SpaceX President Pledges $330 Million in Stock for Children

Gwynne Shotwell, President of SpaceX, and her husband, Robert, pledged to gift SpaceX stock valued at approximately $330 million to more than two million children between the ages of 11 and 17. The initiative targets children in lower-income areas, with a specific focus on central Texas.

The donation utilizes Trump Accounts, a program governed by new United States Department of the Treasury rules that took effect September 30. These regulations allow wealthy donors to transfer shares of publicly traded companies into tax-advantaged investment accounts via private foundations or charities. This mechanism enables founders to avoid taxable gains on appreciated assets by transferring them to foundations first.

While Trump Accounts previously relied on low-cost index funds to limit risk, the new rules permit the use of donated stock. This shift introduces higher portfolio concentration risk for the recipients, who must generally hold the shares for five years or until the end of the year they turn 17.