Warren Buffett’s children are set to become some of the world’s most important philanthropists. Susie Buffett says her foundation will continue to focus on Nebraska. Warren Buffett, flanked by his children—Howard, Susie, and Peter—at a 2011 Berkshire Hathaway event, is known for his consistency.
The billionaire’s daily routine, often involving a stop at McDonald’s for breakfast, has remained unchanged for years. However, his surprise declaration last year to allocate nearly all of his immense wealth to a charitable trust overseen by his three children marks a significant shift. This decision will transform his children into influential philanthropists upon his passing.
It is likely to result in billions flowing through four family foundations, including a significant Omaha-based grant-making entity. The Sherwood Foundation, under Susie Buffett’s direction, has been a crucial philanthropic force in Omaha, contributing over $130 million annually to local charities and initiatives for the past six years. Susie Buffett anticipates that Sherwood’s giving will remain focused on Nebraska if there is an influx of funding.
“It’s impossible at this point to know what the impact would be,” she wrote in an email. “I hope it’s all positive. That’s always the goal!”
Omaha’s nonprofit leaders are enthusiastic about the prospect of the foundation receiving a portion of Warren Buffett’s Berkshire Hathaway stock, which is currently valued at roughly $145 billion.
This could potentially make a substantial difference in their operations. If Sherwood eventually gets one-eighth of the allocation in line with Buffett’s recent allocations to the foundations, the organization would see its assets filled with more than $18 billion in stock holdings. For context, even if Sherwood received $9 billion, it would rank among the 10 largest foundations in the U.S., where its total assets in 2023 stood at about $460 million.
Buffett family’s philanthropic future
“I think his kids have demonstrated that they’re really passionate about supporting public infrastructure and public good,” said Andrew Norman, the co-founder of Rabble Mill, a Sherwood-funded youth engagement organization. Omaha could benefit from this philanthropic jackpot, but the Buffett billions are not intended to last forever.
In line with Warren Buffett’s rejection of “dynastic wealth,” the family foundations are designed to sunset, ceasing operations eventually. Peter Buffett, Warren’s youngest son, said he doesn’t know the specific plans for sunsetting each of the four family foundations but expects they will operate on different timelines for spending down their assets. Susie Buffett stated that there is no set trigger for Sherwood’s closure, but that decision will be made after her father passes away.
Years ago, Warren Buffett confronted the unique problem of having to give away one of the world’s largest fortunes. His solution involved partnering with fellow billionaires Bill and Melinda Gates in 2006 to support their global foundation. However, his recent letter to shareholders indicated the beginning of the end of this influential partnership, and hence his children will now take charge of his posthumous philanthropy.
Buffett recently expressed “extraordinary confidence” in his children’s ability to manage his fortune, stating, “Susie Jr., Howie, and Peter have each spent far more time directly helping others than I have. Their mother, from whom they learned these values, would be very proud of them. As am I.”
In the early days, Warren made the money while his wife Susan gave away a significant portion of it to charitable causes.
Following Susan’s death in 2004, Warren renamed their main philanthropic organization in her honor and distributed $10 million to each of their children to start their own foundations. Though the Gates Foundation has been a primary recipient of Buffett’s charitable giving since his wife’s death, he has simultaneously supported the Susan Thompson Buffett Foundation and his children’s foundations. Susie, Howard, and Peter Buffett have each carved distinct philanthropic paths.
Susie focuses her efforts on Nebraska and western Iowa, with over 70% of Sherwood Foundation’s grants supporting Omaha-based initiatives. Howard adopts a global approach, directing funds to international conservation and peacekeeping projects, while Peter and his wife, Jennifer, manage the NoVo Foundation, which promotes gender equality and social justice.
