5 ms·

And can’t be clawed back in bankruptcy. Great way to preserve wealth

chollida1 4y ago
You're by definitions giving it away. It does nothing to preserve your own wealth even if it goes to a charity you control. It's no longer your wealth and unless you want to do something illegal its not coming back to you and can't benefit you.
- omgsean 4y ago
  Past a certain point the goal of having money is the ability to wield influence. If you donate money to charity you control you can still use that charity to wield influence.
  - deleted 4y ago
    [deleted]
- ojbyrne 4y ago
  I don’t really know but I’d guess there’s a way to close down charitable foundations and take the money back. Though presumably with a tax bill.
- ClumsyPilot 4y ago
  > It's no longer your wealth and unless you want to do something illegal its not coming back to you and can't benefit you. This is peak naivity - you are totally wrong. Exanple one - charity can make political donations. Example two - can hire lobbyists. Example three - it can buy voting shares in companies you want to control. Example four - it can hire your family members or friends and pay them salaries.
  - snowwrestler 4y ago
    Charities (501c3) cannot make political donations or even endorse candidates. The Sierra Club lost their 501c3 status over this.
  - chollida1 4y ago
    > Exanple one - charity can make political donations https://www.fec.gov/help-candidates-and-committees/candidate-taking-receipts/who-can-and-cant-contribute/#:~:text=Incorporated%20charitable%20organizations%E2%80%94like%20other,of%20the%20Internal%20Revenue%20Code https://www.fec.gov/help-candidates-and-committees/candidate.... > Incorporated charitable organizations—like other corporations—are prohibited from making contributions in connection with federal elections. Unlike most other corporations, charities face additional restrictions on political activity under provisions of the Internal Revenue Code. > Example three - it can buy voting shares in companies you want to contro https://www.infinitegiving.com/blog/nonprofit-investing https://www.infinitegiving.com/blog/nonprofit-investing > to avoid violating U.S. Securities and Exchange Commission (SEC) regulations, your investments should not benefit your nonprofit’s employees or board members.
  - hbrn 4y ago
    You're calling somebody naive but your statement is nothing but lies. > Exanple one - charity can make political donations Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. > Example two - can hire lobbyists In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status. > Example three - it can buy voting shares in companies you want to control Which will lead to your tax-exempt status being revoked if it looks like you're doing business. > Example four - it can hire your family members or friends and pay them salaries. Which you can already do with your existing companies.
    - ClumsyPilot 4y ago
      Mybad, I conflated non-profits and charities. All political thinkstanks seem to be non-profits. Evidently I dont understand the mechanism, but apparently charities can be used for political purposes: https://www.politico.com/news/2022/11/16/two-anonymous-425-million-donations-gives-dark-money-conservative-group-a-massive-haul-00067493 https://www.politico.com/news/2022/11/16/two-anonymous-425-m...
  - gardenhedge 4y ago
    Do you think you could have worded your reply differently?
- bushbaba 4y ago
  You can be employed by your own charity. Your own charity can provide you housing, cars, etc. even your vacation and travel can be paid for by your charity.
  - chollida1 4y ago
    > You can be employed by your own charity. Your own charity can provide you housing, cars, etc. even your vacation and travel can be paid for by your charity is this really true? Your own charity can pay for your personal vacations and travel? Do you have a source for that?
    - bushbaba 4y ago
      It’s not a vacation. It’s a mission trip. It’s not a plane ticket to Vegas. It’s a ticket to a charity summit. It’s not a club table fee, it’s a team building event. Lots of ways to get what you want through qualified, albeit non frugal, business expenses.
      - chollida1 4y ago
        Ok, sure, then this is no different than your own company paying for "business" trips. So no benefit or difference here. You just need to be willing to relax your morals and hope you don't get caught by the IRS.
        HDThoreaun 4y ago
        > this is no different than your own company paying for "business" trips. Except this foundation will exist until the end of time and who knows how long tesla will be around.
deleted 4y ago
[deleted]

You're by definitions giving it away. It does nothing to preserve your own wealth even if it goes to a charity you control. It's no longer your wealth and unless you want to do something illegal its not coming back to you and can't benefit you.

omgsean 4y ago
Past a certain point the goal of having money is the ability to wield influence. If you donate money to charity you control you can still use that charity to wield influence.
- deleted 4y ago
  [deleted]
ojbyrne 4y ago
I don’t really know but I’d guess there’s a way to close down charitable foundations and take the money back. Though presumably with a tax bill.
ClumsyPilot 4y ago
> It's no longer your wealth and unless you want to do something illegal its not coming back to you and can't benefit you. This is peak naivity - you are totally wrong. Exanple one - charity can make political donations. Example two - can hire lobbyists. Example three - it can buy voting shares in companies you want to control. Example four - it can hire your family members or friends and pay them salaries.
- snowwrestler 4y ago
  Charities (501c3) cannot make political donations or even endorse candidates. The Sierra Club lost their 501c3 status over this.
- chollida1 4y ago
  > Exanple one - charity can make political donations https://www.fec.gov/help-candidates-and-committees/candidate-taking-receipts/who-can-and-cant-contribute/#:~:text=Incorporated%20charitable%20organizations%E2%80%94like%20other,of%20the%20Internal%20Revenue%20Code https://www.fec.gov/help-candidates-and-committees/candidate.... > Incorporated charitable organizations—like other corporations—are prohibited from making contributions in connection with federal elections. Unlike most other corporations, charities face additional restrictions on political activity under provisions of the Internal Revenue Code. > Example three - it can buy voting shares in companies you want to contro https://www.infinitegiving.com/blog/nonprofit-investing https://www.infinitegiving.com/blog/nonprofit-investing > to avoid violating U.S. Securities and Exchange Commission (SEC) regulations, your investments should not benefit your nonprofit’s employees or board members.
- hbrn 4y ago
  You're calling somebody naive but your statement is nothing but lies. > Exanple one - charity can make political donations Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. > Example two - can hire lobbyists In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status. > Example three - it can buy voting shares in companies you want to control Which will lead to your tax-exempt status being revoked if it looks like you're doing business. > Example four - it can hire your family members or friends and pay them salaries. Which you can already do with your existing companies.
  - ClumsyPilot 4y ago
    Mybad, I conflated non-profits and charities. All political thinkstanks seem to be non-profits. Evidently I dont understand the mechanism, but apparently charities can be used for political purposes: https://www.politico.com/news/2022/11/16/two-anonymous-425-million-donations-gives-dark-money-conservative-group-a-massive-haul-00067493 https://www.politico.com/news/2022/11/16/two-anonymous-425-m...
- gardenhedge 4y ago
  Do you think you could have worded your reply differently?
bushbaba 4y ago
You can be employed by your own charity. Your own charity can provide you housing, cars, etc. even your vacation and travel can be paid for by your charity.
- chollida1 4y ago
  > You can be employed by your own charity. Your own charity can provide you housing, cars, etc. even your vacation and travel can be paid for by your charity is this really true? Your own charity can pay for your personal vacations and travel? Do you have a source for that?
  - bushbaba 4y ago
    It’s not a vacation. It’s a mission trip. It’s not a plane ticket to Vegas. It’s a ticket to a charity summit. It’s not a club table fee, it’s a team building event. Lots of ways to get what you want through qualified, albeit non frugal, business expenses.
    - chollida1 4y ago
      Ok, sure, then this is no different than your own company paying for "business" trips. So no benefit or difference here. You just need to be willing to relax your morals and hope you don't get caught by the IRS.
      - HDThoreaun 4y ago
        > this is no different than your own company paying for "business" trips. Except this foundation will exist until the end of time and who knows how long tesla will be around.

deleted 4y ago

[deleted]