SAN FRANCISCO: Talk about birth announcements: Facebook CEO Mark Zuckerberg and his wife say they’ll devote nearly all their wealth — roughly $45 billion — to solving the world’s problems in celebration of their new daughter, Max.
Zuckerberg’s wife, Priscilla Chan, gave birth to a 7-pound, 8-ounce daughter last week. But the couple didn’t put out the news until Tuesday, when Zuckerberg posted it on Facebook, of course.
In the same post, Zuckerberg said he and Chan would, over time, commit 99 per cent of their Facebook stockholdings to such causes as fighting disease, improving education and “building strong communities”. The couple had previously pledged to give away at least half their assets during their lifetime, but hadn’t provided specifics.
They are forming a new organisation, called the Chan Zuckerberg Initiative, which will pursue those goals through a combination of charitable donations, private investment and promotion of government-policy reform. “Like all parents, we want you to grow up in a world better than ours today,” the 31-year-old social media mogul and his wife wrote in a letter to their daughter, which they also posted on Facebook.
Decision will not affect his status as Facebook CEO
The announcement stunned the charity world. “It’s incredibly impressive and an enormous commitment that really eclipses anything that we’ve seen in terms of size,” said Phil Buchanan, president of the non-profit Centre for Effective Philanthropy.
By comparison, the Bill and Melinda Gates Foundation has an endowment of just over $41bn, which includes wealth donated by the Microsoft founder and his friend, the businessman Warren Buffett.
The new initiative will be organised as a limited liability company, however, rather than as a non-profit foundation. “They want the most flexibility and they are going to use a wide variety of activities to achieve their mission,” Rachael Horwitz, a Facebook spokeswoman, said via email. “So in that way this is not a foundation nor is it entirely charitable.”
The notion of investing money in companies that tackle social issues isn’t new, but it has gained more currency among a younger generation of philanthropists, particularly in the tech world.
In the letter to their daughter, Zuckerberg and Chan described their goals as “advancing human potential and promoting equality”. They added: “We must make long term investments over 25, 50 or even 100 years. The greatest challenges require very long time horizons and cannot be solved by short term thinking.”
While Zuckerberg promised to release more details in the future, he said the couple would transfer most of their wealth to the initiative “during our lives”.
The couple will be in charge of the initiative, although Zuckerberg won’t be quitting his day job. “I have a full time job running Facebook,” he said in an interview last month, during which he discussed the couple’s approach to philanthropy.
About his job at the social network, he added, “I’m going to be doing this for long time.”
The Facebook co-founder is one of the world’s wealthiest men. He and Chan, a 30-year-old paediatrician, have previously donated $100 million to public schools in Newark, New Jersey, and pledged $120m to schools in poor communities of the San Francisco Bay Area. They’ve also given $75m to the Zuckerberg San Francisco General Hospital, where Chan did her medical training.
In a statement, Facebook said the couple’s plan to transfer their shares over time won’t affect his status as controlling shareholder of the company. The company said Zuckerberg has committed to dispose of no more than $1bn of Facebook stock every year for the next three years.
Published in Dawn, December 3rd, 2015
