Sector leaders react to Gates Foundation’s historic plan to spend down US$200bn

Bill Gates has announced that the Gates Foundation plans to spend its endowment and ‘virtually all’ of his personal wealth totaling US$200 billion in the next 20 years to accelerate its mission of ‘saving and improving lives around the world’. Here, four leaders from the Australian philanthropic sector, Daniel Petre, Audette Exel, Peter Johnstone and Maree Sidey react.

Read the Gates Foundation media release on its announcement.

Daniel Petre AO, Founder and Chair of StartGiving. Daniel worked at Microsoft in the US and Bill Gates sits on StartGiving’s Advisory Board

I have been very fortunate to have known Bill and had him as a friend and mentor for more than 30 years. His commitment to philanthropy was one borne from his parents’ example of helping others and he has made it – in my opinion – his life’s work. Founding Microsoft and building it to be one of the most impressive companies in the world was no mean feat. However, using your wealth to move the dial on global health outcomes for millions of people is in another class of human achievement.

It seems that Bill wants to both accelerate the impact of his giving but also backfill where governments (including the US under Trump) and other rich folk have failed to deliver.

In his post about his increased commitment to giving, Bill references Andrew Carnegie’s book The Gospel of Wealth, where Carnegie says, “to die rich is to die disgraced”. Those of us who have been successful have a responsibility to give back and not just pour money into the pockets of our future offspring. Bill has set an incredible example that anyone with any excess wealth can follow.

Audette Exel AO, Adara Group Founder and Chair

The Gates Foundation’s bold commitment to spend down $200 billion and close by 2045 demonstrates critical leadership at a time of huge need in our world.

This significant commitment could have a catalytic effect and make much needed progress over the next two decades, saving and improving many lives.

What is happening in low-income countries right now is a human catastrophe – and a global disgrace. Approaches like this are more timely than ever. Spending down enables immediate impact, allowing urgent work to happen at scale, when it’s needed most.

The Gates Foundation has set a formidable example. We hope it inspires others to act with the same urgency and increase the pace and scale of their giving. There is still so much more work to be done. Now is the time to step up.

Peter Johnstone, CEO of the Clem Jones Foundation

The decision by Bill Gates to wind down the Gates Foundation by 2045 committing to donating $200bn will bring about catalytic change in philanthropy worldwide. We are watching the evolution of philanthropy in real time.

The Gates Foundation has long been the beacon on which worldwide philanthropy took its bearings. Arguably one of the biggest, richest and most influential philanthropic foundations ever seen.

Bill Gates hopes that during the next 20 years there will be others with significant wealth who will beat their record giving and dwarf the size of the Gates Foundation. He says the foundation was always operational in that they identified a problem, built infrastructure to solve the problem and then partnered with government, universities, drug companies, foreign aid organisations to beat the problem.

Several factors have driven the decision to wind down the foundation. Gates has expressed a sense of urgency. He believes there are too many pressing global issues to delay the deployment of resources.

Gates has also cited a desire to ensure that the foundation’s work remains aligned with its original intentions. This decision comes at a time when there are concerns about declining global aid and increasing global challenges. Gates has specifically mentioned the impact of cuts to foreign aid on global health initiatives. Finally, the timeline coincides with a personal milestone for Bill Gates, who turned 70 this year, and the foundation’s 25th anniversary.

The foundation’s plans moving forward involve focusing its increased spending on key priorities, including eradicating preventable deaths in mothers and children, combating infectious diseases, and reducing poverty. This focused approach, combined with the urgency of the 2045 deadline, suggests a dynamic and ambitious final chapter for the Gates Foundation. Watch out for catalytic change in philanthropy like we have never seen before. Will others follow?

Maree Sidey, CEO, Philanthropy Australia

The philanthropic sector is changing at a faster pace than ever before. It is easy for community-based partners to be fearful about approaches that are less familiar, particularly when philanthropic dollars are often the lifeblood of small-to-medium size non-profits.  

Public debate often polarises spend-down versus endowment as though one approach has more merit – but in reality we need both approaches. They require a different mindset and engagement with the work of social and environmental change.  

In the context of global uncertainty, the announcement from the Gates Foundation will be warmly received worldwide – as those funds are desperately needed on the ground now. The global issues we are facing are urgent and require both immediate action and long-term, sustained focus and attention.