Howard, Susie and Peter Buffett are set to become a philanthropic powerhouse following their father Warren Buffett's decision to leave his vast fortune to them for charitable use.
The legendary investor and Berkshire Hathaway chief had previously suggested his wealth would go to the Gates Foundation, but in a twist revealed in June, he opted to entrust nearly $144bn to a trust managed by his offspring. The Buffett progeny will have a decade to distribute the funds once they inherit them, according to the nonagenarian magnate's plans.
Warren Buffett continues to support the Gates Foundation with substantial yearly contributions, alongside donations to his own family foundationsa commitment he intends to maintain for the rest of his days. He first hinted at establishing a new charitable trust last November.
Howard Buffett has echoed his father's wisdom on philanthropy, saying: "It's not so easy to give away money if you want to do it smart, if you want to be intelligent about it." Reflecting on his father's enduring acumen and generosity, Howard expressed admiration and gratitude: "It's pretty amazing that he's giving us this opportunity."
Since 2006, Warren Buffett has made significant annual gifts to the foundation led by Bill Gates and Melinda French Gates, amounting to $43bn thus far.
James Ferris, founding director of The Center on Philanthropy and Public Policy at the University of Southern California, noted that "Wealthy people don't tend to give their money to other people to give away," He also pointed out that many affluent individuals are reluctant to pass on their wealth to the next generation due to concerns about stifling their creativity.
Ferris views the evolution of Buffett's philanthropic intentions as a positive development. "It shows how a donor is making choices and is adapting to circumstances," he commented. The Gates Foundation has not disclosed when it became aware of Buffett's decision or what its impact will be on its budget.
However, in a previous statement, the foundation acknowledged that "Warren Buffett has been exceedingly generous," and that his contributions have "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 time, Buffett has made substantial annual donations to the Gates Foundation, but he has also given billions to foundations run by his three children and another family foundation. Their work provides some insight into the priorities of the future generation of Buffetts.
The Susan Thompson Buffett Foundation, named after Warren Buffett's first wife, receives the largest amount of donations. It supports organisations that offer reproductive health care and access to contraception and abortion worldwide. Susie Buffett, 71, serves as its board chair, while Peter Buffett, 66, is a board member.
Susie Buffett heads The Sherwood Foundation, a significant benefactor of early childhood development across the nation. It provides grants to projects and organisations within Omaha, Nebraska, the Buffetts' place of origin.
Peter Buffett's NoVo Foundation is a key financier of groups advocating for women and girls' autonomy and against gender-based violence. In 2020, Peter and his wife, Jennifer, decided to shift their focus, broadening their support for Native American communities and initiatives to create sustainable, local communities with an emphasis on agriculture and food access.
The Howard G. Buffett Foundation has centred its efforts on conflict resolution and global agriculture. Since 2022, it has donated approximately $800m - surpassing most countries - to humanitarian efforts in Ukraine amidst the country's conflict with Russia. This includes backing food distribution in schools, demining activities, and the reconstruction of a major publishing firm and a crucial bridge for grain transport.
In a relatively uncommon interview for a family that rarely engages with the media, 69-year-old Howard Buffett stated he couldn't precisely forecast how he and his siblings would distribute their father's wealth. However, he affirmed they would continue to take risks and seek ways to make the most significant impact, as advised by their father.
"I can tell you, we'll sit down in a room when the time comes, and we'll get it figured out pretty quickly," he said, acknowledging that the directive to donate all the money within 10 years was a challenge. The siblings' different ways of thinking and approaches to giving are assets, he said.
"What this is going to do is we're going to bring all of our collective experience together," he said. But don't expect to find the family name on a lot of buildings, which the siblings have largely avoid even as they've given away more than $15bn of their father's money since 2006.
Kathleen Enright, president and CEO of the Council on Foundations, said the Buffetts have effectively made philanthropy a family business, with the next generation now seasoned donors who have built enduring institutions in their foundations.
"It is a big deal," she said, of the amount of money that the Buffetts are poised to give away, noting that because the fortune will likely continue to grow, they will have to give away highly visible sums to spend it down.
The tight timeframe to give away his fortune after his death reflects one of Warren Buffett's longstanding conditions for receiving charitable funding. He has instructed the Gates Foundation and his family's foundations to grant out the full amount they received within a year.
The Buffetts are keeping it lean when it comes to their philanthropic efforts, with Warren Buffett's next generation running their foundations with minimal staff, much like the Oracle of Omaha himself manages his behemoth Berkshire Hathaway with a surprisingly small team at its Omaha HQ.
Howard Buffett has revealed that his foundation operates with 22 staff members, despite dishing out a hefty $458.1m in grants in 2023, as per tax records. He admits this "lean" approach has its limitations but credits strong partnerships for amplifying their impact.
In stark contrast, the Gates Foundation boasts one of the heftiest endowments on the planet at $75.2 billion, thanks to contributions from Bill Gates and Warren Buffett. With over 2,000 employees, including global technical experts, the Gates Foundation is renowned for its targeted giving and stringent reporting demands.
The foundation plans to cease operations within 25 years of its founders' passing. Howard Buffett embraces the challenge and advocates for the wealthy to distribute their riches during their lifetimes rather than hoarding them in perpetual foundations. "Somebody is going to spend that money. Somebody is going to give that money away," he insists, preferring to undertake this mission with his siblings in a united front.
