Many people seem to believe that “inheriting” e.g. The Gates Foundation is just as profitable as inheriting tens of billions in cash. My gut tells me that charitable law must be more complicated than that. What’s the truth?
In: 377
You can fleece a non-profit about as easily as a for-profit corporation. Profit is a creation of accountants, and it’s easy enough to move money around to erase any profit but still result in a tangible benefit to the person who controls it. There are very specific laws about non-profits in order for them to enjoy their tax exempt status, and suffice it to say those laws were written by people intending to exploit them. So you have to be pretty sophisticated about how you get around these laws, but bottom line, loopholes exist and you better believe rich people are exploiting them constantly.
Latest Answers