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Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

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Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#41

Post by ex-aws-dude »

hartator wrote: post #36
zck wrote: post #10

> “I do not believe that financial insecurity should stop our nation’s elite athletes from breaking through to new frontiers of excellence,” Stevens said upon the announcement of his gift. So his goal is to prevent money issues from being a thing getting in the way of athletes achieving. But he has structured it in a way that prevents the money from helping this goal. > Per the Wall Street Journal, “Half will come 20…

Real answer are probably tax benefits for Ross. He can now report a $100M donation, let it grow for 20 years, pay the actual donation, and pocket the remainder tax free.

But if he retains the money while its growing wouldn't that result in capital gains?

You can't claim a donation while still holding onto the money?

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#42

Post by falcor84 »

embedding-shape wrote: post #13
zck wrote: post #10

> “I do not believe that financial insecurity should stop our nation’s elite athletes from breaking through to new frontiers of excellence,” Stevens said upon the announcement of his gift. So his goal is to prevent money issues from being a thing getting in the way of athletes achieving. But he has structured it in a way that prevents the money from helping this goal. > Per the Wall Street Journal, “Half will come 20…

> Another $100,000 will be in the form of a guaranteed benefit for their families after they pass away. > So half of it will never be seen by the athlete This can't be right, right? I never heard of people "receiving a donation" that you get the promise of now, but will be given to your family once you die, sounds a bit macabre. And as you mention, also pointless, how would that make them "break through new frontiers…

> will be given to your family once you die, sounds a bit macabre.

To me it sounds more than a bit macabre - depending on the familial relations, it would seem like a motive for them to commit suicide in order to provide for their children or for their children to murder them. I can already imagine the memoires being adapted into Netflix shows.

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#43

Post by conductr »

apparent wrote: post #11
zck wrote: post #10

> “I do not believe that financial insecurity should stop our nation’s elite athletes from breaking through to new frontiers of excellence,” Stevens said upon the announcement of his gift. So his goal is to prevent money issues from being a thing getting in the way of athletes achieving. But he has structured it in a way that prevents the money from helping this goal. > Per the Wall Street Journal, “Half will come 20…

It allows them to "income smooth". They will know they're getting $100k down the road, so they can count on having that money to use for their kids' college or part of their nest egg. In the meantime, they can spend more freely. As for the gift to their heirs, that also allows them to consume somewhat more freely, instead of purchasing (as much) life insurance. Most young people don't, but people who compete in dange…

> In the meantime, they can spend more freely

In the meantime, they need income not advice on frugality.

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#44

Post by [deleted] »

maxerickson wrote: post #22
apparent wrote: post #11

Earlier quoted context omitted.

It allows them to "income smooth". They will know they're getting $100k down the road, so they can count on having that money to use for their kids' college or part of their nest egg. In the meantime, they can spend more freely. As for the gift to their heirs, that also allows them to consume somewhat more freely, instead of purchasing (as much) life insurance. Most young people don't, but people who compete in dange…

That's like $75 a year of term life insurance for a young healthy person.

[deleted]

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#45

Post by conductr »

ex-aws-dude wrote: post #41
hartator wrote: post #36

Earlier quoted context omitted.

Real answer are probably tax benefits for Ross. He can now report a $100M donation, let it grow for 20 years, pay the actual donation, and pocket the remainder tax free.

But if he retains the money while its growing wouldn't that result in capital gains? You can't claim a donation while still holding onto the money?

He'll donate to a trust/non-profit he controls that will direct the investment. That allows him to take the tax benefit today and keep the money

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#46

Post by jychang »

conductr wrote: post #43
apparent wrote: post #11

Earlier quoted context omitted.

It allows them to "income smooth". They will know they're getting $100k down the road, so they can count on having that money to use for their kids' college or part of their nest egg. In the meantime, they can spend more freely. As for the gift to their heirs, that also allows them to consume somewhat more freely, instead of purchasing (as much) life insurance. Most young people don't, but people who compete in dange…

> In the meantime, they can spend more freely In the meantime, they need income not advice on frugality.

Cash is fungible. Money not spent on kids is money you can spend now.

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#47

Post by irishcoffee »

Carrok wrote: post #29
pooloo wrote: post #18

Earlier quoted context omitted.

Why even question it? Its a donation that no one ever had to make.

“You only get this money if you submit yourself to Christ and living a conservative lifestyle” Still not worth questioning?

That isn’t a donation.

Also, $donator is making, as far as I know, zero demands. These people would be competing if they had to pay. Actually, most of them do have to pay.

Your analogy is comparing apples-to-sqrt(-1)

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#48

Post by FpUser »

$100K after they pass away? I am curious what those will be worth by then. This whole thing sounds like some tricky scheme. He can probably take these 100M from his profit, stuff it into some fund to avoid taxes and let the fund grow, meanwhile the real value of what he has to give will be shrinking as the years pass.

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#49

Post by lmm »

zck wrote: post #20
apparent wrote: post #11

Earlier quoted context omitted.

It allows them to "income smooth". They will know they're getting $100k down the road, so they can count on having that money to use for their kids' college or part of their nest egg. In the meantime, they can spend more freely. As for the gift to their heirs, that also allows them to consume somewhat more freely, instead of purchasing (as much) life insurance. Most young people don't, but people who compete in dange…

Do you think a 21-year old fencer will be more competitive because of this money? A 17-year old swimmer? A 16-year old gymnast?

If that money is what makes them feel comfortable e.g. dropping out of college to focus on their sport, absolutely.

Re: Ross Stevens Donates $100M to Pay Every US Olympian and Paralympian $200k

#50

Post by greggh »

The real answer here is that he is mad about people protesting what Israel is doing in Gaza. This $100M donation is being made with funds he had given to UPenn. He has taken it back, via lawyers, because they allowed the protests to go on. He is now just taking that original donation and moving it somewhere else. Not that I am against the Olympians getting paid, just some context.

Sources: https://philanthropynewsdigest.org/news/donor-pulls-100-mill... https://thehill.com/homenews/education/4348656-upenn-loses-1... https://www.timesnownews.com/world/who-is-ross-stevens-stone... (many more)

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