Summary: Warren Buffett said it was not unexpected when he told Bill Gates he would cease donating Berkshire Hathaway shares to the Gates Foundation. The decision accompanies a nearly $6 billion gift of Berkshire stock that omits the Gates Foundation and redirects funds to family-run foundations controlled by Buffett's children.
Buffett, who is 95 and serves as Berkshire Hathaway's chairman, discussed the change in philanthropic direction during interview excerpts aired on CNBC. He said the two men spoke about the matter three weeks earlier when Gates visited Omaha. Buffett described the move as part of a broader personal reassessment after reviewing information made public about Gates' interactions with Jeffrey Epstein.
Files concerning the relationship between Gates, the Microsoft co-founder, and Epstein were released by the U.S. Department of Justice in February, and the matter has been the subject of a congressional inquiry. Gates met with Congress last month. Gates has publicly expressed regret for any association with Epstein and has not been charged with a crime.
Buffett told interviewers: "I reevaluated my whole situation. It did not come as a surprise." He added that he had read what Congress produced and all related material he could access.
Rather than directing the nearly $6 billion of Berkshire stock to the Gates Foundation, Buffett will continue to route donations to four foundations run by his children Susie, Howard and Peter. This most recent gift is part of that redirected giving.
Buffett has a long history of contributions to the Gates Foundation, having donated more than $47 billion of Berkshire Hathaway stock to the foundation since 2006. The recent decision marks a notable change in that pattern.
The article also notes background facts about Epstein: he died in a Manhattan jail cell in August 2019 after being arrested on sex trafficking charges, and New York City's medical examiner ruled the death a suicide.
Key points:
- Buffett informed Gates of his decision not to continue directing Berkshire shares to the Gates Foundation; the choice followed Buffett's review of materials related to Gates and Jeffrey Epstein.
- Nearly $6 billion of Berkshire Hathaway stock will be donated to four family foundations overseen by Buffett's children instead of the Gates Foundation.
- The situation has involved public disclosures by the Department of Justice and congressional review; Gates has expressed regret for any ties to Epstein and has not been accused of crimes.
Risks and uncertainties:
- Ongoing public and congressional scrutiny of Gates' interactions with Epstein could continue to influence philanthropic relationships and decisions by major donors - impacting the nonprofit and philanthropy sectors.
- Changes in large-scale stock donations alter the allocation of substantial equity holdings, which could affect the receiving foundations' investment and grant-making strategies - relevant to nonprofits and markets exposed to large share transfers.