"A substantial portion of every tax-exempt foundation’s wealth—39.6 percent at the top tax bracket for filing in 2016—is diverted each year from the public trea

"A substantial portion of every tax-exempt foundation’s wealth—39.6 percent at the top tax bracket for filing in 2016—is diverted each year from the public treasury, where voters would have determined its use." Is this really true? Did Bill Gates actually have any 'Income' last year at all? Sure he has capital gains, and dividends, but none of that is going to be taxed at 39.6%. Which is a completely different topic. But it seems completely misleading to say that taxpayers are funding the philanthropy. Also, did Bill not fund the foundation with shares, rather than taking a tax break on cash income? Either way, it seems like that money that is funding the philanthropy would not have been entering the public coffers if it were not used for philanthropy.