The Giving Pledge – 105 Generous Billionaires and Growing
Last April, I blogged about the Giving Pledge, the movement started by Warren Buffet and Bill and Melinda Gates in 2010 which was intended to encourage the wealthiest Americans to commit to giving the majority of their wealth to philanthropy. Initially, the founders focused on domestic billionaires because, as Mr. Buffett put it “…we had our hands full in the U.S.”
In addition to this particular BHAG (“Big Hairy Audacious Goal”) of increasing meaningful philanthropic participation by ultrahigh net worth families, Mr. Buffett and the Gates’ wanted to take the philanthropic discussion up a notch and try to increase overall giving at all levels. Don’t discount the symbolism factor of this leadership by example – it is a very powerful motivator and the reason for the public nature of the pledge. Time will tell if this part of the goal is successful, or even measurable.
But certainly in the rarefied society in which the founders travel, the Pledge appears to be working. When it was first kicked off three years ago in June 2010, there were 40 signatories. By April, 2012, when I first blogged about the Pledge, participation had more than doubled to 81. Today the total stands at 105. 12 of these folks are the first non-US signatories to the pledge, representing the United Kingdom, Australia, South Africa, Germany, Russia, India, and Malaysia. The combined philanthropic pledge of this new cohort stands north of $10 billion.
The global component of such a movement is actually more difficult than you might think. Just like everything else, there are definite international cultural differences regarding philanthropy. Initially, when the founders met with folks in countries as diverse as China, India, and Saudi Arabia, they faced hurdles ranging from civic modesty to an overriding need to perpetuate family dynasties. Not surprisingly, a lot was lost in translation, leaving some potential pledgers thinking they would be legally and contractually bound (no, just morally bound) or that they would be locked into supporting certain charities or foundations (which they are not). In fact, the pledge could not be simpler or more flexible – all that is asked is that a majority of a pledger’s wealth go to philanthropic causes “that inspire them personally and benefit society” and that the pledger make a public statement about his/her commitment.
As successful as this campaign has been, we need to keep it in perspective. Asking anyone at any level of wealth to give away the majority of their net worth to charity is a tough sell. 105 billionaires have made that pledge so far and we celebrate and thank them for it. Using Forbes list of the “World’s Billionaires” as a scorecard, Buffett and the Gates’ now have only 1,121 folks to go.
