Foundations prepare for potential influx of Buffett’s billions
While Berkshire Hathaway chair and CEO and Giving Pledge co-founder Warren Buffett hasn’t revealed publicly how his estate will be divided after his death, officials at the Susan Thompson Buffett Foundation have been planning and hiring staff in preparation for a massive influx of funding, the Wall Street Journal reports.
In 2006, Buffett pledged to earmark 85 percent of his stock in Berkshire Hathaway for charity, with the bulk going to the Bill & Melinda Gates Foundation, and in the same year earmarked Berkshire shares then worth about $3 billion to the Susan Thompson Buffett Foundation. In 2010, Buffett ultimately pledged to give away 99 percent of his fortune.
Buffett’s Berkshire stake is currently valued at more than $90 billion, with approximately $56 billion currently committed to be distributed to the Gates Foundation—which already has received close to $36 billion—and $17.4 billion committed to four foundations associated with his family, including the Buffett Foundation, and $18.7 billion not yet committed. The wording in the 2006 pledge was unclear about his estate plans. According to the Journal, many Gates Foundation staffers assumed that the charity would receive the full amount of Buffett’s pledged shares as well as the bulk of his remaining unpledged shares. In anticipation, the foundation’s CEO, employees, and consultants from management consulting firm McKinsey & Co. participated in a plan called “Project Lincoln” to determine how best to allocate the potential windfall. Since 2006, Buffett has been one of the largest donors to the Gates Foundation.
Similar planning is being conducted at the Susan Thompson Buffett Foundation, which could receive between $70 billion and $100 billion—which would make it one of the largest private philanthropies in the world. Established in 1964, the foundation is named for Buffett’s first wife, who died in 2004. According to tax filings, the Omaha-based foundation awards scholarships to college students in Nebraska, though it has spent the bulk of its funds in support of abortion access and reproductive health, including through organizations such as Planned Parenthood, the Center for Reproductive Rights, and the National Network of Abortion Funds.
“Over many decades I have accumulated an almost incomprehensible sum simply by doing what I love to do,” Buffett said in a statement last year. “Society has a use for my money; I don’t.”
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