America’s Biggest Givers: A Closer Look at the Complex World of Billionaire Philanthropy

Every year, Forbes magazine releases a list of America’s biggest givers, and in 2023, these 25 individuals or pairs made the list. Google co-founder Sergey Brin, Mark Zuckerberg and his wife, Priscilla Chan, are among those who have collectively given away a whopping $196 billion. But behind this giant pile of money lies a more complicated and problematic story of billionaire philanthropy in America.

The Forbes List: How Much Have They Given?

The Forbes list ranks the biggest givers by how much they’ve given over a lifetime, and they only measure dollars given to charitable recipients. Some key points about the list include:

• Warren Buffett and Bill and Melinda French Gates are standout givers.
• The Giving Pledge, a promise by the world’s wealthiest individuals and families to dedicate a majority of their wealth to charitable causes, has been signed by 13 of the givers on the list.
• Jeff Bezos, the richest person on the chart, has given only 2.3% of his wealth away over his lifetime.

Table: Top 5 Givers on the Forbes List

Name	Net Worth	Lifetime Giving	Percentage Given Away
Warren Buffett	$106 billion	$51.5 billion	33%
Bill and Melinda French Gates	$109 billion	$38.4 billion	35%
George Soros	–	–	73%
T. Denny Sanford	–	–	53%
Chuck Feeney	–	–	100%

The Problem with Top-Heavy Philanthropy

Top-heavy philanthropy is a term used by the Institute for Policy Studies to describe how individual wealthy donors make up a large portion of charitable giving. Some concerns with top-heavy philanthropy include:

• Dependence on a few large donors: If a small institution relies on funding from a large philanthropist and that funding is withdrawn, the institution could be in trouble.
• Shift in the sources of charitable deductions: In 1993, 77% of charitable deductions were taken by households making less than $200,000. Today, households making more than $1 million take the most charitable deductions.
• Different giving priorities: Ultra-wealthy donors tend to give to different causes than the rest of the population, often favoring education.

Private Foundations and Donor-Advised Funds: A Closer Look

Most of the people on the Forbes list have their own private foundations or give to them. Private foundations offer tax benefits to donors but only have to give money to charities at a rate of 5% a year. Donor-advised funds, on the other hand, are charitable savings accounts that allow donors to be anonymous and have no reporting or payout requirements.

Problems with Private Foundations and Donor-Advised Funds

1. Money stockpiling: Foundations can stockpile money, and donors reap tax benefits while charities may only get a trickle over time.
2. Lack of transparency: Donor-advised funds allow for anonymity and have no payout requirements, making it difficult to determine whether the money is going to worthy causes or simply lowering the donor’s tax bill.
3. Agenda-setting power: Large foundations, like the Gates Foundation, can set the agenda for certain causes and influence which public health problems are prioritized.

Potential Reforms and Solutions

Some potential reforms to address these issues include:

• Reform donor-advised funds: Lobby Congress to require donor-advised funds to distribute funds within 15 years, or only allow tax deductions upon distribution to charities.

• Increase payout requirements: Advocate for increasing the annual payout requirements for foundations from 5% to 10%.
• Reduce wealth inequality: Address the root cause of the problem by reducing dramatic wealth inequality so that society doesn’t have to rely on the charitable whims of billionaires.

Conclusion

While the generosity of America’s biggest givers cannot be denied, the complex world of billionaire philanthropy raises important questions about the distribution of wealth, the influence of private foundations, and the transparency of charitable giving. By shining a light on these issues and advocating for reforms, we can work toward a more equitable and just society that doesn’t depend on the goodwill of a select few.