Elon Musk's $5.7B donation sparks questions about giving
ABC News
Leave it to Elon Musk to stir up controversy without saying (or tweeting) a word
Leave it to Elon Musk to stir up controversy without saying — or tweeting — a word.
In November, according to a regulatory filling, the Tesla CEO donated to charity about 5 million shares of company stock, worth $5.7 billion. Since the filing with the Securities and Exchange Commission was made public Monday, Tesla hasn't responded to a request for comment. Nor has Musk mentioned the donation on Twitter, his favorite communications forum.
Yet that hasn't quelled debates in and out of philanthropy, about transparency, tax deductions and congressional legislation, along with speculation about where exactly the money was donated. Some experts say Musk likely donated his shares to his donor-advised fund, or DAF for short. DAFs are essentially charitable investment accounts in which donors can claim a tax deduction upfront but aren’t legally required to distribute the money.
Experts say that would be the most advantageous strategy for Musk, currently the world's richest man with an approximate net worth of more than $220 billion. A DAF donation would allow him to claim a tax deduction of as much as 30% of his 2021 adjusted gross income, instead of 20% if he had donated it instead to his foundation. Musk could also deduct the fair market value of the stock, instead of its original value.
