Donating money to your own foundation, or just about any foundation, is NOT the same as donating to charity. "Charitable" foundations in the U.S. are largely used as a tax dodge by the wealthy to protect their assets and keep them IN the family.
Once the money is in a foundation, you can pretty much just let it sit there. Technically, you don’t even have to give a single cent of it to those in need. The law dictates foundations only have to spend 5 percent of its endowment, and that expenditure can be fulfilled in any variety of ways, such as administrative costs, and staff salaries. You can set up a foundation to shield your fortune from taxes, employ and pay yourself and your entire family as board members or functionaries within it, hit your 5 percent minimum and not give a damn thing to anybody in need. All. Perfectly. Legal.
You can even invest portions of your endowment so that your charitable foundation actually earns more money for you. And those investment expenditures? They can count toward that 5 percent minimum, too.
The Hilton largesse isn’t going anywhere. Nor is the Gates’ fortune. Same with Buffett’s. Ever wonder why millionaires and billionaires all have charitable foundations? It’s not because they’re charitable. It’s because they’re greedy motherfuckers. Because most people don’t know this stuff, though, it makes them look like saintly philanthropic people of character. They’re not.
Think about this the next time there’s debt talk, or social programs getting cut for those in need, or teachers being attacked for earning too much money. And sadly, both political parties are pretty much OK with this.
EDIT: Read these … http://www.incite-national.org/index.php?s=89
http://www.bostonreview.net/forum/foundations-philanthropy-democracy
http://www.frankrimerman.com/online_library/tax/required-annual-minimum-distribution-planning-for-private-foundations.asp
