Mark Zuckerberg responds to critics of his baby-inspired $45bn giveaway

Print

Mark Zuckerberg has taken to Facebook to respond to criticisms of his plans to transfer 99% of his family's stock in Facebook into a limited liability company (LLC) to fund charitable projects.

He said that he and his wife, Dr Priscilla Chan were using a LLC rather than a traditional foundation as it gives them greater flexibility "to pursue our mission by funding nonprofit organisations, making private investments and participating in policy debates in each case with the goal of generating a positive impact in areas of great need."
 

The post addressed critics who said that he intended to use the LLC to avoid taxes on his stocks worth $45bn.

“In fact, if we transferred our shares to a traditional foundation, then we would have received an immediate tax benefit, but by using an LLC we do not. And just like everyone else, we will pay capital gains taxes when our shares are sold by the LLC,” he wrote.

While charitable foundations are tax-exempt, they face restrictions which curb for-profit ventures and the sponsoring of political activities. It is likely that some of the Facebook founder's money will be used for these kinds of projects.

Back to top