Facebook CEO, now a father, will give away most of his money
PALO ALTO, Calif. (AP) - Talk about birth announcements: Facebook CEO Mark Zuckerberg and his wife say they'll devote nearly all their wealth — roughly $45 billion — to solving the world's problems in celebration of their new baby daughter, Max.
Zuckerberg's wife, Priscilla Chan, gave birth to a 7-pound, 8-ounce daughter last week. But the couple didn't put out the news until Tuesday, when Zuckerberg posted it on Facebook, of course.
In the same post, Zuckerberg said he and Chan will, over time, commit 99 percent of their Facebook stockholdings to such causes as fighting disease, improving education and "building strong communities." The couple had previously pledged to give away at least half their assets during their lifetime, but hadn't provided specifics.
They are forming a new organization, called the Chan Zuckerberg Initiative, that will pursue those goals through a combination of charitable donations, private investment and promotion of government-policy reform.
"Like all parents, we want you to grow up in a world better than ours today," the 31-year-old social media mogul and his wife wrote in a letter to their daughter, which they also posted on Facebook.
The announcement stunned the charity world. "It's incredibly impressive and an enormous commitment that really eclipses anything that we've seen in terms of size," said Phil Buchanan, president of the nonprofit Center for Effective Philanthropy.
By comparison, the Bill and Melinda Gates Foundation has an endowment of just over $41 billion, which includes wealth donated by the Microsoft founder and his friend, the businessman Warren Buffett.
"I don't think anybody could have ever imagined that we would hear this kind of announcement," said Kim Meredith, Executive Director at the Stanford Center for Philanthropy and Civil Society.
Meredith says the couple's birth announcement also reflects the birth of a new breed of young philanthropists.
"Millennials want to have impact now, so they are not waiting until they grow old to think about their philanthropy," Meredith said.
The new initiative will be organized as a limited liability company, however, rather than as a nonprofit foundation. "They want the most flexibility and they are going to use a wide variety of activities to achieve their mission," Rachael Horwitz, a Facebook spokeswoman, said via email. "So in that way this is not a foundation nor is it entirely charitable."
The notion of investing money in companies that tackle social issues isn't new, but it has gained more currency among a younger generation of philanthropists, particularly in the tech world.
Zuckerberg has also shown a previous interest in influencing public policy. He led other prominent Silicon Valley figures in forming a group, FWD.us, that lobbied and gave donations to congressional candidates in an unsuccessful effort to promote immigration reforms. Depending on how much of the new effort is devoted to lobbying, it could raise new questions about the influence of money in today's politics, some experts said.
In the letter to their daughter, Zuckerberg and Chan described their goals as "advancing human potential and promoting equality." They added: "We must make long term investments over 25, 50 or even 100 years. The greatest challenges require very long time horizons and cannot be solved by short term thinking."
While Zuckerberg promised to release more details in the future, he said the couple will transfer most of their wealth to the initiative "during our lives." The couple will be in charge of the initiative, although Zuckerberg won't be quitting his day job.
"I have a full time job running Facebook," he told The Associated Press in an interview last month, during which he discussed the couple's approach to philanthropy. Of his job at the social network, he added, "I'm going to be doing this for long time."
As people heard the news, many praised the couple.
"Being a man of almost 70 years old to see the younger generation being generous like that, in this day and age and time, I think it's excellent," said Lee Archie of Sacramento.
"I'm just really surprised that he's helping our community and I'm very happy and grateful for it," said Gabriela Berber who lives in East Palo Alto.
Unlike anonymous donors who shy away from recognition, philanthropists who go public can benefit with a boost to their public image. Meredith says public giving also can have a broad social impact.
"By being public, they're calling out their support of the non-profit sector, they're calling out their support to say to others that you should be thinking of social good," Meredith said.
The Facebook co-founder is one of the world's wealthiest men. He and Chan, a 30-year-old pediatrician, have previously donated $100 million to public schools in Newark, New Jersey, and pledged $120 million to schools in poor communities of the San Francisco Bay Area. They've also given $75 million to the Zuckerberg San Francisco General Hospital, where Chan did her medical training.
In a statement, Facebook said the couple's plan to transfer their shares over time won't affect his status as controlling shareholder of the company. The company said Zuckerberg has committed to dispose of no more than $1 billion of Facebook stock every year for the next three years.
Zuckerberg and Chan had announced on Facebook last July that they were expecting a daughter, after Chan had three previous miscarriages. Horwitz said the baby was born early last week, but declined to say which day.
"Mom and baby are both healthy and doing well," Horwitz added. Zuckerberg has said he plans to take two months of paternity leave.