What Is CZI Really Up To?
Perceived as a charity, its essential nature is something else entirely
It turns out, it was capitalism all along. — Kara Swisher
The Chan Zuckerberg Initiative was established on December 1, 2015, with a pledge from co-founders Priscilla Chan and Mark Zuckerberg that they would transfer 99% of their shares of Facebook to CZI to make the world a better place for their children. Their son Max was the recipient of the public letter announcing CZI and the couple’s intention to pay it forward.
With this foregrounding, you would be forgiven for thinking the parents were giving up their shares, and that CZI was a charitable organization set up to receive these shares, to the benefit of society.
Not so fast. There’s a lot more going on here.
CZI Is Not a Charity
The Chan Zuckerberg Initiative is not a charity, but a limited liability company (LLC). This means it is a private for-profit that passes its revenues through to its owners.
CZI LLC was formally established in Delaware on December 15, 2015 — two weeks after the pledge to surrender 99% of Facebook stock was made. Its registered agent is a firm that specializes in various legal services, but especially in setting up corporations and serving notice like subpoenas.
An LLC was registered in California for CZI LLC in January 2016 so the company could “transact intrastate business in California.”
In California, where Zuckerberg and Chan reside, CZI LLC’s principal address is the same as that of ICONIQ Capital, LLC, Zuckerberg’s investment management firm, one known to manage investments for high net-worth individuals with the goal of transferring wealth across generations.