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Reed Hastings, the co-founder and executive chair of Netflix, has made a substantial philanthropic contribution by donating 2 million shares of Netflix stock, valued at over $1.1 billion, to the Silicon Valley Community Foundation in Mountain View, California.
This donation accounts for approximately 40% of Hastings’ Netflix holdings.
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The donation was disclosed in a Securities and Exchange Commission (SEC) filing, initially without specifying the beneficiary. Reed Hastings still retains ownership of 2,991,541 shares in Net flix.
Net flix’s stock reached a two-year high, closing at $575.79 on Monday, reflecting a nearly 1% increase.
Besides the charitable impact, significant stock donations offer executives substantial tax benefits. Donors receive a deduction against current income, often valued at up to 30%, and can avoid capital gains tax on the shares’ appreciation.
Reed, with a net worth of $6.6 billion according to the Bloomberg Billionaires Index, has a history of supporting educational institutions, especially Historically Black Colleges and Universities (HBCUs). Last year, he contributed $20 million to Minerva University in San Francisco.
Having stepped down as co-CEO of Net flix a year ago, Hastings remains a significant figure in the company. The Silicon Valley Community Foundation, the recipient of the donation, is the largest charitable foundation in Silicon Valley, but it has yet to provide an official response regarding this contribution.
Reed’s philanthropic efforts align with his commitment to supporting educational causes, particularly those focused on diversity and inclusion.
