The Second Largest Philanthropy In The World, Elon Musk Donates IDR 81 Trillion To Charity

Share proceeds from Tesla were donated by Elon Musk to charity.

JAKARTA - A report from the Securities and Exchange Commission (SEC) stated that last year, Elon Musk had donated more than five million Tesla shares, worth 5.74 billion US dollars (Rp 81.8 trillion) to charity.

The shares were donated to an unnamed charity between November 19 and November 29, 2021. This comes shortly after Musk said he would sell the shares and donate $6 billion to the United Nations World Food Program.

This he once expressed in a tweet on his twitter account. Musk said that with 6 billion will solve world hunger.

It's not clear to which charity the shares have been donated, though one expert estimates that Musk may have donated the shares to intermediaries such as 'donor-advised funds', rather than directly to charitable groups.

World Food Program spokesman Steve Taravella, who has encouraged Musk to make the donation, declined to disclose any information when contacted by MarketWatch. He also did not confirm whether they were recipients of Musk's billions.

The donations began soon after Musk sold a $16.5 billion stake in Tesla, the world's most valuable automaker. This is likely the stock he gave away in 2021, and to cover the cost of the $11 billion tax bill.

Tax experts say donating shares to a good cause may have helped Musk reduce the tax burden of as much as 50 percent of the value of the shares he donated.

Previously, the Tesla and SpaceX CEO said last year he would sell shares to give $6 billion to the World Food Program. Director of the World Food Program, David Beasley, said he could prove that the fund would help tackle world hunger.

According to data from the Chronicle of Philanthropy, the donation places Musk as the second largest donor in America after donations made by Bill Gates and Melinda French Gates last year.

So far, the world's richest man, estimated to have a net worth of around $238.6 billion, has not received a cash salary in his role as CEO of Tesla. Instead it is paid in the form of stock awards.

About 22.9 million private stock options were turned into shares for Musk last year, which saw him have to announce his $11 billion tax bill.

Bob Lord, of the Institute for Policy Studies, said giving away Tesla shares would be a tax advantage, as shares donated to charity are not subject to capital gains tax.

"He will save between 40% and 50% of the $5.7 billion in taxes, depending on whether he can take a deduction against his California income, and he will avoid the profit taxes he would have to pay if he sold the stock," Lord said. .

Musk's public philanthropy moves so far as other billionaires have done. Musk already gives less than 1 percent of his wealth to good causes. Jeff Bezos has also given the same number in charity work.

But the percentage is still far less than Warren Buffett and George Soros. The two billionaires according to Forbes magazine have given more than 20 percent of their wealth to charity in early September.

The Richest People in the World according to the Bloomberg Billionaires Index.

Elon Musk: $227 billion Jeff Bezos: $180 billion Bernard Arnault: $157 billion Bill Gates: $127 billion Larry Page: $121 billion Sergey Brin: $116 billion Warren Buffett: $114 billion Steve Ballmer: USD 106 billion Larry Ellison: USD 97.3 billion Mukesh Ambani: USD 87.5 billion