AP Photo/Mark Schiefelbein
Elon Musk has pledged to give every child in America one share of SpaceX next year.
With around 73 million American children and SpaceX shares trading at roughly $146, the proposed giveaway could be worth more than $10 billion.
It’s an extraordinary pledge. Although, for now, it is just that, a pledge. Musk has not explained precisely how the shares will be distributed.
The announcement follows Anthropic's commitment to allocate 5% of its equity to a new public benefit fund, potentially worth tens of billions of dollars.
And it comes less than a year after Michael and Susan Dell pledged $6.25 billion to fund $250 investment contributions for 25 million American children through the Trump Accounts initiative.
Enormous commitments. Millions of potential beneficiaries. And a barrage of criticism.
When generosity becomes controversial
The Dells' announcement attracted immediate scrutiny. Critics questioned the association with President Trump, whether $250 would make a meaningful difference to children's finances, and whether billionaires were using philanthropy to win political influence.
These are legitimate subjects for debate, b ut the backlash went further (doesn’t it always?).
Following Susan Dell's appearances at the White House, social media filled with personal attacks on her appearance. The couple had pledged billions to help children build financial assets. Yet some of the loudest online conversations were about Susan Dell's face.
Michael Dell responded publicly to the abuse. It was an ugly illustration of what can happen when philanthropy becomes entangled with politics, celebrity and social media.
The view from a philanthropy veteran
Phil Cubeta, a veteran philanthropy adviser, educator and founder of Philanthropy Offerings, has spent decades helping wealthy families and their advisers think about charitable giving, legacy and the responsibilities of wealth.
His response to the Dell controversy was pointed:
"Concentrated wealth operating with billions becomes almost like a government unto itself. Philanthropy is for the public good, but the public gets no vote. There will always be pushback."
And then the line that inspired this article:
"'No good deed goes unpunished' is the philanthropist's proverb."
Cubeta doesn't dismiss the criticism. When individuals deploy billions of dollars towards public causes, scrutiny is inevitable.
But he also argues against judging every act of generosity through the same political or ideological lens.
On Musk's SpaceX announcement, Cubeta observed: "Over the last twenty or thirty years wealth creation has shifted dramatically to the West Coast and high tech. New money, new ways of doing good. New rivalries for public attention, reputation, status, and power."
He acknowledges the possible motives behind Musk's announcement, including competition with Anthropic, criticism of his foundation and the desire to build support for SpaceX.
But his conclusion is refreshingly open-minded: "I keep repeating to myself, 'There are many ways to do good.'"
And, as he reminds us, Musk's commitment is still a pledge, not a completed donation.
A new generation of givers
Another development has flown under the radar, but caught Cubeta’s attention. At a recent national gathering of fundraisers and advisers, he heard considerable excitement about philanthropy emerging from SpaceX and AI companies.
But not from the billionaire founders, from employees who have suddenly become wealthy themselves.
"They are not waiting to be asked to give, or advised on where, they are as proactive in giving as in their tech lives. That groundswell of self-directed generosity bodes well for us all."
A new generation of wealth creators is developing its own approach to giving, often without waiting for traditional philanthropic institutions to tell them what to do. Some approaches will work brilliantly. Others won't. Some will inevitably attract criticism.
Cubeta's advice is simple:
"Rather than take umbrage at how others give, I find it better to ask how I can do whatever I can in my own way, within my own means. This is not a spectator sport. We are on the field."
There are many ways to do good. And perhaps we should all be a little slower to criticize those trying.
-
