Coinbase CEO Brian Armstrong has taken an unusual position on billionaire philanthropy, arguing that charities and foundations can sometimes do more harm than good. Armstrong, whose fortune has been estimated at around $8.7 billion (£6.4 billion), made the comments during an appearance on The Katie Miller Podcast.
Armstrong's view puts him at odds with some of America's best-known billionaires, many of whom have given away billions of pounds to charitable causes.
Warren Buffett, the veteran investor who built Berkshire Hathaway, has donated more than any other American individual, while Microsoft co-founder Bill Gates has spent decades funding health and development projects through the Gates Foundation.
Amazon founder Jeff Bezos, Meta founder Mark Zuckerberg and former Microsoft CEO Steve Ballmer have also committed billions to philanthropy. Armstrong, however, says he has so far decided against establishing his own charitable foundation.
Why Armstrong Says Charity Can Go Wrong
'The common view is that philanthropy is a noble cause,' Armstrong said during the podcast. Referring to Gates, he added: 'And like, Bill Gates after the DoJ thing is like, "I'm going to go rehabilitate my image, I'm going to do philanthropy."'
Armstrong said he takes what he described as a 'contrarian view' of philanthropy. In his view, many charities and foundations can become influenced by ideology.
'I guess I have sort of a contrarian view where a lot of charities and philanthropies are actually net negative on the world,' Armstrong said. 'And they get captured. It's actually remarkably hard to find a foundation that has not gotten captured by ideology.'
He said financial advisers encouraged him to establish a foundation after Coinbase went public, including for tax reasons. Armstrong said he chose not to do so because he was concerned about losing control of its direction.
'So far, I've just been like "I'm not going to do that,"' he said.
His comments come against a backdrop of enormous charitable giving from other members of America's billionaire class.
How Much Other Billionaires Have Given
Buffett, the long-time chairman and largest shareholder of Berkshire Hathaway, has given around $68.3 billion (£50.4 billion) over his lifetime, according to Forbes. His donations have largely supported charitable foundations, including those run by Gates.
Gates, the Microsoft co-founder who went on to establish one of the world's largest private charitable foundations with his former wife Melinda French Gates, has given around $52.6 billion (£38.8 billion) between them. Their foundation focuses on areas including global health, poverty and development.
MacKenzie Scott, the former wife of Amazon founder Jeff Bezos, has given around $26.4 billion (£19.5 billion) during her lifetime, according to Forbes, making her one of America's biggest philanthropists.
Michael Bloomberg, the billionaire founder of financial information company Bloomberg and a former mayor of New York City, has given around $25.4 billion (£18.8 billion) during his lifetime. George Soros, the billionaire investor and founder of the Open Society Foundations, has given around $24 billion (£17.7 billion), according to Forbes.
Steve Ballmer, Microsoft's former chief executive and current owner of the Los Angeles Clippers, and his wife Connie have given around $6.5 billion (£4.8 billion). Zuckerberg, who founded Facebook and now runs Meta, and his wife Priscilla Chan have given around $6.1 billion (£4.5 billion).
Amazon founder Bezos and his fiancée Lauren Sánchez Bezos have given around $4.7 billion (£3.5 billion), while Google co-founder Sergey Brin has given around $5.1 billion (£3.8 billion).
These figures show just how different Armstrong's current approach is from some of America's biggest technology and business fortunes. He has made clear that, for now, creating a traditional philanthropic foundation is not something he plans to do.
