The wealthiest Americans have seen their net worth increase by nearly $1 trillion this year. While some of them have been known for their significant charitable giving, overall, their generosity remains relatively low compared to their wealth. The members of The Forbes 400 have collectively donated just 5% of their $5.4 trillion wealth, with only a third of their wealth increase over the past year going towards charitable causes.
Forbes has assigned a philanthropy score to each Forbes 400 member based on their known charitable giving, ranging from 1 to 5. The scores are calculated by adding an estimate of each billionaire’s lifetime giving to their net worth and dividing the total by their net worth. Some of the wealthiest Americans have given as little as less than $100,000, while others like Warren Buffett have donated as much as $60 billion, making him the biggest giver on the list.
Despite an increase in billionaire donations, more than 70% of The Forbes 400 members scored a 1 or 2, indicating they have donated less than 5% of their wealth to charitable causes. This percentage is the highest it has been since Forbes began tracking charitable giving in 2020, due in part to the soaring stock market and the increase in billionaires’ wealth. However, some billionaires may have increased their giving in recent years as their wealth has spiked, but this information is not yet available.
Only ten of the richest Americans have given away more than 20% of their wealth, earning a rare 5 score. These include well-known philanthropists like Warren Buffett, Bill Gates, and MacKenzie Scott. Hedge fund founder George Soros remains the most philanthropic member of The Forbes 400, having donated 74% of his fortune to charitable causes. Some billionaires may be scored lower on the ranking due to their preference for giving quietly or through opaque entities like donor-advised funds.
While some billionaires like Larry Page have low philanthropy scores due to their giving being routed through donor-advised funds, others like Reed Hastings have joined the top tier of givers by donating a significant portion of their wealth. The philanthropic landscape among America’s wealthiest individuals continues to evolve, with some billionaires making significant strides in their charitable giving while others lag behind. The debate over the generosity of the wealthy and their responsibility to give back to society is likely to continue as their fortunes grow.
