Viewing a single comment thread. View all comments

Tinac4 t1_itq5jrg wrote

I can buy that some billionaire philanthropy uses charity as a front for tax evasion, but I'm not convinced that's true for all of it. For example, as far as I know, money that gets put into the Bill and Melinda Gates Foundation can't just be taken back out and spent on a superyacht--it's not really Gates' money anymore, and there are rules regarding what he can do with it. Gates doesn't have to pay taxes on the money that he puts in, sure, but he's certainly not making any money for doing this (especially when the donated money is in the form of stock shares that he doesn't have to pay taxes on in the first place). Is the BMGF really turning a profit for Gates, and if so, can I have a source proving this?

Again, I'm not saying that there aren't charities out there that are just fronts for tax evasion--there very plausibly are--and I’m also not saying that billionaires are beyond criticism or that we shouldn't raise taxes on them, but I do think that a decent chunk of billionaire philanthropy is actually philanthropy. Plus, the BMGF is a very salient example of billionaire philanthropy, so if the BMGF isn't a tax evasion scheme I'd be wary of painting with as wide a brush as you are.

14

WarrenHarding t1_itqg546 wrote

Yes, The Gates Foundation has the best PR out of any charity right now. I'm sure many would have said the same about Red Cross about 20 years ago. But let me ask you this - with Bill Gates' charity giving away billions of dollars constantly, how does he continue to make more and more money every single year? That's a hint that being charitable isn't really doing the same thing for him as it does for you and me. For example, if you look up where he's sending it, do you think he's putting it all directly in the hands of those who need it? Because the charity has also donated billions to other companies, and hundreds of millions to those they have stocks and bonds in. That's tons of money that could have gone into public infrastructure but is essentially being reinvested through the charity. I'm not saying *none* of the money has helped anyone, that would be particularly egregious. What I'm really saying is that with the laws we have in place, charity on a scale like this stops being "charity" as we know it. If a billionaire was truly charitable they would stop being a billionaire, simple as that.

4

Tinac4 t1_itqsl92 wrote

>But let me ask you this - with Bill Gates' charity giving away billions of dollars constantly, how does he continue to make more and more money every single year?

None of the money he's getting comes from the BMGF, so presumably it's because he owns a huge amount of stock in one of the largest (and still-growing) tech companies in the world.

>For example, if you look up where he's sending it, do you think he's putting it all directly in the hands of those who need it?

Yes, I think so. The foundation doesn't have a 100% perfect track record in every area, but it's pretty darn good, especially regarding vaccine campaigns in developing countries.

>Because the charity has also donated billions to other companies, and hundreds of millions to those they have stocks and bonds in.

Which other companies, specifically, and what amount of that isn't just the BMGF investing its funds in the long term (which is a good choice if they can't spend everything on short notice)? How does Gates get any of this money back, and how does the overall amount invested compare to the ~$20 billion donated to global health causes?

8

Michaelstanto t1_itr5md4 wrote

You are operating on a massive assumption that the public good is best served by government spending via taxation. The Gates foundation, by any measure, has way more bang-for-buck than equivalent public programs. Viewing wealth as antithetical to charity is a depressing view since the government you love so much has several orders of magnitude more wealth than Gates yet floundered with similar projects. I would much rather polio be eradicated by Gates foundation than wasting that money in a federal pit.

6

flamableozone t1_itsb9vd wrote

Social security saved more people from poverty than private charity ever did or ever will. The federal government's actually pretty good at it.

6

Rayden117 t1_itsf7tb wrote

The Gates foundation is a tough one which is why I’m happy to dig in. The Gates foundation in more than one instance has taken public money from counties to create limited research which supports the dismantling of public education in support of charter schools or less efficacious alternatives. This is a big deal. Often county or public money from locally partisan communities is responsible for funding these projects and the research has been repeatedly called into question. The foundation has tremendous PR though with Gates at the helm talking about philanthropic utilitarianism while avoiding talking about our variant of capitalism.

Taking on the comments further below. Charities categorically are catastrophic at dealing with social problems. It’s important to note I didn’t say individually but categorically, non-government organizations and non-profits can be added to the above statement in degrees. IE looking at Christian charities as an easy example but personally many charities in general can be problematic. It’s even more problematic with Publix or McDonalds when they became corporate tax write offs asking for public donations. They do not supplant social programs.

Further: Part of the problem of diffusing charity by 100 entities vs 1 is that much of the wealth no matter how large in magnitude is spent on overhead and that wealth is not necessarily easily regeneratable. Look at the Red Cross as an example of overhead and effective out reach. Many charities are not this effective.

3rdly, the idea that charities or independent organizations are better at independently managing societal problems from an ecological standpoint than say the government is an ideological position and is a wrongful assumption.

The government is evidently better, by virtue of so many effective social programs throughout the world, even for business development. Even social programs decried such as the the UK National Health Service don’t compare to the millions of Americans without access to healthcare; even with insurance and agreements between companies it’s unbelievably difficult to get the treatment appropriately paid for for many people.

And this is true even for charities, the scope of their social outreach is inherently incapable of solving the problems they address in society. Charities are a form of prevarication from the many and destitution for all.

1

Tinac4 t1_ittnxm7 wrote

I think you’re conflating the Gates foundation in with a lot of other flawed charities that aren’t much like it. For example:

  • “Catastrophic at dealing with social problems”: Outside of some controversies regarding US education, the BMGF doesn’t seem to have caused much harm, while undoubtedly accomplishing a lot of good in global health. Some other charities are useless or counterproductive, but I don’t think that applies here, certainly not on net.
  • Overhead: Unlike the Red Cross, BMGF is one of the charities that accomplishes a lot of good without wasting everything on overhead. I feel comfortable saying this without citation; you can look up their vaccination programs if you want. Moreover, it’s overall effectiveness, not overhead, that matters in the end (and I’m not aware of the BMGF having excessive overhead anyway).
  • The BMGF is not intended as a substitute for government, nor does it substitute for it in practice. Most of its global health programs are done in countries that lack healthcare or social safety nets due to a combination of poverty and corruption; this is unlikely to change if the BMGF disappears. It’s an organization that focuses on improving some short-term aspects of health and well-being, and most of its long-term aspects (I think) revolve around eradicating diseases rather than large-scale economic development.

Regardless of what the BMGF has sometimes done wrong (any sufficiently large and complicated charity will screw up somewhere), they’ve very plausibly saved tens of millions of lives so far. Most of the above criticisms fall flat after taking this into account.

2

ilolvu t1_ittiknz wrote

>it's not really Gates' money anymore, and there are rules regarding what he can do with it.

It's 100% still his money. He controls what is done with it.

1

Tinac4 t1_ittmfx9 wrote

I don’t think that’s quite right. Gates does control the Foundation, but as a nonprofit, he can’t just spend its money on anything he wants—I’m pretty sure that it does have to get spent on charity in some way instead of yachts or mansions. (I’d like a source if you disagree.)

0