The LLC structure of the Chan Zuckerberg Initiative has limitations in transparency and gives greater control to operators than traditional foundations or donor-advised funds.
"By setting up a limited-liability company to oversee their philanthropy, Facebook founder Mark Zuckerberg and his wife, Priscilla Chan, can avoid disclosure rules, critics say, and engage in activities that stretch the definition of charity.
"The couple announced Tuesday that during their lifetimes they plan to give away 99 percent of their shares in Facebook — currently worth $45 billion — to help in 'improving this world for the next generation.'
"Their vehicle for giving away their wealth will be the Chan Zuckerberg Initiative, a company that will give money to nonprofits, participate in public advocacy, and make investments whose profits will be used to support its work, according to Facebook’s most recent SEC filing and additional information provided to The Chronicle."--Alex Daniels and Nicole Wallace, The Chronicle of Philanthropy