In October, 2006, our trustees created a two-entity structure. One entity, the Bill & Melinda Gates Foundation (“the foundation”), distributes money to grantees. The other, the Bill & Melinda Gates Foundation Asset Trust (“the asset trust”), manages the endowment assets. This structure enables us to separate our program work from the investment of our assets.

The asset trust holds the endowment, including the annual installments of Warren’s gift. The asset trust then funds the foundation. Bill and Melinda are the trustees for the asset trust, and the endowment continues to be managed, as it has been for more than 10 years, by a team of outside investment managers.

 

The foundation conducts all operations and grantmaking work, and it is the entity from which all grants are made. Bill, Melinda, and Warren are the trustees for the foundation. Warren has no involvement in the investment of the endowment through the asset trust, including decisions that might be made regarding Berkshire Hathaway Inc. stock.

Because Bill, Melinda, and Warren believe the right approach is to focus the foundation’s work in the 21st century, we will spend all of our resources within 50 years after Bill's and Melinda's deaths. In addition, Warren has stipulated that the proceeds from the Berkshire Hathaway shares he still owns at death are to be used for philanthropic purposes within 10 years after his estate has been settled. Learn more about how we are implementing Warren’s gift.

The decision to focus all of our resources in this century underscores our optimism for making huge progress and for making sure that we do as much as possible, as soon as possible, on the comparatively narrow set of issues we’ve chosen to focus on.

Updated May 2007

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Bill & Melinda Gates Foundation
Guided by the belief that every life has equal value, the Bill & Melinda Gates Foundation works to help all people lead healthy, productive lives. In developing countries, it focuses on improving people's health and giving them the chance to lift themselves out of hunger and extreme poverty. In the United States, it seeks to ensure that all people—especially those with the fewest resources—have access to the opportunities they need to succeed in school and life. Based in Seattle, the foundation is led by CEO Patty Stonesifer and co-chair William H. Gates Sr., under the direction of Bill and Melinda Gates and Warren Buffett.