I have previously discussed the recent announcement by Mark Zuckerberg and his wife Priscilla Chan that they will be donating the vast majority of their Facebook shares to charity. The Chan Zuckerberg Initiative is going to be structured as a limited liability company L.L.C, which will provide them with more control. The L.L.C., is becoming an increasingly popular investment vehicle because it can act partly like a corporation and partly like a partnership. This structure can provide people like Mr. Zuckerberg and Dr. Chan more flexibility and control over what to invest in. L.L.C.s are becoming increasingly popular with Silicon Valley donors who are looking to them as an alternative to typical nonprofit structures like 501(c)(3)s. This growing trend of structuring charities as L.L.C.s is an example of the changing face of philanthropy.
See Natasha Singer, Mark Zuckerberg’s Philanthropy Uses L.L.C. For More Control, The New York Times, December 2, 2015.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
