It looks like Concept2, a popular sports equipment company, just put ownership into a Purpose Trust.
As we look toward stepping back from day-to-day operations, we have researched options to preserve the company’s long-held values and mission into the future, including Purpose Trust ownership. With a Purpose Trust as owner, profits are reinvested in the business and also used to fulfill the designated purpose of the Trust. Company profits do not flow to individual shareholders or beneficiaries. And a Purpose Trust can endure in perpetuity.
We are excited to announce we have transferred 100% of Concept2’s ownership to the Concept2 Perpetual Purpose Trust as of January 1, 2025. The Concept2 Perpetual Purpose Trust will direct the management and operations of Concept2 in a manner that maintains continuity. The value we create through our business will be utilized for a greater purpose in serving the Concept2 community. Our vision and mission will carry on in the hands of our talented employee base, and Concept2 will remain the gold standard for providing best in-class products and unmatched customer service. We hope you share in our enthusiasm and will join us on this next phase of our journey as a company.′
I asked Perplexity for other Purchase Trusts, it mentioned that Patagonia is one, plus a few other companies I don’t know of.
My impression is that B-Corps have almost no legal guarantees of public good, and that 501c3s also really have minimal guarantees (if 501c3s fail to live up to their mission, the worst that happens is that they lose their charity and thus tax-deductability status. But this isn’t that bad otherwise).
I imagine that Trusts could be far more restrictive (in a good way). I worked with a company that made Irrevocable Trusts before, I think these might be the structure that would provide the best assurances that we currently have.
It looks like Concept2, a popular sports equipment company, just put ownership into a Purpose Trust.
I asked Perplexity for other Purchase Trusts, it mentioned that Patagonia is one, plus a few other companies I don’t know of.
My impression is that B-Corps have almost no legal guarantees of public good, and that 501c3s also really have minimal guarantees (if 501c3s fail to live up to their mission, the worst that happens is that they lose their charity and thus tax-deductability status. But this isn’t that bad otherwise).
I imagine that Trusts could be far more restrictive (in a good way). I worked with a company that made Irrevocable Trusts before, I think these might be the structure that would provide the best assurances that we currently have.