What Happens When a Company (Like Patagonia) Transfers Ownership to a Nonprofit?

Patagonia’s move follows other American companies that have undergone a similar transformation in ownership structure. For instance, the family-owned, Pennsylvania-based construction firm High Industries, which had revenues of $570 million in 2021, announced earlier this year that their eponymouswould assume control and ownership. A few years ago, such arrangements would have been impossible; a 1969 tax-reform law limited foundation ownership in corporations to 20%.

Firstly, despite claims that firms will flounder without human owners and “market discipline,” foundation-owned firms have similar financial performance compared with their investor-owned counterparts. Danish corporate governancethe benefits of this ownership structure: Foundation-owned firms have more stable growth, are less volatile during crises, invest more in R&D, and have a longer lifespan compared with conventionally owned firms.The second insight concerns philanthropy.

There's a tax deduction there somewhere

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Patagonia CEO: Why business leaders should make it easier for employees to vote | CNNWhile new barriers to voting emerge at the state level, and Congress drags its feet on passing voting reform legislation, business leaders have an important role to play in protecting our democracy, writes Ryan Gellert. I thought more people voted in the last presidential election than ever before? It hasn’t, this statement is completely unfounded. It’s just as easy to vote as it’s ever been. Easier actually. Garbage. It takes 10 minutes
Source: CNN - 🏆 4. / 95 Read more »