![]() “Wealthy individuals of all types receive a considerable tax advantage for their giving, and it's a tax advantage that most Americans don't get,” Campbell said. Tax benefits for the ultra wealthyĬritics of billionaires' preferred method of giving argue that the tax system subsidizes ultra-wealthy donors compared to the rest of the population, Campbell said. As of December, 231 philanthropists from 28 countries have signed the pledge. Scott is among the billionaires who have signed on to the Giving Pledge, an initiative created by Gates, French Gates and Warren Buffett to encourage ultra-wealthy people to donate most of their wealth to charity. Since pledging to give away most of her wealth in 2019, she has donated an estimated $12 billion to more than 1,200 nonprofit organizations. Philanthropist and author MacKenzie Scott has distinguished herself from her peers by granting money directly to charities with no strings attached. Essentially, wealthy people opt out of paying their taxes, reduce their taxes, and create an intermediary that they continue to control." "But typically, people think of foundations as a sort of multigenerational affair. ![]() "Bill Gates is saying he’s going to give $20 billion, but his intention is to pay down quickly, not have it sit forever in his foundation," Collins said. ![]() "The pandemic has proven that progress is fragile, and our ability to commit additional resources will increase the reach and impact of our programs."īut Chuck Collins, director of the Charity Reform Project at the Institute for Policy Studies, said donations to private foundations and donor-advised funds stay under the control of the donor and come with generous tax benefits. "The funds will enable the foundation to deepen and accelerate existing programs and provide operational flexibility," the foundation said in an email. Gates pledged to give $20 billion to his foundation's endowment last month, with the goal to allow the organization to be positioned to spend $9 billion per year by 2026. One criticism of donor-advised funds is that the money can sit there for years before being used, though that's not typically the case, said David Campbell, a professor of public administration at Binghamton University. Private foundations are required to give away 5% of their endowment a year, while donor-advised funds have no mandated payout. And the second-largest chunk went to donor-advised funds. Most of the gifts from large donors last year went to private foundations, according to the Institute for Policy Studies' analysis of the 50 largest donors in 2021.
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