The wealthiest Americans have seen their fortunes grow by nearly $1 trillion this year, but are they becoming more generous? A recent analysis by Forbes found that the 400 richest people in America have collectively given away around $287 billion in charitable donations over their lifetimes. However, this only amounts to 5% of their combined $5.4 trillion in wealth, and just a fraction of their increase in wealth over the past year.
Forbes assigned each member of the Forbes 400 a philanthropy score ranging from 1 to 5 based on their known charitable giving. The scores were calculated by adding the estimated lifetime giving to their net worth, and then dividing it by that sum. Warren Buffett, the biggest giver on the list, has donated $60 billion over his lifetime, earning him a score of 5. However, many billionaires scored a 1 or 2, meaning they have donated less than 5% of their fortune to charitable causes.
Despite a surge in billionaire donations, such as Jeff Bezos’ contributions to combat climate change and the billions flowing from the Gates Foundation towards vaccine research, the percentage of wealth donated by the Forbes 400 members is actually the highest it has been since Forbes began scoring out-the-door giving in 2020. Many billionaires have seen their wealth increase significantly over the past year, but their giving has not kept pace in comparison.
Only ten members of the Forbes 400 have given away more than 20% of their wealth, earning a rare score of 5. This group includes philanthropic heavyweights like Warren Buffett, Bill Gates, MacKenzie Scott, and Pierre Omidyar. Hedge fund founder George Soros remains the most philanthropic member of the list, having donated 74% of his fortune to charitable causes. However, some billionaires may be scored lower on the ranking due to their preference for giving quietly or through opaque entities like donor-advised funds.
The majority of Forbes 400 members received the same score this year as they did last year, with only a few making significant increases in their philanthropy score. Notable examples include former Washington Commanders owner Dan Snyder, who donated his mansion to charity, and hedge fund billionaires Ken Griffin and Stanley Druckenmiller, who have increased their giving to hospitals and educational organizations. Overall, the analysis sheds light on the giving habits of America’s wealthiest individuals and raises questions about the level of generosity among the super-rich.
