Elon Musk's charity is in the headlines for all of the wrong reasons. 

An investigation by The New York Times revealed that the Musk Foundation is falling short of its obligations again and seemingly channeling most of what small percentage of its assets it does give to Musk-centric causes.

What's happening?

The Times analyzed the Musk Foundation's 2024 tax filing and unearthed some alarming patterns. The $14 billion fund failed to give away the required 5% of its assets for the fourth straight year. The $474 million in charity that the foundation gave away was almost $400 million short of the amount required by law, subject to penalties from the Internal Revenue Service.

Meanwhile, making up that $474 million were not the most "charitable" causes. The biggest recipient at $370 million was a nonprofit called The Foundation that runs an elementary school near Musk's businesses in Bastrop, Texas. While education is a worthy charity, over the last few years, The Foundation has received over $600 million, and the Times report implied there is more of a business value associated with such donations, aiding in recruitment and retention, than what a charity is typically designed to prioritize.

Another large chunk of Musk's donations includes a $35 million outlay to a donor-advised fund with Fidelity. Other donations include those made to Jewish causes during the time that Musk dealt with accusations of antisemitism.

The tax filings revealed the Musk Foundation has just three unpaid employees running the business. Meanwhile, the fund's skeletal website has been stagnant for years.

Why are the Musk Foundation's shortcomings important?

As one of the richest men in the world running one of the wealthiest charities, Musk has a unique opportunity to do good in the world. These tax filings open up a lot of questions about how and why the money is being donated and invested, along with whether the charity is compliant with U.S. laws.

Besides not adhering to the law, Musk isn't giving much to charitable causes that can make an impact outside of his bubble. That is not to say philanthropy is easy or straightforward. In a podcast, per Fortune, Musk said that "it is very difficult to give money away for the reality of goodness."

While that might be true, there's no excuse for putting in little to no effort or not taking any ownership of your own foundation.

"I have a large foundation, but I don't put my name on it," Musk said in the same podcast.

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What's being done about the Musk Foundation's shortcomings?

By drawing attention to the Musk Foundation's problematic actions, the Times can help increase public pressure on Musk and others to live up to the promise of the charity. The foundation was the 10th-largest in America in 2023 and has a big opportunity if run correctly.

As far as the nearly $400 million shortfall for giving in 2024, if history repeats itself, the foundation will give away the leftover amount in 2025 instead of paying a penalty to the IRS.

That doesn't address the broader issue of the foundation cycling most of its money to Musk-centric causes. It might become incumbent on people closer to Musk's orbit, or for collective actions that hit out at his bottom line, to effect change on the foundation's practices.

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