Elon Musk, the CEO of Tesla, has come under fire as a nonprofit foundation he established is claimed to be a tool for his personal gain rather than serving true charitable purposes. According to a report by the New York Times, published yesterday on local time, Musk’s foundation, which is among the top 10 nonprofit organizations in the U.S. with assets amounting to $14 billion, primarily benefited entities closely linked to Musk, especially those in Texas, through its donations last year.
The reports highlight that out of the $474 million donated by the Musk Foundation last year, approximately 80% or $370 million was given to “The Foundation,” a nonprofit organization in Texas managed by one of Musk’s close associates. This organization is closely related to Musk’s personal and business ventures. Musk’s businesses, including Tesla, SpaceX, and The Boring Company, are actively operating in Texas, where they’re setting up a significant presence, including Tesla’s vast Gigafactory Texas and various research facilities.
“The Foundation” receiving these donations operates an elementary school near Musk’s Texas companies, effectively serving as an institution for educating the children of his company employees. The foundation plans to expand by building a high school and a university in the future. Since 2022, the Musk Foundation has donated a total of $607 million to this entity.
Other recipients of the Musk Foundation’s donations reportedly have connections to Musk, such as nonprofits in southern Texas where SpaceX operates rocket facilities, or the school in Los Angeles attended by Musk’s son. Additionally, when Musk’s controversial remarks concerning Jewish communities made headlines, his foundation donated to Jewish organizations.
The operational approach of the Musk Foundation is said to differ significantly from other billionaire-established nonprofits. Unlike organizations that employ teams of experts to guide their charitable endeavors, the Musk Foundation is reportedly run by just three unpaid volunteers, including Musk himself. Since its establishment in 2001, the foundation has been allocated 18 million shares of Tesla stock by Musk.
In a recent podcast interview, Musk stated that the most challenging aspect of running his foundation is donating in a manner that genuinely helps people.