More philanthropists planning to “Spend It Down”

Wealthy families are setting up new philanthropic foundations in increasing numbers, but they are also shutting them down at an accelerating pace.

Some of the biggest names in philanthropy are backing the idea of setting a time limit on their giving: The Bill & Melinda Gates Foundation announced in December it will spend its entire endowment -- more than $32 billion -- within 50 years of the death of the last of its three current trustees, then close its doors.

Other families, too, are putting an expiration date on their foundations because they believe they can do more good by spending a lot of money over a short period of time rather than doling out the funds over decades, as some well-known groups such as the Rockefeller and Ford foundations have long done.

[By Sally Beatty, The Wall Street Journal]