The tax-avoiding Facebook mogul and an act of charity

[GURPS]

The tax-avoiding Facebook mogul and an act of charity that reeks of hypocrisy


Once, it was enough to put a notice in the newspaper when your child was born. But Mark Zuckerberg, the multi-billionaire founder of Facebook, likes to do things differently.

So he welcomed his newborn daughter, Max, into the world with an open letter on his social media site, in which he and his wife, Priscilla Chan, pledged to donate almost all their £30 billion fortune to charity during their lives.

The happy couple talked rather smugly about how their first child gave them cause to reflect on the future, saying they were inspired by their desire to build a better world and because they have a ‘moral responsibility to all children in the next generation’.

 

[b23hqb]

Give old Zucker a break here, ok? He could give give 99% of that fortune away, and he'd still have about 300 mil to live on. That would be pretty tough, though.

 

[Gilligan]

... and he'd still have about 300 mil to live on. That would be pretty tough, though.

I'd starve.

 

[b23hqb]

I'd starve.

Yeah, right? I mean, how is a young and growing family expected to survive on half a billion or so? Food stamps?

 

[LibertyBeacon]

If he would just donate enough to wikipedia so I don't see Jimmy Wales' puss begging for $3 every so often, that would be just perfect.

 

[RoseRed]

You mean he really isn't giving it away on Facebook!?!

 

[vraiblonde]

Wait, why is it bad for Zuck to want to give money to charity?

 

[LibertyBeacon]

Wait, why is it bad for Zuck to want to give money to charity?

I can see why you're confused. You don't understand how the world around you actually works.

He didn't give squat away to charity. He created an investment vehicle for himself and his lovely bride. You see, the "charitable foundation" he created is in fact an LLC. Charitable foundations are subject to sunshine laws (form 990) and the like, while LLCs are not (smart, that one) .The ROI he's received in the way of PR for this far outweigh the value of any equity shares he gave away. There is nothing special about this LLC -- the money earned from it will flow to The Family Zuck as ordinary income, just as it does for me and many others who operate LLCs.

 

[GURPS]

If he would just donate enough to wikipedia so I don't see Jimmy Wales' puss begging for $3 every so often, that would be just perfect.

I can agree with this ....

 

[GURPS]

I can see why you're confused. You don't understand how the world around you actually works.

He didn't give squat away to charity. He created an investment vehicle for himself and his lovely bride. You see, the "charitable foundation" he created is in fact an LLC.

is that the new tax dodge ... instead of forming a trust and having the trust buy your house, and cars and Lear Jet
... and you only get a modest salary for being on the board [or something]


[yes I am speaking as a layman, no this is not my area of expertise]

 

[LibertyBeacon]

is that the new tax dodge ... instead of forming a trust and having the trust buy your house, and cars and Lear Jet
... and you only get a modest salary for being on the board [or something]


[yes I am speaking as a layman, no this is not my area of expertise]

Not really new, but is one of many ways to hide money. Foundations are where the real fun happens.

I don't raise this issue like it's a bad thing -- I too enjoy hiding money from the IRS -- but there's nothing really charitable about what this fella did.

 

[GURPS]

Not really new, but is one of many ways to hide money. Foundations are where the real fun happens.

I don't raise this issue like it's a bad thing -- I too enjoy hiding money from the IRS -- but there's nothing really charitable about what this fella did.

nope their isnt