Mark Zuckerberg Gives $990 Million To Charity 230
mrspoonsi writes with this excerpt from Business Insider: "This morning, Mark Zuckerberg announced plans to give 18 million Facebook shares to charity by the end of the month. Facebook is currently trading at $55 per share, so Zuckerberg's gift is worth just under $1 billion. The money will go toward Zuckerberg's foundation, the Silicon Valley Community Foundation and The Breakthrough Prize In Life Science, a [Nobel] Prize-like award. Zuckereberg is giving his shares away as part of a secondary stock offering from Facebook. Reuters says Zuckerberg will sell 41.4 million shares, reducing his voting power in the company from 58.8% to 56.1%. Other insiders selling include board member Marc Andreessen, who will sell 1.65 million shares. Facebook is selling 27 million."
so he gave (Score:5, Informative)
to his own charity?
Re:so he gave (Score:5, Informative)
I used to work in finance, managing accounts for those "tax dodge" charities. It's pretty clear you don't actually know how they work.
You're right on the surface, of course... as long as you control your own foundation, you have control over those voting rights and the development of that lot. The devil's in the details, though. You don't have control as you, but as an agent of the foundation. That means that the donated assets are not a part of your own estate, and you personally don't own them any more. You can't transfer money back to yourself (as those "fat fees" run afoul of the charity's tax-free status), you can't build a vineyard on those 40 acres, and you can't pass on the charity to your heirs.
Those foundations are their own entities, and they must be managed separately. It's actually pretty hard to use them for your own financial gain. You can, however, use them to improve your standing in the community, but you don't really need money for that [wikipedia.org].
Re: oh boy... (Score:4, Informative)
It's not like he did a sham transfer to a strawman. He transferred them to his foundation, irrevocably. Just because the foundation has his name doesn't mean he gets anything from it. Aside from getting to vote the shares the way he and the rest of the board agree, the shares are gone to him - any appreciation, all dividends, they all are for the bill and Melinda gates foundations benefit, and that organization publicly discloses their tax return so you can verify that.
Creating and funding that foundation did nothing with regards to microsofts antitrust case, except make bill a lot less rich (but still in the top 3)
Re:oh boy... (Score:4, Informative)
From what I read, his father (an IBM lawyer!) shamed him into it.