The Next Generation of Buffett Philanthropy: A Legacy in the Making

The next generation of Buffetts—Howard, Susie, and Peter—stands on the verge of becoming one of the most potent forces in global philanthropy. As their father, Warren Buffett, the iconic leader of Berkshire Hathaway, nears his 94th birthday, the family prepares for a future where his $144 billion fortune will be transferred to a charitable trust managed by his children.

A Shift in Philanthropic Vision

Warren Buffett, who had long indicated his intention to donate his fortune to the Gates Foundation, announced in June that his three children would oversee the distribution of his wealth. This decision marks a significant change from his original plans 18 years ago. Upon his death, the Buffett children will have a decade to distribute the funds, which could reshape the landscape of global philanthropy.

Despite this shift, Warren Buffett continues to make substantial annual donations to the Gates Foundation and his family foundations, and his contributions are expected to persist for the remainder of his life.

Learning the Challenges of Philanthropy

Howard Buffett, the middle child, has come to understand the complexities of large-scale philanthropy. Reflecting on his father’s advice, he remarked, “It’s not so easy to give away money if you want to do it smart, if you want to be intelligent about it.” Despite the daunting task ahead, Howard expressed hope that his father will continue living a long and fulfilling life while acknowledging the incredible opportunity they’ve been given to shape the future through philanthropy.

Since 2006, Warren Buffett has entrusted Bill and Melinda Gates with an extraordinary $43 billion in donations for their foundation. According to experts, this level of trust in external philanthropists is rare among the ultra-wealthy, who are often hesitant to pass on such responsibilities to the next generation, fearing it could stifle creativity.

The Buffetts’ Unique Philanthropic Paths

The next generation of Buffetts has already left its mark on philanthropy, each sibling pursuing their unique causes:

  • The Susan Thompson Buffett Foundation, led by Susie Buffett, focuses on reproductive health and access to contraception. Its support for global initiatives that promote family planning and women’s rights has led to significant advancements in these areas.
  • The Sherwood Foundation, also led by Susie, supports early childhood education and development, particularly in Omaha, Nebraska, the Buffett family’s hometown.
  • The NoVo Foundation, headed by Peter Buffett, advocates for women’s autonomy and Indigenous rights. In recent years, Peter and his wife, Jennifer, expanded their focus to support Native American communities and projects to build sustainable local economies, emphasizing agriculture and food access.
  • The Howard G. Buffett Foundation tackles global conflict resolution and agricultural development. Since 2022, it has donated over $800 million to humanitarian efforts in Ukraine, providing vital food supplies, demining assistance, and rebuilding essential infrastructure.

A Collective Approach to Giving: A Source of Confidence

In a rare interview, Howard Buffett expressed confidence in his family’s ability to handle the enormous responsibility of giving away their father’s fortune. He emphasized that while each sibling brings different perspectives to philanthropy, their collective experience and collaboration will help them meet the challenge of distributing billions within ten years.

“We’ll sit down in a room when the time comes, and we’ll figure it out pretty quickly,” Howard said. He acknowledged the difficulty of adhering to their father’s directive. Still, he remained optimistic about their ability to take risks and make impactful decisions.

Avoiding the Spotlight

Despite the Buffetts having already given away more than $15 billion of their father’s money since 2006, their charitable work has largely avoided the limelight. The family name does not grace many buildings or institutions, as the siblings prefer a quieter approach to philanthropy.

Kathleen Enright, president of the Council on Foundations, noted that the Buffett family has effectively made philanthropy a family business. With Warren Buffett’s fortune growing, the next generation will face the challenge of giving away highly visible sums of money.

A Legacy of Action, Not Words

Warren Buffett’s longstanding belief that charitable foundations should distribute their funds promptly is reflected in his instructions for his family’s philanthropic efforts. The Gates Foundation and the Buffett family foundations are expected to grant their total amounts within a year of receiving donations, emphasizing the importance of decisive action in philanthropy.

In keeping with Buffett’s preference for streamlined operations, Buffett’s family foundations are run by small staff, much like his Berkshire Hathaway headquarters, which operates with only about two dozen employees. Howard Buffett’s foundation, for example, employs fewer than ten staff members but managed to grant $458.1 million in 2023, mainly by fostering strong partnerships with other organizations.

The Buffett Legacy Continues

Howard Buffett embraces the challenges ahead, believing that wealthy individuals should give their fortunes away within their lifetimes rather than holding onto them through perpetual foundations. “Somebody is going to spend that money. Somebody is going to give that money away,” he said. “So, I would rather do that with my brother and sister and do it together, as a partnership, than see it done any other way.”

As the next generation of Buffetts steps into the spotlight, they are poised to impact the world through their thoughtful, collaborative, and far-reaching philanthropy. With Warren Buffett’s fortune in their hands, they are committed to shaping the future in ways that align with their father’s vision while also forging their path in the world of giving, demonstrating their respect for his legacy and their individuality.