Marie Dageville’s sudden billionaire status after her data cloud company Snowflake went public in 2020 prompted her to give away a significant portion of her fortune. Her journey highlights the challenges faced by billionaires in giving more of their wealth.
The idea of giving away one’s fortune dates back to Andrew Carnegie’s 1889 essay “The Gospel of Wealth.” Since then, many wealthy individuals have urged each other to redistribute their wealth, with some even taking a pledge to give away half of their fortunes. However, despite these efforts, many billionaires struggle to give more and faster.
Philanthropy advisers cite structural barriers such as finding the right vehicles and advisers, as well as emotional factors like negotiating with family members or seeking peer approval. Piyush Tantia, chief innovation officer at ideas42, notes that billionaires often deliberate more about where to give due to their wealth and privilege.
To overcome these challenges, Tantia advises thinking of philanthropy as a portfolio, considering different risk levels and strategies. Marie Dageville’s experience shows that seeking guidance from others who have signed the Giving Pledge and trusting nonprofits to manage the funds can be beneficial.
MacKenzie Scott, a billionaire who has moved quickly with her philanthropic efforts, is an example of successful giving. Private conversations between donors and advisers also help facilitate faster decision-making.
However, some experts argue that a lack of transparency and scrutiny can hinder giving. Deborah Small, a marketing professor at Yale School of Management, suggests that greater openness about philanthropy could create social norms encouraging more generous giving.
Jorge Pérez, founder of the Related Group, credits his philanthropic efforts to engaging his family members and seeking expert advice from foundations like The Miami Foundation. He emphasizes the importance of leaving a lasting legacy through giving.
Despite these challenges, many billionaires continue to give back, driven by a desire to make a positive impact on society.
Source: https://fortune.com/2024/12/02/billionaire-philanthropist-americas-wealthiest-mackenzie-scott-redistribute-wealth-donations