Media treats Patagonia charity to children’s gloves

black money

I was interested in a New York Times story about Patagonia founder Yvonne Chouinard so it could dedicate profits to fighting climate change in a sustainable manner. Naturally, as someone who thinks that more billionaires should be using their money to fight climate change, I think such behavior is great. But the more I read the latter comment about how he gave to his company, the more I stopped taking it for granted.

He transferred 98% of Patagonia’s shares to Holdfast Collective (similar to the already-existing-but-not-separate Holdfast Collective that makes military certificates, based on statements on its website), which was referred to as “501(c). ) (4) is designated )” under the US Tax Code and may make unlimited political donations. Meanwhile the family’s voting stock went to the Patagonia Purpose Trust, which will guide the company and ensure it continues to do what it should. The family and/or its nominees will control the Trust, and thus maintain control over the direction and strategy of the Company. But they will no longer own it.

  • Instead of “going in public,” you can say that we are “going on purpose.” Instead of extracting value from nature and turning it into wealth for investors, we will all use the money Patagonia has created to protect the source of wealth,” a statement from Chouinard said.
  • “I was listed in Forbes magazine as a billionaire, which really, really pissed me off,” he told the New York Times. “I don’t have $1 billion in the bank. I don’t drive a Lexus.”

The article was remarkably generous about the plan and treated Chouinard as a national treasure as a whole, but I was struck by one aspect that the Chouinard family would pay only $17.5 million in tax on gifts, which would be so. Doesn’t seem like much for a transaction of about $3 billion. I wasn’t the only person to notice this little wrinkle.

Law professor Daniel Hemel pointed out that gifts of this nature would attract a $1.2 billion tax bill if given to a purpose rather than a purpose-made entity, and compared the structure of the deal to that of Republican donor Barre Seid. , Joe also gave his company a 501(c)(4), and thus avoided a large tax bill on his unrealized capital gains. The seed money went to the Marble Freedom Trust, which is run by a co-president of the Federalist Society. But he did not find liberal writings in progressive publications. Quite the opposite.

  • “MPs should reform our charitable giving laws to ensure that public philanthropy is not abused either to avoid excessive taxation or to advance individual political purposes,” reads this blog post on inequality. demanded. org, “The Essence of Dark Money,” with Crosshead, “When Seed Gives His Grant.
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There was no such resentment about Chouinard doing more or less the same thing. Conservative writers have enjoyed exposing the apparent hypocrisy in the different treatments for two philanthropic gifts—one from a progressive billionaire, and one from a conservative.

  • “What can we conclude from this regrettable episode? The value of altruism, for The New York Times, is closely tied to the purpose of the gift. If the purpose is “bad”, such as the support of a more conservative approach to jurisprudence do, then the donor is a grifter receiving an unwanted “tax break” for his contribution. If the objective is “good,” such as supporting the fight against climate change, who cares whether the capital gains Was the gift increased by evading tax? asks this piece on Philanthropy Daily.

And I can’t help agreeing with them.

  • “What Chouinard is doing in terms of climate advocacy – they’re trying to save the planet. So, if I were them, I think I’d be just as generous and do the same thing. So I don’t mean to criticize them. I actually think they’d probably use the money better if they went to the federal government and some of it went to fossil fuel subsidies. But not everyone has a built-in tax system to be like Chouinard wants,” said Professor Hemel.

Philanthropy is good, but democracy is better.

boats

I am very grateful to everyone who writes about my newsletters with ideas, so apologies to James who points out that it is wrong to put “the” in front of ships’ names (besides, apparently, crosses). -Channel Ferry) I did last week. If ever I’m invited to dine on an elite class yacht—which is not a possibility—I at least now won’t unintentionally humiliate myself. There certainly remains a chance that I will deliberately discredit myself, but it is a risk I am prepared to take.

Thanks also to Tom, who turned my attention to the fate of Roman Abramovich’s yachts, which are worth a combined $1.2 billion, but which I left out of last week’s round-up. Two yachts – Halo (57m) and Garacon (67m), both owned by BVI-registered Wenham Overseas Ltd. – were frozen in Antigua in March, but were released when Antiguan courts felt that jurisdiction There is no restriction law.

  • Halo’s interior design can be described as both “contemporary” and “futuristic” and is the first superyacht project by design studio Benardi Pescard. Accommodation is for a total of 12 guests in six cabins, with a main deck being the owner’s. Includes its own private office, a VIP cabin on the bridge deck and four convertible king-sized guest cabins on the main deck,” it says here.
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Solaris (140m) and Eclipse (162m!!) both survived the blocking, and now all four are swimming safely in Turkish waters where they are not in danger of being disturbed. I’m a little stunned at the prospect of someone owning four superyachts, especially since I’ve just realized that Abramovich can tie them all up in a circle and – with some careful preparation – make them look like a running track. in use, as their combined length is slightly over 400 meters. This also means that, overall, they are longer than the longest vessel in existence.

Turkey has become the go-to destination for Russian oligarchs to keep their boats safe from intermediary Westerners, thanks to the traditional policy of its government to be friends with anyone willing to give it money. A key component of this is Turkey’s willingness to sell passports with less diligence than Antigua in return for a mere $400,000 investment in real estate, which is less than any self-respecting elite who can afford to rent one of their yachts. can earn from one week.

Recep Tayyip Erdogan, in a remarkable display of determination to play both sides against the middle and against who would bet on it, this week announced Turkey’s desire for Turkey to join the China-led Shanghai Cooperation Organization , despite being a member of NATO. It’s like joining the GRU while working for the CIA, and it’s hard to see how that could work despite some notable fence-sitting in the Turkish president’s public proclamations.

  • “Judy, we have to see what it is. Not only are Ukrainians dying, but there are a lot of people killed on the Russian side as well,” he told PBS journalist Judy Woodruff in an interview with whataboutist wonders of that nature For example, what he wants to say about the man he calls “my dear friend Putin” and what he has to say about Sweden, which is clearly the “cradle of terrorism”.

However, Erdogan’s friendly policy to Putin may eventually be with him. Last week the US Treasury approved the chief executive of Russia’s National Payment Card System, which runs Mir, a Russian payment processor founded in 2014 as an alternative to Visa or MasterCard. The Office of Foreign Assets Control sent some well-aimed shots at the bow of the good ship Erdogan.

  • “Non-US financial institutions that enter into new or expanded agreements with the NSPK support Russia’s efforts to avoid US sanctions through expanded use of the MIR national payment system outside the territory of the Russian Federation … OFAC is prepared to use these targeting authorizations to respond to supporters of Russia’s evasion of sanctions, including Russia’s efforts to expand use of the NSPK or MIR national payment system outside the territory of the Russian Federation,” it said.
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Turkey’s Obank, which is privately owned, and Denizbank, which operates in Turkey but is owned by the government of Dubai, all moved quickly to suspend Mir operations. Three state-owned banks VakifBank, Zirat Bank and Hulkbank still accept the card, which is bold considering the consequences of being approved by OFAC. Perhaps they are relying on the fact that the US government would not want to sanction government-owned entities of a member of NATO, even if its president runs side by side with Vladimir Putin. This is not a bet, although, to be honest, I want to bet my own economy.

On a thought, Mr. Erdogan wants people to stop calling his country Turkish and start calling it Turkish, which has usefully taught me how to do an umlaut on my computer (hold down ‘option’, then ‘u’) ‘ and then the letter you want).

However, I am determined to improve my command of the language. Therefore, in any yacht chat next week, I will not only avoid the definite article regarding the names of ships, but also mention sanctions-dodging in Turkey instead of Turkey. Maybe this will be okay.

what am i reading

I continue my journey into the world of money laundering, and thus continue reading Willful Blindness, How a Network of Narcos, Tycoons, and CCP Agents Infiltrated the West by Sam Cooper, a ritual of untold billions of Chinese and Interesting look. -Original property purchased real estate, influence and luxury goods on Canada’s Pacific Coast. I’m looking forward to moving to Vancouver at the end of the year, so if there’s anyone in British Columbia who wants to talk to me about how the local criminal economy works, please drop me a line.

Tracking how the super rich are changing the world for the rest of us

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