Musk’s charity allocates majority of funds to his own units

(MENAFN) Elon Musk's charitable foundation has reportedly failed to meet the U.S. Internal Revenue Service (IRS) requirement to distribute a certain amount of its assets, while directing millions of dollars to other entities controlled by Musk, according to Bloomberg. The Musk Foundation, which grew to $9.5 billion in assets last year, only disbursed $237 million in donations, most of which went to other nonprofits linked to the billionaire, such as The Foundation, X Prize Foundation, and Fidelity Charitable.

Tax filings indicate that the foundation fell $421 million short of the required disbursement in 2023, leaving Musk with a deadline at the end of the year to allocate the funds or face a significant penalty from the IRS. The IRS mandates that charitable foundations spend at least 5% of their assets annually, a threshold Musk’s foundation has reportedly missed several times.

Meanwhile, Musk’s wealth has surged, with his net worth hitting a record $440 billion this week, boosted by an insider sale of SpaceX shares. He now holds a fortune nearly $200 billion larger than Amazon’s Jeff Bezos and Meta’s Mark Zuckerberg. Musk has also become a major Republican donor and a prominent member of President-elect Donald Trump’s inner circle, pledging to audit the U.S. government and reduce its spending by up to $2 trillion.

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