Buffet to give nearly $31 billion to Gates foundation

Buffet to give nearly $31 billion to Gates foundation

mongabay.com

June 25, 2006

In an interview with Fortune magazine, Berkshire Hathaway Chairman Warren Buffett announced he will give nearly $31 billion — most of his wealth — to the Bill & Melinda Gates Foundation.

The decision comes shortly after Mr. Gates said he would leave Microsoft to work full time with his philanthropic organization, which is dedicated to bringing innovation to global health and education.

To date Mr. Gates has contributed some $30 billion the Foundation, making him the most generous philanthropist the world has ever known. Gates further intends to hand over the most of his remaining fortune by the end of his life.

The value of Mr. Buffet’s gift of 10 million shares is currently worth about $30.7 billion based on Friday’s market closing price of Berkshire Hathaway stock. Mr. Buffet will also contribute shares to four family nonprofit organizations. In all he will donate about 85% of his Berkshire Hathaway stock to charity.

Mr. Gates, a member of Berkshire Hathaway’s board, released a statement thanking Mr. Buffet for his generosity.

The Gates Foundation is particularly active in Africa where it is involved in funding research on malaria, AIDS, and other diseases.

“We are awed by our friend Warren Buffett’s decision to use his fortune to address the world’s most challenging inequities, and we are humbled that he has chosen to direct a large portion of it to the Bill & Melinda Gates Foundation,” said Mr. Gates in a news release from the Bill & Melinda Gates Foundation. “The impact of Warren’s generosity will not be fully understood for decades. As we move forward with the work, we do so with a profound sense of responsibility. Working with Warren and with our partners around the world, we have a tremendous opportunity to make a positive difference in people’s lives.”

According to the Fortune article, Mr. Buffett’s decision to start giving his fortune to charity while he is still alive was driven by the death of his wife, Susan, in 2004. Buffett says that she “would really have stepped on the gas,” for charitable giving.

Mr. Gates world’s richest man with more than $51 billion. Mr Buffet is second with around $42 billion according to Forbes magazine. Mr. Gates’ net worth peaked in 1998 at around $100 billion.

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