Based on his recent official declaration, Mark Zuckerberg won’t get no tax benefits from Facebook donation. The new father and his wife, Dr. Priscilla Chan, have donated 99% of their Facebook stocks to their newly founded no-profit organization Chan Zuckerberg Initiative.
Wealthy individuals are bound to suffer criticism, regardless whether they make good or bad deeds. It is also the case of Facebook’s CEO Mark Zuckerberg, who has recently announced that he and his wife, Dr. Priscilla Chan will donate 99% of their Facebook stock to a non-profit organization.
The charitable foundation will be founded by the two new parents and will be called the Chan Zuckerberg Initiative. The main activity of the new initiative will consist in donations for education and health research, two areas where the two partners have been active before.
The decision to create the LLC came after Mark Zuckerberg and his wife, Priscilla became parents to their first daughter, Max. The pregnancy and the recent parenthood seems to have made the two even more sensitive to other people’s problems, more specifically to newborns.
The news of the $45 billion donation did not trigger the anticipated results. On the contrary, there have been many critics saying that the so-called charitable foundation is just another way for Zuckerberg to dodge taxes.
Their main concerns arise from the fact that Mark and Priscilla have opted for a limited liability company instead of a non-profit organization. The variant they have selected gives Chan and Zuckerberg more freedom when it comes to choosing which causes they should support and how much money they should invest. Consequently, analysts think the new initiative is just a new company, only this time Mark is exempt from costly taxes.
The social network founder posted an official message on his personal page explaining people that the form of organization he has chosen is only meant to allow him and his wife to support whichever cause they want, be it educational or political. Zuckerberg has reassured everyone that there won’t be any tax benefits, on the contrary, he would have had many more benefits if he founded a regular non-profit organization, whose investments are often restricted.
The explanation that the CEO has posted on his official Facebook page has determined various reactions from followers. Some followers congratulated the two parents for the positive changes in their lives, whereas others have limited themselves strictly to negative messages.
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