Philantro-Washing

The first time I heard the term “Philanthrocapitalism,” it sparked an internal shift that has become a permanent part of me: understanding what drives millionaires to make donations.

In my profession, both at ImpactCo and through my foundation, Unlimited, I’m in constant philosophical debate with individuals of substantial wealth—rich people discussing a clearly unsustainable model of wealth distribution.

Let me be clear: this article is not intended to criticize the fortunate millionaires who, through their hard work and effort, have amassed significant capital. Rather, it is a reflection on the direction our society is heading, with a capitalist model that is increasingly causing a devastating anomaly of growing social inequality.

According to the World Bank, since 2019, poverty has been on the rise globally, affecting nearly 50% of the world’s population.

At the same time, billionaire wealth has increased at an astonishing rate. Since 2020, during the pandemic and the cost-of-living crisis, the richest 1% amassed $26 trillion (63% of the new wealth generated), while only $16 trillion (37%) reached the rest of the world’s population. For every dollar of new global wealth that someone in the poorest 90% receives, a billionaire pockets $1.7 million. Billionaire fortunes have grown at a rate of $2.7 billion per day. This adds to a decade of historic gains in which the number of billionaires and their wealth have doubled. (Source: Oxfam)

“Philanthrocapitalists” have doubled their fortunes over the past decade, according to an excellent research article by Climaterra.org, “Philantro-washing: How Philanthrocapitalists Doubled Their Fortunes in the Last Decade” (Climaterra.org).

The Giving Pledge is a movement of 236 philanthropists who commit to donating the majority of their wealth to charitable causes, either during their lifetime or through their will. (…) It aims to change the norms of philanthropy among the world’s wealthiest individuals, inspiring them to give more, establish their giving plans earlier, and give more intelligently. This is partially achieved by creating a community where Pledge signatories can attend learning sessions, share best practices, and exchange ideas to maximize the impact of their donations.

Amidst this imbalance, which everyone understands to be immoral and poses a serious risk to our future welfare model, I view with concern the worldview of the affluent classes, who not only continue to ignore this problem but, in too many cases, also use philanthropy in a grotesque manner—as a tax evasion mechanism, donating an insignificant portion of their fortune or, worse yet, feeding their egos with museums bearing their names where they display their art collections…

I insist on avoiding the trap of demonizing millionaires who give something; I simply appeal for a deep reflection on a model of income distribution and equal opportunity that is not working.

I dream of a world where we all have the same opportunities to progress, where no one, by virtue of being born in a particular country or inheriting a fortune, exacerbates inequalities. A world where success is not measured by what you have but by how much effort you put in and how much you contribute to social justice. I dream of real and authentic philanthropy that, beyond egos, generates real social value and environmental regeneration through social impact.

RAE Definition of Philanthropy: “Love for humankind, also a tendency to seek the good of others selflessly, even at the expense of one’s own interest.”