Apple CEO Tim Cook Donates $5 Million in Stock to Charity

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Apple CEO Tim Cook last week donated more than $5 million in Apple stock to an unnamed charity, according to an SEC filing shared today.


Cook donated a total of 10,715 shares worth $5.4 million at Apple's current closing price of $503.43. The SEC filing does not include details on where Cook donated his money.

Every year in August, Cook donates right around $5 million worth of stock to charity, and in a 2015 interview, Cook said that he had plans to give away the vast majority of his wealth with a "systematic approach to philanthropy."

Following the donation, Cook continues to hold 837,374 shares of Apple stock worth $422 million.

Article Link: Apple CEO Tim Cook Donates $5 Million in Stock to Charity
 

Veinticinco

macrumors 65816
Feb 25, 2009
1,189
866
Europe
Ah yes, always cynical.

You know what a better tax break is? Just keep your $5mil.
That’s not the Cook way though is it? He‘s always keen to be seen doing the right thing. Appearances matter.

An annual 5 mill is back of the sofa money for Tim, and it also doesn’t align with his statement about giving away the “vast majority” of his wealth, given his age.
 

Carnegie

macrumors 6502a
May 24, 2012
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1,706
I understand he wants to do this in a tax advantageous manner but it seems like he could give away more than $5 million per year if the plan is the give away almost all of his wealth.

He may be giving away far more than $5 million a year. We wouldn't necessarily know. We know (some details about) what he's done with Apple shares, but wouldn't necessarily know about other donations he might have made. (When it comes to donations of Apple shares, he gave $7 million worth last year.)
 

JGIGS

macrumors 65816
Jan 1, 2008
1,361
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CANADA!
Ah yes, always cynical.

You know what a better tax break is? Just keep your $5mil.


And do what? Leave it in a bank and let sit there till he dies because he has so much money he can't spend it all? He has to pay tax on it at some point if he doesn't donate it to charity.

Depending on what the organizations the wealthy donate to, it could actually be more beneficiary that billionaires don't donate and actually pay tax. Though that probably works better when the general population have a say as to what tax dollars go to, which they don't, so really society is probably screwed either way.
 

Carnegie

macrumors 6502a
May 24, 2012
722
1,706
Hmmm. Isn’t this a tax break? He could always cash in the stock options and make a private donation that doesn’t require any public disclosure.

There are advantages to giving appreciated stock rather than, e.g., cash. He can (under the right circumstances, which likely exist for him) either (1) donate more at the same effective cost to himself or (2) donate the same amount at a lower effective cost to himself.

If you donate shares that have appreciated in value, you don't have to pay the capital gains you would have had to pay if you sold the shares. You can also, if you've held the shares over a year, deduct the market value of the shares rather than your cost basis for them. (Your deductions are subject to various limitations, of course.)

So if he sold $5 million worth of Apple shares, he'd have to pay capital gains on the increase in their value and then would have less to give to charity. Or he'd have to sell more than $5 million worth of Apple shares in order to have $5 million net (after paying capital gains taxes) to give to charity. Either way, he's better off donating the appreciated shares.

Also, to be clear, Apple doesn't do stock options anymore. Mr. Cook, as well as others at Apple, get RSUs - so they get actual shares, not stock options.
 

Pixelsage

macrumors newbie
Nov 11, 2019
6
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Hmmm. Isn’t this a tax break? He could always cash in the stock options and make a private donation that doesn’t require any public disclosure.
Tax break doesn't mean he makes money. It means he loses less to the government, if I am correct. Also, cashing in the stock and donating the proceeds, ironically, actually means the charity gets less in the end. It's a weird result of our convoluted taxing system.
 
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stevet

macrumors 6502
Apr 16, 2009
343
683
Bottom line he doesn't have to part with a dime to charity, regardless of actual amounts, or the reasons for doing it or not doing it. So the fact that he does engage in philanthropy is a plus in my book.

Don’t you have to know where the money is going in order to applaud him?
 
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cupcakes2000

macrumors 6502a
Apr 13, 2010
761
646
I wish he would start building things in the United States and innovating. He's no Steve Jobs, that's for sure.
Steve jobs was the man, no denying this fact. But what did his Apple build in the us? In recent history? Come on.

This is the same kind of nonsense as when people spout that Steve jobs would never be as locked down as Apple is now under Tim Cook. Steve jobs wanted his machines to be inaccessible, he wanted computing to be an appliance.

But still! Tim Cook!! Blahhhhhhhh
 

citysnaps

macrumors 603
Oct 10, 2011
6,486
10,917
San Francisco
That’s not the Cook way though is it? He‘s always keen to be seen doing the right thing. Appearances matter.

An annual 5 mill is back of the sofa money for Tim, and it also doesn’t align with his statement about giving away the “vast majority” of his wealth, given his age.

You have no idea how much Tim Cook has given to charity over the years.
 
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