{"id":4529,"date":"2026-07-30T08:40:14","date_gmt":"2026-07-30T08:40:14","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=4529"},"modified":"2026-07-30T08:40:14","modified_gmt":"2026-07-30T08:40:14","slug":"warren-buffett-is-handing-140-billion-to-his-familys-foundations-the-way-hes-doing-it-reveals-how-billionaire-philanthropy-really-works","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=4529","title":{"rendered":"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works"},"content":{"rendered":"
\n

But that move, consequently, sparked a debate about why Buffett was moving the $140 billion so quickly. Some readers told CNBC <\/em>they assumed he was doing it to avoid taxes, and some wondered whether this move would just ultimately slow distributions to actual nonprofit organizations and people in need.\u00a0<\/p>\n

Read more RFK says he found Fauci\u2019s diary in government archives as Fauci invokes the Fifth Amendment over 100 times<\/a><\/p>\n

But experts who advise major donors, study tax law, and sit on foundation boards told Fortune<\/em> the question isn\u2019t really about whether Buffett avoids taxes by making this move. Nearly every billionaire does that. The bigger thing to watch, they say, is how he\u2019s giving it away. This move also reveals more about billionaire philanthropy than only fixating on the tax issue.<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n

The tax savings are real, but they\u2019re mostly beside the point in Buffett\u2019s case<\/h2>\n

When a billionaire gives appreciated stock to a foundation instead of selling it, several tax consequences disappear at once, Allison Tait, a law professor at the University of Richmond who studies wealth transfer, told Fortune<\/em>. The stock leaves the donor\u2019s taxable estate, lowering any estate-tax bill at death. And because the shares are given away rather than sold, the donor never triggers the capital gains tax a sale would incur.<\/p>\n

\u201cPassing massive wealth directly to heirs or letting it sit in a personal estate at death triggers severe exposure to the estate tax,\u201d she said. \u201cMoving the shares into a foundation completely removes them from the calculation.\u201d<\/p>\n

The capital gains break would be the bigger win. Sell the stock, and a billionaire in the top bracket owes 20% in long-term capital gains tax, plus a 3.8% net investment income tax on top. That\u2019s 23.8% on everything the stock gained. For founders like Buffett, who bought their shares decades ago for next to nothing, almost the entire value counts as profit the IRS could tax. But if they give the stock away instead, none of that would happen. Tait puts the total tax bill Buffett sidesteps by moving his fortune into family foundations at $33 billion to $56 billion, depending on how the shares are eventually sold.<\/p>\n

But there\u2019s tension in that because Buffett has long been a vocal advocate of a strong estate tax\u2014although he\u2019s personally avoided it. Testifying before the Senate Finance Committee in 2007, Buffett warned that \u201cdynastic wealth, the enemy of a meritocracy, is on the rise,\u201d adding \u201cequality of opportunity has been on the decline.\u201d<\/p>\n

\n
<\/div>\n<\/div>\n

Tait said Buffett would likely argue, though, he\u2019s using the tools available to him all while calling for the loopholes to be closed. Still, she said, choosing to avoid taxation on this scale undercuts the reform he says he wants.<\/p>\n

To be sure, charitable bequests are also fully deductible against the estate tax, which means the destination (charity) is what erases Buffett\u2019s tax liability. A charity pays no capital gains tax because it\u2019s tax-exempt, and charitable transfers have passed free of estate and gift tax since the Revenue Act of 1918, Jane Ditelberg, chief tax strategist at Northern Trust Wealth Management, told Fortune<\/em>.<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n

\u201cAppreciated securities often make efficient charitable gifts,\u201d Ditelberg added. \u201cThe charity can receive more value than it would if the donor sold the stock first and donated the after-tax proceeds.\u201d<\/p>\n

\n
<\/div>\n<\/div>\n

So all of that essentially debunks the idea Buffett is trying to rush to beat a tax change. Plus, the One Big Beautiful Bill Act, signed in July 2025, made the estate tax exemption permanent at $15 million per person. If anything, said Janetta Cravens, founder of CoSpire Consulting and a longtime foundation-board adviser, the law removed urgency rather than created it.\u00a0<\/p>\n

Read more New Dow CEO drives \u2018transformation\u2019 back to profitability amid oil market upheaval<\/a><\/p>\n

\n
<\/div>\n<\/div>\n
\n
<\/div>\n<\/div>\n

The real difference is how the money is held<\/h2>\n

If the tax result is largely the same whether Buffett gives now or later, what actually distinguishes one billionaire\u2019s giving from another\u2019s? The answer, experts said, is disclosure and payout. That comes down to the type of vehicle (or the legal structure that holds the money) a donor gives through.<\/p>\n

A private foundation like Buffett\u2019s has to publicly report every grant it makes on an annual tax form, and it must pay out at least 5% of its assets each year or face an excise tax on the shortfall. Critics call the 5% floor a license to warehouse wealth. They argue a foundation can meet the minimum, count staff and overhead toward it, and let its endowment compound more or less forever.\u00a0<\/p>\n

That critique is fair in general, said Jack Lewars, founder of Ultra Philanthropy, which advises major donors, but it doesn\u2019t fit Buffett.<\/p>\n

His family\u2019s foundations spend far above that floor, Lewars told Fortune<\/em>. The five-year average payout rates are roughly 41% for the Susan Thompson Buffett Foundation, 59% for the Howard G. Buffett Foundation, and 87% for the Sherwood Foundation, according to Inside Philanthropy<\/em>.\u00a0<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n
\n
<\/div>\n<\/div>\n

\u201cThey spend more like operating charities than endowments,\u201d Lewars said. \u201cBuffett has been consistent about this for 20 years,\u201d he added, saying Buffett\u2019s gifts to the Gates Foundation carried a condition that the money be spent in the year it arrived<\/p>\n

\u201cIt isn\u2019t fair to accuse [Buffett] of warehousing his funds,\u201d Lewars said.<\/p>\n

The bigger risk, experts said, sits with a vehicle Buffett didn\u2019t choose: the donor-advised fund. It\u2019s a charitable account, often run by a financial firm, that gives the donor a tax break upfront. A DAF, though, carries no payout requirement and no obligation to disclose its grants at all.<\/p>\n

So since Buffett\u2019s foundations have to show how much they\u2019ve given every year, that sets him and his family\u2019s giving apart.\u00a0<\/p>\n

\n
<\/div>\n<\/div>\n

\u201cThe alternative to a disclosed, floor-bound vehicle usually isn\u2019t more democratic giving,\u201d Cravens said. \u201cIt\u2019s less accountable giving.\u201d<\/p>\n

Read more Trump\u2019s dollar d\u00e9j\u00e0 vu: what an uncanny chart about the greenback shows about American exceptionalism<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

People assumed Buffett was avoiding taxes or warehousing the money. Experts say the more telling question is how he’s giving it away.<\/p>\n","protected":false},"author":1,"featured_media":4528,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[],"class_list":["post-4529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-warren-buffett"],"yoast_head":"\nWarren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=4529\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works - Cross Country Moving Team\" \/>\n<meta property=\"og:description\" content=\"People assumed Buffett was avoiding taxes or warehousing the money. Experts say the more telling question is how he's giving it away.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/crosscountrymovingteams.com\/?p=4529\" \/>\n<meta property=\"og:site_name\" content=\"Cross Country Moving Team\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-30T08:40:14+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#\\\/schema\\\/person\\\/1b8121bfb9a1c55d1fff3fca675fceaa\"},\"headline\":\"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works\",\"datePublished\":\"2026-07-30T08:40:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529\"},\"wordCount\":1010,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/cc99be58a51812c8d049c5064a19164d.webp\",\"articleSection\":[\"Warren Buffett\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529\",\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529\",\"name\":\"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works - Cross Country Moving Team\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/cc99be58a51812c8d049c5064a19164d.webp\",\"datePublished\":\"2026-07-30T08:40:14+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#\\\/schema\\\/person\\\/1b8121bfb9a1c55d1fff3fca675fceaa\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#primaryimage\",\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/cc99be58a51812c8d049c5064a19164d.webp\",\"contentUrl\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/cc99be58a51812c8d049c5064a19164d.webp\",\"width\":1200,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4529#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#website\",\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/\",\"name\":\"Cross Country Moving Team\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#\\\/schema\\\/person\\\/1b8121bfb9a1c55d1fff3fca675fceaa\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/crosscountrymovingteams.com\"],\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works - Cross Country Moving Team","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/crosscountrymovingteams.com\/?p=4529","og_locale":"en_US","og_type":"article","og_title":"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works - Cross Country Moving Team","og_description":"People assumed Buffett was avoiding taxes or warehousing the money. Experts say the more telling question is how he's giving it away.","og_url":"https:\/\/crosscountrymovingteams.com\/?p=4529","og_site_name":"Cross Country Moving Team","article_published_time":"2026-07-30T08:40:14+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/crosscountrymovingteams.com\/?p=4529#article","isPartOf":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4529"},"author":{"name":"admin","@id":"https:\/\/crosscountrymovingteams.com\/#\/schema\/person\/1b8121bfb9a1c55d1fff3fca675fceaa"},"headline":"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works","datePublished":"2026-07-30T08:40:14+00:00","mainEntityOfPage":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4529"},"wordCount":1010,"commentCount":0,"image":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4529#primaryimage"},"thumbnailUrl":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/07\/cc99be58a51812c8d049c5064a19164d.webp","articleSection":["Warren Buffett"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/crosscountrymovingteams.com\/?p=4529#respond"]}]},{"@type":"WebPage","@id":"https:\/\/crosscountrymovingteams.com\/?p=4529","url":"https:\/\/crosscountrymovingteams.com\/?p=4529","name":"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works - Cross Country Moving Team","isPartOf":{"@id":"https:\/\/crosscountrymovingteams.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4529#primaryimage"},"image":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4529#primaryimage"},"thumbnailUrl":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/07\/cc99be58a51812c8d049c5064a19164d.webp","datePublished":"2026-07-30T08:40:14+00:00","author":{"@id":"https:\/\/crosscountrymovingteams.com\/#\/schema\/person\/1b8121bfb9a1c55d1fff3fca675fceaa"},"breadcrumb":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4529#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/crosscountrymovingteams.com\/?p=4529"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/crosscountrymovingteams.com\/?p=4529#primaryimage","url":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/07\/cc99be58a51812c8d049c5064a19164d.webp","contentUrl":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/07\/cc99be58a51812c8d049c5064a19164d.webp","width":1200,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/crosscountrymovingteams.com\/?p=4529#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/crosscountrymovingteams.com\/"},{"@type":"ListItem","position":2,"name":"Warren Buffett is handing $140 billion to his family\u2019s foundations. The way he\u2019s doing it reveals how billionaire philanthropy really works"}]},{"@type":"WebSite","@id":"https:\/\/crosscountrymovingteams.com\/#website","url":"https:\/\/crosscountrymovingteams.com\/","name":"Cross Country Moving Team","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/crosscountrymovingteams.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/crosscountrymovingteams.com\/#\/schema\/person\/1b8121bfb9a1c55d1fff3fca675fceaa","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/crosscountrymovingteams.com"],"url":"https:\/\/crosscountrymovingteams.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/posts\/4529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4529"}],"version-history":[{"count":0,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/posts\/4529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/media\/4528"}],"wp:attachment":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}