Warren Buffett, the billionaire head of Berkshire Hathaway, has affirmed his intention to bequeath the majority of his substantial fortune to a newly founded charity overseen by his three offspring, marking the cessation of his longstanding tradition of contributing to the Bill & Melinda Gates Foundation. In an interview with The Wall Street Journal, Buffett confirmed that his children, Susie, Howard and Peter Buffett, will administer the new charity, presiding over one of history’s most substantial monetary contributions following his death. Currently possessing approximately $130 billion in Berkshire shares, the magnate, who will celebrate his 94th birthday in August, has stated that no funds will be dedicated to the Gates Foundation in his last will and testament.
Buffett has openly declared that, “The Gates Foundation will not inherit any funds after my departure.” Over the past twenty years, Buffett has donated an estimated $43 billion to the foundation, inclusive of a significant $4 billion gift disclosed last Friday. His philanthropic association with the Gates Foundation started in 2006 when he pledged to distribute annual monetary gifts to the institution, plus four family-run charities. Later, in 2010, Buffett, alongside Bill and Melinda Gates, initiated the Giving Pledge, encouraging billionaires to earmark at least 50% of their wealth for charitable causes.
His charitable gifts were arranged in such a way that 5% of his Berkshire shares were allocated to the Gates Foundation annually, ensuring Buffett would retain ownership of the company until his passing. Several requirements were laid out by Buffett to uphold the pledge, such as the continued active involvement of either Bill or Melinda Gates in the foundation, and a guarantee that his donations facilitate a minimum spend of 5% of the foundation’s funds annually.
Buffett, a trustee of the foundation since 2006, resigned his post in 2021, closely followed by Melinda Gates’ departure earlier this month. Mark Suzman, the current CEO of the Gates Foundation, acknowledged the priceless role Buffett has played in shaping the foundation’s commitment to “ensuring every individual has the opportunity to lead a robust, fruitful life”. He conveyed deep gratitude for his recent donation and various other contributions. The Gates Foundation, responsible for distributing approximately $7.7 billion to ventures in 2020, primarily supports public health programmes, agricultural advancements, and the promotion of advocating gender equality in Africa and South Asia.
Buffett’s offspring will spearhead a future foundation set to eclipse some of the world’s most substantial charitable organisations, such as the Gates and Ford foundations valued at $75 billion and $16 billion respectively. As of 2022, the foundation is anticipated to be in line with the Novo Nordisk Foundation’s worth at $108 billion, making it one of the most powerful philanthropic entities at its inception. This status will enable it annually to champion projects in the billions of dollars range.
Buffett refrained from binding his children, Howard and Susie, both members of the Berkshire board, to particular charitable causes. He believes the funds should aid those less fortunate than his family. According to Buffett, his family belongs to an exceptionally lucky fraction of the world’s eight billion population, so the foundation presents numerous opportunities to provide much needed support to others.