Omaha, Nebraska – Warren Buffett, the billionaire chief executive of Berkshire Hathaway, announced on Friday his intention to donate the majority of his wealth to a new foundation led by his three children upon his passing. This decision marks a departure from his longstanding practice of donating to the Bill & Melinda Gates Foundation.
Buffett, who will turn 94 in August, revealed that he holds about $130 billion worth of Berkshire stock. He confirmed that his children – Susie, Howard, and Peter Buffett – will serve as trustees for the new foundation, which is set to receive one of the largest wealth transfers in history.
The renowned investor clarified that the Gates Foundation will not be a recipient of his estate. Over the past two decades, Buffett has contributed around $43 billion to the Gates Foundation, including a recent $4 billion donation.
The ties between Buffett and the Gates Foundation date back to 2006 when Buffett pledged annual donations to the organization and four other charities run by his family. Their collaboration extended to the launch of the Giving Pledge in 2010, an initiative urging billionaires to donate at least half of their wealth to charitable causes.
As part of his donations, Buffett structured a plan in which 5 percent of his Berkshire shares would be gifted to the Gates Foundation each year. This arrangement ensured that he would not completely divest from the company before his passing.
Additionally, Buffett set conditions for his donations, stipulating that either Bill or Melinda Gates must be alive and actively involved in the foundation, and that the donations must facilitate the spending of at least 5 percent of the endowment annually. Last year, the Gates Foundation allocated $7.7 billion towards various projects focused on global health, agriculture development, and gender equity in Africa and South Asia.
Buffett had served as a trustee on the Gates Foundation since 2006 but resigned in 2021. His departure preceded Melinda Gates’ recent decision to step down from her position within the organization. Mark Suzman, the foundation’s CEO, acknowledged Buffett’s significant impact on shaping the foundation’s mission and expressed deep gratitude for his contributions.
Upon the establishment of the new foundation led by Buffett’s children, it is poised to become one of the world’s largest philanthropic entities, surpassing existing foundations like the Gates and Ford foundations in endowment size. Buffett emphasized the open-ended nature of his children’s philanthropic pursuits, emphasizing a commitment to aiding those less fortunate worldwide.