But do oracular funders (eg OpenPhil, Future Fund) pay taxes at all, or benefit from tax-deductability? Iâm not clear on this.
In theory it would be great to get a lawyer/âmoney manager from one of these orgs to comment on this, but I donât expect that to happen, so Iâm going to give my guess as someone who runs a charity that has gotten money from both of these orgs.
I think most of Open Philâs money is stored at a DAF at SVCF. Dustin presumably got a big tax deduction when he donated to that DAF. Open Phil also sometimes distributes money in other ways, which may or may not benefit from tax-deductibility. But those should be thought of as âmore expensiveâ since it costs money (taxes) to get money from Dustinâs pocket into those funds. So I think impact certificates would be more expensive for Open Phil than if theyâd funded the project directly.
I donât think the Future Fund has a DAF, but instead benefits from being based in The Bahamas, which doesnât have income or capital gains taxes. I expect that impact certificates would not really be more expensive for them because...FTX and SBF donât pay taxes at all?
I think most existing charitable funders look more like Open Phil here.
US tax law requires that US citizens pay income tax and capital gains tax, regardless of their physical/âlegal residency. Some limited deductions apply, but donât change the basic story.
In theory it would be great to get a lawyer/âmoney manager from one of these orgs to comment on this, but I donât expect that to happen, so Iâm going to give my guess as someone who runs a charity that has gotten money from both of these orgs.
I think most of Open Philâs money is stored at a DAF at SVCF. Dustin presumably got a big tax deduction when he donated to that DAF. Open Phil also sometimes distributes money in other ways, which may or may not benefit from tax-deductibility. But those should be thought of as âmore expensiveâ since it costs money (taxes) to get money from Dustinâs pocket into those funds. So I think impact certificates would be more expensive for Open Phil than if theyâd funded the project directly.
I donât think the Future Fund has a DAF, but instead benefits from being based in The Bahamas, which doesnât have income or capital gains taxes. I expect that impact certificates would not really be more expensive for them because...FTX and SBF donât pay taxes at all?
I think most existing charitable funders look more like Open Phil here.
(Speaking for myself and not my employer.)
US tax law requires that US citizens pay income tax and capital gains tax, regardless of their physical/âlegal residency. Some limited deductions apply, but donât change the basic story.