Garry Tan Advocates for "Moonshot Philanthropy" Over Traditional Nonprofits

Garry Tan, President and CEO of Y Combinator, recently sparked discussion on social media by asserting that billionaires should prioritize "moonshot" investments over funding traditional nonprofits. In a tweet on October 31, 2025, Tan stated, "> It's true. Billionaires should fund moonshots instead of nonprofits that exacerbate the problems that they claim to solve." He further criticized the current philanthropic model, noting, "> It's a stewardship problem: writing a check is easy and feels good and gets you awards at a gala. But without keeping track of outcomes, it's bad."

Tan's statement highlights a growing debate within the philanthropic community regarding the most effective deployment of significant wealth. "Moonshot philanthropy," inspired by President John F. Kennedy's ambitious space program, emphasizes high-risk, high-reward endeavors aimed at solving large-scale, complex global challenges. These initiatives often involve substantial capital, a tolerance for failure, and a focus on long-term, transformative impact, such as advancements in longevity, space exploration, or fusion energy.

Proponents of moonshot philanthropy argue that it encourages radical innovation and can lead to breakthroughs that traditional, incremental approaches might miss. James Chen, a prominent moonshot philanthropist, noted, "The risk of any moonshot endeavor? Failure. Without the tangible possibility of failure, and without embracing the risk of testing unconventional out of the box ideas, we would never be able to shift the paradigm on the complex issues we each seek out to resolve." This approach seeks to fund foundational research and development that may not yield immediate results but could offer exponential benefits if successful.

Conversely, Tan's critique of traditional nonprofits centers on a "stewardship problem," suggesting a lack of rigorous outcome tracking and accountability. This perspective aligns with broader discussions about the effectiveness of charitable giving, where some argue that a focus on measurable impact and strategic investment is often overlooked in favor of feel-good donations. Critics of traditional philanthropy sometimes point to administrative inefficiencies or a perceived perpetuation of problems rather than their eradication.

However, the concept of moonshot philanthropy is not without its detractors. Some argue that focusing solely on high-risk ventures can divert crucial funding from immediate, pressing social needs that traditional nonprofits are equipped to address. There is concern that such an approach might neglect the foundational work of community-based organizations and essential services, which provide direct relief and support to vulnerable populations. The debate underscores a fundamental tension between addressing present crises and investing in future-oriented, transformative solutions.