"By using an LLC [limited liability company] instead of a traditional foundation, we receive no tax benefit from transferring our shares to the Chan Zuckerberg Initiative," Zuckerberg said. "In fact, if we transferred our shares to a traditional foundation, then we would have received an immediate tax benefit, but by using an LLC we do not."
Zuckerberg and Chan announced the establishment of the charity foundation in a Tuesday open letter to their newborn daughter.
According to Facebook founder’s Thursday post, the foundation will be used to fund non-profit organizations and to make private investments in the areas of personalized learning, curing disease and community building.
"And just like everyone else, we will pay capital gains taxes when our shares are sold by the LLC," Zuckerberg said.
According to Zuckerberg and Chan’s Tuesday open letter, the two plan to give 99 percent of their Facebook shares (currently about $45 billion) to the foundation.
Zuckerberg has made numerous donations in the past and works with many aid organizations.
Last October, Zuckerberg and Chan donated $25 million to the US Centers for Disease Control and Prevention (CDC) Foundation to help with Ebola relief efforts.
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