He gets a tax benefit due to timeshifting. If he puts stock into the foundation he gets the tax benefit immediately even though the foundation will pay out that money over time. In return he has given up some control and is legally obligated to give away 5% every year.
It’s definitely not the only way. Zuck’s equivalent is an LLC, which is less tax efficient but more flexible.
He gets a tax benefit due to timeshifting. If he puts stock into the foundation he gets the tax benefit immediately even though the foundation will pay out that money over time. In return he has given up some control and is legally obligated to give away 5% every year.
It’s definitely not the only way. Zuck’s equivalent is an LLC, which is less tax efficient but more flexible.