Bill Ackman shares Jeff Bezos' view that the most effective way to contribute to the world is to create something that is functional.

      TL;DR: Bill Ackman asserts that capitalism is more effective than philanthropy in addressing problems, a view also expressed by Jeff Bezos. Ackman’s new Brain Research Institute uses nonprofit funding to create for-profit companies, offering equity to staff.

      Bill Ackman has invested nearly $1 billion in philanthropy over the last two decades but has determined that capitalism outperforms philanthropy in problem-solving. “My experience with philanthropy shows it’s significantly less efficient at addressing issues than capitalism,” the founder of Pershing Square told Fortune. “Capitalism generates far more jobs compared to philanthropy.” This perspective was echoed by Jeff Bezos in May, who stated that if he performs his role effectively, the societal benefits of his for-profit ventures will far exceed the advantages of his charitable donations.

      While this argument is not new, the combination of these two views is noteworthy. Ackman and Bezos exemplify a growing group of high-level investors who frame corporate success as a superior form of social contribution. Ackman critiques nonprofits structurally, pointing out that they lack equity incentives, do not encounter market pressures, and can become “political vehicles” detached from their initial missions. Bezos is simultaneously fundraising $10 billion for a physical AI lab and committing to donate most of his wealth through a $10 billion climate initiative, highlighting the real tension between creation and philanthropy for both of them.

      What makes Ackman’s approach intriguing is that he is not abandoning philanthropy; rather, he is reinventing it. His new Brain Research Rehabilitation Institute, initially funded by nonprofit capital, is designed to create for-profit companies, devices, and treatments for patients with brain injuries and strokes, while sharing equity with the staff. This model reflects the compensation structure of Pershing Square. The institute aims to fill a specific funding gap: foundational scientific research too distant from revenue to attract venture capital and too specialized to compete for federal funding.

      The initiative has personal significance for Ackman; his daughter Lucy experienced a brain hemorrhage in February, which he says shifted his philanthropic focus toward neuroscience. The nonprofit format allows him to collaborate with researchers and institutions that might avoid partnerships with for-profit organizations, while the for-profit spin-offs introduce the market discipline he believes prevents mission drift. The day he signed the deed for the institute’s Manhattan building, he also told Fortune about his belief that capitalism surpasses philanthropy. He views the building itself as proof of his claims.