Gates’ Gift Must Be Put in Context

To the Editor:

I am very pleased to learn how Bill and Melinda Gates are increasing their engagement with philanthropy (“Gates Boots Up His Giving,” December 17). Leadership is important, and I believe people take their cues from seeing how others behave. Putting $100-million toward eradicating four diseases worldwide is surely going to make a dent in tackling this problem. Mr. Gates’ $200-million cash commitment to the Gates Library Foundation seemed to many to be rather self-serving, so this new endeavor is a refreshing shift to note.

On the other hand, I can’t help but try and put their generosity in some kind of context with their wealth. I question whether anyone else would get major newspaper coverage for making a donation amounting to 0.2 per cent of their net worth. Average Americans, who struggle to pay the rent and put food on the table, contribute on the average 2 per cent (and, in many cases, more) each year. In fact, the announced grant by the Gateses is no more than the minimum 5 per cent required annually under Internal Revenue Service regulations from the William H. Gates Foundation, as well as from all other private foundations.

Mr. Gates is a smart guy. If he is serious about his stated goal of giving away 95 per cent of his wealth while he is alive, he better get going right away. Since his Microsoft stock is practically doubling each year, he needs to give away far more than 0.2 or 2 per cent a year if he wants to drive his net worth back down to 5 per cent of $60-billion.

Creating and growing Microsoft has made many millionaires in Redmond, Wash., and created many opportunities in the technology sector around the world. As a fellow high-tech entrepreneur, I know that this fact doesn’t erase the responsibility to share one’s personal good fortune with the community that made it possible.

Again, I salute the Gateses for what they are doing. But until they are putting literally billions of dollars each year into the community, I can’t say that they are “doing their share.”

Harry J. Saal
Chairman Community Foundation
Silicon Valley
San Jose, Cal.