Patagonia’s $3 billion corporate gift is also a convenient way to avoid taxes

Yvon Chouinard, who started Patagonia in 1973 and turned it into an iconic $3 billion outdoor apparel empire, just gave away almost all of the private stock in the family-owned company to a nonprofit that will use the proceeds to fight climate change.

It’s a masterful bit of corporate maneuvering that will allow his family to effectively maintain control of Patagonia, direct billions toward climate advocacy—and almost entirely avoid taxes in the process.

Most of Patagonia’s shares—98%—are going to a nonprofit, meaning that Chouinard will not have to pay taxes on that gift.