On Nov. 17, 2022, Partner Alexander Reid was quoted in a Law360 Tax Authority analysis titled “Benefits of Patagonia Donation Model Could Draw Followers.”
The founder of outdoor apparel company Patagonia recently transferred all of his and his family’s voting stock to a trust and their nonvoting stock to a nonprofit organization. This contrasts with the approach taken by Newman’s Own after the death of Paul Newman. Newman’s Own transferred the entire ownership of its business to a private foundation.
Reid told Law360 that it makes sense for a company to follow the Newman’s Own model following a death, “while the Patagonia model is more attractive for gifts during life,” particularly when a company owner wants to stay involved in the business and take part in political activity.
Read the article.