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Cake day: June 20th, 2023

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  • If you’re referring to dollars given/promised to “charity,” a huge amount of that is done in a way that protects assets from taxes but primarily benefits the donor or the donor’s offspring.

    Example: Warren Buffet has billions he has pledged to charity. However, when he dies it goes into a private charitable trust that conveniently employs his children and pays them millions a year for “administration” duties. The trust can donate stocks to charities, and there is a tax exemption for the “value” of the donation, reducing the tax burden of the trust further. Billionaire charity in the USA is a nearly-complete fiction which is actually more in line with the behavior discussed in this article.