NVIDIA’S Surging Share Price Creates a Challenge for Jensen Huang’s Charitable Foundation
NVIDIA’S surging share price has created a challenge for Jensen Huang’s charitable foundation: As the stock climbs, so does the amount of money it has to give away.
Foundation’s Assets Triple
The Jen-Hsun & Lori Huang Foundation saw its assets, which mostly consist of Nvidia shares, more than triple to US$3.4 billion at the end of 2023, according to its newly released tax filing. To account for the growth, it will have to give away at least US$120 million this year – double last year’s level, the filing shows.
Increased Giving Required
“They need to be putting more money out the door,” said John Seitz, the founder of Foundation Mark, a firm that tracks foundations’ investment performance.
Foundation’s Giving History
The foundation named for the Nvidia co-founder and his wife gave away US$59.7 million last year, down from US$66.3 million in 2022. The vast majority of that went to a different charitable fund run by Huang and his wife, along with US$10 million in gifts to his alma mater, Oregon State University. Another large gift of US$900,000 went to the American Friends of Magen David Adom to support Israel’s version of the Red Cross.
Foundation’s Mission
“The Huang Foundation supports higher education, public health and (science, technology, engineering, and mathematics) initiatives across the US, alongside local community organisations in the San Francisco Bay area,” a spokesperson for the Huangs said in a statement. “By taking a long-term approach, the foundation ensures that its resources will continue to support critical causes well into the future, maximising its charitable impact over time.”
IRS Requirements
The Internal Revenue Service (IRS) requires that private foundations give away at least 5 per cent of their assets annually, which can be a moving target for charities that hold fast-rising stocks. The Huangs’ foundation met its distribution requirement in 2023 as mandated on its 2022 tax filing, records show.
Conclusion
As NVIDIA’s stock continues to climb, Jensen Huang’s charitable foundation faces the challenge of giving away more money to meet its annual distribution requirement. With a lean operation and a focus on long-term giving, the foundation is well-positioned to make a significant impact in the years to come.
FAQs
Q: What is the Jen-Hsun & Lori Huang Foundation?
A: The Jen-Hsun & Lori Huang Foundation is a charitable foundation established by Jensen Huang, co-founder of NVIDIA, and his wife Lori.
Q: What is the foundation’s mission?
A: The foundation supports higher education, public health, and (science, technology, engineering, and mathematics) initiatives across the US, alongside local community organisations in the San Francisco Bay area.
Q: How much did the foundation give away in 2023?
A: The foundation gave away at least US$120 million in 2023, double the amount given away in 2022.
Q: What is the foundation’s required giving?
A: The foundation is required to give away at least 5 per cent of its assets annually, which can be a moving target for charities that hold fast-rising stocks.
