August 2006
Greetings from the Institute for Philanthropy, where we warmly welcome the recent decision by billionaire investor Warren Buffett to donate the majority of his fortune to philanthropy.Greetings from the Institute for Philanthropy, where we warmly welcome the recent decision by billionaire investor Warren Buffett to donate the majority of his fortune to philanthropy.
Even when viewed against the backdrop of the philanthropic capital market in the US, the largest in the world at $260 billion last year, Buffett’s gift gives us particular cause for celebration. It is unprecedented in its size; at some $37 billion (£19.4 billion), it represents the largest philanthropic gift in history.
Beyond size, however, the gift has several striking features. It is notable for the fact that Buffett has humbly eschewed the chance to create a foundation in his own name, instead directing the funds to the Bill and Melinda Gates Foundation. This is in fact characteristic of the investment approach that he pioneered at Berkshire Hathaway: making big bets on companies (in this case, a charity) with strong leadership and a proven track record. What matters most, however, is not whether the donation is anonymous or conspicuous, but that it has impact and that it delivers maximum social benefit.
The Buffett story has attracted extensive media coverage; a marvellous thing indeed for philanthropy, and for those like us at the Institute who believe in the positive role that private capital can play in the solution of social problems. However, what we must not forget in the great fanfare that has surrounded this extraordinary event is that all of us, regardless of our level of wealth, can support frontline organisations and innovators who daily tackle the most intransigent issues that we face across the globe. Here’s to you, Mr. Buffett.
Dr. Salvatore LaSpada
Chief Executive
August 2006