Zuckerberg explains why he is not giving 99% of his Facebook shares to charity
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Version 0 of 1. Mark Zuckerberg has responded to reports that he is not giving away 99 per cent of his Facebook shares to charity. Zuckerberg had said that he was putting 99 per cent of his Facebook shares into the Chan Zuckerberg initiative, a legal entity dedicated to "advancing human potential" through personalised learning, curing disease, connecting people and building strong communities. The Independent and other media reported that this vehicle is not a charity, but a limited liability company owned and controlled by Zuckerberg. As a private company, the Chan Zuckerberg Initiative can spend its money on whatever it wants - including private, profit-generating investment. Its first investments have been in education technology, an area closely aligned with Facebook's mission to connect people. In a post on Facebook, Zuckerberg said that the decision to register as a company gave the Chan Zuckerberg Initiative more flexibility. "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. Zuckerberg said that creating the entity this way means they miss out on tax benefits conferred to traditional foundations. They will also pay capital gains taxes when their shares are sold by the LLC. "Any net profits from investments will also be used to advance this mission," Zuckerberg added. The full statement is available online. |