Bill Gates Giving Pledge charity initiative seems to be helping billionaires more than causes. According to the Institute for Public Studies report that was released in August 2020. The more than 200 members have agreed to donate up to half their wealth by the time of their death. However, recent evidence discovered by the IPS suggests that most of this charitable money does not reach active charities. Indeed, the report indicates that as the system stands now the Giving Pledge is helping Bill Gates get richer. Additionally, the report also indicates that left alone the Giving Pledge could hurt the Democratic nature of the US.
Bill Gates Giving Pledge despite the intentions has not adjusted with the changing circumstances according to the IPS report. Specifically, the fact that the number of billionaires since the founding charity has increased by over 200 individuals. Additionally, most of the original members of the pledge have seen their wealth increase substantially in the last decade. While substantial amounts of that welder still going to pledge charities there are several problems.
One of the most notable being charitable tax deduction. In other words, if the billionaires donate money to charity, they can claim it as tax-deductible. This means they can avoid paying higher taxes. While the exact number is hard to calculate the report indicated that $360 billion of tax money would be lost. This would only happen if the current members of the pledge donate up to half their wealth. Regardless that would be a staggering hit to the US government is tax revenue and would affect many social projects.
Bill Gates Giving Pledge also has another issue according to the IPS, warehousing of wealth. Specifically, most of the charitable donations made by the billionaires end up in family foundations or donor advised fund. Basically, the money he sends to charity run by family members of the donor or into a charity the donor has control of. This means the majority of may not be used will just sit in the charities bank accounts.
Another possibility is that some of the money may be used to pay a family member who is managing chair. Regardless, the money will remain under the control of the billionaire who donate it. It is important to note that Bill Gates giving pledge was most likely found it with the best of intentions. However, its failure to place regulations on how the money donated and adapt to changing circumstances is a failure. Indeed, the evidence suggests that it has helped billionaires more than the charities in great need.