Bill Gates
has declared that he plans to donate 99 percent of his substantial wealth over the next few years, reserving only one percent for himself and his offspring.
The technology tycoon plans to close down the Gates Foundation by December 31, 2045, marking the conclusion of an ambitious lifetime endeavor aimed at distributing his multibillion-dollar wealth for charitable causes.
On Thursday, he declared his intention to distribute nearly all of his fortune, around $200 billion, over the coming two decades.
The Gates Foundation, established by Gates in 2000 alongside his former wife Melinda French Gates, saw her departure following their divorce.
Microsoft
multimillionaire invests billions of dollars annually in healthcare.
foreign aid
along with various social welfare schemes.
Gates will retain only one percent of his fortune, amounting to approximately $1.62 billion.
He has three grown-up kids—Phoebe, Rory, and Jennifer—with Melinda, who are expected to be the main beneficiaries of the leftover millions in cash that Gates possesses and will likely inherit after his passing.
After the announcement, he stated: "It's quite exciting to have that opportunity to invest so much in these initiatives."
His statement implies not only a commitment to ongoing backing for these initiatives, specifically concerning global health and education within the United States, but also suggests a future where the organization’s significant impact across the globe diminishes over time.
Gates mentioned that using up his wealth would assist in saving and enhancing numerous lives immediately, leading to beneficial consequences that would extend far past the shutdown of the foundation.
This increases the likelihood that his intentions will be upheld.
"I believe that 20 years strikes the right chord between contributing as much as possible to advance these initiatives and providing ample warning that this funding will cease," Gates stated.
The Gates Foundation has consistently stood out among foundations – drawing both admirers and critics, as well as many baseless conspiracy theories.
Beyond the $100 billion invested since its establishment 25 years ago, this organization has also steered scientific investigations, facilitated the creation of innovative technologies, and fostered enduring collaborations with various nations and businesses.
An astounding 41 percent of the foundation's funds have been provided by billionaire investor Warren Buffett. He has committed to giving away 99 percent or even more of his approximately $160 billion wealth to charitable causes upon his death.
The remainder of the foundation's funds originate from Gates' earnings at Microsoft, the technology firm he established and led as CEO for an extended period until his retirement in 2000. It was also in this year that he committed fully to charitable work.
As a major financier of global health programs, Gates emerged as a leading figure in public discourse during the COVID-19 pandemic, frequently advocating through the media for individuals to receive vaccinations.
Critics argue that he wields too much power over funding decisions for various programs and who receives essential assistance. However, Gates maintains that as a private individual, he has the right to allocate his wealth as he sees fit.
'Is that considered negative? It isn’t a significant reason? People have the right to critique it,' Gates said to the
Associated Press
, emphasizing that the foundation will keep funding nonprofits they consider deserving.
The organization initially intended to conclude operations about twenty years following Bill Gates' passing, but it now has a set termination date at the conclusion of 2045.
Gates, who is currently 69 years old, mentioned that he will stay involved as much as possible, but admitted that he might not maintain a central position indefinitely.
Over its final twenty years, the foundation aims to sustain an annual budget of approximately $9 billion. This approach enables them to allocate more funds currently compared to what they would have distributed had their duration been extended beyond the initial plans.
"If our aim was to function as an eternal organization, rather than having the capacity to disburse $9 billion annually, we would need to reduce our expenditure to around $6 billion per year," Gates explained.
The New York Times Magazine
.
It seems that Gates' reversal may have been swayed by Trump's return to the White House in January, which granted Elon Musk unusual influence over how the federal government allocates crucial assistance funds for nations in need.
In February, Musk's Department of Government Efficiency essentially closed down the US Agency for International Development (USAID) and dismissed all its employees.
Gates has strongly criticized this action and often cites reports about food meant for delivery to vulnerable nations ending up spoiling in storage facilities.
"The image of the planet's wealthiest individual extinguishing the lives of its most destitute children is far from appealing," Gates stated to the audience.
Financial Times
.
Despite the planned increase in funding from the Gates Foundation over the coming two decades, Gates noted that private philanthropy won’t fill the gap caused by the cessation of USAID’s operations, which has an annual budget of $44 billion.
During its prime, USAID implemented food assistance, emergency aid, and disease prevention initiatives across more than 100 nations.
Gates has similarly called out the Trump administration for naming Robert F. Kennedy, who is known for his skepticism towards vaccines, as the Secretary of Health and Human Services.
Melinda Gates previously held an equal position alongside her former husband at the Gates Foundation and continued working there for three years following their separation.
However, in June 2024, she stunned everyone by choosing to depart from what might be the most impactful charitable organisation globally, opting instead to dedicate more of her time to her own entity, Pivotal Ventures, with a focus on supporting women and girls.
Regarding the unexpected early winding down of the Gates Foundation, Melinda informed the Associated Press that 'the timeframe was decided by Bill in consultation with the board of trustees.'
I believe that at this very moment, the foundation’s efforts are helping a child receive a vaccination or enabling a woman to open her first bank account," she stated. "And years down the line, these individuals' families and communities will have transformed significantly due to the opportunities unleashed by that child and woman for those surrounding them.
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