Say The Giving Pledge Offers Great Achievements
The Giving Pledge, which was launched in 2000, has created a new type of public accountability for giving, according to Jacob Harold, the executive director of Candid. Inequality is the reason billionaires are possible, and I would argue that if they exist, then I’m glad that they do. The Giving Pledge encourages people from all around the world to give more. Over 210 individuals have signed the pledge since it was first launched.
Where Is The Giving Pledge Money Now?
Each pledge signer writes a letter detailing their motivations for joining the campaign. Beyond that, there is no official accounting of how donors’ funds are allocated. They give to a variety of causes. The Bill & Melinda Gates Foundation, for example, focuses on global health issues. They also give to children’s hospitals.
Critics of The Giving Pledge argue that many of the individuals who make their donations through their private foundations or to donor-advised accounts may not be able to give immediately to charity.