Warren Buffett Halts Donations to Gates Foundation Amid Epstein Controversy

Warren Buffett has put a stop to his donations to the Gates Foundation, marking the end of a two-decade-long philanthropic collaboration. This decision comes on the heels of recent revelations regarding Bill Gates’ connections with the late Jeffrey Epstein, a convicted sex offender.

On Tuesday, Buffett made it known that he had donated approximately $6 billion worth of Berkshire Hathaway stock in an annual mid-year contribution to family foundations run by his daughter, Susie, and sons, Howard and Peter, totaling 12 million Class B shares.

The 95-year-old chairman of Berkshire did not mention that since 2006, the Gates Foundation has received over $47 billion in stock from him, as he pledged to donate stock during his lifetime. Last year alone, Buffett gave more than $4.5 billion.

In his statement, Buffett mentioned, “While mortality is, of course, unpredictable, my remaining shares will be donated in some form to four foundations by December 31, 2034.”

The Gates Foundation has not provided any comments on this situation, and Berkshire also declined to make an immediate response.

Buffett shared that his children will manage a charitable trust containing about 99.5% of his estate after he passes.

Gates Expresses Regret Over Epstein Ties

Bill Gates has acknowledged that his reputation has suffered following the release of documents related to Epstein by the Justice Department in February.

The files included images of Gates with various investors and women whose identities had been obscured. They also contained emails showing interactions between Epstein and foundation staff.

Months ago, Gates informed Congress that he met Epstein in 2011, a few years after Epstein had pleaded guilty to sex offenses in Florida. Gates mentioned that his meetings with Epstein revolved around philanthropy but ultimately led nowhere, ending by December 2014.

He further revealed that Epstein had tried to leverage private information about Gates to maintain their connection.

At 70, Gates hasn’t faced any criminal charges and has consistently expressed regret over his association with Epstein, denying any knowledge of the abuse victims and asserting he never witnessed any criminal conduct.

Reports indicate that Buffett is currently awaiting feedback from the law firm WilmerHale regarding the Gates Foundation’s conduct with Epstein before deciding whether to resume donations.

Buffett’s Continued Charitable Efforts

Since he began his philanthropic efforts in 2006, Buffett has given away more than half of his Berkshire stock. Previously, he owned nearly 14% of the company, valued around $147 billion.

He is donating 9 million Class B shares to the Susan Thompson Buffett Foundation, along with 1 million shares each to the Howard G. Buffett Foundation, Sherwood Foundation, and NoVo Foundation.

Buffett intends for these grants to increase annually, particularly with the Susan Thompson Buffett Foundation, named after his first wife, focusing on reproductive health.

The Sherwood Foundation backs nonprofit organizations and early childhood education in Nebraska, while the Howard G. Buffett Foundation addresses global hunger and human trafficking. The NoVo Foundation concentrates on supporting marginalized girls, women, and indigenous groups.

Growing Distance Between Buffett and Gates

Buffett and Gates, who have maintained a long friendship, were frequently seen together at Berkshire’s annual events. However, Gates resigned from Berkshire’s board in 2020 after 16 years, and Buffett stepped down from the Gates Foundation board in 2021 after the announcement of Bill and Melinda French Gates’ divorce.

Recently, Buffett has voiced concerns regarding the effectiveness of philanthropy, particularly in light of what he describes as “foundation bloat,” and has not communicated with Gates since the Epstein files were made public.

Berkshire Hathaway, with a value of roughly $1.7 trillion, oversees various businesses including Geico Auto Insurance, BNSF Railway, and major stakes in companies like Apple and American Express.

Jeffrey Epstein died in prison in August 2019, a month after his arrest on sex trafficking charges; his death was ruled a suicide.