The Truth Behind Our Billionaire's Generosity 'Charitable Donations'

Does philanthropy actually reduce wealth inequality?
The hard truth of how billionaires take advantage of our charity tax system to avoid millions in taxes.

In this video we cover charitable donations, donor advised funds, the problem with donor advised funds, philanthropy not solution and donor advised funds not giving. Furthermore private foundation tax writeoff, donor advised funds tax write off and donation tax write off. Additionally donation deduction charitable giving, charitable giving harm society, private foundations not solution and private foundations the problem.

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Each day we are treated with multiple stories of billionaire donating millions to charities as an act of generosity, often with eye-popping figures.
Whether we like the donor’s giving strategy or not, we are encouraged to think of these private actions as choices beneficial to the wider public.
Although most of the time that’s really not the case.
Instead, we should be more thinking as “these are our tax dollars at work.”
The public has a legitimate and appropriate public interest in these seemingly private charitable donations of the ultra-rich.
And as the wealth inequality grows and philanthropy becomes more top heavy –with a growing percent of the charitable giving pie coming from the top 1 percent –we should pay additional attention.
Did you know that we as tax payers actually subsidize these donations, in the form of lost tax revenue?
And the wealthier the donor, the bigger the tax subsidy we provide.
For every 1 dollar a billionaire gives to charity, the rest of us chip in as much as 74% in lost tax revenue,
Charitable Tax Reform For the 21st Century
What Are Donor Advised Funds And Why Do They Hurt Charitable Causes? | Defined | Forbes
In this video we will explain to you how the ultra-rich use private foundations and donor advised funds to massively decrease their tax bill and the dark side of philanthropy. We will discuss how effective philanthropy is and the problems philanthropy can’t solve.

Music by Epidemic Sound

Stock footage by Storyblocks

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[FinancialInterest]

Let us know, if you would like us to cover more stories on how the ultra-rich uses other alternative ways to avoid paying taxes.

[Adam-yseb]

i was shocked to know by my college professor something about this subject that if they donate to charity they get massive tax deductions.. then i just typed that in youtube's search bar and got your video.. magnificent job sir

[Dessertfox]

I’m not a billionaire, but if the goal is to shelter money from taxes ONLY and are not charitably inclined, I’ve heard they create an offshore trust in the Cook Islands, then LLCs in the caymans (Panama is popular too), and they use a British tax haven like British Virgin Islands.

If they are charitably inclined and want to donate it, then they fund Foundations to reduce their present and future taxes. While many of the smaller ones “self
Deal” (which is unlawful), the big ones are frequently audited and the IRS is now onto the game. Self dealing is probably one of the biggest issues, but there are many family foundations that give 99% of their funds away and run 100% on volunteers (so no one in the foundation is paid)…. I think it’s unfair to paint every Philanthropist with the same brush, many really do it right.

Again, if it was simply the goal to warehouse money with the least taxes and the most protection, you have better options than a foundation!

[watching]

Outrageous that these kinds of things go on and everyone else is arguing about pennies.

[F.J._Claes]

Of course you feel more comfortable with your ability to allocate the funds wherever you want to because that way you can allocate them wherever they benefit your own interes, while regular people does not get the privilege to do that.

[CapitalG]

I’ve rewatched this video dozens of times. Thank You for this

[HOODCLASSICTELEVISION]

They absolutely should NOT change the DAF rules.
Instead, ALL who have a problem with it should become Wealthy and play the game of Power.
Instead of seeking ‘charitable donations.’ 🤨

This is nuts and it has to go! What can we the people do to stop this nonsense?

[rreserve]

If someone donates large amounts to DAFs for tax evasion purposes and let it sit in warehouses for decades, whats the point if they aren't able to withdraw from these accounts? Or am I missing something

[shivakiran]

Very informative and crisp information. It would be even more informative if you could cover how these so called philanthropists route their money from them to DAFs and then how they get it back to themselves without getting taxed. It would be interesting to know how tax havens work and how the billionaires use it to avoid taxes.

[Sarah-brdn]

Super interesting! Are you planning to do any more philanthropic-related conten?

[Susieq]

Billionaires in California moved to other states to avoid paying 13% income tax. It was 15% in the early 1900's! No wonder the scales are off kilter, between rich and poor. That is pathetic and sad.

[conorcharlton]

Can you show similar issues in UK and Ireland. Thank you for your simple but effective explanations.

[dunstanofgreen]

Great video. Shine a light on the rat bastards.

[LivefromVancast]

They should fire all of us and go on a nice vacation.

[AnthonyKramer-dzrc]

This is a terrible video yes the rich avoid taxes but you clearly do not know how tax deductions work If you get rid of the 3 billion example in this video it becomes a little bit better. Donating 500 million does not save you 500 million in taxes in the case explained in the video it would lower your capital gains this guy would still be taxed on 2.5 billion of his capital gains. Also likely at 20% and not 15%.

[emersonwilliams]

Why are you talking about billionaires, 93% of private own foundations have less than 1 million dollars, you should do more research

[OnlineSupportTeam]

Easy to hate on rich giving to charity brother. You do realize if someone wanted to REALLY keep their money there is a lot of ways that doesn't involve charity, right? Think Bermuda and Ireland entities, licensing fees, etc.

[xloneclicks]

All of this, and we shame people who don't donate to these monsters!!!