Friday, October 13, 2023

Forbes: "Charles Koch Has Given More Than $5 Billion Of His Stock To Two Nonprofits"

Download (3)Forbes reported this week that Charles Koch gave $4.3 billion to 501(c)(4) Believe in People last year and another almost $1 billion to 501(c)(4) CCKc4 in 2020. As noted in the story:

Unlike a traditional 501(c)3 nonprofit–which includes the private charitable foundations commonly used by wealthy individuals–a C4 can own an entire for-profit company indefinitely and (so long as these activities support its principal purpose) benefit private individuals; engage in an unlimited amount of issue lobbying; and get directly involved in politics.

Since 2015, when Congress exempted donations to C4s from the 40% federal gift tax, in a move a Koch lobbyist promoted, a number of other billionaires have donated their entire companies to C4s. The most high profile of them: Patagonia founder Yvon Chouinard, who transferred all of his outdoor clothing and gear retailer’s nonvoting stock to the environmentally-focused Holdfast Collective in September 2022; at the time of the gift, Patagonia was reportedly valued around $3 billion. Koch’s $4.3 billion gift to Believe in People is now the largest publicly disclosed donation to a C4.

Lloyd Mayer

https://lawprofessors.typepad.com/nonprofit/2023/10/forbes-charles-koch-has-given-more-than-5-billion-of-his-stock-to-two-nonprofits.html

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