The non-profit that receives Patagonia’s profits after its 2022 restructuring is the Holdfast Collective.
In September 2022, founder Yvon Chouinard and his family transferred Patagonia’s ownership to two entities. The Patagonia Purpose Trust received all voting stock, while the Holdfast Collective received all nonvoting stock—about 98% of the company.
The arrangement did not mean every dollar of revenue goes straight to charity. Patagonia first uses money to operate and reinvest in the business, including preparing for unforeseen events. Excess profits are then distributed as dividends to the Holdfast Collective, a 501(c)(4) social-welfare organization that supports environmental and climate-related work.
A common mix-up is confusing the Holdfast Collective with the Patagonia Purpose Trust. The trust protects Patagonia’s mission and controls voting decisions; the Collective is the entity designed to receive and deploy the company’s non-reinvested profits. Patagonia’s earlier “1% for the Planet” commitment is a separate initiative.