Elon Musk recently became the first person to post a net worth of $400 billion. Tax laws require foundations to give away 5% of their assets every year. Surely, a man with that kind of fabulous wealth must be a major donor to the arts, medical research, homelessness, or education? Not him.
The New York Times reported that Musk’s foundation has repeatedly failed to meet the 5% mark. It gives only in its own neighborhood and to the private school that Musk intends to create.
The Times reports:
For the third year in a row, Elon Musk’s charitable foundation did not give away enough of its money.
And it did not miss the mark by a small amount.
New tax filings show that the Musk Foundation fell $421 million short of the amount it was required to give away in 2023. Now, Mr. Musk has until the end of the year to distribute that money, or he will be required to pay a sizable penalty to the Internal Revenue Service.
Mr. Musk, in his new role as a leader of what President-elect Donald J. Trump is calling the Department of Government Efficiency, is promising to downsize and rearrange the entire federal government — including the I.R.S. But the tax records show he has struggled to meet a basic I.R.S. rule that is required of all charity leaders, no matter how small or big their foundations.
Mr. Musk’s is one of the biggest. His foundation has more than $9 billion in assets, including millions of shares in Tesla, his electric vehicle company. By law, all private foundations must give away 5 percent of those assets every year. The aim is to ensure that wealthy donors like Mr. Musk use these organizations to help the public instead of simply benefiting from the tax deductions they are afforded…
The I.R.S. appears to be among Mr. Musk’s early targets as a leader of Mr. Trump’s government efficiency initiative. The tax agency serves as the federal government’s charity regulator and thus oversees Mr. Musk’s foundation.
Mr. Musk, who on Wednesday became the first person with a net worth of over $400 billion, has been an unusual philanthropist. He has been critical of the effectiveness of large charitable gifts, and his foundation maintains a minimal, plain-text website that offers very little about its overarching philosophy. That is different from some other large foundations that seek to have national or even worldwide impact by making large gifts to causes like public health, education or the arts.
The Musk Foundation’s largess primarily stays closer to home. The tax filings show that last year the group gave at least $7 million combined to charities near a launch site in South Texas used by Mr. Musk’s company SpaceX.
Mr. Musk’s charity, which he founded in 2002, has never hired paid employees, according to tax filings.
Its three directors — Mr. Musk and two people who work for his family office — all work for free. The filings show they did not spend very much time on the foundation: just two hours and six minutes per week for the past three years.
By giving its foundation Tesla stock, Musk has saved about $2 billion in federal taxes.
Musk gives away as little as possible.
Do you think the IRS might investigate him in the next four years?

But think of the damage that $421M could do if given to right-wing groups!
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That’s where it will go. Not to the ACLU or People for the American way or the Network for Public Education
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I am leery of wealth estimates of oligarchs. The economic activity of those like Musk is far from transparent, and the fact that musk himself is reportedly in frequent conversation with leaders like Putin, it’s safe to say we have no idea what he is really worth. That being said, tax deduction for charitable giving should not be a thing. There is significant evidence that the 2700 billionaires in the world contribute little of their wealth to the needs of anyone but themselves. We could stop this ruse if we hadn’t just handed the keys to the global kingdom to these oligarchs. While Musk shows delusions of creating a real life Spectre, Bezos looks more and more like Lex Luthor. Like Trump’s debunked foundation, these people have no intention of giving to anyone that would not make them wealthier. If we were a just world, we would stop pretending that such philanthropic interests want to make a better world and tax them for their hubris.
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Aha, this may explain why Musk went all in to get the convicted rapist, fraud and felon elected again.
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Musk has lots of money, but little empathy for others. He recently claimed most homeless people are violent drug addicts. Maybe he is trying to bring the US down to the socio-economic standards of South Africa. While his wallet is too full, his heart is a barren desert.
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Musk will never be a happy man because he always wants MORE – more money, more power, more acclaim. Meanwhile Musk will use his immense wealth to do more and more harm.
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You are so right. He has $400 billion and he wants more!!
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Musk, who will be renamed X, has all the empathy and human emotion of a dung beetle. This guy will have the run of the Oval Office and will perpetuate all kinds of nasty policies that will benefit the rich at the expense of ordinary Americans. I try not to think too much about what is coming with Trump and his gang of billionaire sociopaths, but it’s just a few weeks away. Yikes!
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I wish that small struggling organization like my local Zeeland Historical Society and its museums could get on his approved charity list.
We have run a deficit for the last few years. We are an institution that collect and preserves historically significant articles and ephemera from our Western Michigan area. We specialize in telling the story of the Dutch Kolonie that settled here in 1847.
We would love to have Elon give us a few of his millions to help us build a state-of-the-art museum and achieve and to establish an endowment that could fund the salaries and benefits for our professional staff.
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Ken,
If you can figure out how your museum advantages Elon, he might be interested.
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This is an interesting commentary about Elon Musk. Born in South Africa during apartheid. Father strong supporter of apartheid. Arrives in U.S. as an illegal immigrant. Disguises his deeply reactionary views.
https://sethabramson.substack.com/p/the-truth-about-musk-from-his-biographer?triedRedirect=true
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Other than the fact that some of the “Dutch” immigrants to Zeeland, MI moved from the Netherlands to South African (Africans is a dialect of Dutch) and then either to Zeeland immediately or entered by emigrating to Canada and then to the US and Elon’s family followed the second route to the US, but they did it as Apartheid was ending and white South Africans were losing their total control over the government and economy.
So, I doubt that we can attract his attention. We have gotten a very small contribution from the Dick and Betsy De Vos Foundation for the Arts, but it is for a specific project and won’t help cover our deficit, build our endowment or help us build a larger facility, which we badly need.
It’s just wishful thinking. He has all that money to spend, or the IRS will grab it and we would happily take it off his books!
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