The “Good Billionaire” Myth: Patagonia, Philanthropy, and Power

6 min readSep 27, 2024

Ah, Yvon Chouinard — Patagonia’s eco-savior, the guy who “gave away” his multi-billion-dollar company to fight climate change. What a saint, right? WRONG. Let’s break this down and cut through the BS.

Here’s the story: in September 2022, Chouinard announces that he’s giving away Patagonia — yes, giving away his $3 billion empire. Headlines scream, “Look at this guy, single-handedly saving the planet!” But dig a little deeper, and what do you find? A masterclass in tax dodging, control, and PR stunts. This is a play straight from the billionaire handbook: make it look like a gift while still keeping all the perks. And people eat it up.

The Donation: Charity or a Tax Evasion Masterpiece?

Chouinard didn’t really give it all away. No, no, no — he handed 98% of Patagonia’s shares to the Holdfast Collective, a 501(c)(4) nonprofit. Now, a 501(c)(4) isn’t just any charity; this baby can dabble in politics and advocacy. The remaining 2%? Well, that’s the voting stock, and surprise, surprise — it’s controlled by the Patagonia Purpose Trust, aka Yvon’s family. In other words, the Chouinard clan still pulls all the strings at Patagonia. It’s like giving away your house but keeping the keys and the guest bedroom.

Here’s the real kicker: by setting up this arrangement, Chouinard dodged a capital gains tax that could’ve cost him upwards of $700 million. And if he had just passed the company to his heirs, there would have been estate taxes up the wazoo. But no, thanks to his legal wizardry, he’s only on the hook for a paltry $17 million in gift taxes. See how the game works? Give a little, save a lot.

Philanthropy as a Power Move

Now, let’s talk about Holdfast Collective. Oh, they’re fighting the good fight, using Patagonia profits to save Mother Earth. But don’t let the warm and fuzzy vibes fool you — this nonprofit can also bankroll political campaigns and push for policies that the Chouinards like. How convenient! While most 501(c)(3) charities are limited in their political activities, a 501(c)(4) can get dirty in the political trenches. So, while Chouinard is hailed as a hero, he’s quietly using his “gift” to make waves in politics.

It’s like when rich folks fund public parks and libraries — oh, how generous! But the real game is that they get to slap their names on the buildings, enjoy tax breaks, and push their personal agendas while you’re just happy to have a new place to read books you can’t afford. Chouinard’s no different — he’s just the environmental version of this old, well-worn tactic.

Billionaire Bingo: Same Old Playbook

Chouinard’s move fits snugly in the billionaires’ playbook. Take Andrew Carnegie, the steel tycoon who coined the term “Gospel of Wealth.” He gave away millions, sure, but his philanthropy was a way to smooth over the fact that his workers were being exploited to build that fortune. Or Sam Walton, founder of Walmart — hailed as the humble small-town guy while Walmart bulldozed mom-and-pop stores across America. Billionaires love to dress up their self-serving schemes as altruism.

Chouinard’s donation is just another version of this act. By giving away the company, he’s hailed as an eco-warrior, but what he’s really doing is preserving his wealth, power, and legacy. Not only did he avoid taxes, but he also ensured that the family remains in charge of Patagonia, all while getting a pat on the back from the media.

The Bigger Picture: How the Rich Keep Winning

The problem isn’t just Yvon Chouinard — it’s the whole system that lets billionaires pull off these stunts. The tax code is written in a way that makes these moves possible. Want to avoid taxes while still holding onto power? No problem! Set up a couple of trusts, sprinkle in a nonprofit, and boom, you’re a “good billionaire.” But here’s the thing: billionaires wielding this much power isn’t good for democracy. When a handful of ultra-rich individuals can dictate policy and fund political movements under the guise of philanthropy, what you’ve got is a rigged system.

The real issue? People believe in this myth of the “good billionaire.” They see someone like Chouinard and think, “Well, maybe not all rich people are bad!” Newsflash: the system that made these people obscenely rich in the first place is the problem. Until we address that, all these so-called charitable acts are just window dressing.

Conclusion: The “Good Billionaire” is a Fairy Tale

Yvon Chouinard’s Patagonia donation is the perfect example of how billionaires use philanthropy to keep their wealth and influence intact while getting society to applaud them. It’s a scam, folks! Sure, fighting climate change is a noble cause, but let’s not pretend this move was all about saving the planet. It was also about saving a fortune.

The real solution? Stop worshiping billionaires and start fixing the systems that allow them to hoard obscene amounts of money and power. We don’t need more “good billionaires” — we need less billionaires, period.

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