The next generation of Buffetts—Howard, Susie, and Peter—is poised to become one of the most powerful forces in philanthropy when their 94-year-old father, the legendary businessman and leader of Berkshire Hathaway, Warren Buffett, eventually passes away. But it wasn’t always going to be that way. Buffett announced in June that he’d donate his fortune, now valued at nearly $144 billion, to a charitable trust managed by his three children when he dies, instead of giving it to the Gates Foundation, as he indicated 18 years ago. The next generation of Buffetts will then have 10 years to give the money away. In the meantime, the elder Buffett continues to make huge annual donations to the Gates Foundation and his four family foundations, which will continue throughout his lifetime. He first mentioned plans for a new charitable trust in November.
Howard Buffett told the AP he’s learned what his father told him and his siblings about philanthropy was true: “It’s not so easy to give away money if you want to do it smart, if you want to be intelligent about it.” Buffett has entrusted Bill Gates and Melinda French Gates with significant annual gifts to their foundation since 2006—a remarkable $43 billion to date. “Wealthy people don’t tend to give their money to other people to give away,” said James Ferris, founding director of USC’s Center on Philanthropy and Public Policy. But many of the wealthiest people are also hesitant to hand over their fortunes to the next generation over concerns that it hampers their ingenuity, he said. Ferris thinks the story of Buffett’s changing philanthropic intentions is a positive one. “It shows how a donor is making choices and is adapting to circumstances,” he said.
The Gates Foundation didn’t say when it learned of Buffett’s decision or what the impact will be on its budget. It previously said in a statement that “Warren Buffett has been exceedingly generous,” and that he has “played an invaluable role in championing and shaping the foundation’s work to create a world where every person can live a healthy, productive life.” Howard Buffett said he likes a challenge and thinks that in general, wealthy people should give their money away within their lifetimes, rather than holding it in perpetual foundations. “Somebody is going to spend that money. Somebody is going to give that money away,” he said. “So, I would rather do that with my brother and sister and do it together, as a partnership, than see it done any other way.” More here.
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