In what could be one of the largest-ever charitable donations, company founder Mike Bloomberg has announced plans to leave his entire business to philanthropic groups.
Key Details
- “He has committed to giving the company away to Bloomberg Philanthropies when he dies, if not sooner,” a Bloomberg spokesman told the Financial Times.
- The 81-year-old former New York City mayor is worth around $94 billion. This donation will most likely be transferred to a trust that will finance Bloomberg Philanthropies while being managed by friends and family, Fortune reports.
- Bloomberg Philanthropies emphasizes funding education, the arts, the environment, government innovation, and public health.
Why it’s news
While Bloomberg is not the first wealthy individual to pass his fortune on to charity, he is still among a relatively small group. Patagonia founder Yvon Chouinard made a similar decision last year, moving his outdoor clothing company to a trust that will use all profits to address climate-related issues.
Chouinard explained his decision, saying, “We are turning capitalism on its head by making the Earth our only shareholder.”
Bloombeg’s similar arrangement represents a much larger donation. The billionaire runs one of the most valuable private companies in the world. Last year, Bloomberg Philanthropies distributed around $1.6 billion compared to Patagonia’s estimated $100 million donation yearly, Fortune reports.
While Bloomberg has decided on a direction for the company after he passes, he still has not shared any plans for naming his successor. The current chief commercial officer, Jean-Paul Zammitt, is one popular suggestion for a replacement. However, Bloomberg has been historically private—and patient—when making these decisions and may surprise his team with a decision.
By the numbers
Bloomberg is well known for his charitable giving. Here are a few of his large donations over the years:
- Bloomberg signed the Giving Pledge in 2010, a commitment to donate most of their wealth to alleviate societal needs.
- The company founder donated another $500 million in 2019 to address climate change.
- More recently, Bloomberg Philanthropies announced a commitment to donate $420 million over the next four years to reduce tobacco use. Since 2005, the firm has donated over $1.5 billion.
- In November last year, the group funded a Public Art Challenge, which asked mayors of cities with at least 30,000 residents to apply for a $1 million fund to “create temporary public art projects that address important civic issues.”
- That same year, Bloomberg Philanthropies announced a $50 million commitment to the Global Polio Eradication Initiative in addition to previous donations. Since 2013, the group has donated $225 million.
- In September last year, the firm promised a $200 million investment to protect oceanic ecosystems, saying, “The health of the ocean is critically important to people’s lives and livelihoods around the world.”