Billionaires stepping up, acknowledging their good fortune, and doing what’s right

Bill Gates, Melinda Gates, and Warren Buffett have challenged their fellow American billionaires to pledge at least half of their net worth to charity, either in their lifetimes or at their death. And, always one to lead by example, Warren Buffet today announced that he would be donating all but 1% of his wealth. Following is a clip from his open letter, which was released today.

In 2006, I made a commitment to gradually give all of my Berkshire Hathaway stock to philanthropic foundations. I couldn’t be happier with that decision.

Now, Bill and Melinda Gates and I are asking hundreds of rich Americans to pledge at least 50% of their wealth to charity. So I think it is fitting that I reiterate my intentions and explain the thinking that lies behind them.

First, my pledge: More than 99% of my wealth will go to philanthropy during my lifetime or at death. Measured by dollars, this commitment is large. In a comparative sense, though, many individuals give more to others every day.

Millions of people who regularly contribute to churches, schools, and other organizations thereby relinquish the use of funds that would otherwise benefit their own families. The dollars these people drop into a collection plate or give to United Way mean forgone movies, dinners out, or other personal pleasures. In contrast, my family and I will give up nothing we need or want by fulfilling this 99% pledge…

My wealth has come from a combination of living in America, some lucky genes, and compound interest. Both my children and I won what I call the ovarian lottery. (For starters, the odds against my 1930 birth taking place in the U.S. were at least 30 to 1. My being male and white also removed huge obstacles that a majority of Americans then faced.)

My luck was accentuated by my living in a market system that sometimes produces distorted results, though overall it serves our country well. I’ve worked in an economy that rewards someone who saves the lives of others on a battlefield with a medal, rewards a great teacher with thank-you notes from parents, but rewards those who can detect the mispricing of securities with sums reaching into the billions. In short, fate’s distribution of long straws is wildly capricious.

The reaction of my family and me to our extraordinary good fortune is not guilt, but rather gratitude. Were we to use more than 1% of my claim checks on ourselves, neither our happiness nor our well-being would be enhanced. In contrast, that remaining 99% can have a huge effect on the health and welfare of others. That reality sets an obvious course for me and my family: Keep all we can conceivably need and distribute the rest to society, for its needs. My pledge starts us down that course.

Hopefully more people step up and follow Buffet’s example. If they do, the results could be incredible… According to Forbes, the fortunes of the richest 400 Americans alone totaled $1.2 trillion in 2009. If each of those individuals were willing to give just 50% of their net worth to charitable causes during their lifetimes, or at death, that would put $600 billion into use, solving problems, and making the world a better place. And, better still, it may have the added benefit of reducing the incidents of trust-fundarian douche baggery.

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  1. Brackinald Achery
    Posted June 16, 2010 at 10:58 pm | Permalink

    Private generosity = free market.

  2. dragon
    Posted June 17, 2010 at 12:27 am | Permalink

    “Its’ weird that black people would want to do a marker on a slavemaster,” admitted Barbara Jefferson-Bonner, a Panola County historian specializing in black history. ” Slavemasters are supposed to be mean and cruel, but he wasn’t that way.” The marker will be dedicated for Spearman “Mayor” Holland, who brought Bonner’s family here as slaves in the 1840’s. According to intensive research by Bonner, Holland was known for his generosity toward his slaves. “He was a great guy. He cared for his slaves in a unique kind of way,” she said “When Spearman left here, he left his thousands of acres to his slaves, who were ancestors of mine.”

  3. Knox
    Posted June 17, 2010 at 7:57 am | Permalink

    We’ll see how many of the 400 follow suit. I’m not optimistic. Most people wantt o establish dynasties. Buffet is a good man.

  4. Kim
    Posted June 17, 2010 at 9:22 am | Permalink

    I’ve seen Buffet interviewed with his kids, who seem both well adjusted and bright. I know that, below the surface, things may not be so clean and happy, but, on the surface, his kids don’t seem at all bitter about the fact that he won’t be leaving them billions. It’s a credit to the man that he didn’t raise entitled little fucks like Paris Hilton and the cast of The Hills.

  5. Edward
    Posted June 17, 2010 at 9:41 am | Permalink

    I’m not a big, pro-tax guy, but there should be an enormous tax on inherited wealth. Men should be free to make their own fortunes in this word, unencumbered by the wealth of their ancestors.

  6. Meta
    Posted August 4, 2010 at 12:29 pm | Permalink

    Congratulations to Gates and Buffet. It’s been announced today that 30 billionaires signed on. The following is from Reuters.

    Among the billionaires joining the campaign are New York Mayor Michael Bloomberg, entertainment executive Barry Diller, Oracle co-founder Larry Ellison, energy tycoon T. Boone Pickens, media mogul Ted Turner, David Rockefeller and investor Ronald Perelman, according to The Giving Pledge campaign.

    The rest of the story:

  7. Posted August 4, 2010 at 8:46 pm | Permalink

    Very cool indeed. Thanks for sharing the update, Meta.

    One wonders how exactly the money will be given, and what will be done with it specifically…. I guess I should read the article, huh?

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