Why Warren Buffett didn't give his $6 billion donation to the Gates Foundation this year

Warren Buffett has paused his annual donation to the Gates Foundation for the first time in years, redirecting nearly $6 billion worth of Berkshire Hathaway shares to four charities run by members of his own family as the foundation reviews its past links to Jeffrey Epstein, according to a report by CNN.

The 95-year-old investor, who has donated billions of dollars to the Gates Foundation over the years, decided to withhold this year's contribution while awaiting the outcome of an external legal review examining the foundation's ties to convicted sex offender Jeffrey Epstein, the Wall Street Journal reported.

Buffett, a founding trustee of the Gates Foundation, launched "The Giving Pledge" alongside Bill Gates and his then-wife Melinda French Gates to encourage billionaires to donate a significant portion of their wealth. Although he stepped down from the foundation's board in 2021, he continued making annual multi-billion-dollar donations until this year.

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Why Buffett held back his donation

This marks the first time in years that Buffett has skipped his annual contribution to the Gates Foundation. Instead, he directed nearly $6 billion in Berkshire Hathaway shares to four foundations associated with his own family while the charity's review into its links with Jeffrey Epstein is underway.

Buffett says his philanthropy will continue

Despite withholding this year's donation to the Gates Foundation, Buffett said he has no plans to slow down his charitable giving.

In a statement, Buffett said he has "every hope" that his three children will distribute all of his Berkshire Hathaway shares by December 31, 2034.

Berkshire Hathaway is worth $1.1 trillion, and Buffett owns about 30% of the company's stock.

Much of Buffett's charitable giving in recent years has gone to the Gates Foundation. In 2022, the foundation said Buffett's total donations had reached $36 billion. He continued contributing billions of dollars worth of Berkshire Hathaway stock every year until this year's decision.

Buffett on his relationship with Bill Gates

Buffett's relationship with Gates has also cooled over Gates' past association with Epstein.

In an interview with CNBC in March, Buffett said he is no longer speaking with Gates, although he said he does not regret his previous donations to the foundation.

"I wish that certain things hadn't happened," Buffett said in the March interview. But "it isn't like they're stealing money for themselves."

What Bill Gates has said about Epstein

Last month, Gates testified before a House committee that he had no knowledge of Epstein's crimes. He had earlier apologised to Foundation staff for his relationship with Epstein, calling it "a huge mistake," while strongly denying any allegations of personal wrongdoing.

Buffett also said in the March CNBC interview that he never met Epstein or had any contact with him. He added that he has not discussed the matter with Gates.

"We've had great times together," he said. "But I think until it gets cleared up, I just don't think it makes sense to do a lot of talking."

Buffett said another reason for keeping his distance is that he does not want to be drawn into legal proceedings related to the controversy.

"I don't want to be under oath," he said.