The Forbes 400, the wealthiest individuals in America, have collectively increased their wealth by nearly $1 trillion this year. Despite their immense riches, their charitable giving only equals 5% of their combined wealth, and even less when compared to their increase in wealth over the past year. Forbes conducted a study to assign philanthropy scores to each list member based on their known charitable giving, ranging from 1 to 5. This scoring system takes into account lifetime giving as a percentage of net worth, with scores of N/A given to those without publicly available information on their charitable contributions.
The majority of billionaires on the Forbes 400 scored a 1 or 2, indicating that they have donated less than 5% of their fortunes to charity. While there have been notable contributions from billionaires such as Jeff Bezos, Bill Gates, and MacKenzie Scott, the overall percentage of wealth donated is the highest it has been since Forbes started tracking philanthropy in 2020. Many billionaires have seen their wealth increase significantly over the past year, but their charitable giving has not kept pace. Some Forbes 400 members have not disclosed their 2023 and 2024 giving, which may have increased with their rising wealth.
Only ten of the Forbes 400 members have given away more than 20% of their wealth, earning a rare score of 5. This elite group includes well-known philanthropists like Warren Buffett, Bill Gates, and MacKenzie Scott, who have consistently demonstrated a commitment to charitable giving. George Soros, a hedge fund founder, stands out as the most philanthropic member by percentage of net worth donated, having given away 74% of his fortune to causes promoting democracy and freedom of speech globally. Notably, Soros has not signed the Giving Pledge, which calls for billionaires to give away at least half of their wealth during their lifetime or in their will.
Despite the scoring system, some billionaires may be underrated in their philanthropy efforts due to their preference for private giving or utilizing donor-advised funds. For example, Larry Page, the sixth-richest person in the world, has a low score on the list because most of his grants have been channeled through donor-advised funds. The Forbes 400 Philanthropy Breakdown highlights the generosity of select individuals, with some billionaires quietly making significant contributions out of the public eye.
Overall, the Forbes 400 continues to show a mixed record when it comes to charitable giving. While some members have made substantial contributions, many others have donated a relatively small percentage of their wealth. As the wealthiest individuals in America continue to amass fortunes, the question remains whether they will increase their philanthropic efforts to address pressing global challenges. The Forbes list serves as a reminder of the immense wealth held by a select few and the potential impact they could have through strategic and impactful giving.
