Additional Coverage:
- An Austrian heiress, who supports taxing the rich and doesn’t believe in philanthropy, just wrote away a large chunk of her $27 million fortune (newsbreak.com)
In January 2024, Marlene Engelhorn was photographed holding a sign advocating for higher taxes on the wealthy. Engelhorn, who unexpectedly inherited millions from BASF founder Friedrich Engelhorn, found herself at a crossroads due to her firm belief in combatting wealth disparity through efforts like the TaxMeNow initiative.
Feeling conflicted, the 32-year-old heiress chose to donate most of her €25 million ($27 million) inheritance to 77 organizations focused on environmental preservation, societal reform, and other progressive endeavors. A group named Guter Rat, composed of 50 individuals selected by a polling organization, was tasked with the allocation of funds to these entities. This group, which convened over several weekends in Salzburg, aimed to introduce a fair and transparent method for distributing wealth, striving to reflect the diversity of causes and organizations benefiting from Engelhorn’s donation.
Donations were varied, ranging from €40,000 ($43,000) to €1.63 million ($1.75 million), supporting a broad spectrum of initiatives including affordable housing, consumer rights, women’s issues, educational access, and the battle against rare diseases. Guter Rat highlighted the inclusivity of the chosen recipients, representing both nascent and well-established groups.
Amidst these philanthropic decisions, Engelhorn has been an outspoken critic of Austria’s tax policies, particularly the absence of substantial taxes on wealth and inheritance—an issue underscored by her sizable inheritance after her grandmother Gertraud Engelhorn-Vechiatto’s death in 2022. She aims to ignite a broader dialogue on the topic of wealth disparity, especially in light of the untouched status of her inheritance owing to the 2008 abolishment of inheritance tax in Austria.
While several prominent billionaires, including those behind the Gates Foundation and Chuck Feeney of Duty Free Shoppers, have similarly parted with their fortunes for charitable causes, Engelhorn holds a critical view of philanthropy. She questions the effectiveness of philanthropy in truly redistributing wealth, pointing out that it often serves to further entrench the societal influence of the donors by funneling money towards preferred causes.