Following on from news last week that Mark Zuckerberg, alongside his wife, Priscilla Chan, intend to donate $45 billion USD to charities following the birth of their daughter Max, the couple have faced a backlash over accusations of tax-dodging.
The $45 billion USD in question, which makes up 99% of Zuckerberg’s Facebook shares, is intended to work alongside the Chan Zuckerberg Initiative, which aims to help advance human potential and child equality. The initial areas of focus for both the donation and the foundation will include personalised learning, curing diseases, connecting people and building stronger communities.
However, Zuckerberg has faced criticisms over his decision to create an investment vehicle – a limited liability company (LLC) which is intended to invest in profit-based companions that can additionally make political donations and lobby for changes in the law. Criticisms cite that the Facebook CEO should rather have created a charitable donation.
Zuckerberg has responded by saying that his latest initiative is structured as an LLC to enable both himself and his wife in making “œprivate investments and participate in policy debates ““ in each case with the goal of generating a positive impact in areas of great need“, from which “Any net profits from investments will also be used to advance this mission.“
Further, the Facebook founder clarified that by using an LLC instead of a charitable foundation, neither he nor Priscilla Chan receive no tax benefit.
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