No, Mark Zuckerberg is not donating 99% of Facebook shares to charity
 

The Truth About Mark Zuckerberg Donating 99% Of His Fortune To ?Charity?

No, Mark Zuckerberg is not donating 99% of Facebook shares to charity » TechWorm

Ever since Mark Zuckerberg announced his decision to donate 99 % of Facebook stock to ?charity? on the occasion of birth of his daughter, Max, social media platforms including Twitter and Facebook are agog with complimentary posts to Zuckerberg and his wife?s philanthropic goals. But a very few know that Zuckerberg?s plan to give 99% to charity is a shrewd business plan. How? Check it yourself.

The vehicle for his beneficence will be the Chan Zuckerberg Initiative LLC, a family-run foundation that he controls and through which he will maintain control of Facebook for ?the foreseeable future.? What this means is that Mark Zuckerberg will be transferring ownership of his Facebook stock without paying capital gains taxes to the US Treasury. Further, in doing so he will also safeguard his foundation and Facebook from future estate taxes.

As BuzzFeed?s Alex Kantrowitz reported, the Chan Zuckerberg Initiative, the organization that the couple?s fortune will go to, is structured as an LLC, a limited liability company, not as a nonprofit organization. Facebook has since confirmed to BuzzFeed that the charity initiative is indeed a LLC.
LLC vs Charitable Trust

In layman terms, Zuckerberg?s Chan Zuckerberg Initiative is registered as a company which means that it will operate for profit unlike what a charitable trust does. So, unlike a charitable trust, which is compelled to spend its money on charity, Chan Zuckerberg Initiative, LLC will be able to spend its money on whatever it wants, including private, profit-generating investment.

While there is no denying that Zuckerberg?s trust will certainly undertake philanthropic endeavours, it may not be its only one. The money, according to a Facebook SEC filing, will go to ?philanthropic, public advocacy, and other activities for the public good.?

One such profiteering activity is private investment. A Facebook release this afternoon stated as much.

?The Chan Zuckerberg Initiative will pursue its mission by funding non-profit organizations, making private investments and participating in policy debates, in each case with the goal of generating positive impact in areas of great need,? it said. ?Any profits from investments in companies will be used to fund additional work to advance the mission.?

Further, The couple will choose where the money goes, but wrote in a letter announcing the organization that ?initial areas of focus will be personalized learning, curing disease, connecting people and building strong communities.?
99 % not at one go!

The Facebook founder is not giving away 99% of his Facebook shares all at once. He will be doing it over the course of his lifetime.

Also, Michael Maiello from Daily Beast says that Zuckerberg will immensely benefit from the charity plan. According to Maiello, Mark will deduct the fair value of his gift to his foundation from his taxable income in the year he makes the donation. A donor like Mark could realize a tax benefit equal to about one-third of the value of his gift. In this case, he stands to benefit as much as USD 333 million, based on the USD1 billion he plans as his first transfer.

To sum up, his money is not going to a charity, but to his own LLC, which will let him evade tax by moving his private assets into a foundation controlled by him. While there is no denying that a part of this money will be used to help the unhelped around the world, but, seeing it through the prism of charity is not feasible. The end goal of Zuckerberg is to earn massive tax benefits and at the same time do whatever he and Priscilla want.

No, Mark Zuckerberg is not donating 99% of Facebook shares to charity » TechWorm

It's his money anyway, so be it.
He is clever, so he knows what he is doing.

There is no such thing as bad publicity...

can't win 'em all op! ya know?..

I bet you his charity will do some REAL GOOD because he will think of it like a business and actually get shit done.

Majority of charities are just their to burn money on dirty contracts, pay out the CEO and directors high salaries and get schmucks to donate to keep the circle jerk going.

So wehateporn - how much did you donate this year?

who really cares what he is doing? poor people will hardly get any help

So he is avoiding billions in taxes and making himself out to look like a hero in a process.

Our tax code so needs to be re-written.

zuckerberg is a leech on society and has never created anything original and certainly does not contribute jack shit.

his big brainiac plan is that the internet will solve poverty, if we all just get the internet to impoverished people.

what a dumbfuck.

well to be fair, a person who genuinely wanted to donate 99% of his capital to charity would also set up business ventures with the capital in hopes of accumulating even more, and being able to give even more...

I do not know what zukerberg will really do with the money, but it would be a shame to let those billions just sit there...

Hope he wont change his mind

He is not so clever, he hired clever accountants, and, PR guys. Or just any normal accountants and PR guy... every accountant, even basic, will suggest him to do like every other billionaire is doing. Even if I am not an accountant, I got what they're doing within a millisecond, despite every media saying the guy actually donated 99% of his money to WWF and poors of Africa:

https://gfy.com/fucking-around-and-pr...99-shares.html

Who really is not clever there, it is the journalists and the media: they copied and pasted the press release of a billionaire "as is", granting it is true. Why don't they spread what Donald Trump says like it is the absolute truth too?. Mostly, because it is a so cute story, and news need either super bad or super good stories. Telling that yet another billionaire (actually became so for luck, not for merits, even who watched "the network" can figure it out a little) is setting up a tax avoidance instrument which is soooo common, and marketing people (not him) wrote the letter (for a fee) and made the photos and passed it on the press.

Yup, very small% actually gets to any cause :2 cents:

Media portrayed him as a humanitarian is annoying. The media is supposed to just report the facts like a man standing on the corner witnessing something. Now each "journalist" has to put their personal opinion on everything.

Who is chan?

Who cares about that asshole or the slut he fucked to create that ugly little bitch.

I hate celebs somehow

Shocking

with joos you lose

he got outed evading taxes in Ireland, now he's looking for another scam

Apple could have to pay Ireland 10 years worth of back taxes - Apr. 30, 2015

"Apple has paid as little as 2% on profits attributed to its subsidiaries in Ireland, well below the 35% top rate in the United States and even well below Ireland's 12.5% rate."

yep will never happen