1y ago

Is Bill Gates technically still the richest person in the world? Can he use his foundation's endowment money any way he chooses?

If you look here:

https://www.bloomberg.com/billionaires/

Bill Gates is only the 5th richest.

...but the Bill & Melinda Gates Foundation has an endowment total of $75.2 billion.

So, his wealth ($149 billion) + foundation ($75 billion) = $224 billion.

So, my question is...can he spend that foundation money any way he wants instead of spending his personal money? If he wants a jet can he just use the foundation money? If so, then he is still the richest person in the world even though he does not get labeled as such in the news anymore.

30 comments

No.
The page you link has the foundation's leadership structure. He's a cochair on the board with 8 total people. The board is a degree removed from day to day operations of the foundation. He'd have to convince the board to then convince the executives.
That transaction would then show up in their financial statements, which are audited and publicly posted on that website. Meaning using the foundation's money for something like a private jet would likely become public knowledge within a couple years and would do irreparable harm to the foundation's reputation. Maybe they could hide it but good luck convincing everyone involved it's worth the risk without a shitload of additional corruption.
he does not get labeled as such in the news anymore
That's because the philanthropy is working exactly as intended - to white wash his reputation, and make him out to be "the good billionaire".
Moving down from no. 1 to no. 5, at that scale of wealth literally has no impact on him, but rather it's money well spent to take the heat and attention off of him so he can continue exploiting an hoarding in peace.
- I genuinely don't understand why this perspective is so popular.
  He spent a boatload of cash vaccinating kids which has undoubtedly saved 10s of millions of lives.
  Fuck him right? What an asshole.
  Yes he gets a tax deduction for money contributed to the foundation, but it's still a net loss to him.
  Yes the foundation probably pays for jets and flights but its audited regularly so it can't be used as a personal slush fund for private purposes.
  Yes I'm sure there were some unintended consequences and failed projects, but solving problems and helping people particularly in impoverished nations is hard.
  Are other billionaires doing a better job of saving the world ?
  
  Because we shouldn't be, and don't need to be, relying on the goodwill of Billionaires to solve social problems. Instead of giving tax breaks for billionaires to pick and choose which issues to fund, we should tax the billionaires out of existence and democratically decide what to do with our money.
  Philanthropy rhetoric is used to justify the existence of billionaires. We don't need them.
  
  My issue is that we allow people to amass these massive fortunes to then choose what problems they fix.
  Not to dissuade from anything good BG has done, that doesn’t excuse all the terrible things he did to amass this fortune.
  
  I mean not to go against the propaganda but shouldn't we allow kids to have vaccines without a boatload of cash?
  Just cause you save a million kids doesn't mean you can harm 10 million more, though that could mean a 10x return on investment
I'd very much doubt he can just use it any way he pleases, or for personal use at all for that matter.
I don't know about charity law in the US, but the point of a foundation, I think, is that you lose control of the money, and in return don't have to pay tax on it anymore.
That's not to say that shenanigans aren't possible, or that he doesn't still have a say, but I don't think he could use it the way you're describing.
- If one of his companies got fined by a government entity, could he offer to make a charitable donation in lieu of the fine? And then make the donation using his foundation?
  This one may sound far-fetched, but could he have a straw bidder buy a portrait of himself being sold at auction and then pay that straw bidder with money from his foundation? And then the straw bidder would transfer the portrait to him.
  
  Neither of these are at all possible.
  The foundation is audited each year by independent auditors to ensure that the money is being spent in accordance with the objectives of the foundation.
can he spend that foundation money any way he wants
Yes and No. Yes, he can make the decisions. No, the purpose is somewhat limited.
But since he created this foundation and defined it's purpose, it will always do what he wanted to do anyway.
instead of spending his personal money?
Above some certain level, your personal expenses simply don't matter anymore. You can throw money around all day long, but you cannot become poor again.
Bill Gates hasn't technically been the richest person in the world for a long time.
Even his own net worth is not money he can just spend. He doesn't have 5 billion in his bank account. He owns assets in different levels of liquidity whose value fluctuates.
Think of it like he already spent that money. It belongs to the foundation now, not to him.
https://youtu.be/69AtkAHkKEc?si=zCei4ckJEQd13snJ
A good idea of how billionaires use charitable donations.
- I can't be bothered watching an hour long youtube video.

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