Mark Zuckerberg and wife Priscilla Chan with baby Max on the day they donate 99 percent of Facebook stock worth $45 billion (Photo : Reuters)
A 99 percent of Facebook founder Mark Zuckerberg's personal Facebook shares amounting to $45 billion will be given away as Zuckerberg announced it on the day of birth of his daughter, Max.
These shares would be given to fund charity by Chan Zuckerberg LLC, Tech Times reported.
This charitable initiative was announced when Zuckerberg had posted a letter to his baby Max, where in the shares would be funded to promote equality for the children of the next generation and to advance the human potential, the report said.
The shares are from Zuckerberg's net worth. While others prasied this announcement on the day of their new baby Max, some question Zuckerberg's intentions, the report added.
Critics said that this act initiated via the Chan Zuckerberg is a tax evasion trick.
Zukerberg answered this criticism on tax evasion trick, saying that they would receive no tax benefit when shares are transferred to Chan Zuckerberg LLC, the report said. "By using an LLC instead of a traditional foundation, we receive no tax benefit from transferring our shares to the Chan Zuckerberg initiative, but we gain flexibility to execute our mission more effectively," Zuckerberg said.
He added that they will pay capital gains taxes when their shares are sold by the Chan Zuckerberg LLC.
This massive amount of shares challenges the wealthiest business leaders in the world to give donations. It can be noted that recently, Zuckerberg and Bill Gates has announced their collaboration to raise clean-energy and climate research, Washington Post reported.
Max's birth is the motivation of the founding of Chan Zuckerberg Initiative. This charitable group will focus on education and health causes, the report added.
Watch the video by World Network TV about the Facebook CEO donating $45 billion to charity.
