Hungarian-American billionaire investor and financial genius announced that he is donating $18 billion, a large chunk of his fortune to the foundation he started, Open Society Foundation. This influx of money to the Open Society Foundation has made it the second largest organization in the country, just short of the Bill and Melinda Gates Foundation. George Soros, who may be old, still has power over the foundation and serves as the chairman, along with three of his children. The contribution, comes as the Soros’ family works to transfer the hedge fund into a pool of capital, that will help the foundation over a long period of time.
Bloomberg has said that the massive contribution was in part to lessen a tax bill that hedge fund managers face this tax year. After Congress eliminated a tax break in 2008, following the financial crisis, hedge fund managers like Soros have until the end of 2016 to pay taxes on fees earned from offshore funds. Many are attempting to find a workaround by making charitable contributions, which will soften the tax burden. As a group, hedge fund managers are estimated to have $100 billion stored offshore. Hedge fund managers like George Soros, could be in a federal income tax rate of 40%, while also facing state and local taxes. In 2013, George Soros wealth soared to $13.3 billion through using deferrals.
As part of his growing reach, George Soros launched the Open Society Foundation in 1993, and has been used to support liberal causes and Democratic candidates. George Soros and his organization recently contributed $33 million to several Black Lives Matter groups and some to the Women’s March. George Soros was a major financial donor to Hillary Clinton’s Democratic presidential campaign in 2016. George Soros was taking a break from contributing to politicians after he was unable to defeat George W. Bush.
George Soros was born and raised in Hungary. Soros and his family survived Nazi occupation by securing false identities and helping others do the same. He fled Hungary as communism was beginning to take over and ended up in London. While in London, he worked as a railway porter and studied at the London School of Economics. He then later emigrated to the United States, where he became an investor genius. He is best known for breaking the bank of England, after making a wager that the U.K. would have to devalue the pound.
George Soros and his foundation have been working to support victims of hate crimes. The foundation is built to promote democracy, human rights and ensure a free press. George Soros founded programs that work to protect minority groups including the LGBT community and the Roma people in Europe. Soros foundation provided treatment centers for those affected by the Ebola outbreak. George Soros is planning on contributing another $2 billion to the Open Society Foundation. Soros’ foundation has been spending $900 million on programs and grants, more than what is required by law. Soros continues to help those who are being neglected by the majority.
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