The Gates Foundation and timescales for philanthropy

Send us Fan MailIn this episode we take a look at the recent announcement by Bill Gates that he now plans to give away 99% of his wealth and spend down his foundation over the next 20 years. Including:Should we be excited about this news?Why has the announcement been made now? Should it be seen in part as a response to the Trump administration? Do the sums stack up? Can we square what has been said so far about the total amounts that will be given away with the projected annual spending rates?Is the Gates Foundation going to look beyond grantmaking in order to spend out? i.e. by transferring its endowment to other orgs, or by using endowment assets to make impact investments?Is this more evidence that norms around perpetuity in foundation philanthropy are shifting?Will it be necessary to shift away from “strategic” philanthropy in order to give money away at the required rate?Will Gates’s decision prompt other wealthy people to commit to giving more money more quickly? Gates has framed his goals in terms of “solving” a number of major societal problems, but does this set unrealistic expectations of what philanthropy can achieve?Is there a risk that the increased pace of Gates' giving could exacerbate concerns about the distorting effect that his philanthropy can have in some of the countries where the foundation operates?Why did a norm of perpetuity for foundations become established in the first place?What are some of the key criticisms that have been levelled at perpetual endowments?Relevant linksAP article featuring comment from Rhodri, “Bill Gates pledges his remaining fortune to the Gates Foundation, which will close in 20 years”Michael Kavate’s piece in Inside Philanthropy, “Gates Sets An End Date: 2045. But Do We Really Know How Much He’ll Spend?”New York Times interview, “The $200 Billion Gamble: Bill Gates’s Plan to Wind Down His Foundation”WPM article series “What’s the Point of Philanthropic Foundations?” Part 1, part 2 and part 3.WPM Guide to short-term vs long-term approaches in philanthropyBen Soskis’s paper on “The History of the Giving While Living” ethicPhilanthropisms podcast episodes on the ‘history of foundations’ and ‘philanthropy, gratitude and recognition’Philanthropisms podcast interview with Maribel Morey