Facebook founder Mark Zuckerberg and his wife have just recently announced that they are planning on moving 99 percent of their Facebook shares into a limited liability company for charity. This is $45 billion dollars and is definitely making a stir. This announcement has come with a lot of attention and got people talking about the new generation of philanthropic endeavors. Just as Bill Gates set up his foundation and others before him, there is now a new group ahead of them doing the same.
There was a major change in how Zuckerberg and Chan set this up. The Zuckerberg Chan Initiative was set up as an LLC and this is different than creating a foundation or trust. This LLC will give way to different types of tax structures and control. That aside, it is going to lead towards new ways of going about philanthropy.
Just as another great American, John D. Rockefeller entered into philanthropy; Zuckerberg is continuing a long-standing American tradition that helps propel their causes forward. For example Rockefeller would support the University of Chicago and then he set up the Rockefeller Foundation. Arguably one of the most well known names in major philanthropy groups.
The goals of the prior foundation were to reduce global poverty, help get rid of disease and help educate people all over the world. In terms of modern day dollars, Rockefeller had around $253 billion. Currently the foundation only has around $4 billion, still a decent amount but nothing compared to his prior fortune.
Another major group is of course the Bill & Melinda Gates Foundation. They have over $41 billion. The Bill & Melinda Gates Foundation has gotten a lot of coverage in the news. Their focus is on ending global poverty and getting rid of diseases that are already curable.
Aside from using the money to go out and tackle these problems they are also getting publicity on them as well. By bringing attention to these issues they can do things that just organizations can’t accomplish on their own. The Bill & Melinda Gates foundation hasn’t given away an amount of any less than $2 billion since 2005, they are utilizing a lot of their money to get what they want done. Tax law comes into effect here and this is where Zuckerberg & Chan may be able to get more out of their money through charity.
The Gates foundation has many investments in eco friendly matters. Due to some of the restraints that are present in charitable foundations there can be some problems and limitations to the amount of investments that can be made. What this means is that the way Zuckerberg has structured their new charitable organization they will be able to invest even more. As the Gates foundation runs into some of these problems there is the possibility that Zuckerberg will be able to overcome some of these problems and invest in a more aggressive way that lets them reach their charitable goals.