July 6, 2006
 

Recently, billionaire Warren Buffett announced his intention to give the bulk of his net worth to charity – primarily to the Bill and Melinda Gates Foundation. He should be lauded for his generosity. And, I think he should be an example for those of us of far more modest means.

 

Buffett is an intelligent man and has put a great deal of thought into this gift. I’m sure he primarily chose the Gates Foundation because he felt a connection to their mission of bringing health and learning to the global community. But, he also knows that they will use his money effectively and efficiently.

 

As a lifelong investor he certainly recognized the benefit of giving to a foundation where his money would be permanently endowed and not spent immediately. Each year a percentage of his charitable investment will be used to fund valuable programs worldwide. His philanthropy will have a profound impact, not just this or next year, but 100 years in the future and long after that as well.

 

Giving to a foundation is not just the realm of billionaires. In fact, many foundation’s depend on people like you to help them make a difference with gifts both large and small. Locally, there are several foundations. To promote quality healthcare, you can give to the Meadville Medical Center Foundation. If you prefer to help senior citizens, the Wesbury Foundation welcomes your support. Or, help fund the charitable programs you care most about by creating or adding to an endowment at the Crawford Heritage Foundation. The county’s community foundation currently manages 66 funds, which benefit 75 different organizations, scholarships and charitable purposes.

 

In choosing to make this gift during his life, Buffett benefits by seeing how his money will be used. There are also tax benefits. Like any of us, he can take a charitable deduction on his income tax. He avoids paying capital gains tax by giving appreciated stock from his company, Berkshire Hathaway. Plus, by decreasing the amount of his assets, he will likely reduce or eliminate his estate tax liability.

 

Of course, the greatest benefit of philanthropy is knowing that we have done something worthwhile with our money. That’s why I encourage you to follow Warren Buffett’s example and think more deeply about how, when and where you do your charitable giving.

 

Maher is executive director the Crawford Heritage Foundation.