ProPublica published a lengthy story titled “How the Ultrawealthy Use Private Foundations to Bank Millions in Tax Deductions While Giving the Public Little in Return.” It highlights how several wealthy individuals and families have made large contributions to private foundations they control – and presumably claimed the related tax deductions – purportedly to operate museums for the benefit of the public but in actuality sharply limiting public access to them or personally benefiting themselves in various ways. The highlighted posterchild is the Carolands Foundation, which owns and operates the Carolands estate that is only open two hours a week and so visitors must both apply in advance and win a lottery for the limited tickets. But the story also describes other transactions that raise potential concerns about the amount of public benefit, and prohibited private benefit, other private foundations with similar arrangements may be providing.
Lloyd Mayer
