3 ms·

You can't actually give all your money to a non-profit and then spend it on yourself, so that won't work. I mean, you can, but if you get caught, which you alm

by javert 6y ago

You can't actually give all your money to a non-profit and then spend it on yourself, so that won't work. I mean, you can, but if you get caught, which you almost certainly will, you will go to jail. Source: Ask any CPA.

aeternum 6y ago
Of course you don't spend it all yourself, but if your parents put $1B in your non-profit you can pretty easily get a 5% ROI and safely spend 45 mil / year on actual donations and 5 mil / year on your 'business trips'.
- javert 6y ago
  That would be fraud. It's not likely that you would get away with this.
  - dantheman 6y ago
    How is it fraud to have your corporate meetings in Hawaii, in the swiss alps, to have team building events that are ski trips etc. Academic conferences work this way - are they frauds?
    - deleted 6y ago
      [deleted]
    - javert 6y ago
      You could do that, but it doesn't achieve the goal that was being discussed. Spending money on trips is not a "ROI" (return on investment). Plus, if you spend $5M personally on trips, that will most likely be caught as fraudulent. Because it clearly is. The IRS looks at what charities spend their money on. Meta: I will try not to engage in these kinds of discussions on HN in the future since people have made it clear they don't want this information.
ValentineC 6y ago
Derek Sivers did something like that, just before CD Baby got acquired: https://sive.rs/trust https://sive.rs/trust
- javert 6y ago
  Thank you, this is an interesting example. A Charitable Remainder Unitrust is a very specific thing. It does not make sense to create one unless you actually are charitably minded. If you look at it merely as a way to reduce taxes, you'd end up preferring to keep the money yourself (and pay taxes normally), because the amount you have available to spend is higher that way. Also, it can't be inherited.

3 ms·

You can't actually give all your money to a non-profit and then spend it on yourself, so that won't work. I mean, you can, but if you get caught, which you alm

by javert 6y ago

aeternum 6y ago
Of course you don't spend it all yourself, but if your parents put $1B in your non-profit you can pretty easily get a 5% ROI and safely spend 45 mil / year on actual donations and 5 mil / year on your 'business trips'.
- javert 6y ago
  That would be fraud. It's not likely that you would get away with this.
  - dantheman 6y ago
    How is it fraud to have your corporate meetings in Hawaii, in the swiss alps, to have team building events that are ski trips etc. Academic conferences work this way - are they frauds?
    - deleted 6y ago
      [deleted]
    - javert 6y ago
      You could do that, but it doesn't achieve the goal that was being discussed. Spending money on trips is not a "ROI" (return on investment). Plus, if you spend $5M personally on trips, that will most likely be caught as fraudulent. Because it clearly is. The IRS looks at what charities spend their money on. Meta: I will try not to engage in these kinds of discussions on HN in the future since people have made it clear they don't want this information.
ValentineC 6y ago
Derek Sivers did something like that, just before CD Baby got acquired: https://sive.rs/trust https://sive.rs/trust
- javert 6y ago
  Thank you, this is an interesting example. A Charitable Remainder Unitrust is a very specific thing. It does not make sense to create one unless you actually are charitably minded. If you look at it merely as a way to reduce taxes, you'd end up preferring to keep the money yourself (and pay taxes normally), because the amount you have available to spend is higher that way. Also, it can't be inherited.