THE DIVORCE OF BILL AND MELINDA GATES SHOULD NOT CAUSE PROBLEMS IN THE FOUNDATION
Several philanthropic experts said Tuesday that Bill and Melinda Gates' recently announced divorce likely won't have a short-term effect on their world-renowned Seattle-based foundation that bears their names.
The couple, who co-chair the Bill and Melinda Gates Foundation, announced their divorce on Twitter on Monday after 27 years of marriage. The two said they would continue to work together at the foundation, which has donated more than $ 54 billion and raised $ 5.8 billion in 2019 alone, according to the organization's publicly available tax returns.
“No changes are planned in their roles or in the organization. They will continue to work together to shape and endorse the foundation's strategies, advocate for the foundation's issues, and establish the overall direction of the organization, ”the foundation said in a statement.
Bill and Melinda Gates Are Getting Divorced: What They Have Said About Their Marriage
Moving Forward: Billionaire Warren Buffett Turns To Replace Him At Berkshire Hathaway
However, the foundation, founded in 1994, may be able to spin off another charity if the divorce is not amicable, according to some charity experts. They also say the charity is in no danger of having trouble raising money, as Microsoft co-founder Bill Gates was once the richest person in the world and one of the foundation's top contributors is billionaire Warren Buffett.
The Warren Buffett of everything
“Everyone has been focused on the couple, which is understandable,” said James Ferris, professor and director of the Center for Philanthropy and Public Policy at the University of Southern California in Los Angeles. "But the only thing missing is that Warren Buffett is a trustee of the foundation ... he promised to make an annual contribution that could be spent that year."
In 2019, the most recent foundation records available, Buffett donated $ 2.7 billion in stock or nearly 47% of all contributions made that year. Buffett since 2006 has given the foundation more than $ 27 billion, according to the organization.
A call to Omaha, Nebraska-based Berkshire Hathaway, where Buffett is CEO, was not returned.
The foundation has focused on gender equality and global health and development. In 2019, it funded beneficiaries in 48 states and the District of Columbia, as well as 135 countries, and has more than 1,600 employees.
Martha H. Voegeli, a senior consultant at Marts & Lundy, said she also doesn't expect immediate changes to the foundation.
Voegeli said the Gates Foundation is nothing like charitable donations from a divorcing couple, even if her donation was substantial to a nonprofit or a university. In that situation, donations could decrease if one of the spouses does not support the philanthropic mission of the charity.
But she said that Bill and Melinda Gates seem to have shared values. And she noted that a large part of the funding comes from Buffett.
"This is a professional foundation with well-articulated goals and a very clear goal of helping people around the world," said Voegeli, whose New Jersey-based company offers philanthropic consulting.
A spin-off charity is not unheard of
Peter Frumkin, a professor at the University of Pennsylvania who researches and specializes in philanthropy, said that in the long term there is a possibility that the direction of the Gates Foundation will change, resulting in a spin-off charity if there are issues with the divorce.
Frumkin said there have been foundations run by siblings who couldn't get along, and their charity split into various entities.
In Seattle, the vice president of a university in charge of fundraising said that those who have received help from the Gates Foundation have nothing to worry about.
“The only thing that should be of concern to recipients of the Bill & Melinda Gates Foundation grants is the ROI (return on investment) on philanthropic investment,” said Louise Furrow, vice president of Seattle Pacific University. "They said they were going to continue working on the foundation ... Why wouldn't that continue?"
