My look at the Bill & Melinda Gates Foundation shows it was founded with two primary purposes:
- Tax dodge--giving money to a charity reduces his personal income taxes. By giving it to a charity he controls, he gets additional benefits.
- As PR for Microsoft against the anti-trust investigation.
Bill Gates has been rich since the 1980s, but his Foundation didn't really get any significant money until 1999. And then Bill then realized around 2004 that he could run his Foundation as his "retirement", and so started giving it more focus.
By checking out the contributions provided at
www.gatesfoundation.org, you can see (this is complicated by the fact he had two charities, with the primary one now being the Bill & Melinda Gates Foundation):
- As of 1998, Bill Gates had donated a grand total of $300million to both of his charities. That's not for that year, that's over all previous years combined, with interest/appreciation. This number is embarrassingly low for a person worth $100billion. However, it's probably just about the right amount to maximize his tax savings on a yearly basis. Also, the charity was building an endowment, and not spending all that much money.
- Then suddenly, in 1999, in the middle of the Microsoft anti-trust lawsuit, he gives $15 billion. He gives another $5 billion in 2000.
- Then, once the anti-trust lawsuit effectively ended, in 2001, he gives $0. Yup, check it out yourself. Probably because he took a loss that year due to the stock market drop, didn't need the tax writeoff anymore, and didn't need the PR.
- In 2002, he gives $82.5million, again, back to the tax dodge. He gives $81.9 million in 2003. He's still worth $40-50 billion dollars due to Microsoft stock.
- In 2004, he starts to give his charity a little more notice, and starts donating $700million in 2004, $442 million in 2005, $333million in 2006, and $1.2billion in 2007.
I wouldn't be surprised if the recipients of his money found it had lots of strings attached, but I'm not interested enough to dig up all this dirt. Although it's nice he's giving some of his money away, IMNSHO, it's just about the least he could do (except for the $20billion PR stunt). I also think the expenses for this foundation are quite high, and are probably more of a tax dodge. The foundation also spends considerably less than he has contributed, so it's building a very large endowment. It seems benign. So far.
I liken it to a king tossing silver coins to the rabble around his carriage--but doing it only when the press is around.
