Microsoft Co-Founder Bill Gates Decides To Give Away 99% of His Wealth via Foundation by 2045

Microsoft co-founder Bill Gates has reportedly donated £75.73 billion ($100 billion) but is determined to give away more. Early this year, he had told BBC that philanthropy was instilled in him early on as his mother would tell him that 'with wealth came the responsibility to give it away.'

Last week, Gates wrote in a blog post that he plans to make charitable donations of about £151.46 billion ($200 billion) through the Gates Foundation over the next two decades, following which the foundation will cease to exist on 31st December 2045.

Gates highlighted that he plans to give away 99% of his estimated net worth of £127.22 billion ($168 billion). The funds would be utilised to improve maternal health, create vaccines and treatments to eradicate infectious diseases, generate and harness sustainable energy, lift millions out of poverty, and offer access to education and better infrastructure around the globe.

As Gates focuses on health, education, access to digital infrastructure, and energy creation, he also understands the importance of high-quality nutrition sources in keeping children's development on track. That is why he will also prioritise efforts to help smallholder farmers become more productive to prevent malnutrition amid a fast-changing world climate.

Gates Worried About Federal Aid Cuts

Gates is concerned that federal funding cuts imposed on nonprofits and universities could make it difficult for philanthropists to cover the financing gap.

'The United States, United Kingdom, France, and other countries around the world are cutting their aid budgets by tens of billions of dollars. And no philanthropic organisation—even one the size of the Gates Foundation—can make up the gulf in funding that's emerging right now, he noted. 'It's unclear whether the world's richest countries will continue to stand up for its poorest people.'

In early March, the US Agency for International Development estimated that aid cuts would translate to severe consequences, including a million children with acute malnutrition going untreated and up to 166,000 additional deaths from diseases like malaria.

Gates had also criticised Elon Musk for his role in trimming US foreign aid. 'The picture of the world's richest man killing the world's poorest children is not a pretty one,' Gates had said in an interview with the Financial Times.

Transitioning to a Giving Mindset From a Growth Mindset

Mitchell Kraus, a California-based certified financial planner, said many wealthy Americans take time transitioning to a 'giving mindset' from a 'growth mindset' because they have spent their whole lives building their fortunes. However, they learn to understand the practical benefits and tax advantages of giving away as they begin to adopt a giving mindset.

'Bill Gates is saying he can make more of a difference by giving his money away over 20 years as opposed to keeping his foundation going in perpetuity,' said Kraus. 'That can be a great talking point for high-net-worth and ultrahigh-net-worth clients to question their giving [strategy].'

Several financial advisers believe the Gates announcement could motivate wealthy people to acknowledge the value of giving away more money at present, not later.

'Hopefully, what Bill Gates is doing causes some self-reflection," said Owen Malcolm, a Georgia-based CFP. 'It can be a time to ask, "What about my legacy?"'

Originally published on IBTimes UK