back to article St Zuck gives half a BEELLION DOLLARS in Facebook stock to charity

Mark Zuckerberg has given half a billion dollars to charity - in Facebook stock. The Facebook CEO has donated 18 million Facebook shares to the Silicon Valley Community Foundation, where the money will go to health and education causes. Zuckerberg's $498.78m gift doesn't make too much of a dent on his stock holdings - he had …

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  1. Magister
    Pint

    Taxation

    My understanding (please correct me if I am wrong) is that he will be able to put on his tax return, in the next year or two that he has given these shares away to charity. However, the IRS don't calculate his splendiferousness based on the price at the time they were given away, but at the time they do the calculations.

    So if he gives them away today at $27, but when he declares the gift (in say 2 years time), the IRS will take the price then (for example $35) and then he gets tax relief based upon that figure. So instead of 30 million at $27 = $810 million, he will be allowed to claim 30 million at $35 = $1,050 million as a donation. He gets 240 million extra allowance.

    That will buy a few drinks for Christmas!

    1. James Hughes 1

      Re: Taxation

      Assuming the share price goes up....which certainly isn't guaranteed.

      And although he may well buy a few drinks that Xmas, the charity is still half a billion $ better off...

      1. Magister

        Re: Taxation

        Interesting; the original post is still there.

        I'm not decrying his actions or his motives; just pointing it out that this is a way to benefit from being charitable.

        I think that I should refrain from using the alcohol icon (hic); clearly doesn't agree with me!

    2. James Micallef Silver badge
      Thumb Up

      Good on you, mate!

      I'm a bit wary of people being very public with their charity, but always better to publicise one's charity than to not give anything at all. So well done Mr. Zuckerberg!

      Re tax deductibility, that's the case now but I belive one of the tax provisions with a good chance of being stricken off in the latest round of US tax-code whack-a-mole is the charitable deduction. That's a big plus since research shows that deductability of charitable donations has very little effect on total charitable donations. So while I'm sure his zuckness will be happy to take any deduction, I am happy to think that he would have done it anyway even without the deduction

    3. Anonymous Coward
      Anonymous Coward

      Re: Taxation

      Tax write off.....

  2. Chris Miller

    Arithmetic fail

    444 - 30 -18 = 396 not 296 (million shares).

    1. Magister

      Re: Arithmetic fail

      Yeah I put the wrong figures - so sue me. I've with drawn the post, but the principle still stands; He would make a nice little earner from his generosity.

      1. Lallabalalla
        Happy

        Re: Arithmetic fail

        Surely that's only if the shares go up.

        Isn't it more likely they will be worth diddley-squat?

      2. Chris Miller
        Happy

        Re: Arithmetic fail

        Not getting at you, Magister - it was an error in the original article (since fixed).

        1. Magister
          Happy

          Re: Arithmetic fail

          No problem.

          I did have the wrong figures anyway; blame it on my advanced age and general grumpyoldfartness.

          He will still (probably) do quite well out of his generosity (if my understanding is correct); not complaining, just highlighting the benefits.

  3. C Yates
    Meh

    Timed to balance Instagram debacle?

    One has to wonder...

  4. Lallabalalla
    Thumb Up

    Those share certificates...

    They're the ones that come on a long roll around a cardboard tube packaged as "soft, strong and incredibly long"?

    1. C Yates
      Thumb Up

      Re: Those share certificates...

      I would rather use the puppy though ;)

  5. JDX Gold badge

    Can they sell?

    Giving stock seems a bit bizarre but maybe that's just how things work... anyway this is far beyond the normal rich person giving $5million so well done Mark.

    1. Charles Manning

      A step up from Bill Clinton

      ... who claimed for donating his used underpants.

  6. vic 4

    Xms is a time for charity

    I too have just got rid a of a load of stuff that was cluttering up the place ready for some new clutter. Wonder how many charity bags it took to hold half a billion of shares.

  7. b166er
    Thumb Up

    Awww, he's not all bad then, thumbs up chief.

  8. elreg subscriber
    Thumb Up

    enough with the negativity

    I'm with b166er.

    Why all the negativity and cynicism in the original piece and the talkbacks?

    You may think many not so cool things about him, but giving to Charity IS nice after all, so why not be a tad grateful for him thinking about those less fortunate than him?

  9. Anonymous Coward
    Anonymous Coward

    Half a billion dollars in Facebook stock

    That'll be about £50 then.

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