Birchall flags self-dealing risk on OpenAI building lease
- From:
- Jared Birchall
- Date:
- June 13, 2016 (Sent 2:19 PM)
- To:
- Elon Musk
- Subject:
- Pioneer building lease
The myCFO team suggests that having the Musk foundation lease a building for OpenAI is a problem because you are a director/chair of OpenAI. Because the foundation now has assets in excess of $2 million, there will be an obligatory audit of the foundation. The lease would need to be disclosed. This could become a 'self dealing' issue in the eyes of the IRS because of your fiduciary position with both organizations. The way around it is to have the lease cosigned with OpenAI and another one of your entities - like Musk industries. We can still make the payments through the donor advised fund or the Musk foundation, but the lease wouldn't have to be disclosed as a Musk foundation transaction. Are you OK proceeding as outlined?
Jared J Birchall
Managing Director
Musk Family Office