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Gates Makes Largest Donation Since 2000 with $4.6B Pledge

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Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#51

I am not sure if I recall correctly but wasn’t there a reason where gates wouldn’t donate all of his wealth at once and needed to do it in stages ? Also, maybe they can’t utilize all that cash at once. Therefore it would be best to be illiquid until you need the liquidity.

It is the mythical man-month applied to charity. It takes time to get results, adding more money doesn't help.

Nobody wants that much cash in one lump sum, they want an anual income. If you give me my anual income (including benifits and supplies) and I can quit my current job to do charity work. If instead you were to give me a billion dollars, I can still quit my job to do charity work, but this time I'll be doing it from a very nice yacht or something else.

Money to charity is the same way: you are much better off funding a smaller amount over the years (as opposed to some other job they could do instead) than giving them money, either they waste the money - even prudant investing of money is a waste since it takes away time that could be used on the thing you want the charity to do.

Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#52

Read: has donated shares of Microsoft to his own foundation. Maybe we can give Gates the benefit of the doubt but for everyone else, this is just a tax scheme.

What!? Do you realize what the foundation does with the money? They aren't spending the money on vacation homes for Bill & Melinda. They are spending on eradicating malaria and stuff like that. You know, good things for the world. How is this a tax scheme?

Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#53

He is donating it to The Bill & Melinda Gates Foundation, which is controlled by himself. Isn't it just a different form of ownership?

There are rules about what you can do with the money once it is in a charitable foundation. You can't for example buy a picture of yourself and hang it in your house. Oh wait...

Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#55
post #30
post #22

Earlier quoted context omitted.

That's called a sale. Unless for some reason, Gates took a loan instead, which would be kind of a pointless way to give part of his net worth to the bank in the form of interest.

Interest on a collateralized loan for a while might be cheaper than capital gains tax on an actual sale.

For some amount of time, sure. But at some point you have to pay off the loan, presumably by selling the collateral, at which point your taxes still come due and you've also paid a bunch of interest. This only makes sense if you believe the stock will increase in value enough to exceed the interest paid.

If you're actually donating the stock (or the full proceeds from the sale), I'm not sure what the tax implications are anyway. You get a write off for the value of the donation, which will by necessity exceed the value being taxed. I think you actually come out ahead. But I'm no tax expert.

Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#56
post #21

I'm surprised that people are asking how / why he is giving money away and no one mentioned his Giving Pledge: https://en.wikipedia.org/wiki/The_Giving_Pledge Bill Gates and Warren Buffet pledged to give half of their net worth away during their life or death to charity. They're practicing what they preach.

The man that inspired them... "Over the course of his life, Feeney has given away more than $8 billion.." "As of 2016, he lives in a rented apartment in San Francisco, with a remaining nest egg of $2 million" https://en.wikipedia.org/wiki/Chuck_Feeney

> Feeney is known for his frugality, living in a rented apartment

Seems like renting isn't that frugal in the long-term though... it's unlikely cheaper long-term than owning a condo or small home, ie. you're either paying your own mortgage or someone else's mortgage + rental profits.

Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#57

Pledging to give away so much of your wealth has interesting side benefits. You get to keep your money out of the hands of the government and if you're donating to your own charity then you also get to keep your family in control of the money. I definitely don't mean to diminish the contribution of the Gates Foundation though. I often hear that they're one of the good ones.

probably the money is more wisely spent by the private institution than the government.

Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#58

Earlier quoted context omitted.

Gates and Buffett have, for many years now, publicly pledged to give away basically 99% of their wealth. Buffett's premise on not giving much of his wealth to his children, goes back perhaps 40 or 50 years now based on what he has said. According to Gates, an article that Buffett wrote for a business magazine, published ~25 some years ago now, informed and altered Bill's thinking on the detriment of giving such immen…

Andrew Carnegie was the OG give-all-my-wealth-away-before-I-die incredibly wealthy person. I read an essay by him in high school where he though, philosophically, he shouldn't give his money to his kids rather than donate it.

I guess it really depends on what your view of the world, and your place in it, is. I was very surprised when my parents basically said that whatever wealth they accumulated, their goal was to leave that to me. I think they view it as their duty as parents, for that to be the right thing to do.

Others have a view of propagating their genes to the next generation and view inherited wealth as the way to do so (Yes, I realize my parent's view of good parenting indirectly coincides with this view).

Yet others believe in the strengthening of their community, and not just their own genetic offspring. e.g. I believe Carnegie established libraries, Universities etc. for the "people of Pittsburgh".

Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge

#59

Earlier quoted context omitted.

We do realize their PR tell you that. What I know, however, is that I've been missioned in Africa by the gate foundation and that most money is wasted. Most stats are bullshitted. What I know is that Gates have been misbehaving most of his life and that suddenly he is giving so much money he won from this time. What I see is that a lot of people like you are very eager to forgive everything he has done, all the benef…

I didn't like the way Microsoft acted as a monopoly, but the tech industry managed to survive and escape Microsoft hegemony. Microsoft made some terrible software, but Office is actually very good overall and can argue has led to real productivity gains for many businesses. (I realize this can be debated endlessly.) Everything I've read indicates Gates takes his philanthropy very, very seriously and is having a real…

> Everything I've read indicates Gates takes his philanthropy very, very seriously

The problem is that he controls that narrative.

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