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 would 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, Warren Buffett said.
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 Associated Press 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.”
The middle Buffett child, Howard said his father is as sharp as ever and that he hopes he lives a long time, adding: “It’s pretty amazing that he’s giving us this opportunity.”
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 The Center on Philanthropy and Public Policy at the University of Southern California. 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 did not 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.”
Over the years, Buffett gave the Gates Foundation large annual donations, but also donated billions to foundations run by his three children and a fourth family foundation. Their work offers some insight into the priorities of the next generation of Buffetts.
The Susan Thompson Buffett Foundation, named after Warren Buffett’s first wife, is the largest in terms of donations. It supports organizations that provide reproductive health care and access to contraception and abortion around the world. Susie Buffett, 71, is its board chair and Peter Buffett, 66, is a board member.
Susie Buffett also leads The Sherwood Foundation, a major supporter of early childhood development nationally that gives grants to organizations and projects within Omaha, Nebraska, the Buffetts’ hometown.
Peter Buffett’s NoVo Foundation has been an important funder of organizations advocating for the autonomy of girls and women and against gender-based violence. In 2020, Peter and his wife, Jennifer, decided to reorient their focus, expanding their support for Native American communities and projects to build sustainable, local communities with a focus on agriculture and food access.
The Howard G. Buffett Foundation has focused on conflict mitigation and agriculture around the world. Since 2022, it has donated some $800 million — more than most countries — to humanitarian initiatives in Ukraine during the country’s war with Russia. These include supporting food distribution at schools, demining activities, and the rebuilding of a major publishing company and a key bridge transporting grain.
In a relatively rare interview for a family that seldom makes time to speak with the media, Howard Buffett, 69, said he couldn’t predict exactly how he and his siblings would give away their father’s fortune. However, he said they would continue to take risks and find ways to make the biggest difference as their father recommended.
Source: https://apnews.com/article/warren-buffett-children-gates-foundation-9110be0c729864105e22f4bf93dfb2e5
