From Fortune Media Group:

Netflix co-founder Reed Hastings gave 40% of his stock, valued at $1.1 billion, to a still-unnamed entity. His donation is one of his largest and represents 20% of his net worth, as listed on Forbes. A major portion of his net worth will remain tied to just under 3 million Netflix shares through his family trust.

The donated stocks will benefit the Silicon Valley Community Foundation’s various charitable initiatives. Hastings has long exhibited support for different charitable causes. His latest donation comes with significant tax benefits due to being structured as a donor-advised fund that provides maximum tax breaks.

Interestingly, Hastings’ donation to the Silicon Valley Community Foundation mimics the sizable contributions of other wealthy tech figures, building on the foundation’s appeal through a strategic method of giving to receive tax deductions. The U.S. tax code has maintained substantial benefits for donating to charity, especially with donor-advised funds like the SVCF.

Hastings’ charitable act follows in the footsteps of other billionaires like MacKenzie Scott, who constantly donates large portions of her wealth. The Gates Foundation also put forth its intention to spend its entire endowment within 20 years of Bill and Melinda Gates’ deaths, potentially accelerating the process, as its CEO Mark Suzman suggested.

Hastings, Netflix’s executive chairman, stepped into the role last year following his 25-year-long tenure as its CEO. He leaves the streaming service in the hands of co-CEOs Ted Sarandos and Greg Peters.



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