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Buffett gift to help improve education

By Pat Milton, Associated Press Writer  |  June 26, 2006

NEW YORK --Warren Buffett's contribution of about $1.5 billion a year to the Bill & Melinda Gates Foundation will be used to seek cures for the world's worst diseases and improve American education, Bill Gates said Monday.

"There is no reason we can't cure the top 20 diseases," Gates said while appearing with Buffett during a donation ceremony at the New York Public Library.

The Buffett and Gates families, as well as onlookers, were beaming as the so-called Oracle of Omaha officially made his benevolence a reality.

"There is more than one way to get to heaven, but this is a great way," said Buffett. He presented the biggest gift to Gates, and $1 billion donations to his own foundation and the foundations run by each of his three children.

"It's easy to sign. I just signed, "Dad,'" Buffett joked while handing one of the donation documents, a stock transfer letter, to his daughter, Susie Buffett.

Buffett said he had made some suggestions about how to use the money. But "I think their judgment above the ground is going to be a lot better than mine 6 feet below the ground," he said at a later appearance.

Buffett said his children have known all along that much of their family's wealth would be given back to society. "They consider themselves lucky. They don't consider themselves quite as lucky as if they had a father with a different view."

In a letter dated Monday, Buffett had informed Bill and Melinda Gates that the first donation of Berkshire Hathaway Inc. stock would go to the foundation next month.

The foundation, which has assets of $30.6 billion, spends money on world health, poverty and increasing access to technology in developing countries. In the United States, it focuses on education and technology in public libraries.

The money from Buffett, who is 75 but considered strong and healthy, comes with a significant catch. The letter says Buffett wants all his money to be distributed in the year it is donated, not added to the foundation's assets for future giving. The foundation gave away $1.36 billion in 2005, so the Buffett commitment would effectively double its spending.

Buffett had said he would give away 12,050,000 Class B shares of Berkshire Hathaway stock to the five foundations. The shares fell $22.01, or 0.7 percent, to $3,049 in afternoon trading on the New York Stock Exchange.

The gifts would be worth nearly $37 billion, which represents the bulk of the $44 billion that Buffet's stock holdings are worth today. Five-sixths of the shares will be earmarked for the Gates Foundation.

In his letter to the Gates Foundation, Buffett said he admired the foundation and wanted to extend its "future capabilities." Until now, all the money given away by the Gates Foundation has come from the couple.

In a statement over the weekend, Bill and Melinda Gates spoke of their relationship with Buffett over the past 15 years and his influence on their philanthropy.

"Warren has not only an amazing intellect but also a strong sense of justice. Warren's wisdom will help us do a better job and make it more fun at the same time," they said. The couple said they were "awed" by Buffett's decision.

The Buffett pledge also requires that Bill and Melinda Gates remain alive and active in the policy-setting and administration of the foundation. Buffett plans to give each foundation 5 percent of his total pledge each year in July.

Bill Gates, the world's richest man, announced earlier this month that he would be stepping back from his day-to-day responsibilities at Microsoft Corp. in July 2008 so he can spend more time on the Seattle-based foundation. The foundation followed his announcement by saying Melinda Gates would also be taking a more active role in their philanthropic work.

Buffett, the world's second-richest man, said in an interview with Fortune magazine that the timing of the two announcements -- one week apart -- was just "happenstance."

Buffett's gift is "really significant," not just for its size but for its potential to encourage other giving, said Diana Aviv, president and CEO of Independent Sector, a nonprofit coalition of about 550 charities, foundations and corporate giving programs that includes The Gates Foundation.

"I'm sure there are lots of young, wealthy individuals who have made their fortunes and who are watching this very carefully," she said. "These business leaders are icons."

Buffett gift to help improve education (http://www.boston.com/business/articles/2006/06/26/buffett_to_beef_up_gates_foundation/)


Add him to the list of "people who will get a surprise one day."

Buffett gift means millions for abortion
Gates Foundation major backer of Planned Parenthood

Pro-life advocates are concerned about investment guru Warren Buffett's massive donation to the Bill and Melinda Gates Foundation because of the Microsoft founder's support for abortion.

The Gates Foundation has given the Planned Parenthood Federation of America almost $12.5 million since 1998, including funds to persuade teens to support abortion and to lobby the United Nations to advance pro-abortion proposals, reported LifeNews.com

The foundation also has given nearly $21 million to International Planned Parenthood over the last seven years, where funds have been used to promote abortions in third-world nations and to set up pro-abortion family planning centers in South America, Africa and Eastern Europe.

Buffet, whose wealth is second only to Gates', has announced he will leave about 80 percent of his estate to the Gates Foundation.

Marjorie Dannenfelser, president of the pro-life women's network Susan B. Anthony List lamented Buffett's decision.

"It's tragic that much of Warren Buffett's billion-dollar attempt to improve the lives of people around the world is actually going to fund organizations that take the lives of unborn children and encourage others to do the same," said Dannenfelser.

Beginning next month, Buffett, 75, will make annual contributions to the foundation through stock options.

Buffett, chairman and CEO of Berkshire Hathaway, will give the Gates Foundation more than 12 million shares of his company's stock, according to the Associated Press. At just over $3,000 per share, it would add $37 billion to the Gates Foundation's $29 billion, making it the world's largest charity.

Bill and Melinda Gates also have spent millions promoting abortion in their home state, having given nearly $2 million to Planned Parenthood of Central Washington and Planned Parenthood of Western Washington to fund abortion centers.

The Gates Foundation also gave the Planned Parenthood Federation of Canada more than $1.3 million.

"The tragedy of Bill Gates' support of abortion and population control is that technology leads to development," said Steven Mosher, president of the Population Research Institute, according to LifeNews.com

"Unfortunately, the developing world will grow old before it develops because of population control. Gates, in supporting population control, is out of step with other great minds who have viewed people as humanity's greatest resource," Mosher said.

At Microsoft's 2003 annual shareholders meeting, Mosher's group failed to win approval for a motion to stop Microsoft from directly contributing to charities, citing its support for Planned Parenthood.