That's exactly the reason that the vast majority of foundations are frauds used to shield money from taxes by the ultra wealthy: setup a foundation one controls

That's exactly the reason that the vast majority of foundations are frauds used to shield money from taxes by the ultra wealthy: setup a foundation one controls, transfer money into it and have foundation spend 5% on "charities" while extracting value from the foundation by having it provide the lifestyle for those who set them up. Need cash? Have a foundation lease a copy machine from you for $2000 a month. Want to have a dinner at French Laundry? Have a foundation pay for your meeting with a potential donor, etc etc etc. And that's exactly the reason why there's a Byrd amendment - it blocks the income arriving at the foundation via foundation owning private companies tax free.