When the news broke that the billionaire founder of Patagonia was transferring the company—and with it a huge portion of his family's personal wealth—into a charitable trust, even a cynic would be hard-pressed to object to his actions. After all, the gift constituted a voluntary renunciation of billions of dollars of private wealth and a commitment to devoting these funds to the worthy public purpose of responding to the global threat of climate change.
New York Times coverage in the Dealbook newsletter though offered an alternative perspective. Prof. Ray Madoff of Boston College Law School points out that such massive transfers of wealth into charitable trust also enable the family to dodge a billion dollar tax bill: which would have greeted them if they had left the company by will to their heirs.