Charitable Plutocracy: Bill Gates, Washington State and the Nuisance of Democracy
Today’s multi-billionaires are a different species of philanthropist; they keep tight control over their foundations while also operating as major political funders.
This article was first published in the Nonprofit Quarterly (spring 2016; vol. 23, no. 1).
Once upon a time, the super-wealthy endowed their tax-exempt charitable foundations and then turned them over to boards of trustees to run. The trustees would spend the earnings of the endowment to pursue a typically grand but wide-open mission written into the foundation’s charter—like The Rockefeller Foundation’s 1913 mission “to promote the well-being of mankind throughout the world.” Today’s multi-billionaires are a different species of philanthropist; they keep tight control over their foundations while also operating as major political funders—think Michael Bloomberg, Bill Gates, or Walmart heiress Alice Walton. They aim to do good in the world, but each defines “good” idiosyncratically in terms of specific public policies and political goals. They translate their wealth, the work of their foundations, and their celebrity as doers-of-good into influence in the public sphere—much more influence than most citizens have.
Call it charitable plutocracy—a peculiarly American phenomenon, increasingly problematic and in need of greater scrutiny. Like all forms of plutocracy, this one conflicts with democracy, and exactly how these philanthropists coordinate tax-exempt grantmaking with political funding for maximum effect remains largely obscure. What follows is a case study of the way charitable plutocracy operates on the ground. It’s a textbook example of the tug-of-war between government by the people and uber-philanthropists as social engineers.
The Case of Bill Gates and Washington State
This story begins in 1995, when the Washington State House of Representatives first considered legislation that would enable private individuals and organizations to obtain charters to create their own K–12 schools. These were to be taxpayer-funded schools, but privately run and exempt from many of the regulations governing district (regular) public schools. The funding would come from the resources of regular public schools: each student would “carry” his or her per-child funding out of the district system to a charter school.
The bill died in the state senate, so supporters went directly to voters with a ballot initiative to enable charter schools. The campaign attracted little money on either side, but turnout was high because the vote took place on the same day as the 1996 presidential election. Washingtonians rejected charter schools decisively: 64.4 percent against, 35.6 percent in favor.1
State representatives kept trying. They proposed new bills in 1997, 1998, and 1999, but got the same results: success in the lower chamber, failure in the Charitable Plutocracy: Bill Gates, Washington State and the Nuisance of Democracy | Alternet:
