The Bill and Melinda Gates Foundation is one of the largest private foundations in world. Founded by Bill Gates–the former chief executive and chairman of Microsoft Corporation–and his wife Melinda in 1997, the Gates Foundation’s primary goals are to globally enhance healthcare and reduce extreme poverty, while expanding educational opportunities and access to information technology within the United States. Based in Seattle, Washington, the Gates Foundation is controlled by its three trustees–Bill and Melinda Gates and business magnate Warren Buffett–who all happen to be ranked as the top three most generous American philanthropists. As of May, 2013, Bill Gates alone has donated over $28 billion to the foundation. Read on to discover five things you might not know about the Gates Foundation.
5. The Foundation’s Early Years
In 1997, the Gates Foundation was formed as the William H. Gates Foundation with an initial stock gift of $94 million. The foundation was eventually renamed the Bill and Melinda Gates Foundation after a merger with the Gates Learning Foundation in 2000, when the Gates gave an additional $126 million. Funding grew to over $2 billion over the following years and in 2008, Bill Gates left Microsoft to focus more of his time on working with the foundation.
4. Warren Buffett’s Influence
In June of 2006, Warren Buffett–then the world’s richest person with an estimated worth of $62 billion–pledged to give the Bill and Melinda Gates Foundation upwards of 10 million Berkshire Hathaway Class B shares spread over multiple years through annual contributions. The first year’s donation of 500,000 shares was worth approximately $1.5 billion. Buffett’s only condition is that his contribution be matched every year, doubling the foundation’s annual giving.
3. Criticism
Although the Bill and Melinda Gates Foundation has done an enormous amount of good in the world, the foundation has still managed to run into its fair share of criticism. For example, due to the foundation’s goal of maximizing its investment, some of the companies the foundation has invested in have been criticized for worsening poverty in a number of developing countries. Diversion of health care resources and Melinda Gate’s recent comments on abortion have also reaped negative press.
2. Four Program Areas
To maintain its charitable foundation status, the Bill and Melinda Gates Foundation must donate funds equal to at least 5 percent of its assets each year. To do this, the foundation is organized into four program areas that set strategic priorities, monitor results, and facilitate relationships with key partners. These program areas include the Global Development Division, the Global Health Division, the United States Division, and the Global Policy and Advocacy Division.
1. The Gates Foundation’s Recent Gift
This month, it was announced that the Bill and Melinda Gates Foundation would be giving its largest gift ever towards a humanitarian cause. The foundation has pledged a donation of $50 million to combat the viral ebola outbreak in West Africa that has resulted in 2,079 deaths throughout Guinea, Liberia, and Sierra Leone. The foundation’s funds would immediately benefit United Nations agencies and various international organizations involved in fighting the crisis. $5 million has already gone towards the World Health Organization, while another $5 million has been allocated for UNICEF efforts.
Photo by Brian Ach/Getty Images for The Lasker Foundation
