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Generally each person contributes assets and share risks.
The donor contributes assets to a partnership, becoming the general partner and keeping at least 1% of the limited partnership shares.
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All three companies will contribute assets including patents, software, cash, people and capital equipment.
Baker explains that although AOL contributed assets, it doesn't govern any part of the foundation.
Here's how it worked: The government contributed assets to a partnership that was financed by a private investor.
Despite the 50-50 ownership, AT&T would contribute $2 billion worth of assets to the new venture, while British Telecom would contribute assets worth only $1.4 billion.
Spyglass, which is controlled by Mr. Barber and Mr. Birnbaum, is a film production and financing company that is contributing assets to the restructured MGM.
"Whenever you contribute assets to a charitable entity and claim a tax deduction for having done so, you imbue the public with an interest in these assets," he said.
Both deals were structured as partnerships, with Tribune contributing assets – Newsday in one deal, the Cubs in the other – in exchange for cash payouts and a small percentage of each partnership.
It has a 100% undivided interest in the Contributed Assets.
In return for the contributed assets, Mr. Saunders and Mrs. Saunders receive small general partnership interests (1% for each of them; 2% total) as well as limited partnership interests (49% for each of them; 98% total) for the aforementioned contributed assets.
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CEO of Professional Science Editing for Scientists @ prosciediting.com