Charitable donations ‘don’t solve anything’ says world’s richest person

I’m sure almost everybody reading this will be familiar with ‘The Giving Pledge’ if not by its actual name then certainly by whom is involved and what it seeks to accomplish. The world’s richest man has come out against charitable giving as not being the solution. The origins of the .org began in the early part of 2009 when a group headed by Bill Gates and Warren Buffett began a campaign that the wealthiest individuals not only were in a position to donate a large ratio of their fortune to charity, but indeed it would be the right thing to do. The idea originally grew from the Bill and Melinda Gates foundation and in March 2009 Gates contacted David Rockefeller Sr. and the network began to grow and also received the support of Warren Buffett, Michael Bloomberg, Barron Hilton and now numbers more than 40 of the wealthiest individuals in North America. The organization has relied upon the concept of a moral commitment to donate funds to charity rather than any type of contract, each of the billionaires associated with the organization have joined and committed at least half of their wealth to charity. The website summarizes an official goal of it being “an effort to invite the wealthiest individuals and families in America to commit to giving the majority of their wealth to philanthropy”.

Bill Gates and Warren Buffett

The list of associated individuals grew throughout 2009 and into this year and and estimates now suggest that over $120 billion has been donated under the auspices of “The Giving Pledge”. On the official website you can learn far more about each of the individuals who have committed to the campaign, I think the words of Bill and Melinda Gates truly reflect the principles of an honourable movement:

“We have been blessed with good fortune beyond our wildest expectations, and we are profoundly grateful. But just as these gifts are great, so we feel a great responsibility to use them well. That is why we are so pleased to join in making an explicit commitment to the Giving Pledge. The idea of the pledge came out of discussions we had with other givers about what they were doing, about what had worked in philanthropy and what had not worked. Everyone shared how giving had made their lives richer.  Everyone who attended was inspired by listening to the others’ passion and encouraged to do even more. For the two of us, because we see amazing progress every day, but also, how much more work remains, we’re honored to be a part of this pledge effort”

With that said recent comments by Carlos Slim are not only controversial but thought-provoking, I can see how part of the equation requires a solution he speaks of (full employment being more useful than charity) but I do think it takes both for more progressive, humanitarian and equitable society. Slim is the Mexican billionaire who Forbes magazine currently have listed as the world’s richest man. It should indeed be noted that he has himself donated hundreds of millions of dollars to his own charities and provided significant support to the Bill and Melinda Gates Foundation, but he has not added his name to the list on ‘The Giving Pledge’ and during a recent conference in Australia Carlos Slim made the following statement:

“The only way to fight poverty is with employment. Trillions of dollars have been given to charity in the last 50 years, and they don’t solve anything. … To give 50 percent, 40 percent, that does nothing. There is a saying that we should leave a better country to our children. But it’s more important to leave better children to our country”

It’s a bold statement that could be misinterpreted further without understanding that he has himself made many philanthropy gestures, but the suggestion that the incredible sums raised by charities in the last half century have not solved anything is neither fair nor accurate in my opinion. His statement is probably too broad, but does reflect a societal need to improve the stability of many nations in terms of healthcare, economics and self-sufficiency. I feel this should be a ongoing approach in tandem with the fine and significant work that nonprofits successfully manage. Some responsibilities naturally enough fall upon national and regional governmental policies, and he is right that employment and a standard of living above the poverty line would eradicate the needs for some acts of philanthropy but certainly not all. The issues that philanthropy looks to help are too broad to be resolved via one solution, and seeing as the world is too complex a place to have one fundamental ideology there will always remain the need for a versatile and complex approach to doing good and changing lives for the better. I’d be fascinated to hear what you feel about the comments made by Mr. Slim in the context of how they were said.

To learn far more about The Giving Pledge please visit their website.