A Lesson From Buffett: Give While Living
Billionaire’s Gift Shows Benefits Of Giving Now — Still, Some Donors Can Risk Running Out of Funds
The Wall Street Journal, 7/5/06
You don’t have to be as rich as Warren Buffett to give away your money like him.
Numerous investors have tried to emulate Mr. Buffett’s famous investing style to build fortunes of their own. Now, philanthropy advisers believe his new philanthropic plan will become a model for how to donate money in order to get the maximum charitable impact.
Last week the Berkshire Hathaway Inc. chairman said he plans to give the bulk of his huge fortune — a gift worth about $31 billion in Berkshire shares — to the Bill and Melinda Gates Foundation, starting this year. Mr. Buffett also is giving about $6 billion to four family foundations, including ones run by his three children.
The moves reflect growing interest among wealthy people in making big donations while they are alive, rather than as a bequest at death. Philanthropy advisers say giving while living, as it’s called, is often a smart choice. For starters, donors can reap the joy — and, in some cases, publicity — over their good deed. What’s more, donors can keep tabs on their gift, eyeing whether the money is being used effectively.