What No One Is Telling You About Mark Zuckerberg Donating 99% Of His Fortune To "Charity"

What a jerk for not wanting to give a few billion to the government in taxes. If he said this is why he is doing it then he would be arrested for tax evasion.

originally posted by: ~Lucidity
And...again this leaves more of a tax burden for us working schlubs to bear.

It does not change your tax burden. There is much more nefarious about these 'foundations' than a tax dodge. Taxes they don't pay anyhow, on money thats already been taxes at least once.

So, when I win the lotto, once its in the bank, go and see a tax lawyer? Well, it would not hurt to ask, anyway.

originally posted by: pikestaff
So, when I win the lotto, once its in the bank, go and see a tax lawyer? Well, it would not hurt to ask, anyway.

BEFORE it goes on the bank. BEFORE you see a penny.

originally posted by: ~Lucidity
And...again this leaves more of a tax burden for us working schlubs to bear.

Alternatively, you could always make donations and use it as a tax write-off.

Oh no, a rich guy is finding a way to keep his money.

I wonder what he's going to do with that money? He must be planning to eat it, or build all his furniture with it. No, he's going to bury it in the back yard! Maybe he'll set up a 'money vault' so he can swim in it.

a reply to: Blackmarketeer

Knew there had to be something to it because giving away 99% is way too much... even for him and his Family.

I reckon whoever is in charge of that Charity will be rolling in it for many years and rubbing their hands in glory!

originally posted by: TruthxIsxInxThexMist
a reply to: Blackmarketeer

Knew there had to be something to it because giving away 99% is way too much... even for him and his Family.

I reckon whoever is in charge of that Charity will be rolling in it for many years and rubbing their hands in glory!

Except it's not a charity, and they never claimed it was a charity.

a reply to: Blackmarketeer

Well blame Citiziens United for making this legal.

Clinton foundation does the same only she didn't work for her money like he did....

a reply to: Blackmarketeer

Tax minimization (avoidance cough cough) at its finest!

a reply to: Shiloh7

I understood that to set up a Chairty (in the UK) you and especially family members could not have any 'benefits' otherwise it contravened the issue of what a charity actually is. Surely this applies to this particular tax dodge?

Except in this case it's not a charity, even if his PR team is making it appear to be one. It's an LLC (limited liability company), similar to a UK LTD (limited company). A "non-profit 501C charity" in the US is required to donate a certain percentage to an actual charity cause, something he will not have to do. Plus a charity is blocked from engaging in political activities, and that is one of the things his "Chan Zuckerberg's" stated goals.

Forbes made this statement in their article on his tax dodge:

Donating appreciated stock is a much better tax move than selling it and donating the sales proceeds. After all, by donating the stock, the gain he would have experienced on selling it is never taxed. The donee organization can either hold or sell the stock. But since it is a tax-qualified charity, if it sells the stock it pays no tax regardless of how big the gain. And since Mr. Zuckerberg will get credit on his tax return for the market value of what he donates, he can use that to shelter billions of other income.

a reply to: Blackmarketeer

Everybody praising him when I knew in my heart of hearts that this was just a way to avoid taxes and remain in control under the guise of a "charity"

Praise to Zuckerberg, what a great guy, fo all he has given to the world! PLEASE

originally posted by: Krazysh0t
a reply to: Blackmarketeer

Well blame Citiziens United for making this legal.

this is a loophole that's been on the books for years.


Private foundations are the key to all wealthy individuals minimizing their taxes. They donate appreciated assets, or cash, to their own foundation, receive the write-off and then the foundation can do such wonderful things as own real estate (save on real estate taxes) and employ family members. The foundation needs to donate its income to charity.

There are some restrictions with dealings between primary contributors and the foundation and there is an excise tax on investment income but, for the most part, when you see that Tom Cruise donated 100 million to his own foundation, or Zuckerberg donated his facebook stock to his foundation, it's a complicated tax dodge.

www.bustle.com...

a reply to: Metallicus
All that money...for 'creating' the most popular time sink in history. Not even getting into the negative psychological effects of Facebook...

I find that sickening.

a reply to: Blackmarketeer

wow, great info, just when i thought i could respect this guy, that was a quick 24 hour turnaround in character judgement lol i cant say what hes doing is not potentially good for the poor but it seems like if he really cared he wouldnt get around taxes which help the actually people on the ground now battling americas toughest issues, at least thats where some of that tax money would have gone to.

So proud to say "I don't have a Facebook account" .

a reply to: tonycodes

In his defense, the foundation is required to donate the earnings and a minimum of 5% of its adjusted market value, annually. So, if the stock is valued at 45 billion, that's 2.25 billion in donations in one year. the tax advantages are huge but, honestly, there aren't too many people who are putting that much into charitable endeavors each year.

originally posted by: Crakeur
a reply to: tonycodes

In his defense, the foundation is required to donate the earnings and a minimum of 5% of its adjusted market value, annually. So, if the stock is valued at 45 billion, that's 2.25 billion in donations in one year. the tax advantages are huge but, honestly, there aren't too many people who are putting that much into charitable endeavors each year.

It's not required to donate anything, as the foundation is an LLC, and not a non profit charity.