<p>He also has an MBA from Harvard. Think maybe he took an econ course there???</p>
<p>Parent 1986 – you suggest " my guess is he receives a big salary, tax exempt"</p>
<p>I dont know whether he recieves a big salary (but compared to what the MIT/Harvard MBA could be making at a hedge fund, I doubt it, but whatever), but I really doubt whatever he is earning is tax exempt. Really.</p>
<p>Also, do I understand correctly, Khan makes a lot available for free, Sylvan charges. So isnt that a difference? Or am I wrong.</p>
<p>kayf, the show made a point of mentioning “multiple times” that Khan is a non-profit organization. That is what a non-profit organization means. It is a tax dodge. I’ve looked at enough 990’s to see that. Since Bill Gates invested 15 million or billion in Khan, it isn’t non-profit, Khan isn’t making it available for free. And, just because he had a lucrative previous career doesn’t mean it is free and just because he is in the epicenter of venture capitalists doesn’t mean it is free.</p>
<p>I would imagine Sylvan charges, but it still doesn’t mean Khan isn’t a money making operation.</p>
<p>BUT, the important point is its effectiveness. I only pointed out the money issue because 60 Minutes did.</p>
<p>Just because the Khan Academy is a not for profit, does not mean that Mr. Khan does not pay tax on his salary. Like Harvard is tax exempt, but I assume all the professors pay tax on their salaries. I think Mr. Gates donated 15million, not billion. I dont know how much went to Mr. Khan, but it didnt look like he was living luxiourously.</p>
<p>If, as I think, Khan does not charge, to me that is a big difference from Sylvan. Especially for kids who can not affford Sylvan. And if Mr. Gates wants to give money to make this happen, or to have more of it, I think he should be commended.</p>
<p>I am excited by Khan Academy. And Sal- he is goofy and nice and brilliant- what is not to like!
Hey, his brilliance (and that of other brilliant types) is also being used to figure out how to structure and deliver this product, and how to make the company a success. If they make money at it, no issue for me! There are a lot of worse businesses out there that line people’s pockets.</p>
<p>The q is- how crucial is SAL to this whole thing? Is his personality and energetic focus needed to capture the students/ attention and get all these lessons created? Is his particular type of smarts across many subjects uniquely important?</p>
<p>My sense is that this whole thing represents the giant step for education towards a good use of internet for education and for FREE ACCESS and for all levels of students. I am just thrilled.</p>
<p>I am being dumb and lazy here, but what IS the business model, besides funding from Gates (which should be sustainable, as if it were a de facto subsidiary of Microsoft or Gates Non-Profit Trust)?
Is there advertising?
Would it be allowed to be a non-profit is they did sell some products to some markets?</p>
<p>What are the revenues?</p>
<p>I may just go on myself to brush up and learn about all the STEM stuff I have forgotten or never learned. 60 Minutes said it would take 8 years to get through the currently available lessons if one did 1 a day…</p>
<p>According to the 990 reported to the IRS, Khan made under 80K in compensation in 2010 from his employment at Khan academy. Presumably, he pays taxes on that in the same way that every employee at a non-profit pays taxes (at the same rates that you and I do).</p>
<p>How is the fact that Harvard doesn’t pay property taxes at all relevant here?</p>
<p>And performersmom- yes, many non-profits sell products. Think of every coffee mug or book you’ve ever bought at a museum bookstore. Think of every patent or royalty owned by a university. Or the restaurant at your local zoo or botanical garden.</p>
<p>The tax treatment of revenue derived from ancillary activities (i.e. not the core non-profit mission) is a complicated one. But salaries paid to employees get no preferential tax treatment, with the exception of clergy who get a parsonage allowance by the IRS.</p>
<p>How anyone could be critical of this guy stuns the imagination.</p>
<p>LOL, I’d ask if you were new to these parts but your post count says otherwise!</p>
<p>There always seem to be those on CC who just have to find the negative in any good thing. All I can say about Kahn Academy is that if I’d had access to it when I was in school all my B’s in hs math would have probably been A’s. I think his work is wonderful and potentially life-changing for many students.</p>
<p>As far as I know, the Khan academy doesn’t charge for any of its educational materials. The investment by Gates is a donation, not unlike his donation to help feed poor Africans. The fact he made a donation doesn’t mean its a business investment.</p>