The DARK SIDE of Philanthropy

The ‘Black Hole’ That Sucks Up Silicon Valley’s Money

A fast-growing type of charitable account gets big tax breaks but little oversight

by Alana Semuels is a staff writer at The Atlantic. She was previously a national correspondent for the Los Angeles Times.

Extracted quotes …

The amount of money going from the Silicon Valley Community Foundation to the nine-county Bay Area actually dropped in 2017 by 46 percent, even as the amount of money under management grew by 64 percent, to $13.5 billion.

Though donors receive a big tax break for donating to donor-advised funds, the funds have no payout requirements, unlike private foundations, which are required to disperse 5 percent of their assets each year.

Cantor, the nonprofit consultant, told me that he had met wealthy individuals who said they were setting up donor-advised funds so that their children could disperse the funds and learn about philanthropy—they had no intent to spend the money in their own lifetimes.

“Right now, too many tax-subsidized contributions are being set aside indefinitely—subject to no obligation for them ever to be put to active charitable use,” Madoff and Roger Colinvaux, a professor at Columbus School of Law, wrote in a letter to the Senate Committee on Finance in July.

Read the full story by clicking on the following link …

https://www.theatlantic.com/technology/archive/2018/05/silicon-valley-community-foundation-philanthropy/560216/

May 19, 2018

Shared by …

KAITLIN ANN TREPANIER

Human/Animal Rights Activist Social Scientist Founder Entrepreneur Author Artist

Connecting The Dots With The Respect Principle

©All Rights Reserved 2015

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s