<h1>Exploring the Secrets of the Rich: Philanthropy and Tax Benefits</h1>
Hey dad, could you tell me something that seems illegal but isn't?
Dad: Absolutely, each year I don't pay taxes on 30% of my income.
Child: Is this just some secret of the rich?
Dad: Oh, anybody can take advantage of Section 4942 of the US tax code. Just create a private family foundation.
Child: What's the catch?
Dad: I just have to pay out 5% of the foundation's market value each year to a qualified charity.
Child: What happens with the other 95%?
Dad: That stays in the foundation and grows for future giving.
Child: I like it.
Dad: Great, because you're also hired to run the foundation. Oh, and I'm giving you the foundation when I die. Keeping it in the family.
Dad: That's philanthropy, son.

Discover how the wealthy legally minimize their tax burdens through philanthropic foundations. Learn about Section 4942 of the US tax code and how it allows you to keep most of your money while giving back.