While “spend down” foundations are becoming more popular, the decision by the world’s largest private foundation is a marked departure from other such large organizations. The charitable endeavors of the industrialists of old, such as the Fords and Carnegies, were set up to endure for generations.
For Wendy McGrady, Chair of Giving USA, a nonprofit organization founded by the Giving Institute to advance research, education, and public understanding of philanthropy, the news signaled that the moment we’re in calls for bold action. “Perhaps there is a line in the sand to say, let’s not do it incrementally,” she said. “Let’s go all out.”
Una Osili, associate dean for research at the Lilly Family School of Philanthropy, agreed. When global health progress is being threatened, she said, it doesn’t make sense to save money until it’s “too late.” “The idea is, if you want that to be around for the future, you have to invest now,” she said.
“It was inspiring,” she said of Gates’ decision. “This is a bold step for the Gates Foundation and for the field.”
Cari Tuna, chair of Open Philanthropy, who spoke at a Gates Foundation event following the announcement in New York City, said the fragility of the sector requires fast action. “The gains of the past few decades aren’t guaranteed to continue; right now, they’re at risk,” she said, “unless more of us step up and get involved.”
