La Nación quotes professor on fortunes and philanthropy
Professor Tobias Jung, Director of the Centre for the Study of Philanthropy & Public Good (CSPPG) at the University of St Andrews Business School, provided expert comment for a series of articles in Argentinian newspaper La Nación’s on the future heirs of great fortunes around the world.
When asked why philanthropists such as Bill Gates or Warren Buffet decide not to pass on their fortunes to their children but donate them to charitable projects instead, Professor Jung responded:
Giving your wealth away rather than passing it on to your children is a longstanding idea amongst industrial philanthropists. It goes back to at least the beginning of the 20th century. For example, Fife-born Andrew Carnegie, who, with John D Rockefeller, was one of the richest people in the world at the time, decided to do so.
Carnegie's reasons for this are outlined in his The Gospel of Wealth, where he says, "the parent who leaves his/her child enormous wealth generally deadens the talents and energies of the child, and tempts them to lead a less useful and less worthy life than they otherwise would".
Similarly, Bill Gates has stated in an interview that "It is not a favour to [your] kids to have them have huge sums of wealth… It distorts anything they might do creating their own path.".
Jung continued, saying:
It is important to be quite nuanced here. Although philanthropists such as Buffett have pledged to give 99% of their wealth away, it does not leave their families poor and destitute going forward. As Buffett wrote in his Giving Pledge: "This pledge [of giving almost all my wealth away] will leave my lifestyle untouched and that of my children as well. They have already received significant sums for their personal use and will receive more in the future. They live comfortable and productive lives."
The same applies to the Gates' children, where Bill has previously declared: "Our kids will receive a great education and some money, so they are never going to be poorly off, but they'll go out and have their own career."
Regarding the future influence of the Gates Foundation given a reduced involvement of Gates himself, Jung pointed out that the Gates Foundation is a 'sunset foundation', that is, one that will spend all of its money and resources, and then cease to exist.
However, the influence it has had over the years, both positively and more problematically, and how its activities have shaped philanthropy and the areas it has operated in and contributed to – particularly education, healthcare and agriculture – will be felt for quite some time.
The Gates Foundation's activities will form an important part of the history of philanthropy and of the trajectory of the fields it has worked in at local, national, international and global levels.
- Director of the Centre for the Study of Philanthropy & Public Good (CSPPG)
The full piece has been published: Bill Gates, el megamillonario que donará más del 99% de su fortuna a su “cuarto hijo” - LA NACION, 8th February 2024, by Lucía Sol Miguel.