Mark Zuckerberg, Facebook co-founder and chief executive, announced Tuesday, Dec. 1, that he and his wife will give away 99 percent of their shares in the company—which are currently worth over $45 billion—during their lifetimes to charitable causes.
In an open letter to his new daughter, Max, whose birth last week was only made public Tuesday, Zuckerberg said he and his wife, Dr. Priscilla Chan, would donate their wealth to make the world a better place for her and the rest of her generation.
“Like all parents, we want you to grow up in a world better than ours today,” he wrote in the letter. “Our society has an obligation to invest now.”
The couple also said they launched the Chan Zuckerberg Initiative to manage the money through a limited liability corporate structure. The organization will initially focus on curing disease, connecting people, building strong communities and personalized learning.
No further details were provided on the how and when the couple will distribute its wealth, though Zuckerberg said further specifics would be released once he and Chan return from paternity and maternity leave, respectively.
“Having this child has made us think about all of the things that should be improved in the world for her whole generation,” Zuckerberg said in a video. “The only way that we reach our full human potential is if we’re able to unlock the gifts of every person around the world.”
Zuckerberg’s announcement, along with previous donations, reflects a generational shift, philanthropy experts said, according to the Los Angeles Times.
He and Chan have previously committed $1.6 billion to charitable causes, a spokesperson for the family said, according to the New York Times. These include $120 million to support education in underserved Bay Area communities; $100 million in 2010 to improve public schools in Newark; $75 million to San Francisco General Hospital; and $25 million to the Centers for Disease Control and Prevention.
The NY Times reported that Zuckerberg’s pledge is the latest indicator of an increasing interest in philanthropy among young Silicon Valley billionaires who, unlike the wealthy in previous generations, appear eager to share their fortunes while they are still young.
“The way Gen X and millennials practice philanthropy is very different from the World War II generation and the baby boomers,” said Marian Stern, adjunct assistant professor in philanthropy at New York University’s School of Professional Studies, according to the LA Times. “Millennial donors are less patient. They want to use their money and they want to see changes now. It’s not surprising, given they’ve grown up in a fast-moving world.”
When now 31-year-old Zuckerberg was 26, he signed the Giving Pledge, vowing to give away the majority of his wealth, along with other tech leaders, including Facebook Chief Operating Officer Sheryl Sandberg, Microsoft co-founder Paul Allen and Oracle Executive Chairman Larry Ellison.
In the past, the wealthy waited until they were old or dead before donating large amounts to charity.
Whatever Zuckerberg and Chan decide to invest in, they will be able to enjoy the rewards of donating at a relatively young age, Melanie Ulle, founder and chief executive of Philanthropy Expert, an organization dedicated to maximizing philanthropic efforts, told the LA Times.
“What Mark and Priscilla are doing is giving themselves the opportunity to enjoy their philanthropy,” she said, “because it’s really hard to enjoy it when you’re dead.”
In a statement, Microsoft founder Bill Gates and his wife, Melinda, congratulated the Zuckerbergs.
“The example you’re setting today is an inspiration to us and the world,” they said. “We can be confident of this: Max and every child born today will grow up in a world that is better than the one we know now. As you say, ‘Seeds planted now will grow.’ Your work will bear fruit for many decades to come.”
Gates is among those well-off who engaged in philanthropic activities much later, admitting that running Microsoft was all he focused on when he was in his 20s and 30s.
The Chan Zuckerberg Initiative, through its status as a limited liability corporation, will be able to invest in companies and lobby for legislation, among other actions, which non-profit organizations are prohibited from doing under tax laws. A spokeswoman for the family told the NY Times that additional profits from investments will be directed back into the Initiative for future projects.
Despite the large sum the Zuckerbergs have committed to donating, the Facebook co-founder plans to keep his majority voting position in the company’s stock for the foreseeable future, the NY Times reported. In a filing to the US Securities and Exchange Commission, Facebook said Zuckerberg plans “to sell or gift no more than $1 billion of Facebook stock each year for the next three years.”
