Bill Ackman has spent roughly two decades and close to $1 billion on philanthropy. His verdict: capitalism can often make a stronger societal impact.
“I’ve spent a fair amount of time on philanthropy, and it’s vastly less efficient at solving problems than capitalism,” the Pershing Square Capital Management founder and CEO told Fortune editor-in-chief Alyson Shontell in an interview for the Fortune 500: Titans and Disruptors of Industry series. “You create far more jobs through capitalism than through philanthropy.”
Nonprofits, Ackman argued, lack the equity incentives and market pressure that keep enterprises sharp — and can be “taken over” and turned into “political vehicles instead of sticking to their original mission.”
The argument puts him alongside Jeff Bezos, who made a similar case on CNBC’s Squawk Box in May: “If I do my job right, the value to society and civilization from my for-profit companies will be much, much larger than the good that I do with my charitable giving,” the Amazon founder said. The two comments express a shared conviction that has become a talking point among elite capital allocators: that operating a great company, not writing checks, is the more impactful measure of social contribution.
