Home Business Mr Zuckerberg defends his organization’s philanthropic structure

Mr Zuckerberg defends his organization’s philanthropic structure

307
0
Mr Zukerberg, Philanthropic organization structure

Mr Zuckerberg defended the philanthropic organization he created.

04 December, 2015: Mr Zuckerberg declared to give away 99% of his stake in Facebook, worth $45bn (£30bn), to fund the Chan Zuckerberg Initiative. Mr Zuckerberg formed a limited liability company (LLC) to administer the money, rather than setting up a simple charity.

An LCC allows Mr Zuckerberg to keep hold of the voting and allocation of the shares he puts into it and brings certain tax exemptions but also allows investment for profit.

In a Facebook post on Thursday, he pushed back against accusations that he had structured his foundation, not so much as a charity, but as a vehicle for evading taxes and making financially motivated investments under the guise of doing good.

“By using an LLC instead of a traditional foundation, we receive no tax benefit from transferring our shares to the Chan Zuckerberg Initiative, but we gain flexibility to execute our mission more effectively,” he said.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.