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.”