A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register to receive future editions, directly in your reception box. The co-founder of Microsoft, Bill Gates, announced a week ago that he would give “practically all” his wealth in the next 20 years thanks to his homanthropy homanthropy. At the end of 2045, the Gates Foundation will close its doors after disbursing all its assets. Gates estimated that the sum would exceed $ 200 billion, including its wealth and the allocation of the foundation of $ 77.2 billion at the end of 2024. Previously, the Foundation was to close 20 years after the death of 69 years Gates. However, the billionaire faces an enviable problem: he cannot give his money quickly enough. The Foundation plans to increase its annual payment from 2026 to $ 9 billion to $ 10 billion. It is doubtful that the Foundation is able to spend its assets by standing for this budget, according to John Seitz of the Foundationmark data company. He told CNBC that investment yields would probably exceed the donation rate, leaving the foundation with a remaining of several billion dollars. “It is mathematically crazy to think that it will only give $ 10 billion a year if he really wants to go to zero in 20 years,” said Seitz, whose company is following the investment performance of private foundations. “One of the two things should happen: either it should be in cash – in an interest -free account – or it will have to give more money.” The Gates Foundation told CNBC that it spent its assets by 2045, but refused to specify how it would find itself beyond the annual budget of $ 9 billion and more. According to the estimate of Foundationmark, even if the Gates Foundation has invested conservatively with 4.5% of Treasurys and adjusted its payments of $ 10 billion for an inflation of 3%, it will end up with almost $ 14 billion at the start of 2046. It is more likely that the foundation will increase its gifts beyond inflation as in the past, said Seitz. Assuming that donations from the Foundation are increasing at an annual rate of 6% and only praising 7% investment returns, the Foundation spent its assets in 2046, which gives more than $ 30 billion in its last year. In all, donations of two decades from the Foundation would represent $ 400 billion, including $ 220 billion in planned investment gains. “If you grow up by giving 5.7% for 20 years and now announces that you plan to spend, that tells me [there will be] An acceleration of growth, not a deceleration, “said Seitz. Non -profit management and philanthropy at the University of Oregon.
Bill Gates arrives for a press conference to launch the World Polio Eradication initiative at the Berlaymont headquarters from the European Commission in Brussels on October 11, 2023.
Simon Wohlfahrt | AFP | Getty images
A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register To receive future editions, directly in your reception box.
Microsoft The co-founder Bill Gates announced a week ago that he would give “practically all” his richness in the next 20 years thanks to his homanthropy homing. At the end of 2045, the Gates Foundation will close its doors after disbursing all its assets.
