Foundations for extending family wealth
From Robert Whitcomb's "Digital Diary,'' in GoLocal24.com
There are lots of big charitable foundations around and many do good work, including work that government can’t or refuses to do. But they are also a way for rich families to stay rich and powerful by extending their power over generations. As The Guardian, in an article headlined “How philanthropic dynasties are exerting their power over US policy,’’ reported:
“Private foundations … offer a way to preserve – and grow – estates over many decades and even centuries. There are more than 90,000 private foundations in the US, with over $800bn {billion} in assets, almost half of which are under family control.
“Such institutions offer a powerful means for heirs to wield influence in society long after the original benefactor is gone….
“One benefit of controlling family philanthropic wealth is social status. Even if you don’t have much of your own money, the ability to give out grants means that people seek you out and pay attention to what you think. You’re asked to sit on boards and attend elite events. While that kind of popularity may not sound like it confers “blessings on generation after generation,’ as Buffett described {the advantages of inherited wealth} such status and access is a very real currency of power in society.’’
Indeed, family foundations are a way to ensure the future income (with power, connections and status come money) and privilege of people who had ancestors who made a lot of money. Meanwhile, Republican plans to get rid ofthe federal estate tax mean that the plutocracy based on inheritance will probably become even more entrenched. So much for a country created in part in opposition to hereditary, aristocratic privilege.
Another problem with some of these “charitable’’ foundations is that more than a few have become purely political organizations attached to one of the two major parties. They’re often used to promote the economic interests of those running the foundations. Donations to political parties aren’t tax-deductible. But gifts to these “charities’’ are.
See:
https://www.theguardian.com/society/commentisfree/2017/jul/25/philanthropic-dynasties-exerting-power-us-policy