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

MacRumors

macrumors bot
Original poster
Apr 12, 2001
46,832
8,975



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

Cook donated a total of 23,700 shares worth over $4.89 million at Apple's current closing price of $206.49. There's no word on which charity Cook donated to, as the SEC does not disclose that information.

In the past, Cook has said that he plans to give away the vast majority of his wealth. In a 2015 interview with Fortune, Cook said he had already started donating money quietly and had plans to create a "systematic approach to philanthropy."

Cook at this same time last year also donated $5 million in stock to charity. Following the 2019 donation, Cook continues to own 854,849 shares of Apple stock worth over $176 million.

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

Unity451

macrumors 6502
Aug 29, 2011
425
1,672
California
Proofreading, this article needs it.

He's donated more than he now has...?

The amount donated in the headline, was actually donated this time last year...?

My best guess is you needed a decimal point, so: $4.89 million.
Those numbers are so far above my grasp, doesn't really matter where the error is. He just as much could be donating unicorns.
 

jclo

Editor
Staff member
Dec 7, 2012
1,521
2,930
California
Proofreading, this article needs it.

He's donated more than he now has...?

The amount donated in the headline, was actually donated this time last year...?

My best guess is you needed a decimal point, so: $4.89 million.
Yes, thanks. I've fixed it. Sorry for the confusion.
 
  • Like
Reactions: HutNews and s15119

mariusignorello

macrumors 68000
Jun 9, 2013
1,606
2,013
Some of you on here need to stop hating on money, people, and what they do with it. Be grateful he donated it, and it doesn’t matter how much of it.

And if he used it for a tax write off it’s absolutely none of your business. None. You would do the exact same if you were able to.

Good for Cook for using his money how he feels necessary.
 

PickUrPoison

macrumors 603
Sep 12, 2017
5,677
6,590
Sunnyvale, CA
Tax evasion 101
Maybe in your country, but in the US, charitable deductions aren’t taxable.

Making donations is behavior that the government wants to encourage. If someone donates a million dollars, they might save 100-200k in taxes. So it really only costs them $800-900k—but the charity gets the full $1,000,000.

On the other hand, tax evasion is illegal. But giving money away? Not so much.
 
Last edited:

Erehy Dobon

macrumors 6502
Feb 16, 2018
461
330
Tax evasion 101
It's not tax evasion since the IRS explicitly allows this.

But don't take my word for it, go ask the IRS. They will give you the same answer.

And there's no lower limit. If you make $35K a year and you want to $350 in fully appreciated assets (like two shares of QQQ), you are welcomed to do so.

I will bet you a buffalo nickel that if the IRS/FTB audited Tim Cook, his tax consultant would have all the requisite documents showing the donation was properly executed per current tax code.

It's not all that difficult. Most major charities (and certainly churches) accept fully appreciated assets and they have accounts at the major brokerage firms to facilitate the process. The instructions (and maybe contribution forms) are on the websites with the relevant brokerage account number and tax ID.

You just fill out the form ("I _____ donate 100 shares of SPY to Charity X, Fed Tax ID xxx-xx-xxxx") and communicate it to the recipient and your broker. They transfer the assets and will send you a transfer confirmation. Eventually, the recipient will send you a form saying, "the transferred assets were sold for $__,__" which is the amount you can claim as a tax deduction (fair market value).
 
Last edited:

unplugme71

macrumors 68030
May 20, 2011
2,768
719
Earth
Maybe in your country, but in the US, charitable deductions aren’t taxable.

Making donations is behavior that the government wants to encourage. If someone donates a million dollars, they might save 100-200k in taxes. So it really only costs them $800-900k—but the charity gets the full $1,000,000.

On the other hand, tax evasion is illegal. But giving money away? Not so much.
Can the deduction be carried over or only in the current year?

Because saving $100-200k and reducing your tax liability by $100-200k are two different things.
[doublepost=1566887624][/doublepost]Question is - why not donate 80% of your wealth today while the stock is up? (Assuming he plans to donate 80%).

Apple could very easily tank to sub $10 per share and now it doesn’t help anybody.
 

Mike MA

macrumors 68020
Sep 21, 2012
2,037
1,655
It’s easy to say the super rich need to act like this. Therefore I think it shows that Tim definitely has broader vision than many believe.
 
  • Like
Reactions: G5isAlive

PickUrPoison

macrumors 603
Sep 12, 2017
5,677
6,590
Sunnyvale, CA
Can the deduction be carried over or only in the current year?

Because saving $100-200k and reducing your tax liability by $100-200k are two different things.
[doublepost=1566887624][/doublepost]Question is - why not donate 80% of your wealth today while the stock is up? (Assuming he plans to donate 80%).

Apple could very easily tank to sub $10 per share and now it doesn’t help anybody.
Perhaps I oversimplified, I refer to the typical case where the taxpayer making a million dollar donation would save maybe 100-200k by reducing their tax liability by that amount.

Specifically, the charitable contribution is a tax deduction, not a tax credit. You must have sufficient AGI from which to offset the contribution amount. Since in general the deduction for charitable contributions is limited to 60% of AGI (the rules are somewhat involved; depends on income level, the type of organization you donate to and the nature of the asset(s) donated, and possibly other factors) in order to have the benefit of the entire $1 million contribution, the taxpayer would need an AGI of approx $1.7 million, minimum. In that case, the taxpayer would only be taxed on 700k of income, not on the pre-contribution AGI of $1.7 million. The actual amount saved would depend on the marginal tax rate of that last million dollars.

The deduction does not have to be taken in the current year. Should the taxpayer be unable to take full advantage of a tax deduction in the contribution year, it can be carried forward for up to five years. Note: I am not your tax accountant and this is not tax advice. But maybe this helps further your understanding.

re: why not sell and donate the proceeds now? Well, Cook has said he’s going to donate virtually his entire fortune before he dies; it seems reasonable for him to decide how that might be scheduled throughout his remaining lifetime. He’s already given over $100 million to charity out of, who knows, maybe a $700 million fortune.

Also, presumably, Cook believes Apple stock is currently undervalued and will appreciate in the future. (That’s also one of the reasons why Apple’s stock buyback program makes good business sense.)

But the biggest reason for not donating now is simply that a large portion of Cook’s wealth is not actually his yet. He owns something like $500 million in unvested RSUs.
 
Last edited: