The recently announced charitable initiative was labeled as Zuckerberg’s attempt to dodge taxes and critics claim they have strong evidence to prove it. Most questions related to Zuckerberg’s intentions arouse from his decision to found a limited liability company, instead of a traditional non-profit organization.
Mark Zuckerberg and his wife, Priscilla Chan are getting a lot of attention lately. The media has been on their footsteps ever since they have found out that Chan gave birth to a beautiful (and most certainly, intelligent) baby girl named Max.
Whether it was the recent positive event in their lives or a decision they have been planning for a while, fact is Chan and Zuckerberg have celebrated their first days of parenthood with a good deed. The two have stated that they are now more determined than ever to get involved in charitable acts; therefore, they will donate 99 percent of their Facebook stocks, that is, $45 billion to their Chan Zuckerberg initiative.
As expected, the two announcements gave birth to a series of reactions on behalf of the public and fans. On the one hand, there were fans, who congratulated the couple for their parenthood and their decision to make such a big donation.
On the other hand, there have been many commentators claiming the Chan Zuckerberg Initiative is just a scam that the two have elaborated together to dodge taxes. They claim the initiative is not a downright charitable organization, but rather a limited liability company, that is a corporation.
Critics have looked at the reasons behind Zuckerberg’s recent choice, that is, the possible benefits that the couple would get from such a form of organization. They have discovered that the LLC form of organization gives founders lots of freedom when it comes to donating or investing money to causes. They don’t decide just how much money they invest, but also the causes they can support.
As a result, it has been concluded that the Chan Zuckerberg Initiative will allow the Facebook CEO and his wife to have full control over their assets and their charitable deeds, without paying taxes. Looks like the ideal situation, but Zuckerberg has reassured fans and critics that this was not his intention at all.
The founder of the famous social network explained that he and his wife have had many more benefits if they had founded a regular non-profit organization. They would have been immediately exempted from taxes had they chosen this form of organization. Instead, Zuckerberg chose the LLC organization because they have no restrictions over the causes they can invest in, be they educational or political.
Thus, the new initiative is meant to give Zuckerberg green hand over all the charitable causes he wants to support. There won’t be any tax benefits or benefits of any kind, he concluded.
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