Ross: Is Patagonia's sale to a non-profit shameless exploitation of a tax loophole?

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Recently, the owner of Patagonia announced he would donate the whole company to a new non-profit organization that he set up. And this organization will collect and spend the company’s profits – on “social welfare.”

Axios reported that Patagonia was the second company in the past year to do this – the other being Tripp Lite, which makes electrical devices, and was also donated to a non-profit set up by its owner, a transaction that was also tax-free.

This is all completely legal under the IRS rules which grant tax exemptions to “Social Welfare Organizations.”Well, according to the IRS, these non-profit social welfare organizations must, “further the common good and general welfare of the people of the community.”Axios clearly suspects that these new social welfare organizations are going to be knee-deep in lobbying. Patagonia on the left, and Tripp Lite on the right.

These profit-funded non-profits could remove graffiti, powerwash the sidewalks, build sterilized and supervised public bathrooms – and we would reward them by purchasing their products, and posting hearts on Twitter., you should be free to boycott their products. Especially if they choose to spend their social welfare budgets on political lobbying because that’s just using their untaxed wealth to shell each other while the problems go unsolved.go around themPay for daily graffiti removal. Build permanently-affordable housing on private land. Provide detox on demand. I would postmany Twitter hearts! But if you’re in it just for the fight – I’m not buying your stuff anymore. No matter how comfortable your briefs are.

Listen to Seattle’s Morning News with Dave Ross and Colleen O’Brien weekday mornings from 5 – 9 a.m. on KIRO Newsradio, 97.3 FM. Subscribe to the

 

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