Patagonia’s founder recently announced that after 50 years, he is donating the business to organizations supporting climate change mitigation. Yvon Chouinard, 83, said in a statement that rather than selling Patagonia, which is estimated to be worth $3 billion, his family has chosen to transfer it.
According to the Washington Examiner, the company will go to public trusts and nonprofit organizations created to ensure that all revenue that is not reinvested into the business is channeled into combating climate change and protecting the environment. Patagonia expects its yearly revenues to be over $100 million, and the contributions may dramatically enhance the amount of money available to environmental activists.
Chouinard discussed his family’s choice to create the Holdfast Collective and the Patagonia Purpose Trust as the beneficiaries of the company’s revenues. The Holdfast Collective is a 501(c)(4) nonprofit organization permitted to support political candidates and issues. He explained on the company’s website, “One option was to sell Patagonia and donate all the money. But we couldn’t be sure a new owner would maintain our values or keep our team of people around the world employed.” He added, “Truth be told, there were no good options available. So, we created our own.”