Elon Musk accused of using charity foundation to serve tax breaks and self-interests

Elon Musk, the world's second-richest person, is under scrutiny as an in-depth report suggests that his charity, The Musk Foundation, is being utilised for tax breaks and self-serving interests.

According to The New York Times, approximately half of the foundation's donations in 2021 and 2022 were linked to Musk, his employees, or his businesses. In 2020, the charity received tax-deductible contributions of almost $7 billion worth of stock, making it one of the biggest in the US.

The report highlights Musk's sparse philanthropic presence, especially in comparison to other billionaires like Bill Gates, and questions the purpose and focus of Musk's foundation, which reportedly failed to meet the minimum required donation in recent years.

Despite being under no obligation to establish a charity, Musk's foundation has attracted attention for its infrequent and seemingly strategic donations.

The report notes that Musk himself, along with two volunteers, handles the foundation.

One volunteer reportedly devotes as little as six minutes to the charity per week.

In 2022, the foundation's donations fell short of the legal requirement by $234 million, marking the fourth-largest shortfall among US foundations.

The foundation's board, primarily consisting of Musk, is accused of diverting charitable funds toward Musk's interests, including a $55 million contribution to assist a major SpaceX customer in meeting a charitable pledge.

The analysis further reveals that Musk's foundation, seeded with tax-deductible donations of stock since 2020, allows him to reduce his tax bill significantly.

Tax laws permit executives holding large company stock to reduce their tax liability through charitable contributions.

Despite this, the Musk Foundation reportedly failed to meet the minimum required 5 per cent donation of its assets in recent years, raising concerns about potential penalties.

The foundation's giving pattern raises questions about Musk's commitment to philanthropy, especially when compared to the impactful charitable work of other high-profile figures.

Elon Musk's role as the head of SpaceX, Tesla, and other ventures, coupled with his control over the social media platform X, adds complexity to the situation.

The New York Times report points out that Musk's outsized public persona does not align with his minimal philanthropic presence.

Musk's foundation, lacking a clear direction or focus outside his business ventures, stands in contrast to the more impactful and globally focused foundations of his billionaire peers.

Critics argue that Musk's use of his charity for tax benefits and perceived self-interest raises ethical questions.