November 29, 2007 | Read Time: 1 minute
The billionaire investor Warren Buffett told a key Senate committee that he believes private foundations are stockpiling money instead of giving it to charities because of a federal law that requires foundations to spend at least 5 percent of their assets annually.
Mr. Buffett, speaking at a hearing held by the Senate Finance Committee on the estate tax, told lawmakers that he finds it “astounding” that 27 of the 30 largest foundations in the United States spend almost exactly 5 percent of their assets each year.
“If you set it at 3 percent, most of them would spend 3 percent,” said Mr. Buffett, responding to a question about his views on the payout rule. He did not recommend any specific change in the law.
The chief executive officer of the investment firm Berkshire Hathaway has pledged roughly 85 percent of his wealth to charity.
