An LLC? It Gives Facebook Founder More Freedom To Meet Philanthropic Goals. Story by Chris Arnold. Morning Edition: NPR 12/3/2015
Mollie Cullinane was interviewed on National Public Radio’s Morning Edition on 12/3/2015.
The story concerned Facebook founder Mark Zuckerberg and his wife Priscilla Chan’s $45 billion philanthropic pledge, which will be given away not through a traditional nonprofit foundation but instead through a for-profit company. The couple has pledged to give funds to the Chan Zuckerberg Initiative, a limited liability company, also known as a LLC.
One significant difference between tax-exempt nonprofit entities and for-profit LLCs is lobbying. That is, the IRS has strict restrictions on how a charity or foundation may be involved in politics and lobbying. An LLC, however, faces fewer constraints from the IRS.
Quote from the article:
Mollie Cullinane, who runs a law firm that specializes in philanthropic giving, says creating an LLC instead of a nonprofit looks like a move by Chan and Zuckerberg “to get more deeply involved in advocacy and promotion of certain causes that other charities and foundations can’t speak out about as loudly.”
Listen to the full National Public Radio, Morning Edition: NPR piece by Chris Arnold, 12/3/2015 here.