Warren Buffett made a statement regarding the future of his contributions to the Bill & Melinda Gates Foundation. The 93-year-old billionaire has restructured his will to make sure that his wealth will be managed by his three children through a newly established charitable trust.
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Warren Buffett had long pledged that more than 99% of his wealth would go to philanthropic causes with a huge portion directed towards the Bill & Melinda Gates Foundation.
Buffett announced that after his death no further funds will be donated to the Gates Foundation. This decision represents a pivot from his earlier promises and indicates a new direction for his charitable efforts.
Mark Suzman, CEO of the Gates Foundation expressed gratitude for Buffett’s contributions which have amounted to approximately $43 billion over 18 years.
Buffett’s revised will outlines the creation of a new charitable trust that will be managed by his three children Howard, Susan, and Peter Buffett.
This trust will receive the majority of his estate. Buffett has expressed strong confidence in his children’s values and their ability to responsibly manage and distribute the funds to charitable causes.
Each child already runs their own philanthropic organization which is with Buffett’s vision of meaningful charitable work.
Buffett continues to donate huge amounts annually. He made his largest single-year donation of $5.3 billion in Berkshire Hathaway shares to five charities including the Gates Foundation and the family-run foundations.
Buffett converted 9,000 Class A shares into more than 13 million Class B shares. Of these, approximately 9.3 million shares were allocated to the Gates Foundation with the remainder distributed among the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation.
Received 9.93 million Class B shares of Berkshire Hathaway in the latest round of donations. The Susan Thompson Buffett Foundation named after Buffett’s late wife received 993,035 shares.
The Howard G. Buffett Foundation, Sherwood Foundation and NoVo Foundation each received 695,122 shares.
Warren Buffett has donated over $39 billion to the Bill & Melinda Gates Foundation over the past 15 years. His total philanthropic contributions including other charities exceed $56 billion.
Buffett continues to donate huge amounts including a gift of $4 billion worth of Berkshire Hathaway stock to the Gates Foundation.
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He also continues to support other family-related charitable organizations such as the Susan Thompson Buffett Foundation and foundations established by his three children.
In an interview with the Wall Street Journal, Buffett announced that his support for the Gates Foundation will not continue after his death.
He addressed that there are no explicit pledges for the foundation in his will meaning that all future support hinges on decisions made by his children.
Buffett’s remaining wealth is valued at around $127 billion, will be managed by a charitable trust overseen by his three children Howard, Susie, and Peter.
Buffett’s donations have been crucial for the Gates Foundation boosting its capacity to fund various projects at combating poverty, for healthcare and promoting education globally.
The foundation will face a huge financial gap once Buffett’s contributions cease. The Gates Foundation with an endowment of $75 billion plans to increase its annual spending to $9 billion by 2026.
Buffett’s commitment to philanthropy dates back to 2006 when he joined the Gates Foundation as a trustee and began his financial contributions.
He co-founded The Giving Pledge with Bill and Melinda Gates in 2010 encouraging billionaires to donate at least half of their wealth to charitable causes.
The exact allocation of Buffett’s wealth posthumously will depend on the decisions made by his children who have the discretion to support various causes including the Gates Foundation.
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