Elon Musk backed Coinbase Global Inc. CEO Brian Armstrong’s criticism of traditional philanthropy after the crypto executive argued that charitable foundations can drift from their founders’ intentions and become “captured by ideology.”
Armstrong Warns Foundations Can Lose Their Mission
“He’s right,” Musk wrote Thursday on X in response to a video of Armstrong discussing how wealthy people should approach giving.
“A lot of charities and philanthropies are actually net negative for the world and they get captured,” Armstrong said during an interview with Katie Miller. “It’s remarkably hard to find a foundation that has not gotten captured by ideology.”
Armstrong argued that well-intentioned initiatives can produce unintended consequences, citing criminal justice reform as an example and claiming some programs “just increased crime.” He offered no data in the clip supporting that assertion.
The Coinbase CEO said he instead uses a donor-advised fund, putting money toward projects “helping civilization advance.”
Donor-Advised Funds Gain Ground In Philanthropy
Unlike a private foundation, a donor-advised fund places donated assets under the legal control of a sponsoring nonprofit while allowing donors to recommend how money gets invested and distributed, according to the IRS.
Such funds have become a major force in American philanthropy. National Philanthropic Trust, citing the 2025 Annual DAF Report, said donor-advised funds held $326.5 billion in assets at the end of 2024 and distributed $64.9 billion to charities that year.
Armstrong is not rejecting charitable giving altogether. He previously joined the Giving Pledge, whose members promise to donate most of their wealth. “Whether it’s through improving education, creating a more level playing field, or increasing economic freedom, I’m interested in helping more people see their ideas come to fruition in the world,” Armstrong wrote in his pledge letter.
His comments nevertheless reflect skepticism toward permanent institutions. Armstrong singled out the Ford Foundation, saying founder Henry Ford “would be turning over in his grave if he knew what they were up to.”
Musk Shares Concerns But Still Gives
Musk has voiced similar concerns. He recently responded “Sadly, yes” to criticism alleging MacKenzie Scott’s more than $26 billion in giving was “making the world worse”.
That said, Musk himself has donated billions. He gave roughly $5.74 billion in Tesla shares to the Musk Foundation in 2021, another $1.95 billion in 2022 and about $108 million to unnamed charities in 2024. He has also pledged that any proceeds from his OpenAI lawsuit will go to charity.
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