Billionaires are planning to give their fortunes away

New York: They have devoted almost all their time and energy into building up fortunes worth billions.

And now they are going to give most of it away.

In the biggest charity donation in history, 40 American billionaires have pledged to give at least half of their money to good causes.

Star Wars director George Lucas, New York Mayor Michael Bloomberg and Hilton hotels owner Barron Hilton are among those who will provide an estimated £250 billion.

Others pledging fortunes include media mogul Ted Turner, fashion director Diane Von Furstenberg, David Rockefeller, the heir to the Rockefeller fortune, and construction billionaire Eli Broad.

The unprecedented commitment was brokered by Microsoft founder Bill Gates and investor Warren Buffett. They set up The Giving Pledge, which asks billionaires to make a ‘moral commitment' to give away at least 50 per cent of their wealth to charity either during their lifetime or after their death.

Own choice

It is up to the donors how the money will be allocated and which charities they want to give to. Some of the billionaires had already pledged to give their wealth away but pulling all the names together makes it the single biggest commitment in history.

Buffett, who previously pledged to give 99 per cent of his wealth away, said: ‘We've really just started but already we've had a terrific response.'

Dorcas Erskine, from charity ActionAid, said the donors were ‘leading by example' and could encourage many more.

And Caroline Preston, from the New York-based Chronicle of Philanthropy, added: ‘Bill Gates and Warren Buffett have been moved by their philanthropy and Gates is devoting all of his time towards it now.

"They have seen the positive impact it has been having and wanted to open others up to the idea of giving. In most cases we had reason to believe that the people already had an interest in philanthropy," Buffett said. "It was a very soft sell but 40 have signed up."

"We're looking forward to enlisting many of these 40 to go out and make some calls also so we can report an even greater milestone but we're off to a terrific start," he said.

The campaign asks US billionaires to give away at least half their wealth during their lifetime or after their death, and to publicly state their intention with a letter explaining their decision.

Leading by example

Gates has an estimated $53 billion fortune, which places him second on the Forbes magazine list of the world's richest people, and Buffett, who made his fortune with insurance and investment company Berkshire Hathaway Inc, ranks third on the list with $47 billion.

The Giving Pledge does not accept money or tell people how to donate their money, but asks billionaires to make a moral commitment to give their fortunes to charity. "The idea is not to tell anybody when or how to do it, but at least offer what others have learned," Buffett said.

Many billionaires taking the pledge have already been active in philanthropy in everything from genetic and cancer research to education, gun control and libraries and the arts.

"I've long stated that I enjoy making money, and I enjoy giving it away," energy tycoon Pickens, who is worth about $1 billion, said in his Giving Pledge letter. "I'm not a big fan of inherited wealth. It generally does more harm than good."

'I am a big believer in giving it all away'

Financial news tycoon with a £12 billion fortune who is serving his third term as mayor of New York. Bloomberg, 68, once said: 'I am a big believer in giving it all away and have always said that the best financial planning ends with bouncing the cheque to the undertaker.' Divorced with two daughters.

Founded the CNN news network and is worth about £1.1 billion. Aged 71, he owns more land than any other American and has the largest herd of bison on the planet. He once gave a £700 million gift to support UN causes and has pledged to give half his remaining wealth away. Married three times, he has five children.

The third-richest person in the world, Buffett made his £30 billion fortune through investments with his company Berkshire Hathaway. In 2006 the 79-year-old vowed to give 99 per cent of his money away and has already donated huge sums. Married to his second wife and has three children.

Co-founder of Microsoft and still the biggest shareholder with a net worth of £33 billion. With his wife Melinda he set up the Bill & Melinda Gates Foundation in 2000. It became one of the largest aid organisations in the world and has donated more than £17 billion. The couple have three children.