{"id":220233,"date":"2022-09-26T12:00:39","date_gmt":"2022-09-26T11:00:39","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=220233"},"modified":"2022-09-25T03:22:51","modified_gmt":"2022-09-25T02:22:51","slug":"experts-see-the-hidden-downside-for-democracy-in-the-patagonia-sale","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2022\/09\/experts-see-the-hidden-downside-for-democracy-in-the-patagonia-sale\/","title":{"rendered":"Experts See the Hidden Downside for Democracy in the Patagonia Sale"},"content":{"rendered":"

There’s a worrying detail in Yvon Chouinard’s recent sale of outdoor retail giant Patagonia.<\/em><\/p><\/blockquote>\n

\"\"<\/a>

Ajay Suresh\/wikimedia commons<\/p><\/div>\n

21 Sep 2022 – <\/em>In making planet Earth Patagonia\u2019s \u201conly shareholder,\u201d founder Yvon Chouinard has exchanged considerable personal fortune for substantial political power\u2014an outcome that is good for environment, but could be detrimental for democracy, say experts of philanthropy and tax law.<\/p>\n

\n

There\u2019s cause to celebrate but also, potentially, to worry about the \u201cunorthodox arrangement\u201d through which Chouinard and his family transferred their stake in the US$3-billion outdoor apparel company to two entities: the Patagonia Purpose Trust and the Holdfast Collective, says<\/a> Inside Philanthropy senior editor Philip Rojc.<\/p>\n

Chouinard\u2019s intention to give lots of money\u2014US$100 million annually, should Patagonia continue to thrive\u2014to those \u201cactively working on saving this planet\u201d as he put it, is important, since the climate crisis is \u201cpretty much the paramount global problem of our times,\u201d says Rojc. And Patagonia\u2019s environmental street cred is already strong, with the company supporting grassroots groups \u201crather than dumping money into big, corporate-friendly NGOs.\u201d<\/p>\n

And it\u2019s another positive that a 501(c)(4) social welfare organization, the Holdfast Collective, will be able to fund lobbying efforts, since \u201cwhere climate is concerned, policy and politics is a key battleground.\u201d<\/p>\n

But therein lies part of the rub. \u201cThe new organization\u2019s 501(c)(4) designation holds fewer restrictions on political activity and advocacy spending,\u201d Rojc writes. \u201cAn influx of hundreds of millions into the environmental arena will make serious waves, but we\u2019ve been left to speculate for now exactly what kind of philanthropic and lobbying activity this money will boost.\u201d<\/p>\n

Any massive cash injection by a private citizen into the political realm is very bad news\u2014whatever cause it serves, said Matthew Nisbet, a communication and public policy professor at Northeastern University.<\/p>\n

The Holdfast Collective appears to be yet another stage in an \u201cescalating zero-sum political arms race,\u201d Nisbet told<\/a> Grist, likening the Collective to the National Rifle Association.<\/p>\n

\u201cNow that they\u2019ve invented this [model] and introduced it to the marketplace for politically motivated billionaires, regardless of their background, everyone\u2019s going to do it.\u201d<\/p>\n

Rojc too is concerned about the precedent-setting nature of Chouinard\u2019s move. \u201cAlthough Chouinard gave away his fortune in an irrevocable way, he didn\u2019t necessarily give up his power,\u201d he says. \u201cOne could argue that by priming his fortune for use in policy fights\u2014noble as Holdfast\u2019s positions in those fights may be\u2014Chouinard has reinforced and cemented his influence to the tune of $100 million a year.\u201d<\/p>\n

While there are steps a donor can take to give away that much money in a way that also gives away power, he adds, \u201cwe\u2019ll see if the family takes them.\u201d<\/p>\n

Rejecting charges that Patagonia\u2019s new arrangement lacks transparency and \u201cwill fuel untraceable funds,\u201d company spokesperson Corley Kenna told Grist that \u201cYvon Chouinard, the Chouinard family, and the Holdfast Collective is not an extension of a political party.\u201d<\/p>\n

\u201cWhat we\u2019re talking about here is a family that is committed to addressing the existential crises facing our planet.\u201d<\/p>\n

Go to Original – theenergymix.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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