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?
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Charities don’t give away all of their money. They have operating costs, including salaries. But to be a non-profit and get the tax benefits of being a charitable organization, they do have to document everything they spend.
Take Eric Trump’s charity as an example. He would hold golf events to raise donations for his charity, but the golf course (owned by his father) would charge the charity millions of dollars to use the golf course. This is a way to funnel donation money to other people besides the charity, sometimes called double-dealing.
CharityWatch documents what percentage of donations actually go to their programs. The Disabled Veterans National Foundation, for example, only passes on 4% of their donations and keeps the rest for other purposes.
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