3 ms·

I see the terms as a donation or grant. The money still is a loan (vs a grant), but the terms are well below "market" in order to support the non-profit's cause

• wmf 5y ago
  But why structure it that way? Does anyone know?
  • cge 5y ago
    My guess was that it is a way of keeping the organization from failing the public support test (https://www.irs.gov/charities-non-profits/exempt-organizations-annual-reporting-requirements-form-990-schedules-a-and-b-public-charity-support-test https://www.irs.gov/charities-non-profits/exempt-organizatio...), which generally requires that at least 1/3 of the organization's support comes from the general public, not from, eg, one individual donor. Failing the public support test would make the foundation a private foundation instead of a public charity, which would change a number of regulations and have a small (usually 2%) on investment income. What's particularly odd is that, if they were they a private foundation, as Acton is a board member (who also appears to have sole power to determine board members), I think the loan itself would be a prohibited act of self-dealing.
  • usrusr 5y ago
    Might have also been an attempt to appear less of a target for that breed of self-serving administrators that seem to haunt certain other foundations in tech. And to keep reasonably humble people reasonably humble.