August 19, 2004 | Read Time: 2 minutes
The family foundation created by Warren E. Buffett and his late wife, Susan, will soon become one of the country’s 20 wealthiest philanthropies. Ms. Buffett, who died last month, left the Buffett Foundation the bulk of her stock holdings, currently valued at $2.6-billion.
As of 2003, the Buffett Foundation, in Omaha, had just $7.2-million in assets. The bequest from Ms. Buffett is expected to be received by the fund within the next two years, as her estate is settled.
Gifts to Childrens’ Funds
According to documents filed with the Securities and Exchange Commission last week, Ms. Buffett owned 31,530 shares of Class A common stock in Berkshire Hathaway, the investment company built by her husband.
Mr. Buffett, who is serving as executor of his wife’s estate, told the commission that he expects to sell between 1,200 and 1,500 of the shares, currently worth $83,750 per share, to pay taxes, expenses of the estate, and cash bequests before transferring $50-million worth of the stock to each of the foundations established by the couple’s three children. That would leave shares currently valued at $2.4-billion for the Buffett Foundation.
Mr. Buffett has previously said that the foundation, created in 1964, will also receive his Berkshire Hathaway holdings, now worth about $40-billion, when he dies.
Billions More Expected
If Mr. Buffett’s holdings are worth that much at his death, the foundation’s size could well outstrip even today’s largest philanthropy, the Bill & Melinda Gates Foundation, which now has $27-billion in assets.
The Buffett Foundation, where Ms. Buffett served as president, has drawn criticism by some for its support of abortion rights, birth control, and population-control efforts.
Last year, for example, the foundation made grants of $2.1-million to the Planned Parenthood Federation of America, $1.5-million to Naral Pro-Choice America, and $960,353 to the Population Council.
The foundation also has given money for education and scholarships.
Although Mr. Buffett has stated that he will not place any restrictions on how his gifts to the fund are used after he dies, his daughter, who serves on the foundations board of directors, has said that she expects population control to remain a top priority.
