New (Legal) Models for Philanthropy

The NY Times reports that a new generation of philanthropists is increasingly seeking ways to have “flexibility, freedom and anonymity” in its giving.  The article highlights the use by Laurene Powell Jobs, the widow of Steve Jobs, of a limited liability company (LLC) named Emerson Collective as the primary vehicle for her charitable activities.  LLCs of course avoid the public reporting to which a more traditional vehicle such as a family private foundation is subject.  Furthermore, LLCs owned by a single individual may be disregarded for federal income tax purposes, permitting the individual owner to take any permitted charitable contribution deductions.  Finally, the article notes that an LLC may be used for more than charitable giving – if the owner believes her goals may be better accomplished through for-profit investments (for example, in an L3C or benefit corporation) or through political expenditures, the LLC may engage in those transactions as well.

Hat tip:  Karla Simon

LHM