Ray Dalio
Photographer: Jeenah Moon/BloombergFinance
A Powerful New Tool Transforms How Billionaires Give Fortunes Away
Ray Dalio and the Koch family have pioneered philanthropy through the 501(c)(4). More than just a charity, it can avoid punishing taxes, retain business control and even influence politics.
Ray Dalio, founder of the world’s largest hedge fund, has one. The Koch family, sitting atop a $137 billion fortune, has at least two. Still another entity, with unknown backers, owns a big stake in one of Wall Street’s fastest-growing financial technology startups.
The vehicle, long deemed a dumping ground for nonprofits like low-income housing developers, Rotary International and even the AARP, drew controversy in the past decade as a “dark money” political giving tool. Now it’s attracting billionaires who realize it offers far more.