Monday, June 26, 2006

Buffett to give away Billions


Major kudos to Warren Buffett!

From Fortune:

"Buffett has pledged to gradually give 85% of his Berkshire stock to five foundations. A dominant five-sixths of the shares will go to the world's largest philanthropic organization, the $30 billion Bill & Melinda Gates Foundation, whose principals are close friends of Buffett's (a connection that began in 1991, when a mutual friend introduced Buffett and Bill Gates).

The Gateses credit Buffett, says Bill, with having "inspired" their thinking about giving money back to society. Their foundation's activities, internationally famous, are focused on world health -- fighting such diseases as malaria, HIV/AIDS, and tuberculosis -- and on improving U.S.
libraries and high schools."

and later:
"With so much new money to handle, the foundation will be given two years to resize its operations. But it will then be required by the terms of Buffett's gift to annually spend the dollar amount of his contributions as well as those it is already making from its existing assets. At the moment, $1.5 billion would roughly double the foundation's yearly benefactions"

Now let's hope others follow the example. From BusinessWeek:

"Billionaire investor Warren Buffett's pledge to give most of his money away to the Bill and Melinda Gates Foundation has experts predicting it could energize the nonprofit sector and possibly spawn a new wave of philanthropy"

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