3/2/07

Buffett Wants Charities to Spend Fast

Warren Buffett, the world's second-richest man, wowed the world last summer when he announced that he plans to give away most of his $48.4 billion fortune, and now he wants to make sure those donations are spent quickly.

Buffett said in his annual letter to shareholders Thursday that he stipulated in his will that the proceeds from all Berkshire shares he owns at death must be used for "philanthropic purposes within 10 years after my estate is closed." He estimated his estate should be settled within three years of his death.

"I've set this schedule because I want the money to be spent relatively promptly by people I know to be capable, vigorous and motivated," Buffett said. "These managerial attributes sometimes wane as institutions -- particularly those that are exempt from market forces -- age.

Buffett has earmarked 10 million B shares for the Bill & Melinda Gates Foundation, 1 million B shares for the Susan Thompson Buffett Foundation named in honor of his wife and 350,000 shares for the three foundations run by each of his children.

The 76-year-old Buffett predicted that his giving plan and the stipulations in his will should mean that all of his Berkshire shares will be distributed for societal purposes within the next 25 years because Buffett said his expected life span is 12 more years "though, naturally, I'm aiming for more," he said.

[Excerpt of an AP article by Josh Funk]

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