Philanthropy among the world's wealthiest is under renewed scrutiny as donors debate what meaningful generosity looks like. Against that backdrop, difficulty comes from trying to ensure donations create real impact rather than good publicity, Tesla (NASDAQ:TSLA) CEO Elon Musk said.
"The biggest challenge I find with my foundation is trying to give money away in a way that is truly beneficial to people," Musk said on the "WTF is" podcast, hosted by Nikhil Kamath. He added that it is easy to give money away "to get the appearance of goodness" and much harder to reach "the reality of goodness."
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Musk Describes Challenge Of ‘Doing Good'
Musk said he faces ongoing challenges identifying where large gifts can make the most effective difference. He said each opportunity presents unique challenges that must be evaluated before resources are committed.
The Musk Foundation's philanthropy was "haphazard and largely self-serving," the New York Times reported.
The newspaper also reported that roughly half of the $160 million the foundation distributed in 2021 and 2022 went to organizations tied to Musk, his companies, or his employees. The Times cited a $20 million donation to schools in Cameron County, Texas, after a SpaceX rocket explosion, and $10 million to the city of Brownsville, Texas, for downtown improvements near SpaceX operations.
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The investigation also said Musk donated more than $7 billion in Tesla stock to the foundation between 2020 and 2024, giving him access to substantial charitable tax deductions.
MacKenzie Scott's Unrestricted Giving Stands Out
MacKenzie Scott, the philanthropist and former wife of Amazon (NASDAQ:AMZN) founder Jeff Bezos, is one of the most visible philanthropic figures this year. She has given about $19.25 billion since 2020, according to her organization's website. Scott is best known for providing unrestricted grants, allowing organizations to decide how funds are used. Her wealth comes from her Amazon stake, and her net worth is about $40 billion.
In her latest round of giving, she made new contributions to historically Black colleges and universities, disaster recovery organizations, and education groups. These gifts followed earlier awards announced this year and were consistent with her trust-based approach. Scott rarely comments publicly beyond short notes posted when grants are issued.
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Billionaires Reassess Lifelong Giving
In a separate shift, Berkshire Hathaway (NYSE:BRK, BRK.B)) CEO Warren Buffett said in a recent shareholder letter that earlier philanthropic plans "did not prove feasible." He wrote that he has watched both effective and ineffective wealth transfers over the years and is now accelerating lifetime gifts to the charitable foundations run by his three children.
Buffett said his children have spent years managing smaller sums that have been "irregularly increased to more than $500 million annually" and that the bulk of his remaining estate will ultimately be distributed through those foundations. His lifetime giving has surpassed $60 billion.
Similarly, the Gates Foundation has said it will close in 2045. Microsoft (NASDAQ:MSFT) co-founder Bill Gates said in a May 8 note that he plans to give "virtually all my wealth" to the foundation, valued at about $100 billion.
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