Gates Foundation to separate assets from grant-making in January

SEATTLE -- The Bill & Melinda Gates Foundation will be altering its internal financial structure to cleanly separate its program work from investment of its assets, the foundation announced this week.

The reorganization plan, which takes effect in January, will also help the foundation accommodate an infusion of stock from Warren Buffett, the organization announced Wednesday. Buffett said in June he would be giving most of his money to the foundation in annual installments worth about $1.5 billion. His first gift was made in August.

Buffett has given the foundation a few years to ramp up before requiring that it distribute his entire donation each year, which will effectively double the dollar amount of grants the foundation makes.

In the same announcement, the foundation for the first time set a limit on its charitable work, saying it would spend all its money within 50 years of the death of Gates or his wife, whoever lives longest. The time limit gives the organization incentive to work harder to achieve more of its goals within the lifetimes of the Gateses and their children, officials said.

link to full article

gates foundation