As Gates and Buffett Step Back, New Tax Rules And Emerging Women Donors Signal Shift In Billionaire Philanthropy Landscape

The traditional foundation-based philanthropy model pioneered by Bill Gates and Warren Buffett faces disruption from proposed tax policies, while female mega-donors like Melinda French Gates and MacKenzie Scott reshape charitable giving through trust-based direct donations.

What Happened: Gates announced plans to sunset his foundation by 2045, expediting distribution of his $100 billion fortune after pledging $200 billion in total giving, as reported by Fortune.

Buffett, 94, recently announced his departure from Berkshire Hathaway Inc. BRK leadership, raising questions about the future of his Giving Pledge involving 240 billionaires and $600 billion in commitments.

A budget reconciliation package approved by the House imposes a 10% tax on foundations with assets exceeding $5 billion. “The reason this is insidious is that it’s going to really hit the big liberal foundations like Gates, Ford, and Soros,” Kathleen McCarthy, director of the Center on Philanthropy at CUNY, told Fortune.

Scott has pioneered “stealth giving” through direct nonprofit donations without oversight requirements. Her Yield Giving foundation has distributed $19.25 billion across 2,450 organizations since 2019. “She’s a trendsetter and sort of moral ballast to the way that Gates has been,” said Bella DeVaan from the Institute for Policy Studies.

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Why It Matters: Scott liquidated 11% of her Amazon.com Inc. holdings worth over $8 billion while maintaining a $31.7 billion net worth despite aggressive giving. Her mission-aligned investment strategy contrasts with traditional wealth concentration approaches.

Gates committed 99% of his remaining Microsoft Corp. fortune to philanthropy, valued at $107 billion, potentially surpassing inflation-adjusted donations by Rockefeller and Carnegie. The Gates Foundation will spend an additional $200 billion over two decades before closing.

The shift toward female-led philanthropy reflects changing wealth dynamics, with women gaining executive positions and financial control. Tax policy changes could accelerate the adoption of Scott’s direct-giving model as billionaires seek alternatives to traditional foundation structures.

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