An LLC is by default a pass-through entity for tax purposes. This means that unless a special election is made, all the financial activity passes through the LLC to the owners. Therefore, when the LLC makes money, its members will recognize the gain and pay tax on it. When the LLC loses money, the loss will flow through to the members. When it makes a charitable donation, its members will receive the benefit of the charitable tax deduction. Accordingly, when stock is transferred to the LLC, Mr. Zuckerberg and Ms. Chan have simply moved an asset from one pocket to the other and they receive no tax benefits.
What are the Advantages over Traditional Private Foundation? Read details here
Impact Philanthropy is a complex topic, and others found these selections from the Impact Giving archive from Giving Compass to be good resources.
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A good way to complement your interest in Family Philanthropy is to connect with others. Check out these events, galas, conferences or volunteering opportunities related to Family Philanthropy.
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Family Philanthropy is an important topic. Other members found these Giving Funds, Charitable Organizations and Projects aggregated by Giving Compass to be relevant to individuals with a passion for Family Philanthropy.