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I thought it was impossible to donate money (in a tax deductible manner) if you the donor had any direct control of how the money was spent. This was supposed t
by matt-attack 11y ago
I thought it was impossible to donate money (in a tax deductible manner) if you the donor had any direct control of how the money was spent. This was supposed to prevent folks from, say, donating their money to a charity which then sends their own child to college.
- refurb 11y agoMy understanding is that you are correct. I'm assuming he setup the LLC in some way that he doesn't have direct control over the money. Or at least it appears that way.
- driverdan 11y agoThe LLC is a for-profit structure. He can do anything he wants with the money.
- harryh 11y agoThe act of giving money (or shares) to the LLC won't be tax deductible. If/when the LLC gives money (or shares) to a charity that will be tax deductible. If/when the LLC spends money (or shares) on something not classified as a charity that will not be tax deductible. If/when Zuck & his wife die and there is still money (or shares) in the LLC those assets will be subject to the estate tax.
- dnautics 11y agoThat's not entirely true. I run a 501(c)(3) and I can donate to it and deduct it from my income. But I also don't pay myself out of it (or anyone really), and I have to be careful not to make purchasing/leasing etc. deals with relatives (not a problem in my case). The issue is not control, but disbursement of funds. Giving is fine, its how you use it that is scrutinized. Think of it this way: let's say the nonprofit needs pens from office depot. I could also just as easily have paid out of pocket and not donated to the (c)(3) and claimed it as a business expense, with the same net effect and less paperwork