The Microsoft co-founder announced this week that he is donating $20 billion to the Bill & Melinda Gates Foundation, while reiterating his commitment to give “almost all of my wealth to the foundation” and eventually leave the list of the world’s richest people. . Gates announced his plans in a post on Twitter on Wednesday, writing: “I have an obligation to give back to society in ways that have the greatest impact on reducing suffering and improving lives. And I hope that others in positions of great wealth and privilege you will ascend even at this time.’ Gates, along with his ex-wife Melinda French Gates, have already given more than $50 billion to the foundation since 1994. But for the world’s fourth-richest man to reach his goal, he will need to make a huge philanthropic effort. giving away nearly all of the fortune that Bloomberg currently estimates at $113 billion. See how it can be achieved and what the impact can be in reality.
The Gates Foundation’s impact so far — and a look ahead
In a blog post Wednesday, Gates wrote that the Gates Foundation plans to increase its annual spending by 50% — to $9 billion by 2026, from $6 billion today. “It is now clear that the need in all areas where we work is greater than ever. The great crises of our time require all of us to do more,” Gates wrote, noting recent “enormous global setbacks” ranging from Covid- 19 pandemic in Russia’s invasion of Ukraine. Founded in 2000, the foundation is already one of the largest charities in the world. The nonprofit organization funds a variety of causes, with a particular focus on finding solutions to global issues such as disease, poverty, climate change, and access to health care and education. Looking ahead, Gates wrote that he wants his ever-growing endowment to fund research and development to prevent future pandemics, mitigate climate change and cut global child deaths from preventable diseases in half in the coming decades . Critics of the foundation point to the potential risks — and conflicts of interest — of such a large charity having disproportionate power over how tens of billions of dollars are spent, especially on issues of major global importance. These critics argued that private nonprofits should have more public oversight and accountability. But the Gates Foundation has already undeniably influenced the world for the better. In a 2008 study, Rice University researchers found that the foundation helped provide more financial support to the National Institutes of Health for research into vaccines for malaria and tuberculosis and other global diseases such as asthma and heart disease. Similarly, the Gates Foundation played a key role in the creation of Gavi, the Vaccine Alliance — a global health program founded in 2000 that provides immunization in poor countries and has helped vaccinate nearly 1.2 billion people against diseases such as Covid-19, polio and measles. The foundation contributed more than $4 billion to the program, including $750 million in seed funding, while helping to convince governments and global health organizations to commit billions more. The program says it has prevented more than 15 million deaths since it began.
Gates’ fortune may grow further before he gives it all away
The vast majority of Gates’ wealth comes from private holdings and common stock, including a reported 1% stake in Microsoft that is currently valued at about $19 billion. His net worth fluctuates with the market and has grown by about 25% over the past five years – despite previous donations to charity and a transfer of at least $6 billion to his ex-wife from their 2021 divorce. If those assets continue to gain in value, Gates may find himself with more than $113 billion to give away. Historically, Gates has donated Microsoft stock and other investments directly to philanthropic organizations such as the Bill & Melinda Gates Foundation, which holds most of the stock that now has nearly $70 billion. Going forward, he could continue to donate stock or decide to liquidate some of his holdings and donate their value in cash. That would almost certainly be the case when it comes to assets like real estate — including a 66,000-square-foot lakeside home in Medina, Washington that Wealth-X valued at $80 million in 2019 — and an art collection that Wealth-X values to $130 million, including works by Leonardo Da Vinci. Either way, it’s sure to be a huge undertaking, but the billionaire says he’s looking forward to it. In his blog post, Gates wrote that he does not view the act of giving away his wealth as a sacrifice. “I feel privileged to be involved in addressing these grand challenges, enjoy the work, and believe I have an obligation to give back to society in ways that have the greatest impact on improving lives,” he wrote. Subscribe now: Get smarter about your money and your career with our weekly newsletter Dont miss: Bill Gates Has 5 Book Recommendations for Your Summer 2022 Reading List Do you want to change the world? Bill Gates says you should ‘read a lot’ and ‘find a skill you like’
