Are these people really this fucking ignorant?

Joanne Barkan has been writing about “big philanthropy”, private foundations, and democracy since 2011. She also covers the influence of large foundations on public education policy in the US. Many of these articles appear in Dissent magazine. Barkan is based in New York City and Truro, Massachusetts.

Well, yes, it appears that she is.

The Chan Zuckerberg Initiative is structured as a for-profit business just like Facebook, Microsoft or any other limited liability corporation. In addition to avoiding the restrictions that apply to foundations, they gain other advantages. As described in the Chronicle of Philanthropy, they will have fewer disclosure requirements and can “engage in activities that stretch the definition of charity”. In addition, they won’t have to make the annual payout to the government – about 5% of an endowment – required of foundations.

Foundations do not have to make payouts to the government. They must, however, pay out 5% of the endowment each year in activities. Such activities can be charitable donations, they can also be nice great big fat salaries for the grandchildren of the founder for running the foundation.

So, with someone this fucking ignorant (she’s been doing this 4 years!) telling us about US foundation law we’re really going to listen to the SJW whining on the subject, aren’t we?

7 thoughts on “Are these people really this fucking ignorant?”

  1. So what is her position on money chucked at foundations because a founder coincidentally happens to be Secretary of State?

  2. You know, for a billionaire, Zuckerberg’s wife is minging.

    If I had billions of dollars, I’d be on a yacht, drunkenly snorting Fizz Wizz off the boobs of swimsuit models. When not fishing for sharks with dynamite.

    Money is wasted on these spotty nerds.

  3. Foundations have to spend 5% of their endowment per year? Yikes! In today’s low-interest environment, most of them will go bust within a couple of decades.

  4. “Foundations have to spend 5% of their endowment per year? Yikes! In today’s low-interest environment, most of them will go bust within a couple of decades.”

    Crazy, isn’t it. Even over the last few decades, the safe withdrawal rate has been 4% or less. And what if you want your foundation to grow?

  5. Considering that the S&P500 dividend yield is around 2%, hitting that 5% target means either drawing down your capital or making higher-risk investments.

    If each year you add just 2% and withdraw 5%, and we knock off another 1% for inflation, then that’s 4% down each year. Your fund will be halved within 17 years.

    Actually I suppose that’s not so bad. Nothing lasts forever anyway. The better foundations will get topped up from other donors (Harvard’s fund is in no danger); the lesser foundations will peter out.

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