Key Takeaways
- • Pershing Square founder Bill Ackman argues capitalism is "vastly less efficient at solving problems than" philanthropy, according to an interview with Fortune published Aug. 7 (2026 timeframe per story date context; the Fortune piece is the basis for the remarks).
- • Ackman's charitable arm, Pershing Square Philanthropies, reports more than $930 million in grants and investments committed since 2006.
- • Ackman contends businesses create far more jobs than charities and that nonprofits lack the equity incentives and market discipline that keep companies efficient.
- • The comments land against a backdrop of rising U.S. giving: donors gave an estimated $617.2 billion to U.S. charities in 2025, up 5.7% year over year (about 3% after inflation), per Giving USA 2026.
- • Ackman's remarks echo similar views attributed to Jeff Bezos on the role of business leadership in improving society, though the sources provide limited detail on that comparison.
Summary
Hedge fund manager Bill Ackman has argued that capitalism is more effective than philanthropy at improving society, warning that "you can waste a lot of money" in charitable giving. In an interview with Fortune editor-in-chief Alyson Shontell, published by the magazine on Aug. 7 as part of its Fortune 500: Titans and Disruptors of Industry series, Ackman said his own philanthropic experience has convinced him that charity is "vastly less efficient at solving problems than capitalism."
Ackman has been giving money away for almost two decades. His charitable arm, New York-based Pershing Square Philanthropies, says it has committed more than $930 million in grants and investments since 2006. Despite that record, Ackman's view is that many nonprofits lack the financial discipline that keeps businesses efficient. He also argued that companies generate far more employment than charities, and that the structure of philanthropic spending, particularly whose money is being deployed, contributes to the problem.
His comments come as American generosity continues to grow. According to Giving USA 2026, produced by Indiana University's Lilly Family School of Philanthropy, donors gave an estimated $617.2 billion to U.S. charities in 2025, a 5.7% nominal increase (roughly 3% after inflation). Individuals accounted for the largest share, at $394.2 billion.
Ackman's position has been reported alongside similar sentiment attributed to Jeff Bezos that business leadership can do more for the world than philanthropy. The available coverage of Ackman's remarks is drawn primarily from headlines and excerpts, so the full context of his argument should be checked against the original Fortune interview.
Ackman has been giving money away for almost two decades. His charitable arm, New York-based Pershing Square Philanthropies, says it has committed more than $930 million in grants and investments since 2006. Despite that record, Ackman's view is that many nonprofits lack the financial discipline that keeps businesses efficient. He also argued that companies generate far more employment than charities, and that the structure of philanthropic spending, particularly whose money is being deployed, contributes to the problem.
His comments come as American generosity continues to grow. According to Giving USA 2026, produced by Indiana University's Lilly Family School of Philanthropy, donors gave an estimated $617.2 billion to U.S. charities in 2025, a 5.7% nominal increase (roughly 3% after inflation). Individuals accounted for the largest share, at $394.2 billion.
Ackman's position has been reported alongside similar sentiment attributed to Jeff Bezos that business leadership can do more for the world than philanthropy. The available coverage of Ackman's remarks is drawn primarily from headlines and excerpts, so the full context of his argument should be checked against the original Fortune interview.
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