Facebook’s Zuckerberg Sets New Tone For Philanthropy And Impact Investing

Investing

Facebook’s Zuckerberg Sets New Tone For Philanthropy And Impact Investing

Mark Zuckerberg, CEO of Facebook, wrote an open letter to his newborn daughter this week on how he and his wife promises to donate $45 billion in Facebook shares to philanthropic causes over the course of their lives. However, they are not just simply donating but also creating a Limited Liability Corporation (LLC) to do it, which signals that they not only intend to help but also lead in those areas, similar to the Bill & Melinda Gates Foundation.

Published on 4 December 2015

Mark Zuckerberg, CEO of Facebook, wrote an open letter to his newborn daughter this week on how he and his wife promises to donate $45 billion in Facebook shares to philanthropic causes over the course of their lives. However, they are not just simply donating but also creating a Limited Liability Corporation to do it, which signals that they not only intend to help but also lead in those areas, similar to the Bill & Melinda Gates Foundation.

Philanthropy is a growing trend

In a piece we released in our UK Insights blog back in March of this year titled, “Why Philanthropy is on the Mind of Wealth Investors”, our own Head of Research, Wendy Spires, discussed how philanthropy is a growing trend, increasing 5% on average in 2015 globally, amongst wealthy individuals.

Impact investing

The wealthy are increasingly becoming more interested in a new area called “Impact Investing” which covers issues facing humanity today and how to solve them in a much more intelligent way. Health, education, and poverty alleviation are all examples of issues we are seeing more leadership and impact from wealthy philanthropists.

The intelligent side is on the technology front. Besides just giving money, how do we actually solve the problem at its core? In the same article, Spires notes that BNP Paribas’s 2015 Individual Philanthropy Index reported that top technology solutions helping people promote philanthropy today are social (42%), crowd evaluation (42%) and crowd funding/online fundraising platforms (41%).

Looking forward to the future

But if you are not able to start your own LLC, then the traditional donation is also sufficient. Tax incentives for charitable giving are prevalent in US and UK and act as a catalyst to donate for many wealthy individuals. Speak to your wealth manager about your philanthropic options.

In any case, Zuckerberg’s generosity and passion for causes means a better future for us all and is an inspiration for the rest of us to do what we can so that we can see the desired change and impact for the future of our children too.

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