Mark Zuckerberg explains why he is donating shares to Limited Liability Company

Mark Zuckerberg Defends Decision to Donate Shares to Limited Liability Company

He explained that unlike charity foundation, a limited liability company offers more opportunities to invest in areas that need immediate attention.

Couple of days back, Mark Zuckerberg surprised everyone by revealing in an open letter to his daughter that he will donate 99% of Facebook shares, currently worth $45 billion, to a limited liability company named Chan Zuckerberg Initiative.

Although it was a positive gesture, it also generated heat as some people began criticizing him for donating money to a limited liability company instead of a charity foundation.

Responding to the criticism, the Facebook CEO offered a detailed explanation on his page.

“The Chan Zuckerberg Initiative is structured as an LLC rather than a traditional foundation. This enables us to pursue our mission by funding non-profit organizations, making private investments and participating in policy debates — in each case with the goal of generating a positive impact in areas of great need.”, Mark Zuckerberg wrote in his Facebook post.

He further added that unlike traditional foundation, Limited Liability Company won’t give them any tax benefits, but it will give them flexibility to pursue their mission more efficiently and effectively.

Zuckerberg is on a paternal leave for two months and will start working on the Chan Zuckerberg Initiative after he returns to work.

 

Image Courtesy: biography.com

 

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